Telekomunikasi Indonesia (Telkom) has revealed that it is to stop marketing its Flexi CDMA-based fixed wireless services and transfer users to its mobile subsidiary Telkomsel. The Jakarta Post quotes Telkom executive Indra Utoyo as saying: ‘We will gradually consolidate Flexi’s business into that of Telkomsel and migrate the customers. New Flexi customers are not part of our focus.’ A time-frame for the migration has not been given.
Telkom is looking to re-use its 850MHz wireless spectrum to supplement its GSM mobile networks. Utoyo commented: ‘We have gained approval from the Communications and Information Ministry to conduct a trial and will begin in Papua.’ Telkom had 6.77 million fixed wireless subscribers at the end of 2013, down 62.1% year-on-year, with average revenue per user (ARPU) dropping by 3.6% y-o-y to IDR8,000 (USD0.70) a month. Rival operator PT Indosat is also considering dropping its CDMA-based fixed wireless business in favour of GSM, although it has not confirmed its plans publicly.
Separately, Utoyo revealed that Telekom is expecting to make a decision on the future of its mobile tower business, Daya Mitra Telekomunikasi (Mitratel), in the third quarter of this year. The unit operates 4,000 towers on behalf of Telkomsel, but Telkom is looking to offload it to concentrate on its core service-provision business. Options for Mitratel include a share sale, a merger with another player or an IPO.