Telkom Indonesia increases focus on broadband to drive growth

11 Aug 2014

State owned Telekomunikasi Indonesia (Telkom) has said it plans to increase its focus on its ongoing broadband network expansion this year, to keep fiscal growth for 2014 ‘within the industry average’. The Jakarta Post quotes Telkom financial director Honesti Basyir as saying that the carrier is aiming for 6%-7% growth in FY2014, although it forecasts that growth at its mobile arm Telkomsel will fall slightly to 8%, primarily as a result of market saturation. Telkomsel is Telkom’s single largest contributor of revenue, accounting for IDR60 trillion (USD5.24 billion), or 72.3%, of total turnover of IDR83 trillion in FY2014. In recent years the mobile division’s revenue has been growing at around 10.1% year-on-year, compared to the group’s more modest 7.5% annual rise.

Honesti says that Telkom aims to reach its revenue target by boosting overall broadband growth by ‘double digits’ in 2014, through improving both its fixed and mobile broadband network infrastructure. With revenue from Data, Internet and IT Services growing by 14.8% y-o-y to IDR31.7 trillion last year – compared to 4.6% growth in mobile voice services – the official says that Tekomsel is adding around 1,000 new base transceiver stations (BTS) every month to meet demand for data. ‘Overall, approximately 70% of the new transceivers support 3G technology, with the remaining supporting 2G,’ he said. At end-2013 Telkomsel presided over a network of 69,864 BTS, up 28.7% in twelve months, of which 38.7% were 3G-enabled (28.4% at end-2012).

In the fixed broadband arena, Telkom is expanding its fibre-optic network and aims to have 75,000km installed by 2015. The operator closed out 2013 with around 68,500km of fibre-optic cable and plans to deploy between 3,000km and 5,000km this year.

Indonesia, Telkom Indonesia, Telkomsel (Telekomunikasi Selular)