Telkom Indonesia's telecom tower subsidiary, Dayamitra Telekomunikasi (Mitratel), announced yesterday that it had acquired 803 towers from the local telecom infrastructure company Gametraco Tunggal for IDR 1.75 trillion. The company noted that with this acquisition, the number of MTEL (Mitratel) tenants increased by 1,327.
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Tower Acquisition from Gametraco Tunggal
MTEL said of the 803 acquired towers, 562 towers (70 percent) are located outside Java Island, while the remaining 241 towers (30 percent) are situated on Java Island. The company emphasised its commitment to becoming a strategic partner in the telecommunications industry through this expansion throughout Indonesia.
Focus on Market Expansion
"Expanding market share outside Java Island has become a strategic agenda for several telecommunication operators. The expansion aligns with the increasing internet needs in various regions and the evenness of economic growth. As the main player in this business and part of BUMN, we must be at the forefront in helping their expansion," said Mitratel.
"We believe that the future business landscape of the telecommunications industry will be marked by the divestment of towers and optical fibre belonging to the MNO industry. They do this to focus more on product innovation that provides added value and fulfils consumer needs. This change presents an opportunity for Mitratel to become a strategic partner and grow with them," Mitratel added.
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Value of Tower Acquisition
Mitratel explained that the purchase of 803 towers is strategically valuable not only because of the towers' locations outside Java Island but also because of the addition of 1,327 new tenants.
"In addition to strengthening Mitratel as a tower provider that reaches all regions of Indonesia, this acquisition also increases the tenancy ratio," the company said.
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Fiber Acquisition from Power Telecom
In another related development, MTEL or Mitratel also announced the acquisition of 967.1 kilometres of fibre infrastructure assets from Power Telecom, with 1,144.7 kilometres of billable length.
This acquisition completes the tower business portfolio with a billable ratio of 1.18x. The company said all optical networks involved in this transaction are on the island of Java. To complete this transaction, the company allocated IDR 85 billion from internal funds.
Q3 2023 Performance Report
According to the Q3 2023 Performance report, MTEL recorded ownership of 37,091 towers, a 5.8 percent increase compared to the same period last year. Additionally, Mitratel extended the optical fibre from 5,872 kilometres to 29,042 kilometres.
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Future Plans
Furthermore, the company plans to continue adding assets, both in the form of towers and fibre, which includes acquiring assets divested by telecommunications operators. In an earlier development, at the end of September 2023, MTEL completed the purchase of towers, the majority of which are located on the island of Sumatra, according to the official statement.
