Mitratel Acquires 803 Towers and 967 Km of Fiber Infrastructure, Expanding Presence in Indonesia

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.