Indonesia's second-largest telecommunications company, PT Indosat Tbk, plans lower capital expenditure next year as it has completed most of its network expansion, an Indonesian daily reported on July 06. The newly appointed president director of the company, Hasnul Suhaimi was quoted by Bisnis Indonesia as saying the company planned capital expenditures of only 666 million dollars next year, compared with 900 million dollars this year.
"This is because our plans to expand (our) coverage have been completed this year. Therefore next year we would only focus ourselves on increasing the existing capacity," Suhaimi said. He said Indosat, 42 percent owned by Singapore's ST Telemedia, controls between 32 and 33 percent of the national mobile phone market.
Wahid Sutopo, a spokesman for the company, confirmed the report. By the end of May, Indosat had 12 million subscribers, compared with its largest rival Telkomsel which had around 20 million.
Telkomsel, which controls more than half of the mobile phone market, is the largest mobile phone company in Indonesia, the world's fourth most populous nation with 220 million people.
State-owned PT Telekomunikasi Indonesia Tbk, the largest telecommunications company, controls 65 percent of Telkomsel with Singapore Telecommunications Ltd owning the rest.
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