Report

New Street: Indonesian Mobile Improvements continue, stay positive; Q3 21 review

Q3 was again a good quarter overall for the Indonesian telco market with both service revenues and EBITDA trends improving on the mobile side. We remain positive on this space and our preferred pick remains PT Telkom.
Underlyings
PROFESIONAL TELEKOMUNIKASI INDONESIA PT

PT Sarana Menara Nusantara Tbk

Sarana Menara Nusantara Tbk PT. PT Sarana Menara Nusantara Tbk is an Indonesia-based company engaged in telecommunications infrastructure industry. The Company owns and operates tower sites and repeater sites for lease to wireless communications companies in Indonesia through its subsidiary, PT Profesional Telekomunikasi Indonesia (Protelindo). As of December 31, 2011, Protelindo owned and operated 6,363 tower sites (6,325 tower sites and 38 indoor repeater sites) located all over Indonesia, with its concentration of tower sites in Java, Sumatra, Sulawesi and Kalimantan.

PT Tower Bersama Infrastructure Tbk

PT Tower Bersama Infrastructure is engaged in leasing space for antennas and other equipment for wireless signal transmission at tower sites and shelter-only sites under long-term lease agreements with telecommunication operators. Co. also provides telecommunication operators with access to its Distributed Antennae System (DAS) networks in shopping malls and office buildings in major urban areas. As of Dec 31 2014, Co. had 11,820 telecommunication sites, which comprised of 10,825 telecommunication towers, 941 shelter-only sites, and 54 DAS networks.

PT XL Axiata Tbk

PT XL Axiata Tbk is a cellular provider in Indonesia. Co. maintains its extensive network infrastructure and services around the country. Co. provides services for retail customers and offers business solutions to corporate customers. Co.'s cellular network runs on 'GSM 900/DCS 1800' and 'IMT-2000/3G' technologies. Co. also holds several licenses, including closed regular network (leased line), Internet service provider (ISP), Voice over Internet protocol (VoIP), and Internet interconnection services (NAP). Co. has obtained an e-Money (electronic money) license from Bank Indonesia, the country's central bank, which enables Co. to provide remittance services to subscribers.

Provider
New Street Research
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Analysts
Chris Hoare

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