Report

New Street: Indonesian Towers: Stay bullish despite rally and potential telco consolidation

Given the sharp rally in share prices, and reported consolidation we have received a number of questions on whether it is time to move to the sidelines on Indonesian towers.
Underlyings
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 Telkom Indonesia (Persero) Tbk Class B

P.T. Telekomunikasi Indonesia is a telecommunication service and network provision group based in Indonesia. Co. serves millions of customers throughout Indonesia with a complete range of telecommunications services that include fixed wireline and fixed wireless telephone connections, cellular services, network and interconnection services, as well as internet and data communication services. Co. also provides services in information, media and edutainment, including cloud-based and server-based managed services, e-Payment and IT enabler services, Pay TV, as well as e-Commerce and other portal services. Co. operations are organzied along four segments: Corporate, Home, Personal and others.

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
New Street Research

Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

  • Pan European Telecom Services and Cable
  • US Telecoms, Cable, Satellite and Towers
  • Global Emerging Market Telecoms
  • Japan Telecoms
  • Asian Internet
  • Pan European Healthcare
  • Global healthcare thematic research

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  • Pan European Telecom Services and Cable


Analysts
Chris Hoare

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