Telkom welcomes SingTel's entry to wireless unit<\/p>\n
Tantri Yuliandini, The Jakarta Post, Jakarta<\/p>\n
State-owned telecommunications company PT Telkom said that the
\nentry of Singapore Telecommunications Ltd. (SingTel) as a
\nstrategic partner in cellular company PT Telkomsel marked
\nanother step forward for Telkom in the restructuring of its
\nwireless interests.<\/p>\n
Telkom said in a statement on Thursday that the company would
\nnow move forward with its plan to combine Telkom's cellular
\nservices, called Telkom Mobile, with Telkomsel.<\/p>\n
\"With SingTel's technological and commercial expertise ... we
\nbelieve that through our partnership Telkomsel will be better
\npositioned to construct the most advanced wireless networks in
\nthe country,\" Telkom's president Mohammad Nazif said.<\/p>\n
SingTel signed a definitive agreement on Wednesday with KPN
\nMobile BV to purchase KPN's 22.3 percent stake in Telkomsel for a
\ncash consideration of US$602 million.<\/p>\n
SingTel said that the company would pay for the sale from
\nborrowings.<\/p>\n
With the purchase, SingTel replaces KPN as Telkom's strategic
\npartner in Telkomsel and assumes the rights and responsibilities
\nunder the shareholders' agreement previously held by KPN.<\/p>\n
SingTel said in a statement that it would also be assuming the
\nliability for commitments made by KPN, under a technical
\nassistance agreement with Telkomsel, for an amount of $25
\nmillion.<\/p>\n
Telkom also said that it was in discussions with SingTel over
\na possible purchase of additional Telkom shares in Telkomsel.
\nTelkom currently owns 77.7 percent of Telkomsel.<\/p>\n
Telkomsel currently has the largest number of cellular
\nsubscribers in the country with more than 2.5 million customers
\nsigned up.<\/p>\n
The company has targeted a total of 3 million subscribers by
\nthe end of the year.<\/p>\n
\"International investments are integral to SingTel's goal of
\nbecoming the leading communications service provider in the Asia
\nPacific region. Indonesia, with its vast market, is central to
\nour plans for the region,\" SingTel's president and CEO Lee Hsien
\nYang said.<\/p>\n
He said that although Indonesia had a weak economic
\nenvironment, its mobile market had displayed strong resilience,
\ngrowing by 82 percent a year over the last two and a half years.<\/p>\n
\"With just over 4.6 million mobile users in Indonesia, we
\nbelieve there is significant room for further growth,\" Lee said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/telkom-welcomes-singtels-entry-to-wireless-unit-1447893297",
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"sponsor": "Okusi Associates",
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