Mitratel and Tower Bersama Merger Rumour: Impact on the Industry
Jakarta, CNBC Indonesia - PT Dayamitra Telekomunikasi Tbk (Mitratel) has recently been reported to be planning a merger with PT Tower Bersama Infrastructure Tbk (TBIG). Mastel chairman Sarwoto Atmosutarno said the merger is a consequence of consolidation in the mobile industry.
He said the number of base transceiver station (BTS) towers will follow the number of operators. When operators decrease, so will the towers.
“When telecoms consolidate, the tower business automatically consolidates as well. It’s natural,” Sarwoto told CNBC Indonesia.
“Tower and power businesses are location-based and have many passive components. When operators decrease, the number of towers automatically decreases,” he added.
Meanwhile, Sarwoto also advised the tower industry to transform. Not only to become providers of passive infrastructure, but also to become managers of active infrastructure.
He suggested expanding the product portfolio of tower companies by providing a broader and more complete ecosystem.
“We advise tower business players to consolidate as well. Not only providing tower and power businesses, but also preparing inter-tower connectivity businesses such as fibre optic and other radio links,” Sarwoto said.
One option is to expand into fibre optic networks and BTS service management.
Previously, Mitratel and Tower Bersama were reported to be planning a merger. Mitratel has also reportedly asked advisers to submit a plan for the possible merger.
Similar news was heard in 2015. However, the transaction did not proceed after failing to obtain further approval.
PT Telkom Indonesia (Persero) Tbk stated that Mitratel conducts periodic evaluations of strategic options for business development and long-term value creation. However, there was no further confirmation regarding the news.
“Regarding the specific information, the company is currently unable to provide further comment,” said Telkom SVP Group Sustainability & Corporate Communication Ahmad Reza.