PT XL Axiata Tbk plans to sell most of its telecommunications towers (or base transceiver stations). According to Kontan, The “emiten” (the company that issues stocks to be sold to the public 1) with EXCL coded stock will sell 8,000 towers which value of approximately Rp14 trillion (over $1 billion). EXCL now own 10,000 towers. If the asset sales plan goes ahead, EXCL will be left only with 2,000 towers.
EXCL Director, Hasnul Suhaimi explained that his company plans to hire back the towers after being sold to another party. The goal here is to reduce operating costs and the maintenance of the towers.
According to Hasnul, to rent one of the towers, EXCL only needs to pay from Rp11 million to Rp15 million (over $1,100 to $1,500) per year. Usually the contract is for a period of 10 years. So, in one year, the company would spend around Rp120 billion (over $12 million) to hire about 8,000 towers.
Referring financial reports from this past June, EXCL has the burden of Rp392.61 billion (over $40 million) for repair and maintenance of network infrastructure. There is also Rp 14.27 billion (over $1.4 million) for the repair and maintenance of non-network infrastructure.
Source: Kontan.co.id
- An Indonesian word, which comes from Dutch.
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