Singtel to deepen reach in ID fixed broadband market

Photo credit: tang90246 / 123rf

Telkomsel, an Indonesian telco firm of which Singtel holds a 35% stake, will merge with IndiHome, the largest fixed broadband service provider in Indonesia.

This development comes as Singtel aims to further its reach in Indonesia, one of the world’s fastest-growing fixed broadband markets, according to the company’s statement.

IndiHome, which has about 75% of the broadband market share in Indonesia, and Telkomsel, are under the same parent company, which is Telkom Group.

The merger will result in a combined entity worth 58.3 trillion rupiah (around US$4 billion), Singtel said.

“We believe this is a rare opportunity for Telkomsel to tap into the high-growth fixed broadband market in Indonesia by partnering with the country’s largest broadband operator, which is profitable and cash generating,” said Yuen Kuan Moon, Group CEO of Singtel.

The integration is expected to be completed in the third quarter of this year.

Currency converted from Indonesian rupiah to US dollar: US$1 = 14,932 rupiah.

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