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View all search resultsTelkomsel aims steady growth amid additional subscribers
Cell phone operator PT Telkomsel will maintain its revenue growth at 10 percent in spite of potential additional income from the migration of Telkom Flexi subscribers to the country's largest cellular operator
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ell phone operator PT Telkomsel will maintain its revenue growth at 10 percent in spite of potential additional income from the migration of Telkom Flexi subscribers to the country's largest cellular operator.
Telkomsel finance director Heri Supriadi said on Wednesday that the company would maintain the growth percentage until the end of the year although all Telkom Flexi subscribers would switch to Telkomsel.
State-run PT Telekomunikasi Indonesia (Telkom) ended its CDMA (code division multi access)-based cellular service Telkom Flexi due to a declining number of subscribers. All existing Telkom Flexi subscribers will then migrate to the GSM-based service operated by Telkomsel, another subsidiary of PT Telkom.
'We estimate that Flexi's contribution to our total revenue will be very small, no more than 5 percent, which is equal to our monthly income of just Rp 5.6 trillion [US456.9 million],' he said.
The average revenue per users (ARPU) from Flexi service in the first half of this year reached Rp 17,000 per month, 143 percent up from the same period last year, according to a financial report from Telkom.
Flexi's total subscriptions, meanwhile, fell by 73.6 percent to 4.1 million in the January-June period this year from 15.5 million during the same period last year.
Telkom has signed a deal with Telkomsel to handover the operation of Flexi to the latter. Under the deal, Telkomsel paid a Rp 707 billion down payment to Telkom on Wednesday.
The value is equal to 25 percent of the total considered value, or Rp 2.8 trillion, that Telkom has to receive before end of this year.
Telkomsel's Heri said that his firm would use its internal cash to pay the remaining Rp 2.1 trillion to Telkom.
- Telkom ends its CDMA-based services due to declining number of subscribers
- Flexi subscribers will migrate to Telkomsel
- Telkomsel will enjoy the frequency spectrum
'The advantage that we get from operating Flexi is that we get its frequency spectrum,' he said.
Telkomsel sales director Masud Khamid said that his firm targeted to finish the migration of Flexi subscribers by the end of this year, in which Flexi subscribers would be offered to use either 'As Flexi' or 'Halo Flexi'.
Masud said he was upbeat that his firm would be able to meet its target pocket Rp 66 trillion in revenue this year, up from Rp 60 trillion last year, particularly with the growing number of its subscriptions.
'We have 138 million subscriptions as of the third quarter this year, already surpassing our target of
137 million subscriptions this year,' he said.
From the total subscriptions, 500,000 were from corporate clients, he said.
Besides expanding the total number of subscriptions from end users, Telkomsel is currently also boosting its presence for corporate users.
On Wednesday, Telkomsel inked a deal with publicly listed lender PermataBank to provide cash management and corporate business solutions for the lender.
Masud said he expected there would be around 8,000 more Telkomsel subscriptions from the deal.
Telkomsel, which is the country's largest cell phone operator, booked Rp 60 trillion in revenue and Rp 17.3 trillion in net income last year.
The firm's total assets increase by 23.81 percent to Rp 73.3 trillion last year from Rp 59.2 trillion in 2009.
