Telekomunikasi Indonesia, the nation’s
biggest telecommunication company, has won a tender to manage Myanmar’s
international networks.
“The trust given by the Myanmar
government is the result of our team’s hard work on the ground in
Myanmar. This will be an opportunity to show Telkom can be aligned with
other big international operators,” Arief Yahya, president director of
state-controlled Telkom, said in a statement on Friday.
Telkom has been tasked with modernizing
Myanmar’s information and communications technology facilities following
years of neglect during a period of military government that attracted
international sanctions.
Arief said Myanmar, which is in the
process of economic liberalization, would provide business
opportunities, which Telkom was seeking to tap into by opening a
representative office in the country.
“This proves Telkom’s seriousness in getting a foothold in Myanmar’s emerging market,” Arief said.
In April, Telkom missed out on two
telecom licenses after Myanmar’s Ministry of Communication and
Information Technology shortlisted 12 bidders. Telkom was not on the
list.
Telkom’s expansion into Myanmar follows a
call by State Enterprises Minister Dahlan Iskan last year for companies
under his watch to aggressively pursue opportunities in the fellow
Association of Southeast Asian Nations member.
Cement-maker Semen Indonesia is another company that has heeded the call, setting aside $200 million to buy a plant.
Telkom, via Telekom Internasional, a
subsidiary that handles the company’s business overseas, has expanded
into Hong Kong, East Timor, Australia, Malaysia and Singapore.
It has also set its sights on markets elsewhere in Asia, and in the Middle East.
In Hong Kong, Telkom offers “Kartu As 2
in 1,” a customized SIM product launched via Telkom Internasional Hong
Kong last October. The SIM card contains both Indonesian and Hong Kong
numbers.
According to Hong Kong’s 2011 census, there were 137,403 Indonesians, 1.9 percent of the population, living in the territory.
In East Timor, Telkom is investing $50 million to establish GSM and 3G telecommunications operations.
Last year the company secured a license to run telephony services for three years in the country.
Telkom is seeking a 60 percent market share in East Timor.
In Australia, Telkom is looking to enter
the call center outsourcing business, while in Malaysia, it has
established subsidiary Telekomunikasi Indonesia International.
The company was officially incorporated on July 2, according to Telkom’s recent unaudited financial statement.
Telkom has long had a working
relationship with Singapore’s SingTel. The cooperation is an extension
of the joint venture in Indonesia via Telkomsel, Indonesia’s biggest
mobile phone operator, which is 65 percent owned by Telkom and 35
percent by SingTel.
Telkom reported a profit increase of 13
percent, to Rp 10.1 trillion ($9.86 billion), in the first half as its
business expanded and revenue climbed.
The Bandung-based company posted a 9.4 percent increase in revenue to Rp 40.2 trillion in the first semester.
Shares in Telkom fell 2.2 percent to Rp 11,400 in Monday trading in Jakarta.
source: Jakarta Globe
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