US-based AT&T has been awarded a license to operate in Indonesia.
According to Marketwatch, the company is the first foreign operator to be granted a license to operate in the country. AT&T was previously limited to offering services via partnerships with local operators in Indonesia.
AT&T had gone through a two-year filing and audit process in order to secure its license, in addition to making investment commitments that the company declined to elaborate on.
AT&T intends to offer IP services and managed networks directly to global companies operating in the country. The company’s senior VP of marketing and global strategy, Roman Pacewicz, said AT&T would also look to expand into markets such as Thailand and Vietnam, whose governments have also recently loosened their grip on regulation.
The company currently has 80 multinational customers in Indonesia, and Pacewicz said he believed the license could help the company expand its customer base without the hassle of partnerships.
Bagging a license in an emerging market has traditionally resulted in revenue and customer base growth for the company. AT&T saw a 60% revenue jump the year after it was allowed a license to operate in India in 2006. The company also received a license to operate in Malaysia last year.
Pacewicz said AT&T would focus on providing services for multinational companies in Indonesia, leaving domestic firms to local operators such as Indosat.