Telkomsel to invest $1.5b in network expansion plan

09 Jan 2007
00:00

(Xinhua via NewsEdge) Indonesia's Telkomsel plans to expand its network by building 5, 000 new base transceiver stations this year at a cost of about $1.5 billion, local media reported.

With the new stations, Telkomsel hopes to penetrate every sub-district on Kalimantan island and up to 70% of all sub-districts on Sulawesi.

Telkomsel currently has 15,000 cellular stations throughout the country, with a third of them being installed in 2006, reported major national newspaper The Jakarta Post.

With the number of cellular phone users expected to increase by 25% from 64 million last year to about 80 million this year, Telkomsel is optimistic it will be able to pick up between 7.5 and 9 million new users, or half of all new subscribers in the country.

About 63% of the country's total population of 240 million is between the ages of 15 and 50.

'These people have an acute sense for technology and a great deal of enthusiasm for technological developments,' Telkomsel corporate communications manager Suryo Hadiyanto was quoted as saying.

According to Telkomsel, the country's cellular penetration now stands at just 25% of the total population. However, the penetration rate grew at an average of 67% per year from 2001 through 2006.

Telkomsel invested about $1.5 billion last year in expanding its network and added 10.6 million new users, giving the company a total of 34.9 million customers.

© 2007 Xinhua News Agency

© 2007 Dialog, a Thomson business. All rights reserved

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