TBIG to build up to 2,000

Telecommunications
tower
company PT Tower Bersama
spend no less than Rp 2 trillion
(US$161 million) for expansion
next year to meet the
countrys growing demand for
telecommunications towers.
TBIG finance director Helmy
Yusman Santoso said that his
firm would add between 1,500
and 2,000 new towers next
year, with a budget allocation
of around Rp 1 billion for each
tower.
We allocate around Rp 2 trillion from our internal cash for organic growth next year, he said
earlier this week.
TBIG, which had a total of 11,686 telecommunications towers as of September this year,
foresees good growth next year.
Over the last two to three years, we have seen more organic growth than non-organic. Next
year alone, we estimate that we will see at least the same growth as this year, TBIG president
director Herman Setya Budi said.
Research firm Frost & Sullivan has predicted that the number of telecommunications towers in
the country will grow by 8 percent annually, hitting 89,409 units next year, up from 55,972 units
in 2011.
In a further development, Helmy said that his firm would also eye non-organic growth by
allocating around 10 percent of its total capital expenditure (capex) next year.
Helmy did not elaborate on his firms non-organic growth plan, saying that there were currently
very few small tower companies left for acquisition.
He said, however, that trends were moving toward a situation in which telecommunications
operators would start monetizing their towers.

Major telecommunications companies PT Indosat (ISAT) and PT XL Axiata (EXCL) have stated
that they would review the possibility of selling more of their towers next year after previously
selling towers to independent tower companies.
ISAT sold 2,500 of its towers to TBIG in 2012, while EXCL sold 3,500 of its towers to tower firm
PT Solusi Tunas Pratama (SUPR) in October.
PT Telekomunikasi Indonesia (TLKM), meanwhile, has inked a deal to swap part of its stake in its
tower business, PT Dayamitra Telekomunikasi (Mitratel), for a stake in TBIG.
TLKM has also stated its plan to monetize towers of its subsidiary PT Telekomunikasi Selular
(Telkomsel) in the future.
Helmy said that after previously exchanging its 5.7-percent stake in TBIG for a 49-percent stake
in Mitratel, his firm would carry out private placement by issuing 479 million shares in the first
quarter of next year to acquire the remaining 51 percent stake in Mitratel.
The new shares, which would be priced at Rp 8,253 apiece, would be equal to 10 percent of
TBIGs enlarged share capital, he added.
With the possibility of acquiring operators towers left open, TBIG did not have any specific
non-organic growth plans next year, Helmy explained.
We still have Rp 1.3 billion in bank loans and Rp 3.1 trillion from the remaining Rp 4 trillion in
funds raised from sustainable bonds, he said, hinting that his firm had enough funding for
business expansion next year.
TBIG has also got the green light from its shareholders to issue $500 million in global bonds
next year. Helmy said, however, that the decision to issue the global bonds would depend on
market conditions. - See more at: http://www.thejakartapost.com/news/2014/12/27/tbigbuild-2000-telecom-towers-next-year.html#sthash.hazHM2EK.dpuf