Friday, March 26, 2010

Telkom Indonesia Considers CDMA Spin-Off

ndonesian telecoms operator, Telekomunikasi Indonesia (Telkom) is reported to be studying the possibility of consolidating its CDMA unit with local or overseas companies. Telkom's chief commissioner, Tanri Abeng told the Reuters news agency that Telkom's CDMA unit, TelkomFlexi, could consolidate with other players such as Bakrie Telecom's Esia or with other domestic or foreign operators.

"The option is to consolidate, not only with Esia, but also with other operators. It could be with an overseas investor," he added. A merger or consolidation differs slightly from the rumours late last year that Telkom was looking to buy a minority stake in Bakrie Telecom.

Considering overseas options, in addition to Vietnam and Cambodia, he told the The Jakarta Globe that "There is also a telecommunications company from North Korea that is interested in partnering with Telkom to set up a joint venture CDMA business,"

"We think the Telkom Flexi business can expand more through business consolidation, either with another company or with another Telkom unit," Telkom corporate secretary Agus Murdiyatno said in a statement to the Indonesia Stock Exchange.

Most of Telkom's mobile revenue comes through its Telkomsel subsidiary, Indonesia's largest mobile phone operator, which runs a GSM mobile network.

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