Indonesia Natrindo confident of 1 million mobile users in '08
Indonesia's PT Natrindo Telepon Selular, the latest entrant into the country's rapidly growing telecoms sector, said it is confident of signing on more than one million mobile phone users by the end of the year.
By PTI |
JAKARTA: Indonesia's PT Natrindo Telepon Selular, the latest entrant into the country's rapidly growing telecoms sector, said it is confident of signing on more than one million mobile phone users by the end of the year.
Natrindo, which launched operations on Wednesday under the brand name Axis, plans to corner 10 percent of the market share in three years with its low tariffs and perhaps even hit the market later, chief executive Erik Aas told Reuters on Thursday.
Saudi Telecom Co, the largest Arab telecom firm by market value, controls 51 percent of Natrindo and Malaysia's biggest mobile phone operator, Maxis Communications Bhd, holds 44 percent.
Natrindo is the latest entrant in a crowded market of around a dozen operators dominated by PT Telekomunikasei Selular (Telkomsel), Indosat and Excelcomindo Pratama, which together control around 90 percent market share.
Aas said Natrindo expects to spend at least $2 billion until 2010 on expanding its network in Southeast Asia's top economy and he did not rule out the possibility of issuing bonds to finance its expansion or even listing on the stock exchange.
"Currently it (the expansion) is funded by shareholders. As we expand further, the spending will be funded by shareholders and some borrowings. And some time in the future maybe we can start discussing a listing of the company," he said.
Despite the strong growth, the penetration rate in the country was relatively low at only about a third of the population compared to its regional peers like Malaysia which has around 80 percent penetration rate and 60 percent in Thailand.
Natrindo, which launched operations on Wednesday under the brand name Axis, plans to corner 10 percent of the market share in three years with its low tariffs and perhaps even hit the market later, chief executive Erik Aas told Reuters on Thursday.
Saudi Telecom Co, the largest Arab telecom firm by market value, controls 51 percent of Natrindo and Malaysia's biggest mobile phone operator, Maxis Communications Bhd, holds 44 percent.
Natrindo is the latest entrant in a crowded market of around a dozen operators dominated by PT Telekomunikasei Selular (Telkomsel), Indosat and Excelcomindo Pratama, which together control around 90 percent market share.
Aas said Natrindo expects to spend at least $2 billion until 2010 on expanding its network in Southeast Asia's top economy and he did not rule out the possibility of issuing bonds to finance its expansion or even listing on the stock exchange.
"Currently it (the expansion) is funded by shareholders. As we expand further, the spending will be funded by shareholders and some borrowings. And some time in the future maybe we can start discussing a listing of the company," he said.
ADVERTISEMENT
The number of cellular phone subscribers in Indonesia has been growing rapidly in recent years and is expected to reach 120 million by the end of this year from around 90 million in 2007. Despite the strong growth, the penetration rate in the country was relatively low at only about a third of the population compared to its regional peers like Malaysia which has around 80 percent penetration rate and 60 percent in Thailand.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
