Telkom Records 10 Percent Growth Backed by Digital Services

State-owned telecommunications company Telkom Indonesia is optimistic about its performance in the second half of the year. (Photo courtesy of Telkom)

By : JG | on 1:54 PM March 16, 2018
Category : Advertorial, Corporate Updates

Jakarta. Telkom Indonesia recorded a very satisfactory performance in 2017, with a revenue increase of more than 10 percent, despite more and more competition in the country's telecommunications industry.

The company's revenue growth was mainly due to growth in its data, internet and IT services (29 percent), supported by an increasing number of IndiHome subscribers and the ICT Solution services for corporate customers. Telkom's operating revenue reached Rp 128.3 trillion ($8.98 billion) last year.

"The contribution of the data, internet and IT services shows that the company is already becoming a digital telecommunications company," Telkom president director Alex Sinaga said in a statement on Friday (16/03).

Telkom's operational and maintenance expenses increased by 17.1 percent, which is in line with the government's aggressive broadband infrastructure development.

In 2017, Telkom's subsidiary Telkomsel recorded Rp 93.2 trillion in revenue.

With the challenges posed by now less frequent use of voice calls and standard SMS text messages, Telkomsel maintained its profitability and grew 32.6 percent.

Telkomsel's growth is attributed mainly to its digital services, as there are more and more smartphone users who need data packages. Last year, these services accounted for nearly 50 percent of Telkomsel's revenue and grew 37 percent from a year earlier.

Telkomsel is committed to delivering affordable internet access to everyone. In 2017, it built 31,672 base transceiver stations (BTS) for the 3G and 4G networks.

The company's 4G services are now available in 490 cities.

On the other hand, IndiHome has now nearly 3 million subscribers, 82.6 more than a year earlier, and is expected to drive Telkom's growth in the future. Its revenue reached Rp 8.2 trillion in 2017, or 48.1 percent more than in 2016.

Telkom is now building the Indonesian Ocean Gateway (IGG) cable from Dumai in Riau to Manado in North Sulawesi, which in 2018 will be connected to the Southeast Asia–Middle East–Western Europe 5 (SEA-ME-WE 5) submarine optical fiber cable system.

Also in 2018, the company is going to launch its Telkom-4 Satellite.

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