Telekom Indonesia No Longer Seeking Full Ownership of Rival CDMA Network
Published on: 18th Jan 2011
Note -- this news article is more than a year old.
The tribulations about the future of Indonesian CDMA fixed wireless network, Bakrie Telecom has again flared up as Telekom Indonesia is now reported to be seeking a majority stake in the company instead of a full purchase.
Telekom was understood to be working towards buying the entire company, but citing Telkom chairman Jusman Syafii Djamal, the Reuters news agency says that the company will now seek only to buy the majority stake in the firm.
"We need to re-evaluate this ... we want to be the majority owner," he said, after a meeting with the state enterprise minister.
The merger was due to involve Telkom's own CDMA network, Telkom Flexi and Bakrie Telecom's Esia brands. However, the merger was not expected to take place until after Telkom has divested its CDMA subsidiary into a separate company. The resulting company would have almost doubled its size in terms of subscribers and revenues, and would have commanded almost 94% of the CDMA subscriber market, and 12.5% of the overall (GSM and CDMA) wireless market.
Last August, Bakrie Telecom secured a USD300 million loan from the Industrial and Commercial Bank of China (ICBC). The loan was due to be used to finance the company's capital expenditure as it seeks to expand its network coverage.
On the web: Reuters