Mar 8, 2011

Bakrie Telecom to tap GSM business

Indonesian CDMA's operator, PT Bakrie Telecom Tbk (BTEL) plans to run global system for mobile communication (GSM)'s business in this first half to diversify business.
President Director of Bakrie Telecom Anindya Novan Bakrie said cellular license and numbering will be released this month by Ministry of Communication and Information Technology (Menkominfo). To expand the business, Bakrie Telecom is preparing US$200 million of capital expenditure.
Jastiro Abi, BTEL's Finance Director, said the operator has seized loan facility from ICBC worth US$300 million and issued bonds US$130 million.
The facilities, he said, will be used to underpin capex within next 3 years. BTEL has also refinanced US$135 debt million which will mature in 2012 from total debts US$380 million.
Last year, BTEL's EBITDA grow 11% and expect this year grow above 10%.
President Director of PT Bakrie Connectivity Erick Meijer added, half of the capex will be used to support internet business expansion. Last year, Bakrie Connectivity recorded 100,000 subscribers and this year expect grow more than double.  

Disclosure: No position at the stock mentioned above.

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