Telkom's Performance Is Predicted To Be Better Off From Telkomsel's Merger Plan With IndiHome

Illustration. (Photo: Doc. Antara)

JAKARTA - Analysts assess that the performance of PT Telkom Indonesia (Persero) Tbk (TLKM) will be even more detailed as a result of the plan to merge two business entities or merge between Telkomsel and IndiHome.

Henan Putihrai Sekuritas analyst Steven Gunawan said the performance of TLKM would be more efficient with the integration between IndiHome and Telkomsel. TLKM is said to use the same networking to serve the fixed broadband business from IndiHome and mobile broadband from Telkomsel.

"Currently, the operator is fixed mobile convergence (FMC), namely collaboration and consolidation of fixed and mobile business entities," Steven told the media last weekend.

Steven said that the integration between Telkomsel and IndiHome is more business rearrangement than business mergers. Both IndiHome and Telkomsel have been focusing on business to consumer (B2C), while TLKM is more about business to business (B2B).

"IndiHome & Telkomsel, which both focuses on B2C, is made more towards network consolidation, ecosystem consolidation, and so on," he said.

Furthermore, he said, IndiHome has been a testing product or testing product. The success of IndiHome products made TLKM want to consolidate the two business entities.

The goal is to maximize the Telkom group business so that it can increase business monetization. He also said that FMC practices are common in other countries.