JAKARTA - President Director of PT Dayamitra Telekomunikasi Tbk (Mitratel) Theodorus Ardi Hartoko explained that the company's action acquired PT Ultra Mandiri Telekomunikasi (UMT) with strategic value in strengthening the telecommunications tower business ecosystem and increasing the control of the Mitratel market share in the Fiber To The Tower (FTTH) business.
"The fiber assets that we have acquired are located spread across Sumatra, Java and Bali. This is in line with the expansion direction of the telecommunications industry in the future in order to welcome the era of implementing 5G technology and targeting a number of new economic growth areas," said Teddy, Theodorus Ardi Hartoko's nickname in Jakarta, quoted from Antara, Thursday, December 5.
With the additional 8,101 kilometers (km) fiber from the corporate action, the issuer coded MTEL shares now has a fiber network of more than 47,800 km. As of the end of September 2024, Mitratel has 39,714km optical fiber.
Based on this amount, 56 percent of fiber optic assets are recorded to be outside Java and 44 percent are on the island of Java.
"Mitratels will continue to expand selectively not only in the tower business but also in the field of fiber optics and other supporting services," said Teddy.
In its financial report as of September 30, 2024, Mitratel posted revenue from the fiber business of Rp274 billion or grew 89.5 percent from the previous year and contributed 4 percent of Mitratel's total revenue. After the transaction, it is certain that the contribution of revenue from the fiber business will continue to increase.
"Mitratel's fiber business revenue until the first nine months of 2024, which grew by almost 90 percent year on year, is a very encouraging development. In the future we will focus on developing this fiber business with an asset monetization program to increase market share, face the 5G era of technology and spur the application of cutting-edge technology across business lines," said Teddy.
Mitratel has just shown its commitment to realizing the vision of becoming the leading digital infrastructure company through the acquisition of PT. Ultra Mandiri Telecommunications (UMT) which is a company with its main portfolio of fiber optic networks.
Mitratel received additional 8,101 km of fiber optic ownership after signing the MSME share sale and purchase agreement with PT Pembangunan Perumahan Infrastruktur (PPIN) and the Housing Employee Welfare Foundation (YKKPP) on December 2, 2024.
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This acquisition is Mitratel's strategic step to increase business growth and support equitable access to telecommunications through the provision of complete and quality infrastructure for cellular operators throughout the country.
After the transaction, Mitratel will obtain additional income potential according to the contract previously owned by UMT with a billable length (income from collectable assets) of 12.524 kilometers.
In the information disclosure of the Indonesia Stock Exchange (IDX), Mitratel management revealed that the additional income can be consolidated in the company's post-transaction financial statements.
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