Ownership change in Indonesian tower industry to continue as three major towercos strengthen their dominance
Moody’s compares the debt profiles of Protelindo, TBI and STP and the implications for future transactions
Ownership changes in the Indonesian telecommunications tower sector will continue over the medium term – carrying over the trend of recent years – as the industry is at an inflection point with leading telecom operators looking to monetise additional tower assets over the next 12-18 months.
This trend, which is further indicative of a significant change in the telecommunications industry’s underlying dynamics, provides a strong opportunity for the independent tower operators, particularly the big three, to further increase their market share.
Moreover, their expansion will be boosted by organic growth as they build towers in response to the push by telecom operators to expand their 3G/LTE networks.