Indosat Ooredoo Hutchison, formed in January by the merger between Hutchison 3 Indonesia and PT Indosat Tbk, will become Indonesia’s second largest mobile telecommunications firm with estimated annual revenues of approximately US$3 billion and US$6 billion in assets. This industrial heft will support increased investment in its technological and human infrastructure to provide better service and higher network speeds to customers across Indonesia, the world’s fourth largest nation by population.
Indosat Ooredoo and PT Hutchison 3 Indonesia have agreed to merge their complementary Indonesian businesses with a total transaction value of US$6 billion. The merged company will be the archipelago nation’s second-biggest and world-class telecom and Internet giant with over US$3 billion in revenues. Indosat Ooredoo Hutchison will have the financial and customer scale to invest even more into its network and deliver more value to customers and shareholders in Indonesia.
Canning Fok, Group Co-Managing Director of CK Hutchison, said: “With greater scale, expanded spectrum, and a more efficient cost structure, Indosat Ooredoo Hutchison will be better positioned to extend the rollout of its network and enhance service quality and speed.” Aziz Aluthman Fakhroo, Managing Director of Ooredoo Group, concluded: “This merged company will deliver significant value and benefits for all stakeholders including Indosat Ooredoo and Ooredoo Group shareholders, customers, employees and Indonesia.”
The combined company will be able to leverage the experience and expertise of CK Hutchison and Ooredoo Group in 5G and traditional networks, technologies, products and services to drive accelerated innovation across Indonesia’s digital economy. Both parties expressed gratitude for the sound policy environment that regulators and the Indonesian government have created for the telecom industry.
Indonesians are digging remote mobile access from 3
Mining and plantation communities are benefiting from 3 Indonesia’s installation of Nokia’s Long-Term Evolution (LTE) base stations to deliver connectivity to remote areas in central Sulawesi. The transmission relay distribution system requires an extensive backhaul network to get communication in and out of these areas. Morowali residents and businesses alike will benefit from access to telephone and Internet services.
CK Hutchison and Ooredoo sign an MOU, entering into negotiations to potentially combine their Indonesian telecommunications businesses, PT Hutchison 3 Indonesia and PT Indosat TBK. Both companies will proceed with negotiations on an exclusive basis until 30 April 2021.
