TLKM - Singtel discuss on Indihome & Telkomsel integration

Singapore MNO, Singtel is in talks to integrate Telekomunikasi Indonesia (TLKM) fixed broadband arm through Indihome brand into its regional mobile associate Telkomsel. The operator claims the potential integration represents a "rare opportunity for Telkomsel to enter Indonesia's high-growth fixed broadband market with an industry leader (Telkom) that has some 70 percent share" on the local market. (Source : Telecompaper.com) Comment : To realize plans for Indihome-Telkomsel consolidation, TLKM-Singtel talks are more focused on netiation in the wake of expected Singtel's share dilution on Telkomsel share. TLKM is now holding 65% of share, whereas the remaining is Singtel's. With such composition, Singtel is considered to be controlling shareholder of Telkomsel. The consolidation of TLKM-Indihome is expected to add TLKM's holding in Telkomsel for c.4%.