MTEL- Eyes for tower growth

Dayamitra Telekomunikasi (MTEL) still relies on tower rent business as a growth driver for this year, in addition to non-tower such as FTTT, managed service and project solution. Furthermore, MTEL has also initiated new segments including power to the tower, edge infra solution and active equipment service. As of 1Q23, non-tower business contributed c. 6% of revenue with fiber's at 2%. (Source : Bisnis Indonesia) Comment : Despite consolidation, tower industry still provide some headroom for growth over the long run, amid MNO's expansion and digital acceleration in ex-Java. Given that, MTEL also eyes to add fiber asset on the back of strong demand for fiber broadband. MTEL's tower asset that mostly scattered in ex-Java set it apart from competitors, beside its strong ties with Telkomsel, opening up opportunities for tower acquisitions.