TOWR - Expects more growth from fiber

Sarana Menara Nusantara (TOWR) expects that continued expansion in tower rent business would also support sites relocation program carried out its customer, newly merged ISAT-Tri. Furthermore, it also estimate fiber business growth to attain double digit in line with growing demand for reliable 4G internet speed coupled with huge disparity of wireless and fixed based internet service. (Source : Bisnis Indonesia) Comment : Following ISAT-Tri merger, we may see more flattish growth in tower rent business with other MNOs tenant growth compensating a decline from ISAT. Nevertheless, we expect TOWR to achieve higher growth for its fiber business for FTTT and FTTH in line with MNO's continued expansion for 4G, fixed broadband, and preparation for upcoming 5G that requires solid fiber connection.