TOWR - Plans to spend IDR6 tn in capex

TOWR - Plans to spend IDR6 tn in capex Sarana Menara Infrastruktur (TOWR) is planning to spend IDR6 tn in capex that is mostly earmarked for tower construction and fiber optic network expansion. For this year, the company has promised to deliver 200 new towers for XL Axiata (EXCL) under B2S scheme. (Source : Emiten News) Comment : Following consolidation in MNO, we should see a flattish growth in TOWR's tower rent business with EXCL tower demand may compensate churns from ISAT this year. Nevertheless, we expect TOWR to achieve higher growth for its fiber-based biz in line with MNO's continued expansion for 4G, fixed broadband, and preparation for upcoming 5G that requires solid fiber connection.