MTEL - Eyes to acquire towers, fiber assets

Dayamitra Telekomunikasi (MTEL) is planning to spend IDR7 tn in capex this year to support its business expansion plans as the company is also eyeing to acquire more towers and fiber optic. In addition, MTEL is gearing up to enter FTTT and power to the tower for its tenants to create value added services. (Source : Investor Daily) Comment : Despite consolidation in towercos, MTEL still has opportunities to continue its inorganic expansion thanks to its affiliation with Telkomsel, which still operates its own towers under its belt. In addition, majority of MTEL's towers are located in ex-Java which is in-line with MNO's focus to expand their market in the areas. MTEL is seen to be well protected against interest hike headwinds and strong USD thanks to its robust cash and low gearing ratio.