TLKM - Subsidiary continues 3G phasing out program

A mobile arm of Telekomunikasi Indonesia (TLKM), Telkomsel will continue 3G to 4G network upgrading program, as a part of shutdown efforts. The company has so far completed 3G phase out in 204 cities/ regencies, while other 300 will be targeted next year, out of 504 cities/ regencies. As of September 2022, the total 4G and 5G BTS have reached 160,376 units and 236 units, respectively, making up total number of Telkomsel BTS to 210,632 units on 3G/4G/5G. Meanwhile, Telkomsel’s capex spending stood at IDR21.7 tn, that mostly earmarked for network strengthening and other supporting infrastructures. (Source: Bisnis Indonesia) Comment: Telkomsel’s schedule for 3G phase out is actually falling short of expectations since it initially expected to complete it this year. On the other hand, ISAT managed to conclude similar program before the end of 2022, while EXCL’s shut down has neared completion. Nevertheless, Telkomsel’s phasing out delay is quite understandable given its massive size of infrastructure and coverage, in addition to larger composition of 3G users that is estimated to stand at c. 10 million users.