P H
May 16, 2016 22:27:36
·         TLKM’s engine growth is mainly coming from cellular business with growth of 18% YoY especially from data of 40% due to high traffic for smartphone registration  

·         Indihome also remains as company’s backbone with the trend of increasing price. Compared to its competitor, Linknet that still use hybrid cables, Indihome’s has used fiber and the speed is faster. TLKM targets the additional 1.1-1.2bn subscribers of Indihome by the end of thus year. 80% of subscribers take standard package of around Rp400k per month which coming from previous discounts and promotions. Some bottleneck for Indihome business is the lacking of fiber recourses and technical as the they are also acting as sales person, selling Indihome products door to door. TLKM aims to improve RPU by having advertisement and new stream, tapping cooperation with OTT players. TLKM’s vision is to buy bulked and enrich the contents for Indihome

·         Capex’s plan is at 25% sales with allocation 60% for mobile, 5-10% for other business, and remaining for Indihome

·         Competitive advantage is being a triple players (phone, internet, and television)

·         Currently still focus on strategy to migrate existing speedy users to Indihome and improve 4G users with bonus quota program for Ramadan plan

·         1 day in Telkom is roughly equal with revenue or Rp230bn

·         Commentary for competitors of EXCL and ISAT who just made a JV, is a good to open up opportunities. TLKM states just watch and see whether the JV works

·         TLKM admits they need more spectrum holdings and expects to have more spectrum in tender 1H16. TLKM’s spectrum is as much as EXCL although TLKM’s market share is four times bigger

·         TLKM has no plan for M&A in near future

·         TLKM states that the current trend is bonus quota for 4G and will persist with separate data packages

·         Regarding employees, TLKM said more early retirement (ERP) coming in 3Q16 with budget of Rp500bn coming from HR guidelines until retirement in 2018. There are 20k staffs retired between 2017-2019 (normal retirement). Meanwhile, the new recruitment is decreasing due to difficulty in finding candidates with digital skills sets

·         Main concern for TLKM now is at competition for 4G and regulation for spectrum sharing and connection. TLKM also waits for any price intervention by govt

$TLKM $LINK

Bull
Handle
N/A
Handle