Nov 28, 2016 12:26:48

Ministry of SOEs hopes the revision of network sharing regulation will be fair for all operators. Ministry of SOEs Rini Soemarno said that the revision of network sharing regulation in Gov’t regulation No 52/2000 should consider the investments that have been spent by Telkom ($TLKM). Rini said that the gov’t should calculate all the risks and benefits on the revision so that it will not hurt operators that have invested in the network development for years.

Comment:  Considering that the network sharing regulation proposal makes it optional to share, not mandatory, Telkomsel would have the option to share its equipment if it wants to monetize the investments it made. But at the same time, it also does not force Telkomsel to share, if Telkomsel feel the risk from competition is greater than the potential increase in lease rates.