Mitratel's Golden Opportunity Behind the Merger of XL Axiata and Smartfren

Jakarta - In the world of the Indonesian telecommunications business, a big discourse is being hotly discussed: the merger between two giant cellular operators, XL Axiata and Smartfren. However, behind the excitement of this news, PT Dayamitra Telekomunikasi Tbk (Mitratel) sees a golden opportunity that many people may not be aware of. Mitratel's President Director, Theodorus Ardi Hartoko, or who is familiarly called Teddy, is optimistic that this consolidation could be a blessing in itself for the telecommunications tower provider company.

On Wednesday (7/8), Teddy expressed his enthusiastic views on the impact of this merger for Mitratel. “This is a blessing from their consolidation. We see this as a great opportunity. So the negative impact (for Mitratel's business) is small. "We actually see this merger discourse as bright (for Mitratel)," he said.

Indeed, Teddy did not close his eyes to the risks that might arise. One of them is the possibility of network restructuring and efficiency by XL Axiata and Smartfren in towers leased from Mitratel. "In one tower, for example, there are XL and Smartfren. Certainly one of them (the cellular operator's network) will be moved (to another tower). The risk is there, but we believe we can manage that risk. Because they will definitely move the duplication of the network to locations that have potential," he explained.

Currently, tower rentals for XL Axiata and Smartfren respectively contribute 12 percent and 3 percent to Mitratel's total revenue throughout the first semester of 2024. Meanwhile, Telkomsel (TSEL) remains the largest tenant, contributing 53 percent to Mitratel's total revenue in the period the same one. Telkomsel's dominance in Mitratel reflects the strength of the operator's network which is almost evenly distributed throughout Indonesia.

However, Teddy sees great potential behind Telkomsel's dominance. He said that XL Axiata and Smartfren's network expansion strategy, if they follow in Telkomsel's footsteps, will bring them together with Mitratel towers outside Java and Sumatra. "If their strategy is to stick to Telkomsel (in the same tower), they will definitely meet the Mitratel tower. So they will move to the Mitratel tower too. And of course we have lots of towers whose availability and space is still very possible to "It can be used by other operators," he added optimistically.

Thus, the merger of XL Axiata and Smartfren is not only about consolidating two large operators, but also opens up opportunities for Mitratel to expand its network and increase its revenue. Teddy and his team at Mitratel are ready to welcome this new era with strategy and high optimism, turning every challenge into an opportunity that can be exploited.