SINGTEL : Z74 0% is in talks to integrate its Indonesian partner Telkom’s fixed broadband business into the Singapore firm’s regional associate Telkomsel.

The news comes in response to a media query, said the telecommunications giant on Thursday (Mar 30).

It believes the potential integration represents a “rare opportunity for Telkomsel to enter Indonesia’s high-growth fixed broadband market with an industry leader (Telkom) that has some 70 per cent share of (the) market”.

The group also highlighted Telkom as its long-time partner of nearly three decades.

It, however, emphasised that negotiations are still ongoing, and there is no certainty of a transaction.

“Around the world, post-pandemic demand for high-quality fixed broadband has jumped and this is all the more apparent in an emerging market like Indonesia,” said Singtel.

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“Singtel will support this integration if the terms make sense for Telkomsel and our shareholders, and achieve a win-win transaction with our partner Telkom.”

The group in 2022 signed a memorandum of understanding to jointly explore the integration of Telkomsel’s mobile business with Telkom’s fixed broadband business.

Telkom is also among the telcos in Indonesia that have started to introduce fixed and mobile broadband bundles amid growing demand for video streaming. Analysts say such products could bring about reduced customer churn and higher margins as take-up rates improve.

Shares of Singtel were up S$0.01 or 0.4 per cent at S$2.45 as at 9.04 am on Thursday, after the news.