Telkom sees 5 trillion rupiah in savings from Indihome-Telkomsel merger; will target higher-value customers

TELECOMS giant Telkom Indonesia expects synergies from the merger between Indihome and Telkomsel will help it save up to five trillion rupiah (S$450.3 million) annually. It also hopes to grow revenue that is more sustainable by focusing on higher-value customers. (*see clarification note)

Telkom chief executive Ririek Adriansyah said 60 to 70 per cent of mobile subscribers have shifted towards using fixed broadband services in their homes and offices.

“It’s pretty obvious that we need to merge in such a way; otherwise we would be investing twice in fixed and mobile, but we’re only getting one revenue,” he said.