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16 Key Numbers Investors Should Know Singapore Telecommunications Limited’s Major Associate, Telkomsel

Telkomsel is a leading telecommunications operator based out of Indonesia and a major associate for Singapore Telecommunications Limited (SGX: Z74) .

The Indonesian telco is a major contributor to the Singtel’s profits, contributed S$369 million or 27% of Singtel’s overall profit before tax for the second quarter of the financial year ending 31 March 2017 (FY2017) . As such, investors might to learn more about it. For that, we can look at Telkomsel’s 2015 annual report. For quick run-through, I picked out 16 key figures investors might want to know:

  1. Telkomsel was founded more than 20 years ago in 1995. It is a subsidiary of PT Telekomunikasi Indonesia Tbk, where the latter owns a 65% stake. Singtel took a stake in Telkomsel back in 2001. A year later, Singtel increased its stake to 35% where it still stands today.   
  2. By its estimation, Telkomsel has a 2G population coverage of 99% and a 3G population coverage of 65%. Indonesia is in the early stages of its 4G LTE roll out. In 2015, the telco is rolling out 18,000 Base Transceiver Stations (BTS) where 89% of it were 3G/4G based. Telkomsel will be the first-to-market 4G LTE technology in Indonesia.  
  3. Indonesia may be a step behind Singapore in terms of 4G LTE coverage, but it is enjoying much stronger growth. In 2015, Telkomsel grew both sales and net income by 15% year on year. The Indonesian telco also has a significantly larger mobile subscriber base, numbers over 152.6 million. Interestingly, 98% of its subscriber base is from the pre-paid segment.
  4. Telkomsel also provided data on its legacy business in terms of minutes of use (MoU) and SMS usage. The mobile subscriber chalked up a stunning 225 billion MoUs and 219 billion SMSs. The former is still on the uptrend, but the latter is on the downtrend.   
  5. Data usage is considered the core business driver and it is rocketing upwards. Data-enabled users climbed from 39.8 million in 2011 to 73.9 million in 2015. Data payload has exploded from 28,275 TBytes in 2011 to 492,245 TBytes in 2015.     

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.