Mitratel Expands Presence: Acquisition and 5G Challenges Discussed

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Mitratel, the noted Indonesian tower company, has revealed its fresh acquisition of 803 telecoms masts from the local infrastructure entity Gametraco Tunggal. Set at a considerable value of $113 million, this deal adds the newly acquired towers to Mitratel’s already vast collection of 37,000 towers situated across the country. Significantly, this addition will extend their geographic footprint beyond Java Island.

With the masts come fresh tenants. Mitratel will be welcoming 1,327 new tenants as part of this deal. The strategic decision to expand beyond Java Island addresses the increasing requirement for internet connectivity in the region, as Mitratel President Director Theodorus Ardi Hartoko shared earlier this week. He said, “Expanding the market outside of Java Island has been the strategic plan of telco companies…which aligned with the needs of internet connectivity in the region.”

Just two years ago, the company generated $1.76 billion with its initial public offering. Put to good use, these resources were employed to expand Mitratel’s infrastructure kingdom, predominantly through over 600km of fibre optic networks purchase. This fiber optic investment is aimed to enhance tower operations.

However, the acquisition of the fiber optic networks isn’t all. As per Hartoko’s announcement, the incorporation of the fiber network is essential to support the budding 5G networks. “The acquisition of optical fiber is one of the right steps in supporting the acceleration of the fiberisation process which is also part of the acceleration towards 5G adoption which is Mitratel’s main target in the next few years as an effort to support Indonesia’s digital sovereignty,” Hartoko said earlier this year.

Nevertheless, Indonesia’s entry into the 5G age has been slower than desired, with governmental processes delaying the necessary spectrum allocation. The Indonesian government is currently planning a 5G auction next year for the 700MHz and 26GHz spectrum bands.

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