LONDON—Indonesian cellular operator PT Telkomsel announced plans to invest US$500 million during the next year to expand its GSM network.
The network expansion will see Telkomsel increase its subscriber base to 5 million by the end of next year from the existing figure of 3.05 million. The decision follows continuing demand for mobile services in the Indonesian market. Industry observers estimate that subscriber numbers will reach 11 million during the next year.
This phase of investment will go toward base transceiver stations (BTSs) that will allow Telkomsel to offer a wider coverage area and clearer transmission. Telkomsel currently provides coverage in more than 380 cities.
To help finance this latest expansion, Telkomsel plans to undertake an initial public offering (IPO) under which 10 percent of its shares will be floated. The IPO is scheduled for next year, subject to government approval.
