- We still positively view Telkom because it is likely to maintain its dominance following consolidation of MNOs and its non-mobile businesses could become new sources of revenue growth.
- In contrast to its peers, Telkom's balance sheet remains healthy, which can help the company expand its network coverage further and implement 5G network.
- Moreover, a merged company is required to return a portion of its spectrum to the government. Therefore, Telkom still leads the market in terms of total paired frequency owned.
- Telkom is consolidating its data center and cloud businesses, and an entity will operate the business. Telkom is considering an IPO or private investment in two or three years.
- Telkom's valuation is still higher than its domestic peers. However, we believe that it still makes sense, considering its position as the market leader.
For further details see:
Why We Still Positively View Telkom Despite MNO Consolidation