Syahrial Ali's Blog

Providing Ideas to the Development of Telecommunication in Indonesia
Subscribe

Operators’ Capex in the Year of Crisis

April 04, 2009 By: Syahrial Ali Category: News

This year, 2009, is considered as the year of crisis. Is there any effect on operators’ capex? Here are the data. Indosat the 2nd largest GSM and 3G operator in Indonesia  just plans to spend around US$600m for its 2009 capex, down just below 50% of last year capex of US$1.25b. XL, the 3rd largest, plans US$700m for its 2009 capex, 44% lower than previous year capex (1.25b). Telkomsel, the largest GSM and 3G operator has allocated US$1.5b for 2009 capex. This figure is exactly the figure of 2008. However, if we investigate closely, Telkomsel has to finance its USO project for around US$2m. So, Telkomsel also decrease their 2009 capex by a small amount only.

How about other operator?

Bakrie telecom, the 2nd largest CDMA opeartor in Indonesia plan a US$200m for its capex in 2009. This figure is equal to the figures in 2008.  Axis, the new comer in GSM and 3G business will spend around US$500m for its 2009 capex, less than previous plan US$700m. In 2007-2008, Axis spent around US$1b. Axis just moved to its new office to Dea Tower in Mega Kuningan Jakarta. Meanwhile, Mobile-8 just want to spend around US$40m in 2009. This fund is the balance of last year capex which planned for US$140m but spent only US$100m.

From the figues above, we can see that almost all operators down their expenditures in 2009. It means that the global crisis affect their business. (data taken from various sources)

Share
Tags: ,