From Government of Indonesia

Telkom to Spin Off Fixed Wireless Unit

PT Telkom plans to spin off its fixed-wireless operation, Telkom Flexi, into a separate unit next month, its president director, Arwin Rasyid, said Wednesday (10/01/07).

The move aims to provide greater flexibility for the unit in fixed wireless telecommunications, where Telkom faces competition, Rasyid said, according to Reuters.

Operators in the fixed-wireless market, which provides mobile telecommunications with limited range, use code division multiple access (CDMA) technology, rather than the more widely used GSM standard.

"The CDMA market is getting more developed and competition is tougher. The spin-off will create more efficiency," he added.
Telkom's fixed-wireless operations contributed more than Rp2 trillion ($221.5 million) to the company's total revenue, which was expected to reach Rp51.3 trillion last year.

Rasyid also said Telkom Flexi plans to spend Rp2 trillion to Rp3 trillion for capital spending this year.
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