Indonesian number three Indosat Ooredoo is looking to sell off 3000 towers in order to raise funds as it prepares for a pronounced increase in its capital expenditure.
As reported in DealStreetAsia, the operator has hiked its 2019-2021 capex budget up to IDR30 trillion ($2.2 billion) as part of its concerted effort to boost its 4G offering and close the gap on its competitors following years of inadequate investment.
The towers have reportedly already attracted the attention of possible buyers - both foreign and domestic – and Indosat Ooredoo has tapped JP Morgan to advise on the deal. In 2012, the operator sold 2500 towers to independent tower firm Tower Bersama Infrastructure for $519 million on a leaseback agreement.
The operator saw a dramatic decline in its number of mobile connections after the government introduced new regulation in May 2018 requiring SIM registration, going from 110 million in Q4 2017 down to 57.5 million for the same period in 2018, according to data from the GSMA.
The drop-off in its mobile subscribers saw its overall mobile business shrink by 26%, with its market share down by 5% and 2018 revenue falling 23% year-on-year.