Mitratel Foresees Growth Opportunity with Starlink’s Arrival in Indonesia

Jakarta. Telecommunications tower operator Dayamitra Telekomunikasi (Mitratel) anticipates a positive impact on its business with the introduction of Elon Musk’s Starlink satellite internet service in Indonesia, rather than fearing a decline in revenue due to increased competition.

Mitratel’s President Director, Theodorus Ardi Hartoko, highlighted Starlink’s potential to enhance telecommunications services, particularly in remote areas, thereby bolstering Mitratel’s position in Indonesia’s telecommunications infrastructure landscape.

“The integration of Starlink as a backhaul solution for broadband connectivity can significantly activate Base Transceiver Stations (BTS) in areas where terrestrial connectivity is challenging. Collaborating between Starlink and Telkomsat allows operators to deliver services without the need for extensive tower infrastructure,” Theodorus explained.

Starlink’s presence in Indonesia, operating through a partnership with Telkomsat, aligns with Mitratel’s objectives to expand internet access nationwide, especially in underserved regions.

Hendra Purnama, Mitratel’s Investment Director, emphasized the trade-off between Starlink’s high latency and the lower latency of fiber optics, particularly in remote areas where fiber optic infrastructure costs are expensive.

“With the convenience of accessing the internet through mobile phones, Mitratel anticipates improved cost efficiency and accessibility for users,” noted Hendra.

Mitratel’s collaboration with Starlink is expected to accelerate internet accessibility across Indonesia, addressing connectivity challenges in remote regions.

Elon Musk officially introduced Starlink’s internet service in Indonesia on May 19, initially launching in Bali. Subscribers nationwide can access Starlink services starting at Rp 750,000 per month, reflecting a higher-than-average expenditure compared to typical Indonesian internet service costs.

Mitratel reported a net profit of Rp 520.99 billion ($32 million) in the first quarter of 2024, marking a 4 percent increase from the same period in 2022. As of March 2024, Mitratel’s optical fiber length expanded to 36,257 kilometers, reflecting an 11.5 percent growth from December 2023. Additionally, the company managed 38,135 towers, with 41.5 percent located in Java, showcasing its growing infrastructure footprint nationwide.

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