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Bakrie Telecom (BTEL), the telecommunications unit of Bakrie
and Brothers, reported Wednesday a 63 percent rise in gross revenues to
Rp 580 billion (US$63.7 million) in the first semester, from Rp 355
billion in the same period of 2006.
The company, which operates a CDMA-based mobile phone service using the
Esia brand, attributed the sharp increase to a 112-percent jump in the
number of its subscribers to 2.2 million as of the end of June from 1.1
million at the end of the same month in 2006.
Besides its Esia brand, BTEL also operates a Wifone wireless fixed
service, Wimode wireless internet service and the Esia-tel chain of
telephone kiosks.
President director Anindya Novyan Bakrie said that BTEL expected to
increase the number of its subscribers to 3.6 million as of the end of
the year.
Anindya said that with the sharp increase in the number of its
subscribers, starting next month BTEL would expand its national
coverage to 34 cities from the existing 17 cities in Greater Jakarta,
and West Java and Banten provinces.
To support the expansion project, the company would double the number
of its telecommunications towers to 800. The expansion is expected to
account for 500,000 subscribers out of the total target of 3.6 million.
"We expect that we will have coverage in 34 cities by the end of the
year. Our target is to become a national player offering high quality
services and products at affordable prices."
The company said earlier that it would set aside about $220 million for
capital expenditure to finance its expansion this year, $70 million of
which would be raised from vendor financing, $95 million from bank
borrowing and $55 million from bonds.
The company would also issue bonds worth Rp 500 million in the third
quarter to help finance the expansion. The bonds would be sold to the
public from Aug. 31 to Sept. 4, and be listed on the Surabaya Stock
Exchange on Sept 10.
To manage the bond issue, the company has appointed two underwriters --
PT Danatama Makmur Investment Bank and PT Mandiri Sekuritas.
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