According to Raymond Kosasih, research analyst at Deutsche Bank Verdhana Indonesia, the cellular industry is doing much better now than it was 15 to 18 months ago.
"A new equilibrium is being formed and top-line growth has recovered."
believes cellular prices have reached bottom and are unlikely to fall further.
This is good news for Telkomsel
as it will allow the company to post a much stronger second-half performance.
This will translate into a much better performance for Telkom
as a whole.
"We like PT Telkom in general and we have a buy recommendation on the stock," says Raymond
Going forward, the key challenge for Rinaldi and Telkom
will be to implement the TIME strategy and implement further cost-efficiency programs, notes Raymond
Near-term revenue growth will still come from its fixed line and cellular business while over the longer term the company will reap the benefits of pushing into cable television and data.
"In the long term, the TIME strategy makes sense but it is coming from a very small base," says Raymond