The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Ranjan Sharma - JPMorgan Chase & Co, Research Division - Analyst
: A couple of questions from my side. Firstly, with the impact of COVID, have you seen any change in consumer behavior in the first quarter and also
in like April and May? Have you seen a movement of customers between operators in consolidation, rising spend? If you can share any color, that
would be helpful.
Second question is on dividend. Has there been an announcement made on it? And how should we think of the policy?
Lastly, can you share any update on any regulatory changes that might be impending in Indonesia?
Unidentified Company Representative
Okay. Well, Ranjan, on the first question, impact of COVID and the change of customer behavior. Obviously, I already mentioned to you, for example,
in mobile, now more people using the modern channel and digital channel, which is around 60% of total traffic happen in the digital channel.
Second, actually, the tradition of the channel also was maybe [20%], they are not really operating. But with the digital channel that, I think, spread
across the country. We still maintain to have the similar figure of (inaudible). I think if we see this one, we can see actually this is a good trend for
us. Besides, in fact, we also still need traditional channel when we do affect the growth in the new business later on. And one is, I think, this traditional
digital channel going to be in the future. And what is the impact also there to the customer? More now, I think the traffic itself in the customer
base, they are consumed, the traffic actually at home. So I think, again, the traditional channel in the center of the, I think, cloud not necessarily
becoming point of the transaction. There you see again digital channel to do this transaction. So I think a lot of the change in the customer behavior
in which they are becoming much more digital now compared to before.
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JUNE 02, 2020 / 8:00AM, TLKM.JK - Full Year 2019 Telekomunikasi Indonesia (Persero) Tbk PT Earnings Call
Harry Mozarta Zen;Director of Finance, CFO & Director
Yes. Maybe adding to that, we also have seen tremendous usage of Internet in our network through IndiHome. The latest data that we can share
was 9.6 terabytes per second. That was by early April, which was 11% increase from mid-March when the pandemic literally started in Indonesia,
so 11% increase in 2 weeks. And also in terms of sales volume or a new installation volume of IndiHome per day, at the end of March and in April
until maybe the beginning of May, we saw like around 8,000 to 10,000 per day. Even though now has somewhat reduced to the, "normal level" of
around 5,000 to 6,000 new installation per day.
For your second question, I'm going to -- on dividend, we -- as we speak, we have still been communicating with the Ministry of State of Enterprise
in terms of the dividend that we will -- for sure, we'll announce it at our AGM on the 19th of June.
Unidentified Company Representative
And in the -- adding to first question, on the, I think, some application that are very popular right now, like, Zoom, Teams and even our own
application is becoming popular for many and actually, people really becoming more and more digital in doing their work.
Question: Ranjan Sharma - JPMorgan Chase & Co, Research Division - Analyst
: Number of customers, net adds on IndiHome for this year?
Harry Mozarta Zen;Director of Finance, CFO & Director
Yes. That's -- the target of additional new customers in IndiHome for this year, which is around 700,000.
Question: Prem Jearajasingam - Macquarie Research - Analyst
: Two questions from me, please. First of all, following up on the regulatory question, given what COVID has done to the industry, do you think that
there is an increased likelihood of industry consolidation taking place post-COVID or even as soon as 2020? Or do you think there's still too much
uncertainty around the spectrum situation to pause this? And related to that, do you see the competition facing increased network issues and
potential monetization issues given this COVID pandemic? And what do you think happens next on this front?
Unidentified Company Representative
First, I am going to answer the number 2 question, the second on the -- how is the monetization. I think with COVID and with the growth of the
data framework experienced by all the operators, we do expect that all the operators are already aware that we need some more capacity and
quality as well, so they're [equal] these countries. With this -- I think with [ballot] thinking about monetization with, I think, profit margin that our
competitor already met today, it is supposed to be kind of, I think, let's say, now for them, not a thing coming to more, let's say, intense competition
in the pricing. It is better to monetizing this one. We already see one of the core competitors, although they provide the unlimited, but unlimited,
based on the situation that customer needs to consume the main quota, which mean, still, they are thinking about, I think, monetization.
The other one, I know that they've started to reduce also the unlimited package because with this capacity demand, they need to invest more. I
think without justified price, they're not going to make any margin. I think this supposed to be making a bit more rational thinking on how to
monetize RPMB.
And I think the consolidation of post-COVID, it is difficult to answer the question. It is supposed to be from a long, long time ago. We believe that,
I think, a maximum 4 of the operators is going to be better for the industry. The less number of operators becoming [healthy] in the industry as I
think the players going to be more or less the same. We still believe this supposed to be based on business [based on our ability.] So whenever it
is going to happen, basically, we support the industry consolidation because that's going to make the industry healthier. Based on, I think, from
the decision or government, very interesting also what to expect [post-COVID].
Question: Niko Margaronis - PT. Danareksa Sekuritas, Research Division - Analyst
: Two questions which arise from some news that surfaced from media. First is about potential monetization of towers and secondly, the potential
partnership with Netflix. So if you can give us some color on these 2 topics and whether you believe if adding Netflix into your product portfolio
would increase the ARPU.
And maybe one more question on -- we see that data yield for Telkomsel fourth quarter coming down, and we heard about Singtel commentary
on Telkomsel. Is data yield came down further in first Q 2020? And, yes, and how to connect this with your argument that the competition will
moderate going forward this year?
Harry Mozarta Zen;Director of Finance, CFO & Director
Okay. I'll take the tower questions. Yes. We are not in a hurry to do any monetization in our business. I think the way we see this business is somewhat
different, probably compared to any other operators or any other independent tower providers. So we see it as an important enabler to support
our business, particularly our mobile business. Having said that, we are open for any -- obviously, if there's any clear benefit from monetization but
not in the near term. So -- but we do realize the importance of tower, especially when 5G comes around, whereby we need better or more density
of towers if we have 5G. Okay?
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