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: Choong Chen Foong - CIMB Research - Analyst
: Three questions from me. Firstly, I wanted to ask about the recent signing of the strategic partnership with Microsoft. And in that announcement,
I saw that Microsoft will be utilizing Telkom's data center. So can I ask whether Microsoft has committed to be an anchor tenant in the hyperscale
data center? And if so, what capacity will it pick up in the [HDC]. So that's question number one.
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MAY 10, 2022 / 8:00AM, TLKM.JK - Q1 2022 Telkom Indonesia (Persero) Tbk PT Earnings Call
Number two, what is the data center revenue and also growth for Telkom in the first quarter of 2022. And my third question with regards to
enterprise revenue. It is down Q-on-Q, and I understand that there is some seasonality to this revenue line. But even on a year-on-year basis, it's
only up about 2%. So can you sort of provide us a bit more color as to the performance of the enterprise revenue in 1Q? And what should we sort
of expect in terms of the outlook this revenue line for the remaining quarters of this year? Those are my 3 questions.
Unidentified Company Representative
Okay. Thank you. I will answer for the core result of finance. Of course, that is part of our partnership scheme. And then we already -- we also will
put some effort to serve the (inaudible) and performance data center (inaudible). And then because of what we necessarily got impact after in all
data center to make the data offerings in our data center.
Question: Choong Chen Foong - CIMB Research - Analyst
: Understood. Can I just follow up with the first question. Just to clarify again, because the line wasn't entirely very clear. So did I share it correctly
that if Microsoft were to provide any sort of services to the enterprise or the government sector and it requires that service to be based out of a
data center that they are committed to use Telekom's data center. Did I hear that correctly, sorry?
Unidentified Company Representative
Yes. We have agreement on this with regards of resource on this matter.
Question: Hussaini Saifee - UBS Investment Bank, Research Division - Analyst
: Multiple questions from me. First is on Mobile competition. And I heard to your earlier question of Piyush that the competition remains quite
intense. So I just want to understand that here you see change in intensity of competition from the month of January to April. Has the competition
remain in the same case? Or we see that by April we have seen some improvement in competition? Second question is on IndiHome. So IndiHome
subscriber growth, which was slower compared to last year. So I just want to understand the outlook for the IndiHome net additions, subscriber
net addition target for this year? And finally, on the fixed mobile convergence. Now have you decided in structure between Telkomsel and IndiHome
how it will be structured?
Question: Hussaini Saifee - UBS Investment Bank, Research Division - Analyst
: So in that light, how should we see the overall industry growth, mobile industry growth for the year? Should we still expect mid-single-digit kind
of growth is achievable.
Question: Hussaini Saifee - UBS Investment Bank, Research Division - Analyst
: Yes. This is very clear. Just a color on the last question. The fixed mobile convergence structure between IndiHome and Telkomsel, any update on
this side?
Heri Supriadi - Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk - CFO, Director of Finance & Risk Management and Director
I think as we have the MOU with Singtel as well on this 1 to address how is the best to run the fixed mobile convergence for the base of Telkomsel's
both shareholders, Telkom and Singtel agreed to explore what is the best structure in running this business. We do expect the structure going to
be -- the design of structure going to be finalized in 6 months from that month. So we do expect we can complete the final structure for IndiHome
and Telkomsel.
Question: Ranjan Sharma - JPMorgan Chase & Co, Research Division - Analyst
: I have 2 questions, but let me take them one by one. Firstly, on your wireless ARPUs. I mean, you've been discussing for a while that the industry
is moving in the right direction. There have been efforts to improve pricing, tariffs have been increased. But why is the ARPUs down? And this is
not just telecom specific, it's for the operators as well. So would love to hear your thoughts on why ARPUs are still declining and whether you expect
them to turn around? I'll stop here and then take on the second question after your answer.
Unidentified Company Representative
Yes. From an ARPU perspective, right, maybe I'd like to recollect -- in Q1, there was still sort of headwinds and uncertainties. If you could recall, it
was really a time of uncertainty, especially with the Omicron variant, together with that uncertainty of that Omicron variant. There were also
restricted movement that is mandated by the government. So with that fear factor, that drove lower purchasing power, consumer spending,
household consumption. And then that being at home has the WiFi offset, especially in our high-value customer segment. So that emits
lower-than-expected economic recovery that drove some temper in terms of the ARPU. But what we see is with strong fundamentals for sustainable
growth moving forward. We are seeing stable ARPU data traffic increase and with the right pricing, that's the momentum that we will see for months
to come. As the economic situation improves, people are traveling more plus there is the stabilization of the COVID situation in Indonesia.
Question: Ranjan Sharma - JPMorgan Chase & Co, Research Division - Analyst
: Sir, the voice is not clear, I apologize, but can you repeat that again, what happened to the SIM cards.
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MAY 10, 2022 / 8:00AM, TLKM.JK - Q1 2022 Telkom Indonesia (Persero) Tbk PT Earnings Call
Unidentified Company Representative
Yes. I think we are facing a problem related to the supply of the SIM cards. Most of the vendors, they are increasing the prices around 40% because
the limited of chipset and so on.
Question: Ranjan Sharma - JPMorgan Chase & Co, Research Division - Analyst
: 19%, you said?
Unidentified Company Representative
Yes, plus 800 plus and plus 432 of the accelerated depreciation.
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