TELKOMSEL NOT TO RAISE CAPEX IN 2009

Surabaya, E Java, Dec 13 (ANTARA) - Telkomsel, the cellular phone unit of state telecommunications operator PT Telkom, gave the assurance it will not raise its capital expenditures (capex) next year as a consequence of the global financial crisis.
"Fund allocations for capital expenditures in 2009 are expected to be the same as in 2009, namely about US$1.5 billion. Viewed from the persistent steep rise in the dollar's exchange rate, fund allocations for capital expenditures next year are likely to fall," Telkomsel External Corporate Communications Manager Suryo Hadiyanto said here on Saturday.
"Despite the expected drop, we remain committed to improving the quality of our services and networks to break the isolation of remote areas," he said.
He further predicted the growth of the cellular phone industry particularly that of new subscribers in 2009 would slow down due to a decline in the people's purchasing power.
The number of Telkomsel subscribers grew by 140 percent to 63.5 million in 2008 from 47.8 million in 2007. The company has set the target of new subscriber growth at 30 percent for 2009.
The number of Telkomsel subscribers this year represented nearly 50 percent of the total cellular phone subscribers in the country estimated at 130 million.
"We are quite surprised with our achievement this year. All the programs and products we launched have received extraordinary responses from consumers," Telkomsel Vice President for Java and Bali Areas Gilang Prasetya said.