Telkom to spend $3.7b on broadband in '15

Telkom Indonesia plans to triple its broadband spending in 2015, as part of its support for the government's five-year broadband plan.

The operator has committed to investing 45 trillion rupiah ($3.7 billion) on broadband rollouts next year, the Jakarta Post reported, citing president director Arief Yahya. The commitment is more than double the size of the company's total typical annual capex budget.

Around half of the spending will be allocated for Wi-Fi rollouts, 30% will be spent on backhaul cables, fiber networks and satellites, and the remainder will go towards convergence efforts.

The Indonesian government last week launched the Indonesia Broadband Plan, which aims to provide affordable access to the majority of the population by 2019. The project has an estimated total cost of 278 trillion rupiah, part of which will come from taxpayer funding.

The government aims to provide mobile broadband access to all of the country's urban population and 52% of the rural population.

The project also seeks to make fixed broadband accessible for 30% of the urban population and 6% of the rural population.

According to former ICT minister Tifatul Sembiring, Indonesia's telecom sector has so far contributed 10% of the country's total economic growth.

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