Ooredoo plans to take on Telkomsel with Hutchison merger

By Sam Steers
The Qatari and Hong Kong-based companies have Telkomsel in their sights as they aim to become Indonesia's No.2 carrier...

In December 2020, Qatari-based telecommunications company Ooredoo announced that it was exploring the possibility of merging with CK Hutchison Holdings, a telecommunications company in Hong Kong, in an attempt to become Indonesia’s second-largest carrier.

As it stands Ooredoo is the sixth-fastest growing telecoms company in the world and its merger with Hutchison would put pressure on rival, Telkomsel, which is currently the dominating company in the Indonesian telecommunications market.

However, it has recently been revealed that the merger between the two companies reportedly aims to take a market share as large as 30%, putting both organisations in sight of market dominance. 

Ooredoo’s Managing Director, Aziz Aluthman Fakhroo says that “the combination with Hutch will put us as a clear number two, taking us to 27%-30% revenue market share in Indonesia.”

By comparison, Indosat’s market share was around 17%.

The effects of the merger on enabling new joint businesses to battle Telkomsel are yet to be seen, and with an extensive fibre network will prepare Telkomsel for the introduction of 5G in Indonesia, meaning new businesses may struggle to compete. 

However, before entering the market the merger will need to be approved, something which Ooredoo Managing Director, Fakhroo, hopes will happen by the end of the year. 

Share

Featured Articles

Vodafone’s Refurbished Phones & Glastonbury Festival App

Vodafone promotes sustainability with Good Grade refurbished phones, Lifetime Service Promise & offers app for enhanced Glastonbury festival experience

DTW24 - Ignite Summit Paves the Way for the AI-Native Telco

Mobile Magazine is on the ground in Copenhagen at DTW24, highlighting the telecom industry's move into the AI-Native era

What to see and do at GSMA MWC Shanghai 2024

At the 2024 GSMA MWC in Shanghai, guests will learn more about the future of 5G and IoT, as well as the role of mobile connectivity in FinTech & healthcare

Canalys: African Smartphone Market Surges 24% in Q1 2024

Telecommunications

Cybersecurity Budgets Rise for Telecommunications & Tech

Telecommunications

Apple: iOS 18 makes iPhone more Secure, Personal & Private

Technology & AI