Bakrie Taps Rights Issue For CDMA Tie-Up

Reuters reports that Bakrie Telecom, an Indonesian mobile network operator, plans to carry out a IDR250/share rights issue in August 2010 that would finance the proposed combination of its CDMA-based wireless network with that of rival PT Telkom. By pooling their CDMA assets, the companies hope to bring costs down and make the service more appealing to new users. CFW expects that, by the completion of the deal, Bakrie will be left in a stronger and more competitive position than it is in at present, but, unless it can acquire GSM or 3G/4G spectrum, it may well be left behind in the long term.

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