ABSTRACT
PT Telkomsel is a subsidiary of PT Telkom Indonesia in the field of mobile telecommunication services, as mobile telecommunication operators which have the largest market share in Indonesia PT Telkomsel plans to implement the technology Long Term Evolution (LTE) in order to maintain the company images as a pioneer of mobile telecommunications technology development and also improve the quality of network system, based on the need of appropriate investment strategy in the implementation of mobile telecommunication network technology.
This study aims to choose the investment strategy that should be applied by PT. Telkomsel for the implementation of LTE technology. Designing the strategic alternatives by considering the data of telecommunication market conditions and the condition of existing 3G networks in operation to the needs of both capex and opex funds. Then it can be designed two alternative investment strategies for LTE implementation, first the occupancy strategy which is the company should implement the LTE from the highest occupancy rate and second the revenue strategy which is the company should implement the LTE from BTS which is highly profitable, those strategy can be selected through the financial calculations such as NPV and IRR.
Based on the calculation of the financial analysis of alternative strategies then occupancy strategy chosen in this case where the strategy suggest PT. Telkomsel chose BTS with high occupancy rate in advance to do the migration to LTE technology and then proceed to the BTS with occupancy rate of medium and small, in accordance with growing number of market stale, technology, and also investments so that it can be seen the consequences that may occur if the strategy goes.
Keywords: PT Telkomsel, Capex, Opex, Occupancy, Revenue, BTS, LTE, Strategy Alternative