Moody's: Indonesia mobile sector recovers

Moody's Investors Service said it expects that the Indonesian mobile telecom sector will continue to recover in 2010, as industry fundamentals remain strong with potential for growth.

The report focuses on the three largest cellular players, PT Telkomunikasi Selular Tbk, PT Indosat Tbk and PT XL Axiata Tbk.

Revenue growth will accelerate, driven by deepening market penetration, ARPU stabilization, a continued increase in minutes of usage and anticipated growth of mobile broadband applications, Moody's said.

The sector's EBITDA margins also are expected to remain flat or experience marginal negative pressure, the agency said, but should not rise - given that the possibility of further cost cuts will be limited, as the market is already reasonably competitive.

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