Abstract :

The telecommunication industry faced a negative headwind due to the emergence of OTT (over the top) services, resulting in lower service prices, limited network-based services, and increased network capex. This led to a scissor effect, with significant growth in capex and stagnant revenue growth. To address this, European operators spun off the service telecommunication company (ServCo) and the telecommunications network provider company (InfraCo, NetCo, and FiberCo), a strategy in the consolidation of the telecommunications industry. One of leading Telco Company in South East Asia currently conducting a diversification strategy review to encourage growth by leveraging its market leadership in the FTTH (Fiber to the Home) business.

                  This study calculates the business potential and valuation of each potential scenario implemented by Telco Company using DCF and conducts a decision analysis using the AHP method to determine the most appropriate scenario. After calculating the projections and valuation, the authors conduct interviews with experts to weigh each criteria required and targeted by ServCo for analysis using AHP.

---

Keywords :

AHP, DCF, Spin-off.

---

References :

1. 1. Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic Management Competitiveness & Globalization. Canada: Cengage Learning.
   2. Duneja, R., Pichai, H., & Taga, K. (2020). Embracing the Future, How can operators embrace telecom disruption. Arthur D Little.
   3. Hema, Y., & Laoli, N. (2023, April 03). Kontan. Retrieved from kontan.co.id:

   https://investasi.kontan.co.id/news/kementerian-bumn-targetkan-kapitalisasi-pasar-telco-telco-tembus-rp-500-triliun

   4. Gitman, L. J., & Zutter, C. J. (2015). Managerial Finance.
   5. Saaty, T., & Vargas, L. (2012). Models, Methods, Concepts & Applications of the Analytic Hierarchy Process. Springer New York.
   6. Goepel, K. D. (2013). Implementing the Analytic Hierarcy Process as a Standard Method for Multi-Criteria Decision Making in Corporate Enterprises – A New AHP Excel Template with Multiple Inputs. Proceedings of the International Symposium on the Analytical Hierarchy Process, (pp. 1-10).
   7. Ribeiro, J. C., Budden, G. C., & Vaz, P. M. (2021). The Rise of Netcos.
   8. Singhal, P., & Bhagrava, B. (2019). Next-gen infraco unlocking new business opportunities.
   9. Otoritas Jasa Keuangan. (2023, April). Suku Bunga Dasar Kredit. Retrieved from Otoritas Jasa keuangan: https://www.ojk.go.id/id/kanal/perbankan/Pages/Suku-Bunga-dasar.aspx
   10. (2017). Annual Report on Financial Performance. Confidential. Retrieved from a confidential company website
   11. (2018). Annual Report on Financial Performance. Confidential. Retrieved from a confidential company website
   12. (2019). Annual Report on Financial Performance. Confidential. Retrieved from a confidential company website
   13. (2020). Annual Report on Financial Performance. Confidential. Retrieved from a confidential company website
   14. (2021). Annual Report on Financial Performance. Confidential. Retrieved from a confidential company website
   15. (2022). Annual Report on Financial Performance. Confidential. Retrieved from a confidential company website
   16. Goodwin, P., & Wright, G. (2004). Decision Analysis. Jown Wiley & Sons