Telkomsel was tipped to sell additional assets to parent company Telkom Indonesia’s tower unit as it seeks efficiency improvements to help lower costs and manage quality, Bloomberg reported.

The news outlet stated tower business Dayamitra Telekomunikasi (Mitratel) is set to purchase another 4,000 sites from Telkomsel using some of the $1.3 billion raised in an IPO in November.

Telkom Indonesia president director Ririek Adriansyah told Bloomberg differentiation was key to avoid becoming involved in a price war, adding the company is also looking at fibre network moves to match data demand.

Telkomsel sold 4,000 sites to Mitratel for IDR6.2 trillion ($431.4 million) in September and 6,050 in 2020.

The operator faces rising competition, with rivals Indosat Ooredoo and Hutchison 3 Indonesia in the process of merging into a business with around 100 million subscribers and 25 per cent market share.