AT&T secures license to operate in Indonesia, further expands into Asia

The Wall Street Journal reports that U.S. telecom operator AT&T recently announced that it has secured a license to operate in Indonesia, to further grow its enterprise business in Asia.

AT&T, which previously partnered with local providers in Indonesia to operate, is the first foreign telecom operator to be granted a license in the country. A license allows AT&T to provide services directly to companies in the country, which only means bigger margins and revenue, and a bigger customer base.

The company went through a two-year process of filing for a license and enduring an audit process to get the license, according to The Journal. It had to make some commitments for investments in the country, without specifying what they were.

Roman Pacewicz, senior vice president of marketing and global strategy for AT&T, said that “Any Asian market is a market we look closely at and evaluate,” hinting interest on potentially expanding into Thailand and Vietnam next.

The granting of a license caused a surge in revenue growth as AT&T saw revenue jump 60% a year after the U.S. telco was granted a license to operate in India in 2006. Overseas operations is next big growth driver for U.S. telecom firms, which already face a stagnant market at home.

Local Indonesia telcos should watch out as AT&T’s entrance could only mean more competition.