FiberCo will Operate 86 Thousand Kilometer of Fiber Optic Network in Indonesia

Signing of the agreement between Indosat, Arsari Group, and Northstar Group (photo: Dinda Buana/VOI)

FiberCo, a joint venture (joint venture) of Indosat Ooredoo Hutchison (Indosat or IOH), together with Arsari Group and NorthStar Group will operate an optical fiber network of 86,000 kilometers.

In terms of implementation, FiberCo will operate a comprehensive and integrated fiber optic network of more than 86 thousand kilometers, including a backbone network, domestic undersea cables, and infrastructure access that connects telecommunications towers and business areas.

Of the total network distribution, approximately 45% of FiberCo's optical fiber network will be on Java, and the other 55% will be outside Java. This initiative has a strategic role in promoting more equitable digital connectivity.

As an independent entity, FiberCo will operate with an open-access model, providing open access for various telecommunications service providers to maximize the utilization of infrastructure and accelerate national digital inclusion.

President Director and CEO of Indosat Ooredoo Hutchison, Vikram Sinha, said this transaction is part of Indosat's long-term strategy to strengthen its financial structure and focus on its core business.

"Through the asset-light approach, we can unlock the value of optical fiber assets while building a more robust and ready independent platform to meet the needs of the future of digital," said Vikram at the Indosat Ooredoo Hutchison office, Tuesday, December 23.

Through this collaboration, the Indosat Group, Arsari Group, and Northstar Group are committed to promoting digital inclusion, improving service quality, and accelerating the development of sustainable Indonesian economy and technology.

The entity with a transaction value of IDR 14.6 trillion will operate with an open-access model, which allows various telecommunications operators to jointly utilize the network.