JAKARTA - PT XL Axiata Tbk (XL Axiata) and PT Link Net Tbk (Link Net) continue to strengthen synergies to accelerate the penetration of the Fixed Broadband (FBB) and Fixed Mobile Convergence (FMC) services market in Indonesia.
The next synergy stage between the two parties is implemented again through the signing of the Fiber to the Home Network Development and Operation Agreement on June 28, 2023, which regulates, among other things, the cooperation in the development and operation of the 1 million homes passed network in a number of cities/districts in Indonesia.
Through this network collaboration, XL Axiata hopes to be able to reach a wider convergence market, as market demand continues to increase in the wider area.
XL Axiata President Director & CEO Dian Siswarini said this collaboration is part of the stages of cooperation between the two post-acquisition entities of Link Net by Axiata Group Bhd and XL Axiata in the early 2022 period.
"XL Axiata hopes to take advantage of all the advantages that Link Net has that we all know are the largest companies in Indonesia as providers of fixed line internet services that are very experienced in building and managing a very wide optical fiber network," said Dian, in a statement, Friday, June 30.
Dian added that the construction of the 1 million homes passed network is targeted to take place and be completed in one year, which reaches more than 10 cities/districts located in several provinces, including outside Java. By adding 1 million homes passed, XL Axiata hopes to be able to accelerate the achievement of 450 thousand home contacts and penetration of XL 1 service convergence to 150 thousand customers.
In this collaboration, XL Axiata has prepared planning and market target designs that can serve the needs of convergence services, while Link Net will carry out network designs and capacities that can meet XL Axiata market targets.
Regarding investment, until now a number of development costs are still in the process of calculating the two companies. The investment in the deployment of fiber will be carried out from Link Net. Investment from XL Axiata is more focused on connecting last-mile and installing CPE (Customer Premises Equipment) devices to customers' homes.
"After the acquisition, cooperation opportunities continue to be explored by XL Axiata and Link Net. The common thread of the collaboration between the two parties is to realize XL Axiata's vision as the leading convergence service provider in Indonesia that combines internet fixed broadband and internet mobile services," added Dian.
President Director & CEO of Link Net, Marlo Budiman said network development has begun and we are still on target to build an additional 1 million Fiber-To-The-Home (FTTH) homes passed in the coming year. This is the first step to add 5 million additional FTH homes passed to the Link Net network in the next 5 years.
This cooperation is in line with Link Net's strategy to transform business into an infrastructure company that will operate an open access fiber network that can be used by various ISPs in Indonesia. Through the Link Net network, we will create opportunities for tens of millions of Indonesians to gain access to high-speed internet and benefit from this. The success of XL Axiata and Link Net's cooperation will provide significant opportunities for revenue and profit growth in the coming years," explained Marlo.
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This collaboration combines high-speed internet services without quota restrictions, streaming content, cable TV and online storage owned by First Media with the Joint XL Quota Package, namely large quota internet data services. Currently XL Axiata continues to strive to introduce convergence services to the wider community, while increasing its benefits in line with the company's vision of becoming the leading convergence operator in the country.
As of the end of the first quarter of 2023, the penetration rate of XL Axiata's convergence services has reached 44 percent where XL Home subscribers have switched to XL ONE customers, meaning it shows strong demand for this convergence product.
Currently, XL Axiata also has a reach of XL Home & XL One fiber of more than 1.2 million homes passed in 53 cities and regencies and cities in Indonesia, including Jabodetabek, Medan, Palembang, Bandung, Purwokerto, Surabaya, Yogyakarta, Denpasar, Makassar, Balikpapan, Cirebon, Banjarmasin, Banjarbaru, Semarang, Palangkaraya, Samarinda, and Palu.
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