BUSINESS

AXIATA TO STRENGTHEN POSITION IN CAPTURING INDONESIA’S FBB, FMC MARKETS

06/12/2023 11:25 AM

KUALA LUMPUR, Dec 6 (Bernama) -- Axiata Group Bhd’s (Axiata) Indonesian subsidiaries, PT XL Axiata Tbk and PT Link Net Tbk, have reached non-binding agreements to bolster their position in optimising the opportunities within Indonesia’s underpenetrated fixed broadband (FBB) and fixed mobile convergence (FMC) markets.

In a statement, the telecommunication group said the non-binding agreements encompass the transfer of Link Net’s FBB business, including its 750,000 customers, to XL Axiata.

Axiata said this would also include the roll-out of an additional two million new homes passed by Link Net, which would enable XL Axiata to deliver FBB and FMC services for its growing customers and the wider Indonesian community.

“Upon completion of the additional two million roll-out, Link Net will enable nearly 6.5 million access to home passes as a leading wholesale FibreCo,” it said.

Axiata Group chief executive officer and managing director Vivek Sood said this collaboration would streamline access to premium quality FBB and first-class convergence services, whereby the Indonesian community can now look forward to further enriched customer experience. 

“Furthermore, this joint effort aligns with the government’s objective of promoting digitalisation within the society, contributing to the nation’s technological advancement and digital transformation,” he said.

Axiata Group said XL Axiata and Link Net will proceed to set out a binding agreement for the terms, which will be carried out in compliance with prevailing regulations, including that of the Financial Services Authority related to affiliated transactions and material transactions.

It said the joint agreement marks an important milestone for Axiata as it moves closer to achieving the strategic structural transformation of XL Axiata and Link Net in Indonesia. 

“The construction of substantial new homes passed by Link Net to support XL Axiata underscores its pivotal role as a leading FibreCo. 

“Furthermore, the transfer of Link Net customers to XL Axiata will fortify XL Axiata’s position as a prominent ServeCo, fuelling the growth ambition of FBB and FMC offerings throughout Indonesia,” it said.

-- BERNAMA


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