XL Axiata and Link Net are working together to expand their reach and offer Fixed Broadband (FBB) and Fixed Mobile Convergence (FMC) services to more people in Indonesia. They have signed an agreement to develop and operate a Fiber to the Home Network, which will connect 1 million homes in several cities and regencies across the country.
According to the official release, this new network will be built within a year and include areas outside Java. It's important to note that this network is separate from Link Net's existing network. Through the development of this network, XL Axiata intends to reach a wider convergence market, in line with the continued increase in market demand in a wider area.
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XL Axiata said, "This collaboration is part of the stages of cooperation between the two entities after the acquisition of Link Net by Axiata Group Bhd and XL Axiata in the early period of 2022. XL Axiata wish to take advantage of all the advantages which are owned by Link Net."
XL Axiata aims to speed up the achievement of 450,000 home connections and the convergence penetration of XL SATU services to 150,000 subscribers by expanding its coverage to 1 million homes.
According to the statement, XL Axiata is responsible for planning and designing market targets, while Link Net will handle network and capacity designs. The companies are still calculating construction costs, and Link Net will handle fibre deployment investment, while XL Axiata will focus on connecting the last mile and installing CPE tools in customer homes.
Link Net said, "Network development has begun and we are on track to build 1 million additional Fiber-To-The-Home (FTTH) homes passed over the coming year. This is the first step to adding an additional 5 million FTTH homes passed to our network in the coming 5 years."
"This is in line with Link Net's strategy of transforming its business into a pure infrastructure company that will operate an open-access fibre network that can be utilized by multiple ISPs across the country. Through Link Net's network, we will create a gateway where tens of millions of Indonesians will be able to have access to high-speed internet and reap all of the benefits that this brings," added Link Net.
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Following the acquisition, XL Axiata and Link Net worked together to release new service products. In October 2022, they collaborated to provide internet convergence services by combining First Media's high-speed internet services, cable TV, streaming content, and online storage with XL Kuota Bersama Package, which offers large internet data quotas without limits.
As of the first quarter of 2023, the convergence services offered by XL Axiata have achieved a penetration rate of 44 percent and XL Home customers have transitioned into being XL SATU customers.
Currently, XL Axiata also has XL Home and XL SATU fibre coverage of more than 1.2 million homes passed in 53 cities and regencies in Indonesia, including Jabodetabek, Medan, Palembang, Bandung, Purwokerto, Surabaya, Yogyakarta, Denpasar, Makassar, Balikpapan, Cirebon, Banjarmasin, Banjarbaru, Semarang, Palangkaraya, Samarinda, and Palu.
