Notes

XL Axiata Continues Mobile Market Domination despite Losing Towers


Jakarta, Indonesia – XL Axiata, one of the largest telecommunications provider in Indonesia and a sister company of Axis Capital Group, has been reported to sell some of its towers in the later part of the year 2014 enticing issues. It is said that the company has sold 5.6 million rupiah worth of towers to pay off their debts. Analysts have concluded that it may slowly be the end of the great communication network. However, though, with the employment of its new CEO, XL Axiata does not seem to have plans to leave the industry anytime soon. Moreover, the reviews on the increase of mobile market have kept the company in their place along with Telkomsel and Indosat.

Providing fast and reliable connections across the vast archipelago is a significant logistical challenge, but also a tremendous business opportunity for network and service providers as well as companies offering consulting, training and other auxiliary support.

The number of mobile subscriptions has now surpassed the country’s entire populations, making Indonesia the largest mobile market in all of Asia. Operators are now focusing their marketing efforts on increasing volumes per customer rather than growing their customer base.

Not least because of the geographic challenges, all eyes are on wireless technologies rather than fixed lines and particularly on growing demand for mobile data services. Growing connectivity is the central theme of Indonesia's development roadmap, which is why the government has over the past years improved regulations to facilitate infrastructure projects across the country. As business activity increases outside of the country's economic centre of West Java, so too does the need for effective communications.

XL Axiata in 2013 recorded total revenue growth of just 0.3%, driven by the data segment, which grew by 16%. Seeing data traffic increase by 142% in 2013, the company vowed to focus “all its business transformation strategies to capitalize on the demand for data.” Xl Axiata also leads the market in offering 4G connection with the speed of up to 100mbps as reported in December, 2014. This shows that the company is continuously competing in the field of Telekom.

Handheld devices are already the preferred way for Indonesians to access the internet. The ongoing roll-out of 3G networks – to be followed by much faster 4G connections – means wireless technology will continue to carry most data traffic. Not only will this make fixed broadband largely obsolete in the future and increasing complaints of subscribers, but it will also prompt increased use of cellular networks to hook up laptop and even desktop computers to the internet.