XL Axiata Reports 2015
Jakarta, Indonesia — Indonesia has the largest telecommunications and mobile services recorded in Asia. As the industry continues to grow, this 2015 forecast has started to materialize.
Last year, XL Axiata Axis Capital Group Jakarta sold a portion of its towers to PT Solusi Pratama Tbk, a move which intrigued many investors. Some even say that this is to pay for the debt that the company has accumulated over the years. This 2015, XL Axiata, as one of the three largest telecommunications network in the country and a subsidiary of Axis Capital Group, continues to challenge the market as it releases an outlook in the first quarter of 2015.
A growing and relatively young population with raising disposable income makes Indonesia a highly attractive country for telecommunications service. Indonesia’s telecommunication sector is a highly competitive, rapidly changing and dynamic industry that has come to reflect significant shifts in social behavior and interaction.
In the case of XL Axiata, its new CEO, Dian Siswarini, has set to ramp up data business in their services. She also aims to strengthen their branding — XL and Axis — as it looks to fend off rivals in an intensely competitive market. Siswarini says that Telkom industry is now facing a very challenging year, with voice calls and SMS dropping significantly and with a lot of scams and telecommunications fraud reports increasing in the market. XL has therefore found some ways to improve their data service in the future. According to the cellco’s internal figures, data traffic exploded last year, climbing 126.7% to 123,824TB from 54,615TB in 2013.
Under her stewardship, Ms Dian said that XL plans to carry out a dual-brand strategy, promoting both XL and Axis equally. The move is a shift from its previous position when XL brand & customer management officer Rashad J Sanchez had said that the operator would use the XL branding to target higher income data users demanding high quality data services, while Axis would be aimed more at low-volume users for whom price was the primary concern. XL Axiata had a total of 59.6 million data subscribers at the start of this year and plans to spend IDR7 trillion (USD537 million) in 2015 — most of which will be ploughed into 3G and 4G improvements.
Fast mobile networks are now the most efficient way for Indonesia to catch up with more developed countries and provide coverage even in less populated regions. This reflects in subscription numbers dwarf fixed-line and fixed-wireless subscriptions. Continued economic growth is driving both demand for and affordability of cellular services, which points to further upward potential in the world’s fourth-most populous country. Unlocking this potential, however, requires substantial network investment. With the number of mobile subscriptions already far surpassing the country’s entire population, operators are focusing their marketing efforts on increasing volumes per customer rather than growing their customer base.