business

Axiata taps Thaicom to fuel XL's market expansion

KUALA LUMPUR: Axiata Group Bhd has signed a deal with Thaicom Public Company Limited (Thaicom) for a four-year multi-transponder contract for leased capacity and teleport services in Indonesia.

The deal, signed by Axiata Group's subsidiary Axiata Business Services Sdn Bhd (Axiata Business Services) and Thaicom's unit IPSTAR International Pte Limited (IPSTAR), sees the former purchasing the remaining capacity on IPSTAR over Indonesia to deliver Axiata’s operating company, PT XL Axiata Tbk (XL), over 1 Gbps High Throughput Satellite (HTS) capacity for the provision of broadband services in Indonesia.

“We are leveraging on Thaicom’s capabilities in Asia to grow our enterprise business quickly and flexibly while providing reliable broadband services to all potential customers regardless of location,” said Axiata's group chief business operations officer Asri Hassan Sabri.

In an emailed statement, he said that the HTS connectivity will serve as an enabler to unlock the digital ecosystem for new market opportunities in places where terrestrial-based connectivity is limited or unavailable.

"As the world’s first ever HTS, launched in 2005, Thaicom’s IPSTAR helps us to connect users in remote and underserved areas of Indonesia cost-effectively. We are confident that the partnership will enable us to continue to grow our business faster without infrastructure limitations,” he said.

XL's chief executive officer Dian Siswarini explained that Indonesia is the biggest archipelago in the world with many areas and islands that have not been served by internet services.

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