KUALA LUMPUR: Axiata Group Bhd has agreed to transfer unit PT Link Net Tbk's fixed broadband business along with its 750,000 customers to another subsidiary PT XL Axiata Tbk.
This will then make the latter the second-largest FBB provider in Indonesia with one million customers.
Additionally, Link Net will expand its services to an extra two million homes, allowing XL Axiata to provide FBB and fixed mobiles convergence services to nearly 6.5 million access to home passess customers across Indonesia.
The transfer of LinkNet customers to XL Axiata is to speed up the shift towards becoming a company that focuses on providing services (ServeCo) and fiber-optic infrastructure (FibreCo).
The move is also intended to strengthen Axiata's position in the untapped markets of FBB and FMC in Indonesia.
XL Axiata president director and chief executive officer Dian Siswarini said the vast pick-up in demand for FBB and FMC services strongly affirms its strategic direction.
"We believe the collaboration between XL Axiata and Link Net will allow us to capture this greater demand and drive the acceleration of growth of FBB and FMC services in Indonesia.
"By expanding our network infrastructure and extending service availability, we will effectively reach the broader Indonesian community, catering to their evolving convergence needs and preferences for a suite of both fixed, mobile and content services," said Siswarini in a statement today.
The companies will work on a detailed agreement that complies with relevant regulations, including those set by Indonesia's Financial Services Authority concerning transactions between affiliated companies.
"The non-binding agreement to transfer Link Net's retail business to XL Axiata will enable us to focus on our core expertise in network development, progressing towards achieving our goal to become a globally recognised FibreCo," said Link Net director and acting chief executive officer Kanishka Wickrama.
Axiata group chief executive officer and managing director Vivek Sood said over the next two years, Link Net will enable 6.5 million home passes for XL Axiata to build on the existing one million customers, with a majority to receive a converged offer.
He said the joint effort aligns with the government's objective of promoting digitalisation within the society, contributing to the nation's technological advancement and digital transformation.