KUALA LUMPUR: Axiata Group Bhd
plans to accelerate value creation through its two Indonesian operating companies (OpCos), XL Axiata and Link Net.
The diversified telecommunications and digital conglomerate is confident that delayering its Indonesian assets would spawn a unique value illumination and would provide investors with separate and segmented access to Indonesia’s fixed mobile convergence (FMC) and fixed broadband (FBB) markets.
The group intends to position XL Axiata as a converged mobile, fixed and content service provider (ServeCo) to capitalise on the market opportunities in FMC and FBB, said Axiata in a statement today.
Meanwhile, it noted that Link Net would be transformed into a fixed broadband infrastructure company (FibreCo), focused on scaling up Fibre-to-the-Home access to eight million home passes within the next five years to capture the wholesale opportunity of an underpenetrated FBB market.
Axiata group chief executive officer and managing director Vivek Sood said the group is fully committed to playing its part in advancing Indonesia’s digital economy and supporting the country’s digital transformation agenda.
"Our delayering strategy of transforming Link Net into a dedicated FibreCo and to articulate XL Axiata as a dynamic ServeCo will realise increased value in both OpCos through accelerated scalability and synergies,” he added.
Vivek said delayering was not new to Axiata after a successful carveout of EDOTCO from mobile operations 10 years back had led to greater focus, operational excellence, and value illumination of the tower business.
"In addition to unlocking value for the group, this move also supports Axiata’s aspiration to promote digital inclusion, fulfilling our strategic role to meet the needs of an underrepresented market segment in one of the fastest growing Asean economies,” he added.
In line with the group’s overall strategy of delayering its assets, the creation of a FibreCo in Link Net and ServeCo in XL Axiata is set to drive scalability and unlock synergistic value through improved asset utilisation and Go-To-Market efficiencies.
Axiata said XL Axiata is set to unlock the next phase of growth with an ‘asset light’ business model, paving the way for the latter to realise its vision as Indonesia’s leading converged operator by delayering its fibre infrastructure assets to Link Net and focusing on its comprehensive FMC service offerings spanning mobile and fixed connectivity, content and digital services. - Bernama
