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What are you waiting for?
4G LTE in Indonesia now raged. Therefore, a number of operators are doing trials in some particular point in Jakarta. Still in the stage of pre-commercial , if commercialized, how fare 4G LTE mobile will be charged to the customer?
This question is quite reasonable because 4G facility of course will be much more severe than 3G. There is such then there is the price. If so then the 4G 3G so. Are mobile operators will raise prices, data services in Long Term Evolution network technology?
One successful mobile operators roll out 4G LTE trials are XL. XL has done testing 4G LTE network in Jakarta since last October at five points. A number of sites that can capture the signal 4G LTE Kasablanka City and Central Park, Euphoria Lounge Prima Tower, XL Xplor Senayan City, XL Xplor Central Park, as well as Grha XL.
President Director of XL Axiata, Hasnul Suhaimi said that if commercialized XL will not raise rates to users who want to taste 4G LTE. He focuses on the user experience is not fare. That is the differentiator.
"(Increase) fare? Enggaklah, which distinguishes the customer experience because of his great speed, "he said
Of course this is so exciting news for mobile customers, especially customer data long enough to wait for 4G LTE. But it should be known if not all smartphones support 4G LTE . If you want to taste the customer shall replace the phone.
Reference:
Jakarta, September 26, 2013 - PT XL Axiata Tbk. (XL) has agreed to acquire PT Axis Telekom Indonesia (AXIS), by entering into a conditional sale and purchase agreement (CSPA) with Saudi Telecom Company (STC) and Teleglobal Investments B.V. (Teleglobal), a subsidiary of STC. This action will drive industry consolidation, supporting a healthier telecommunications industry going forward and, more importantly, enable XL to provide improved network quality to customers.
This acquisition will provide significant benefits to customers and all stakeholders. Customers will experience enhanced service quality across a broader, higher capacity and deeper network.
XL is paying as consideration a nominal equity value and only part of AXIS’ overall liabilities and indebtedness.
Key highlights of the CSPA are the following:
Teleglobal will sell (or procure the sale of) a 95% equity stake in AXIS to XL
AXIS is valued at 100% enterprise value of USD 865 million, on a cash free and debt free basis.
The purchase consideration will be utilized towards payment of a nominal value for AXIS equity and redemption of AXIS' indebtedness.
The completion of the transaction is subject to
All applicable regulatory approvals
XL shareholders’ approval at an Extraordinary General Meeting of Shareholders
Spectrum retention
The acquisition will address XL’s current challenges and provide additional resources for XL whilst also benefitting other stakeholders.
Key Rationale for XL’s acquisition of AXIS:
Over 65 million customers will immediately benefit from the superior quality of service and wider coverage
Consolidates the industry further and paves the way for more prudent, growth focused expansion with a more efficient capex profile
Supports the government’s national broadband objective
Addresses XL’s current challenges - Provides additional spectrum capacity to XL, subject to regulatory approvals, leading to:
Significantly enhanced quality of service and network experience on both 2G and 3G
Enhanced asset utilization, particularly on XL's towers and network equipment, with tangible reduction in capex and opex spends
Further reinforces XL’s leadership position, with sizeable business operations and scale
Larger subscriber base and on-net community
Stronger and more effective data focus and traction amongst the youth segment
Complementary businesses with multiple areas of revenue and cost synergies
President Director of XL, Hasnul Suhaimi, said, “XL is committed to our customers who will significantly benefit from this transaction. With the acquisition of AXIS (AXIS launched its services in April 2008 and is available in many major islands of Indonesia), XL will reinforce its leadership in the Indonesian telecommunications industry with strong traction in mobile data services. I believe all industry participants are in agreement that the industry must consolidate. This will be driven by companies like XL who have the will and ability to accelerate the development of high quality communication services in Indonesia. Furthermore, XL is committed to investing in the next generation of mobile technologies and to bring back the broader industry ecosystem to healthier economics. We will fully comply with the prevailing regulations, and will consult and work with the regulators throughout the approval process.”
As Indonesia’s GDP continues to grow at an impressive 6% p.a., the role of telecommunications has shifted more strategically for many Indonesians. Today, telecommunications services are not only important in providing for connectivity, but also for increasing productivity, especially in mobile data services which experienced traffic growth of approximately 100 percent last year. The acquisition will enable XL to become a stronger data-focused operator well positioned to capture the large and fast growing, mobile data opportunity.
Both companies have integration plans and teams in place, which, post regulatory approvals, will enable XL to drive integration and synergies with XL’s strong execution track record and cost leadership DNA.
Merrill Lynch (Singapore) Pte. Ltd. (Bank of America Merrill Lynch) is acting as exclusive financial advisor to XL in respect of this transaction.
About XL
PT XL Axiata Tbk. is one of the major cellular providers in Indonesia. PT XL Axiata Tbk. is 66.5% owned by Axiata Group Berhad through Axiata Investments (Indonesia) Sdn Bhd and public 33.5%, and is part of Axiata
