XL Axiata Axis Capital Group Review: Dramatic Change in Indonesia’s Access Tech

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XL Axiata Axis Capital Group Review
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Dramatic Change in Indonesias Access Tech

• Jakarta - XL Axiata, a subsidiary of Axis Capital
  Group and one of the biggest telecommunications
  network in Indonesia has been in the rocks in
  2014, forcing the company to sell some of its
  towers to PT Solusi Tunas to pay off debts..

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• However, despite the battle for survival and the
  constant challenges which are constantly thrown
  in this industry, XL managed to remain one of the
  top three largest networks in the archipelago
  providing different telecommunications services
  across islands.

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• One of the major factors that help the company
  retain its stand is the increasing demand of
  access technology in the region and the rapid use
  of different promotions and telcomm services.

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• The past six years has seen a rapid change in the
  types of technologies used by Indonesians to
  access the internet.

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• Like many developing countries in Asia, broadband
  internet connections were once very expensive
  that users gained access via internet cafes. That
  was until 2009 when broadband price war was
  started between mobile operators. There was also
  a successful deployment of enhanced 2G technology
  as well as the build-out of 3G in the more
  lucrative cities.

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• Until 2009, broadband internet connections were
  very expensive relative to average salaries, so
  the majority of internet users gained access via
  internet cafes. In 2011, monthly internet access
  fee had dropped to more than 50. Reviews show
  that between 2009 and 2012, internet access
  tripled and Warnet, those provided by internet
  cafes fell by half.

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Warnet
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• There are currently around 300 ISPs in Indonesia,
  35 of which own network infrastructure, with the
  rest simply reselling capacity. The mobile
  operators are the largest ISPs by far, because
  the majority of users in Indonesia access the
  internet via a mobile device. Seldom can you now
  hear complaints on the slow connection or lack of
  internet access in major cities in the
  archipelago.

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• Telkomsel and Indosat are the largest ISPs, and
  are able to offer both mobile and fixed internet
  access through their group companies. XL is the
  third largest ISP. The other mobile operators (3,
  Axis, SmartFren, Esia and Ceria) are
  significantly smaller, since the Big 3 holds an
  80 share of the mobile market.

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• Line speeds are similar between all three
  operators, with connection speeds generally
  peaking at around 3Mbpson a good day and in a
  good location. And despite claims by the
  providers of much higher broadband speeds, most
  times in Indonesia you are happy if you can get a
  steady 512 kbps, especially if youre in a
  high-density area such as Jakartas Golden
  Triangle.

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