EXCL - To ink FMC cooperation with LINK

XL Axiata (EXCL) is planning to ink fiber network development and operation agreement with Link Net (LINK) on July 28, in a move for accelerating convergence of fixed-mobile. By the signing, the company is aiming to establish 1 mn home pass network in a year in 10 cities including ex-Java, covering 450,000 home connects. (Source : Kontan) Comment : The agreement marks EXCL’s move to further expand its fiber and sharpen its FMC preposition, banking on low fixed broadband penetration in Indonesia. Fixed broadband as well as transformation to adopt into FMC is necessary to strengthen its competitive advantage in line with its status as the pioneer of FMC by leveraging its affiliates with LINK, enabling it to be more capex and cost efficient. EXCL and LINK will involve in transformation whereas the latter will divert its fixed broadband customers in exchange of EXCL's fiber asset. That way, EXCL will be focused on customers product, last mile connection and CPE installment while LINK on fiber infrastructure expansion.