ISAT - Plans to expand fixed broadband, FMC

Indosat Ooredoo Hutchison (ISAT) is eyeing to expand fixed broadband network, targeting for 1.5 mn home pass additions this year from 400,000 last year. The company has previously rolled out Indosat Hifi, a fixed broadband product in 3Q22. Management expects to achieve 20% Indosat Hifi customer sign ups out of 1.5 mn home pass additions and later on, Indosat mobile and its converged products. (Source : Bisnis Indonesia) Comment : ISAT is playing catch-up with other MNOs that already rolled out their own converged products especially EXCL with XL Satu and TLKM with Indihome-Halo. We think converged products could be a new game changer for industry thanks to huge untapped market and saturating mobile market as well as efficiency out of seamless infrastructure synergy. FMC products could be a od venue to improve customers stickiness and ARPU amid stiff competition in mobile. Despite management’s aspiration for fixed broadband expansion, we think management is still mostly retaining its focus on strengthening mobile expansion especially in Eastern Indonesia provinces.