EXCL - Establishes 1,100 new BTS throughout 2022

XL Axiata (EXCL) has reported that the company has established 1,100 new BTS in Kalimantan throughout 2022, 50% of which were fiberized. The number of recently established BTS in Kalimantan grew 42% yoy. This move marked a continuous expansion in ex-Java area for the past 3 years. With recent expansion, EXCL has covered over 1,800 villages, 466 subdistricts and 55 cities/regencies or equal to 75% population in Kalimantan with support of 5,800 4G BTS. (Source : Antara) Comment: The company's move to ex-Java can be seen as a venue to seek a new source of higher growth since a level of competition in Java has been tough, leaving limited opportunity to grow further. In addition, vernment's strong support for new capital development will also boost exponential growth in the area, encouraging demand for telecommunication and other IT solutions. Meanwhile, we hold the view that fiberized BTS that EXCL was doing is essential to optimize network capacity and reliability of EXCL's infrastructure across the island, as well as connecting with other fiber infrastructure in Batam, Sumatra, Kalimantan and Sulawesi which improves quality and lower latency.