EXCL - Rolls out FTTR

XL Axiata (EXCL) has rolled out fiber to the room (FTTR) technology for converged product, XL Satu. The technology is meant to maintain its internet service quality by installing fiber cables in closed room or areas. FTTR is believed to be able to improve connection in stable consistent and seamless manner. This is also part of the company's efforts to expand XL Satu in other big cities across the country. (Source : Emiten News) Comment : Fixed broadband development through FMC preposition has become a central theme for EXCL, as the forefront of convergence race among MNOs. We like EXCL's strategy to employ various venues to improve its service quality as we witness competition in internet market have started to shift from price-based competition to service quality and value added service especially for customers in big cities whose higher propensity of spending. To strengthen fixed broadband penetration, EXCL plans to execute transformation with First Media (LINK), enabling it to use asset light approach. Retain BUY call for EXCL.