ISAT - To focus on FTTH expansion

ISAT - To focus on FTTH expansion Indosat Ooredoo Hutchison (ISAT) is to focus on fiber to the home (FTTH) expansion following its move to acquire c. 300K customers of MNC Play concluded in Nov '23, which is part of its Go To Market strategy. In addition to FTTH, the company also launched IPTV product line-up served by MNC Mediacom. The strategy aims to acquire for more customer acquisitions. To strengthen its fiber deployment, ISAT also inked partnership with Asianet whose c.15K km of fiber with 1.5mn homepasses across the country. (Source: Kontan) Comment: ISAT's move to focus on FTTH is part of its grand strategy to carry out FMC that has been around in the industry for the past two years. We are positive service convergence is needed to improve its churn and loyalty by offering cross selling and value-added service. We expect telco's competition is now shifting from acquisition based to service-based, which should be positive for cost standpoint and ARPU. We retain our BUY recommendation for ISAT with a TP of IDR11,860 per share.