TLKM - To roll out converged products in August

Telekomunikasi Indonesia (TLKM) is slated to roll out converged products mobile and fixed broadband in August, eyeing to bag 5mn customers. The converged products are expected to be priced at between IDR70 k and IDR265 k or below Indihome's ARPU. (Source : Selular) Comment: We believe TLKM to be in pole position on FMC race, thanks to its superior fibre infrastructure. With its Indihome customers standing at 9mn, TLKM is nowhere near its closest competitor, First Media and XL fibre with est. less than 1 mn customers each. Although, the pricing seems to be considerably lower, we expect that might be able to be compensated by operational efficiencies stemming from synergy.