ISAT – Reports 3G shutdown completion

Indosat Ooredoo Hutchison (ISAT) has completed its 3G shutdown program by having the networks fully converted to 4G. The program is vernment-sanctioned that initiated since last year as the vernment aims to focus on 4G network as a backbone of internet connectivity nationwide. Meanwhile, network integration that carried out following Tri-Indosat merger is still oning as the company expects to complete it by 2023. (Source : Telko.id, CNN Indonesia) Comment: Being a non-incumbent carrier, ISAT (as well as EXCL) has a luxury to fully shutdown its 3G networks thanks to concentrated subs in urban areas where use for higher data services rise significantly. This allows ISAT to complete 3G shutdown as expected. We think the shutdown program will not substantially affect its subs number thanks to large chunk of 4G users on its end. Although, in the short run, ISAT may need to provide subs retention incentives such as device subsidy to get them switched to 4G, which could drive cost up. On the bright side, however, the shutdown program will help improve efficiency in the form of, maintenance and license costs, while focusing on development of higher speed data infrastructures ing forward.