EXCL - Eyes to boost FMC business

EXCL - Eyes to boost FMC business XL Axiata (EXCL) is eyeing to boost its fixed mobile convergence (FMC) services in line with growing demand from customers. As of 2Q23, penetration of FMC product, XL Satu has reached 56% from 44%, which is currently focused on business and family segments. (Source : Bisnis Indonesia) Comment : EXCL's move to develop FMC service is marked by an agreement with LINK on strategic partnership. This is banking on low fixed broadband penetration in Indonesia. Fixed broadband as well as transformation to adopt into FMC is necessary to strengthen its competitive advantage in line with its status as the pioneer of FMC by leveraging its affiliates with LINK, enabling it to be more capex and cost efficient. EXCL and LINK will involve in transformation whereas the latter will divert its fixed broadband customers in exchange of EXCL's fiber asset. That way, EXCL will be focused on customers product, last mile connection and CPE installment while LINK on fiber infrastructure expansion.