TLKM - Launches FMC product

Retail arm of Telekomunikasi Indonesia (TLKM), Telkomsel has officially rolled out fixed-mobile convergence segment (FMC) product, namely Telkomsel One on 21 July '23. The product is available in 501 regencies or cities, priced between IDR120 K- IDR1.499 mn. Telkomsel One comprises of three bundled packages for mobile, fixed broadband and wireless broadband under Orbit, namely Easy package, Dynamic package and Complete package. (Source : Company, KBVS Research) Comment : Judging from Telkomsel One pricing, the product is on neck-to-neck with XL Satu that priced at IDR129 K for most affordable package. However, with its superior fiber infrastructure and size of customers (Indihome c.9 mn, Telkomsel c.155 mn, Orbit c.700 K) we are sanguine that it would put TLKM in pole position of FMC race. We believe FMC should bring improved efficiency on synergy and bolster profitability of the players as long as it does not lead to another price wars. On the other hand, FMC adoption could also lead to faster 5G implementation should the technology be deemed ready for roll out as it needs strong broadband to reduce latency.