ISAT - Completes partial subs acquisition with MNC Play

ISAT - Completes partial subs acquisition with MNC Play Indosat Ooredoo Hutchison (ISAT) has completed partial acquisition of MNC Play subscribers in transaction worth IDR878.86 bn. The acquired subscribers are nearly 325K in total. Following the deal, both companies agreed to provision of services. (Source: Kontan) Comment: We are sanguine that ISAT’s plan for fixed broadband acquisition should lead to accelerated growth on its fixed broadband business. The company eyes to attain 10% of Indonesia’s market share by 2026-2027 which we deem to be achievable especially helped by inorganic expansion. We believe the acquisition should bolster ISAT’s fixed broadband revenue going forward and make a way for FMC that has become new norm in the industry. Over the long run, we believe FMC will achieve better customer loyalty, and bolster infrastructure and operational synergies that should result in better cost efficiency as long as it does not trigger another price wars. On the other hand, FMC penetration will also benefit from 5G technology once its rolled out.