Indosat Ooredoo Hutchison, a major telecommunications player in Indonesia, has made a strategic move by acquiring the customer assets of PT MNC Kabel Mediacom (MNC Play), a prominent fiber-based network services provider in the region.
This IDR876.86 billion (USD56.8 million) acquisition marks a significant expansion for Indosat’s Fiber-to-the-home (FTTH) business, operating under the brand name Indosat HiFi.
With the addition of MNC Play’s 300,000 fixed-home internet and entertainment customers, Indosat HiFi’s existing base of 100 million mobile and FTTH subscribers will experience a substantial boost.
Moreover, the acquisition includes MNC Play’s Internet Protocol Television Services (IPTV), enhancing the service offering for Indosat HiFi customers with an integrated package.
Vikram Sinha, President Director and CEO of Indosat Ooredoo Hutchison, expressed optimism about the acquisition’s transformative impact on their FTTH business. Vikram Sinha anticipates a positive effect on EBITDA starting in 2024, emphasizing the increasing significance of home broadband as a contributor to Indosat’s future growth.
The move comes amidst projections indicating a promising trajectory for Indonesia’s fixed broadband market. Analysts at Globe Data estimate a Compound Annual Growth Rate (CAGR) of 10.6 percent between 2022 and 2027, fueled by the expansion of fiber-optic networks, rising household penetration, and surging demand for high-speed broadband services.
Simultaneously, as part of this transaction, MNC Play’s fiber optic network assets have been acquired by Asianet, a Lightstorm group company. Asianet is set to take charge of owning, managing, and operating all aspects of MNC Play’s fiber optic networks.
