Telkom CEO Comments on Impact of XL Axiata and Smartfren Merger
Telecom Landscape Shifts as XL Axiata and Smartfren Merge to Form XLSmart
New York, NY – The U.S. telecom industry is watching closely as a major shakeup unfolds in Indonesia. XL Axiata and Smartfren, two prominent Indonesian mobile operators, have officially merged, creating a new powerhouse called XLSmart. This consolidation leaves Indonesia with three major telecom players: Telkomsel (a subsidiary of Telkom), Indosat Ooredoo Hutchison, and the newly formed XLSmart.
Ririek Adriansyah, CEO of Telkom, expressed cautious optimism about the merger’s impact. “Merger hopefully is good for the industry,” Adriansyah stated. “It creates competition. Even with three operators, there will be competition.”
This sentiment was echoed by Saki Hamsat Bramono, VP of corporate Communications & Social Responsibility at Telkomsel.Bramono viewed the merger as a positive development, potentially leading to improved service quality, wider digital access, and greater value for all stakeholders.
“We believe this consolidation can enhance service quality, digital access equality, and provide added value for all stakeholders,” Bramono explained. “It will create a lasting positive impact on society and the nation.”
The merger, valued at a staggering Rp 104 trillion (approximately $6.7 billion USD), aims to leverage the combined strengths of XL Axiata and Smartfren. Vivek Sood, group Chief Executive Officer of Axiata Group, highlighted the merger’s potential to address Indonesia’s unique infrastructure needs.
“This merger will allow us to meet the specific infrastructure requirements of Indonesia as an archipelago nation,” Sood said. “It will create a scalable platform that will enhance coverage and service quality, offer diverse product options, and improve network quality.”
The emergence of XLSmart is expected to reshape the competitive landscape of Indonesia’s telecom sector,potentially leading to new innovations and improved services for consumers. The U.S. telecom industry will be closely observing the developments in Indonesia, as they could offer valuable insights into the dynamics of consolidation and its impact on service quality and consumer choice.
Indonesian Telecom Giant Emerges: A Q&A with Telkom CEO on XL axiata, Smartfren Merger
NewsDirectory3.com: The Indonesian telecom landscape has been forever altered by the merger of XL Axiata and Smartfren, creating XLSmart. With this consolidation leaving only three major players, what impact do you foresee for the industry?
Ririek Adriansyah, CEO of Telkom: Merger hopefully is good for the industry. it creates competition. Even with three operators, there will be competition.
NewsDirectory3.com: How do you anticipate this new competitive habitat will affect consumers?
Saki Hamsat Bramono, VP of corporate Communications & Social Obligation at Telkomsel: We believe this consolidation can enhance service quality, digital access equality, and provide added value for all stakeholders. It will create a lasting positive impact on society and the nation.
NewsDirectory3.com: What are the primary advantages of this merger for XL Axiata and Smartfren, particularly considering Indonesia’s unique geographical challenges?
Vivek Sood, Group Chief Executive Officer of Axiata group: This merger will allow us to meet the specific infrastructure requirements of Indonesia as an archipelago nation. It will create a scalable platform that will enhance coverage and service quality, offer diverse product options, and improve network quality.