Indosat Ooredoo Hutchison (IOH) has successfully acquired the customer assets of PT MNC Kabel Mediacom (MNC Play), a leading Indonesian fiber-based network services provider, which will considerably increase Indosat's fiber-to-the-home (FTTH) business, Indosat HiFi.
Improving Customer Experience with FTTH and IPTV Services
Indosat gained an additional 300,000 fixed-home internet and entertainment customers from MNC Play to add to its existing 100 million mobile and FTTH subscribers. The company also bought MNC Play's IPTV services to offer Indosat HiFi customers FTTH and IPTV services in one package, improving customer experience.
Vikram Sinha, President Director and CEO of Indosat Ooredoo Hutchison, commented on the successful acquisition, saying, “It’s wonderful to welcome MNC Play customers into the Indosat family. This transforms the scale of our Fiber-to-the-home business, and we expect it to have a positive impact on EBITDA from 2024. Home broadband will become an increasingly important contributor to Indosat’s growth in the future and we have fortified our position in this important market. The growth of our FTTH business will also help to further our larger purpose, to connect and empower the people of Indonesia and accelerate the nation’s digital transformation.”
Indonesia's fixed broadband market is poised to develop rapidly in the next years due to fiber-optic network construction, an increase in household penetration and more demand for high-speed internet.
“We are excited to support Indosat’s long-term growth through the sale of our fixed broadband subscribers and home IPTV services. During the integration process, we will ensure a smooth transition and maintain a reliable service to our beloved consumers,” noted Ade Tjendra, President Director of MNC Play.
Further Acquisitions
Furthermore, as part of this deal, Asianet, a company within the Lightstorm group, will be acquiring the fiber optic network assets of MNC Play. Asianet will now be responsible for the ownership, management, and operation of all aspects of its fiber optic networks.
Acquisition Benefits
The acquisition of PT MNC Kabel Mediacom (MNC Play) by Indosat Ooredoo Hutchison (IOH) offers several strategic benefits. Firstly, it significantly strengthens Indosat's position in the Indonesian fixed broadband market by expanding its fiber-to-the-home (FTTH) business. This move aligns with the growing trend in Indonesia towards increased fiber-optic network construction, reflecting a broader industry shift towards high-speed, reliable internet services.
With the addition of MNC Play's customer assets, Indosat gains access to a larger subscriber base and an established fiber-based network infrastructure. This acquisition not only enhances Indosat's market share but also positions the company to meet the rising demand for high-speed internet services in Indonesia. As household penetration increases and more consumers seek reliable connectivity, Indosat is well-positioned to capitalize on the expanding fixed broadband market.
Furthermore, the acquisition allows Indosat to leverage MNC Play's expertise and resources, potentially leading to operational efficiencies and improved service offerings. By consolidating their strengths, Indosat can better address the evolving needs of consumers in the dynamic Indonesian telecommunications landscape.
