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A new data center campus, some hyperscale testing, and some interconnection: … [visit site to read more]
Alianza has made an inorganic move to expand its range of communications software capabilities. The cloud communications platform company has signed a definitive agreement to acquire Metaswitch from Microsoft. … [visit site to read more]
Indonesian telcos XL Axiata and Smartfren Telecom announced on Wednesday they have finally agreed to merge their operations in a deal valued at IDR104 trillion (US$6.5 billion) after years of rumours and negotiations.
Under the merger plan, Smartfren and its subsidiary SmartTel will be dissolved into XL Axiata. The resulting new company, XLSmart (full name: PT XLSmart Telecom Sejahtera Tbk), will be jointly controlled by parent companies Axiata Group and Sinar Mas, who will each hold a 34.8% stake.
The stated US$6.5 billion figure represents the combined pre-synergy enterprise value of the transaction.
Once the transaction closes, the shareholding equalisation will result in Axiata receiving up to US$400 million, plus an additional US$75 million at the end of the first year (subject to conditions).
The merger plan has been approved by the boards of XL Axiata, Smartfren, and SmartTel but remains subject to the usual regulatory and shareholder approvals, as well as customary closing conditions. Assuming that all goes smoothly, the merger is expected to be completed within the first half of 2025.
In a joint statement, Axiata Group and Sinar Mas said that XLSmart will create “a new telecommunications powerhouse” in Indonesia that will drive innovation, improve service quality, and enhance digital connectivity.
They also said the new company will be on firm financial ground. With a combined mobile subscriber base of approximately 94.5 million and a market share of 27%, XLSmart is expected to generate pro forma revenues of more than IDR 45.4 trillion and an EBITDA of over IDR 22.4 trillion.
Meanwhile, the merger will enable XLSmart to cut costs by integrating the two networks and optimising resources. Dian Siswarini, president director and CEO of XL Axiata, said XLSmart will be able to realise estimated annual run-rate pre-tax synergies between US$300 million and $400 million post-integration after the merger is completed.
“By combining our resources, expertise, and market positions, we will enhance our competitive edge, drive innovation, and unlock new growth opportunities to build a better future together,” she said.
Axiata Group CEO Vivek Sood said that XLSmart will have the scale, financial strength, and expertise to drive investments in digital infrastructure, expand service coverage, and spur innovation for customers while contributing to a healthier and more competitive market.
“[The merger] will allow us to cater to the unique infrastructure demands of the Indonesian archipelago by providing a scalable platform that will enhance service coverage, product offering and quality of network experience,” he said. “Synergies derived from merger will improve shareholder value and will be partly reinvested in future growth opportunities.”
“Bringing these businesses together will build on our joint, long-term commitment to Indonesia, giving us the strength and scale to contribute to the country’s digital ambitions meaningfully,” said Merza Fachys, president director of Smartfren.
The merger of XL Axiata and Smartfren has been a long time coming, with rumours of a merger going back as far as 2021. Axiata and Sinar Mas returned to the table to discuss a merger in September 2023, and asked telecoms regulator KemKominfo for permission to carry out the merger in May 2024.
Third-ranked XL Axiata and fourth-ranked Smartfren are the two smallest operators in Indonesia. While XLSmart won’t overtake Telkom Indonesia’s Telkomsel and Indosat Ooredoo Hutchison in terms of subscriber numbers, it will likely be a stronger competitor.
In December 2023, Axiata Group announced plans to make XL Axiata a stronger player in Indonesia’s growing fixed broadband and fixed mobile convergence (FMC) sectors. Under that plan, Axiata’s fixed broadband subsidiary Link Net agreed to transfer its business to XL Axiata and continue as a wholesale fibre company. The deal will make XL Axiata the second largest fixed broadband operator in Indonesia behind Telkomsel’s IndiHome.
Four bits of interesting infrastructure news from across the Atlantic: … [visit site to read more]
Malaysian telco U Mobile said on Monday it will deploy contact centre solutions from Amazon Web Services (AWS) based on generative AI in its contact centre after running a successful proof-of-concept (PoC) for the past six months.
The PoC – which commenced in July 2024 – integrates AWS’ generative AI Contact Centre Intelligence Post Call Analytics and Live Call Agent Assist into U Mobile’s contact centre operations. U Mobile has been using the solutions – which leverage Amazon SageMaker and Amazon Bedrock – to improve contact centre agent productivity, as well as the quality of their customer interactions.
U Mobile said the PoC has shown significant operational improvements in its contact centre, with agents achieving faster resolution times through AI-powered information retrieval, resulting in greater operational efficiency.
Agents have also been able to use AI-generated responses curated from U Mobile’s comprehensive knowledge bases to make customer interactions more precise and reliable, U Mobile said.
Other benefits demonstrated in the PoC include agents being able to use the time gains to prioritise high-value customers and target them with strategic promotions. Meanwhile, the solutions’ automated post-call analytics have not only provided U Mobile with deeper, actionable insights into customer behaviour and preferences, but also expedited quality management by delivering real-time, supervisor-grade feedback to agents.
The two companies plan to deploy the Contact Centre Intelligence solutions across U Mobile’s contact centre infrastructure starting in the first quarter of 2025.
U Mobile CIO Neil Tomkinson said in a statement that the end-to-end PoC is the first of its kind in the ASEAN region, and that “the positive results achieved only highlights the immense potential that AI solutions have in transforming the way we work.”
U Mobile said the successful PoC also marks the start of a long-term strategic collaboration with AWS to explore other opportunities in areas such as “talent upskilling and reskilling, operational efficiency enhancements across functions, as well as multi-stakeholder digital transformation collaborations.”
“At AWS, we’re constantly evolving and innovating in the field of generative AI, and collaborations like this help us better understand how our solutions can enhance customer experience,” said Peter Murray, Malaysia country manager for AWS.
A few items, three domestic and one international: … [visit site to read more]
Keep up-to-date with all the latest news, articles, event and product updates posted on Developing Telecoms.
Subscribe to our FREE weekly email newsletters for the latest telecom info in developing and emerging markets globally.
Keep up-to-date with all the latest news, articles, event and product updates posted on Developing Telecoms.
Subscribe to our FREE weekly email newsletters for the latest telecom info in developing and emerging markets globally.
Keep up-to-date with all the latest news, articles, event and product updates posted on Developing Telecoms.
Subscribe to our FREE weekly email newsletters for the latest telecom info in developing and emerging markets globally.
