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.

NetIX, a global internet exchange platform under the Neterra Group, has achieved a new record, reaching 4.02 Tbps of traffic through its network.

At the start of 2024, NetIX had surpassed the 2 Tbps threshold. Within five months, its clients increased their traffic by an additional 1 Tbps, placing it 13th among the largest Internet Exchange Platforms (IXPs) globally by traffic. With its new record of 4 Tbps, NetIX now ranks within the prestigious top 10 global IXPs.

NetIX continues solidifying its position as a key player by consistently expanding its network and welcoming new members. To date, the company’s network connects over 220 data centers across more than 100 cities, aggregating and combining traffic from over 50 other Internet exchange platforms through its Global Internet Exchange (GIX) service.

“We are proud to announce this record-breaking achievement of 4 Tbps traffic on our platform,” said Deian Belev, Senior Product Manager of Connectivity and NetIX at Neterra. “This milestone reflects the trust and collaboration of our members and our unwavering commitment to delivering high-quality connectivity and value to our customers.”

The rapid growth of NetIX demonstrates the increasing global demand for efficient, innovative, and scalable connectivity solutions. For years, Neterra’s platform has provided its members with faster connections, improved performance, reduced latency, and significant cost optimization for global connectivity.

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]

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The news comes after BT signed a separate ESN contract last week 

IBM and Samsung are set to secure a £895m contract to deliver user services for the UK’s new Emergency Services Network (ESN), leaving BT and its Italian partner Leonardo out of the deal, according to a recent Telegraph report. 

The Home Office’s decision marks a key step in the long-delayed and over-budget ESN project to modernise communication systems for police, fire, and ambulance services in the UK. 

BT had been considered a frontrunner for the contract, which includes managing emergency responder accounts, supplying devices, and developing “push-to-talk” functionality. However, industry sources suggest concerns over awarding multiple contracts to BT may have influenced the decision.  

Just last week, the UK incumbent won a £1.29 billion contract to provide the ESN’s network infrastructure. 

The ESN project has faced significant challenges, including Motorola’s controversial departure in 2022 after a clash with regulators over alleged overcharging. Since then, the Home Office has struggled to replace the user services provider, which has led to delays and escalating costs. 

IBM’s selection brings fresh momentum to the ESN but raises questions about whether it can navigate the programme’s long-standing technical and operational challenges. These include integrating commercial mobile networks with the bespoke ‘push-to-talk’ functionality critical for first responders. With delays and cost overruns already eroding confidence in the programme, the spotlight is on IBM to deliver where others have struggled. The company’s ability to manage these hurdles effectively will be critical to restoring faith in the ESN’s vision of a modern, cost-efficient emergency services network John Black, the ESN’s programme director, is notably a former IBM executive, and will be in charge of overseeing the transition to the new providers. 

“All commercial contracts are procured in line with government rules which are designed to ensure the best value for taxpayers and fair competition, said a Home Office spokesperson.  

Both BT and IBM have declined to comment. 

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The ongoing cyber-attack was first reported in October

The US Federal Communications Commission (FCC) is pushing for stricter cybersecurity rules for telecom providers after what experts are calling the worst hack in US telecommunications history.  

FCC Chairwoman Jessica Rosenworcel unveiled plans to require carriers to bolster their defenses against cyberattacks, responding to an incident allegedly tied to Chinese state-tied hackers last month 

The attack, linked to a group known as “Salt Typhoon,” exploited vulnerabilities in systems used for lawful surveillance, potentially exposing sensitive communications.  

Senate Intelligence Committee Chairman Mark Warner called it “the worst telecom hack in our nation’s history – by far.” 

Rosenworcel has proposed a new framework that would make it mandatory changes to for telecom providers to secure their networks from unauthorised access. If adopted, the FCC would immediately enforce these requirements under the Communications Assistance for Law Enforcement Act (CALEA). 

To ensure their compliance, telecom providers would need to submit annual certifications confirming they have up to date cybersecurity risk management plans in place. These measures are designed to address weaknesses exposed by the recent breach and prevent future incidents. 

“The cybersecurity of our nation’s communications critical infrastructure is essential to promoting national security, public safety, and economic security,” said Rosenworcel. “As adversaries grow more sophisticated, we need to modernise our defenses.” 

The FCC will also seek feedback on additional cybersecurity requirements for a broader range of communications providers, aiming to strengthen protections across the industry. 

The proposed rules come as the US grapples with the fallout of the recent Salt Typhoon cyberattack. Hackers reportedly gained access to confidential data by exploiting wiretap requests sent to telecom companies by federal agencies. The breach has raised questions about the adequacy of current security standards and whether telecom providers are prepared to fend off sophisticated cyber threats. 

Last month, senators met with telecom executives and federal officials to discuss the attack, emphasising the need for better collaboration between the government and private sector. 

A government statement described the meeting as a chance to “share intelligence and discuss the People’s Republic of China’s significant cyber espionage campaign targeting the sector.”  

While the names of the companies involved were not disclosed, it’s believed that major players like AT&T, Verizon, and Lumen were affected. 

China has strongly denied the allegations, with embassy spokesperson Liu Pengyu calling them a “distortion of fact” and accusing the US of spreading disinformation for geopolitical purposes. 

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The new equipment deal will support Indosat’s ongoing rollout of mobile technology across the nation 

Indosat Ooredoo Hutchison (IOH) has announced a new partnership with Nokia to expand its 4G and 5G networks across Indonesia. The collaboration will see IOH deploy Nokia’s advanced multiband radio technology and baseband solutions to improve network coverage and service quality in key regions. 

IOH and Nokia will work together on several key objectives, including boosting revenue growth, improving customer retention, and optimising the network. By incorporating AI and machine learning tech, the partnership will also look to streamline network investments and enhance efficiency, particularly in high-demand areas. 

While this deal primarily focusses on 4G and 5G mobile services, it will also explore various Fixed Wireless Access (FWA) solutions, aimed at bringing broadband to underserved regions. The introduction of FWA is expected to improve internet access in rural and remote areas, supporting digital inclusion and driving economic development across the country. 

“By leveraging our state-of-the-art Radio Access Network solutions and AI-driven capabilities, we are empowering IOH to build a robust, future-ready network. This deal not only reinforces our leadership in the 4G and 5G space but also deepens our commitment to supporting Indonesia’s digital transformation and growing mobile ecosystem,” said Tommi Uitto, President of Mobile Networks at Nokia in a press release. 

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Also in the news:
Cubic Telecom and Skylo partner for satellite capabilities for vehicles
TFL announces full 4G coverage on London’s Elizabeth Line
CMA finally approves Vodafone–Three merger