This week’s top stories from across the pond


News

Here’s a look at the five biggest stories over the last week from our sister publication, Broadband Communities

A partnership between T-Mobile and Starlink can move ahead with providing supplemental cell service from space following approval from the FCC, and the industry applauds the latest digital equity grant approvals and passage of the ACCESS Rural America Act.  

T-Mobile and Starlink score a win with the FCC
The Federal Communications Commission (FCC) has approved an application from SpaceX that will allow Starlink and T-Mobile the ability to provide supplemental cell service from space. 

NTIA announces another string of digital equity grant approvals
Federal authorities have approved a string of State Digital Equity Capacity Grant Program applications, following up a busy November for the NTIA. 

Industry applauds Senate approval of ACCESS Rural America Act
Telecommunications industry leaders are applauding the passage of the ACCESS Rural America Act in the U.S. Senate. 

Which states are excelling and falling short on telehealth access?
Here’s where some state plans are excelling, and others are falling short. 

How AI can optimize network construction
Find out how AI is changing the game and addressing some of the challenges facing network construction, like human error and a labor shortage. 

 Join us at next year’s Connected America, 11-12 March in Dallas, Texas. Get discounted tickets here!

Indonesian mobile market shrinks as XL Axiata combines with Smartfren


News

The deal comes with a price tag of $6.5 billion

Having been in discussions since May this year, Indonesia’s third- and fourth-largest telcos, XL Axiata and Smartfren, have finally agreed to merge their operations.

The deal, valued at around $6.5 billion, will see both parties take a 34.8% stake in the merged entity, with the remaining 30.4% stake being traded publicly.

Axiata will receive roughly $400 million as part of the deal.

The new company will be called PT XLSmart Telecom Sejahtera Tbk, or XL Smart for short, and will command a market share of roughly 27%, based on figures from September.

“We are excited to bring our expertise to XLSmart, combining two complementary and solid businesses to form a strong telecommunications operator uniquely positioned to meet the evolving needs of customers across all key segments. XLSmart will be a powerful platform to deliver enhanced connectivity, foster digital inclusion, and bridge the digital divide for communities across the country. XLSmart’s priorities will be on ensuring a stable market environment, maximising merger synergies and driving profitable growth,” said Vivek Sood, Group Chief Executive Officer and Managing Director of Axiata.

“We are confident that XLSmart will be well-positioned to thrive in Indonesia’s dynamic digital economy. Ultimately, we aim to unlock lasting value and benefits for all our stakeholders, including shareholders, customers, employees, and Indonesia as a whole,” he added.

Assuming typical regulatory clearances, the deal is expected to close in the first half of next year.

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Also in the news:
IBM and Samsung poised to win £900m Emergency Services Network contract over BT
IoH and Nokia team up for Indonesian 4G and 5G expansion
Cubic Telecom and Skylo partner for satellite capabilities for vehicles

AST SpaceMobile and Vodafone ink long-term agreement to boost global connectivity 


News 

The agreement will allow Vodafone to offer space-based cellular broadband in both its home and partner markets 

AST SpaceMobile has entered into a long-term commercial agreement with Vodafone to provide global broadband access in underserved areas, enabling users to access broadband services directly through their phones. 

Under the agreement, Vodafone will incorporate AST SpaceMobile’s space-based cellular broadband services into its home markets and offer these capabilities to other operators through its ‘Partner Markets’ program.    

Vodafone has been a key investor and technology partner for AST SpaceMobile since 2018, contributing to several technological breakthroughs, including the first space-based voice call using an unmodified smartphone in April 2023. Additional successful trials included achieving 4G download speeds exceeding 10 Mbps from space in June 2023 and 5G voice call from space in September 2023 

AST SpaceMobile also reached download speeds of over 20 Mbps in later tests. 

Vodafone’s first order for the BlueBird gateway is a key step in AST SpaceMobile’s network rollout. The gateway will connect AST SpaceMobile’s satellites to Vodafone’s existing network, providing broadband access to users outside of traditional coverage areas. 

AST SpaceMobile currently has five of its first generation of BlueBird satellites in low Earth orbit, Thess satellites currently provide coverage across the US and in ‘select global markets’The next-generation BlueBird satellites – 17 of which are currently being built – will have larger antennas, providing much higher capacity and speeds. These new satellites are expected to reach data speeds of up to 120 Mbps, supporting services like voice, data, and video. 

AST SpaceMobile’s growth in 2024 has been supported by investments from AT&T, Verizon, Google, and Vodafone, as well as new contracts with the US government. The company now has agreements with over 45 mobile operators worldwide, reaching about 2.8 billion subscribers. Key partners include AT&T, Verizon, Rakuten Mobile, Orange, and MTN. 

Major investors like American Tower, Cisneros Group, and Bell Canada also support AST SpaceMobile. 

Join us at next year’s Connected America, 11-12 March in Dallas, Texas. Get discounted tickets here! 

Also in the news:
World Communication Award winners 2024
TalkTalk faces mounting losses amid rescue efforts
World Communication Award winners 2024
 

Indosat Ooredoo Hutchison Honored with Best Digital Transformation Award at World Communication Awards 2024


Press Release

Jakarta, December 11, 2024 — Indosat Ooredoo Hutchison (Indosat or IOH) proudly announces its recognition as the winner of the Best Digital Transformation Award at the prestigious World Communication Awards 2024. This accolade underscores the company’s groundbreaking efforts in redefining its role from a traditional telecommunications provider to an AI-driven technology leader in Indonesia’s digital landscape. The award was received by Steve Saerang, Senior Vice President – Head  of Corporate Communications Indosat Ooredoo Hutchison, during the award ceremony held in London.

The World Communication Awards, regarded as a benchmark of excellence in the global telecommunications industry, celebrate outstanding achievements and innovations that drive progress in the sector. Indosat’s digital transformation journey stood out among top global contenders for its visionary strategies, seamless technological integration, and dedication to customer excellence.

Vikram Sinha, President Director and Chief Executive Officer of Indosat Ooredoo Hutchison, stated, “This recognition is a testament to the relentless efforts and innovative spirit of the entire Indosat team. Our journey from a telco to a techco is driven by a singular focus on delivering a ‘Marvelous Experience’ to our customers. This award reflects our commitment to empowering Indonesia through cutting-edge technology and customer-centric solutions. As we look to the future, we remain dedicated to pushing the boundaries of innovation and contributing to the digital transformation of Indonesia.”

Rob Chambers, Managing Director at Terrapinn, praised Indosat Ooredoo Hutchison for its exceptional transformation journey, “Indosat Ooredoo Hutchison’s transition into a tech-driven powerhouse showcases a bold vision executed with precision. Their customer-centric strategy has yielded remarkable results, setting a new benchmark for the industry. IOH’s journey is an inspiration to the global telecom sector.”

This recognition at the World Communication Awards 2024 reaffirms Indosat’s commitment to innovation, excellence, and customer satisfaction. Indosat is determined to build on this success by introducing transformative solutions and setting new industry standards.

The transformation taken by Indosat is part of a bold move that aimed to integrate the network infrastructure and its operations. This transformation was not only about achieving quality targets but also about redefining the company’s position from a traditional telecommunications provider to a technology-driven enterprise. Leveraging autonomous transformation as the backbone of its strategy, Indosat successfully laid the foundation for what it terms a “Marvelous Experience,” ensuring a stable and consistent platform for innovation and growth while elevating customer service standards.

A cornerstone of this transformation was the creation of a central data repository, or a big data lake, designed to serve as a single source of truth for decision-making. Indosat implemented advanced technologies to streamline operations, significantly reducing service quality alarms and expediting problem identification and resolution. These technological advancements have redefined operational efficiency and paved the way for unparalleled service reliability.

Indosat’s transformation was deeply rooted in its commitment to its customers, encapsulated in the concept of “Marvelous Experience.” This holistic approach interwove improvements across various touchpoints, enhancing not only customer interactions but also the experiences of employees, partners, and the brand itself. By adopting AI-powered tools to analyse Quality of Experience (QoE) and customer satisfaction (CSAT), Indosat enabled proactive measures to safeguard and enrich the end-user experience. This approach resulted in a ground-breaking and a noticeable uplift in customer satisfaction, setting new benchmarks in service delivery across the industry.

Operational excellence was another pillar of Indosat’s transformation. The unification of its Network Operations Center (NOC) and Service Operations Center (SOC) marked a significant milestone in process optimization and automation. By harnessing the power of AI and data analytics, Indosat ensured that its operations were not only efficient but also aligned with its overarching mission to deliver seamless, innovative services to its customers.

As Indosat Ooredoo Hutchison continues to push boundaries in digital transformation, it remains steadfast in its vision to lead the industry with groundbreaking solutions that empower lives, drive economic progress, and ensure a sustainable digital future.

 

World Communication Award winners 2024

 Held last night at The Marriott, Grosvenor Square, in London, the 26th World Communication Awards were a huge success!

On behalf of the judges, we would like to congratulate all of the incredible winners.

 

AI Excellence Award

Amdocs – Amdocs amAIz

amAIz is a Gen-AI platform specifically designed for telco operations, combining LLMs from multiple providers to offer embedded copilots, GenAI agents, and numerous telco-specific use cases. This includes TelcoGPT, a natural language processing model trained on telco-specific data, helping support both network operations an customer-facing applications.

 

Best Digital Transformation Programme

Indosat Ooredoo Hutchison – Network Operation Autonomous Transformation

Following the merger of Ooredoo and Hutchison 3 Indonesia in 2022, Indosat Ooredoo Hutchison has been on a mission to transform from a telco to a techco. Leveraging AI, big data, and automation, IOH has delivered a network providing faster, more reliable connectivity for customers across the country.

 

Best Network Transformation Initiative

Orange Wholesale – Orange Disaggregated Open Switch

The introduction of Orange’s Disaggregated Open Switch has seen the company move from closed hardware to open software, marking a significant step in the company’s network virtualization evolution. With major gains in efficiency, flexibility, and control, the shift is already having a major impact for wholesale and B2B customers.

 

Best Operator in a Growth Market

Jazz

Operating in Pakistan, the world’s fifth most populous country, Jazz has taken a holistic approach to both expanding the availability of high-quality connectivity and supporting customers on their digital journey. Most prominently, this includes operating the country’s largest mobile banking platform and a microfinance bank to support small businesses, as well as various initiatives to promote digital equality.

 

Best Wholesale Operator

Bayobab Group

Bayobab Group has swiftly emerged as Africa’s premier wholesale operator over the past 18 months, rapidly diversifying and expanding its service portfolio across the nine African markets in which it operates. Demonstrating impressive growth and expanding across borders at a massive scale, Bayobab is having a major impact on the African continent’s digital transformation.

 

CEO of the Year

Timotheus Höttges, CEO of Deutsche Telekom

A telecoms superstar, Deutsche Telekom’s Tim Höttges needs little introduction. Under Höttges leadership over the past decade, Telekom has become world leader in telecoms innovation, expanded further into numerous international markets, and provided high-quality connectivity and customer service for millions of people. Höttges has proven himself time and time again to be an exceptional leader highly worthy of recognition.

 

Connected Communities Award

HFCL Ltd.

HFCL is having a major impact on rural Indian communities through the deployment of public Wi-Fi networks as part of the Prime Minister’s WiFi Access Network Interface scheme. These networks are helping to bridge the digital divide, boosting local economies, and reducing reliance on urban centres.

Deployments so far have demonstrated profound user adoption and community engagement, providing a framework for even more widespread rollouts of public Wi-Fi.

 

Crisis Response Award

VEON and Kyivstar

In the wake of the ongoing Russian invasion of Ukraine, Kyivstar have had to deal with many challenges over the past year – not least reinforcing their network’s shattered energy supply and dealing with an enormous cyberattack. Despite this, the operator continues to support customers at scale both at home and abroad, as well as announcing a $1 billion investment plan to support Ukraine’s digital future.

 

Enterprise Service of the Year

Telstra & Ericsson – Telstra Dedicated Networks – Industrial (TDN-I)

Telstra’s Dedicated Network – Industrial (TDN-I) service utilises Telstra’s existing Ericsson-based public 4G and 5G radio network, coupled with Ericsson’s Private 5G core to provide managed private network services. This offers enterprise customers a more flexible deployment option with lower TCO, and is already finding huge success in sectors including mining, utilities, ports, a healthcare.

 

People & Culture Award

Telkomsel – Polaris

Telkomsel’s Polaris programme encourages employees to ‘Explore, Connect, and Make Impact’ within their organization, promoting internal collaboration and discussion through numerous platforms, including Polaris IdeaSpark, Polaris Talks, and Polaris Academy. Combined, these projects have created a framework for developing innovative ideas into viable commercial opportunities.

 

The 5G Award

Jio Platforms

Jio’s highly impressive rollout of 5G Standalone covered over 8,000 cities with the new technology in less than 150 days, immediately giving customers access to higher speeds, lower latency, and greater capacity. The deployment, which uses a wide range of homegrown technology, has immediately put India among the 5G technology frontrunners on the global stage.

 

The Access Innovation Award

Cohere Technologies & Vodafone 

Cohere Technologies’ transformative Universal Spectrum Multiplier (USM), a MU-MIMO software solution doubles the utilization of spectrum resources across 4G and 5G networks without any changes to handsets, radios, or antennas. Working with Vodafone, Cohere has shown its Open RAN USM to improve congested FDD bands (low band) by over 50%.

 

The Beyond Connectivity Award

PLDT & Smart

PLDT and Smart are supporting the Philippines’ agricultural sector and micro, small, and medium-sized enterprises (MSMEs) – sectors of the economy that have long suffered from the digital divide. Their ‘eBizNovation’ project has trained 21,704 MSMEs trained on digital entrepreneurship and e-commerce, while their FarmSmart platform has supported 15,990 farmers supported through digital trainings and access to market.

 

The Cloud Award

Rakuten Symphony – Rakuten Cloud

Rakuten Cloud by Rakuten Symphony continues to go from strength to strength, offering a unified solution for the complexities of 5G and Edge deployments, providing intelligent infrastructure and automation. The platform allows provisioning time to be reduced from days to less than an hour, with capex and opex savings of up to 30%.

 

The Cyber Security Award

Ericsson Enterprise Wireless Solutions – NetCloud SASE 

Ericsson Enterprise Wireless Solutions NetCloud SASE enhances the simplicity of enterprise-class network security by integrating cellular, SD-WAN, and security in a unified platform. The platform offers a zero-trust foundation capable of being provisioned in just six minutes.

 

The Future Award

SK Telecom, NTT, NTT DOCOMO & Nokia – AI-native Air Interface

The companies have closely collaborated to develop and test an AI-AI, an interface that will give radios the ability to learn from one another and their environments. Results showed that AI-based pilotless transmission can achieve an average throughput gain of up to around 30% compared to a conventional 5G system.

 

The Platform Award

Singtel – Singtel Paragon 

Singtel’s Paragon Platform brings together multiple silos of systems, including 5G, edge computing, IT/BOSS, and cloud, in a single unified platform. This dynamic orchestration is helping customers to develop and manage a wide variety of 5G use cases, from drones to augmented reality.

 

The Satellite Telecoms Award

Telefonica Global Solutions

Telefonica Global Solutions have shown a wealth of satellite innovation in the last 12 months, from combining LEO and GEO solutions in the Galapagos to integrating Lynk’s Sat2Phone technology in Argentina. The company continues to exhibit strong growth, backed by impactful partnerships with Starlink and OneWeb.

 

The Social Contribution Award

Hormuud Telecom 

Operating in an extremely challenging environment impacted by drought and humanitarian crises, Hormuud Telecom continues to go above and beyond for its customers in Somalia. Hormuud has pioneered numerous projects supporting humanitarian efforts and local communities, including education initiatives and financial literacy programmes, all while continuing the expand the availability of high-quality mobile infrastructure.

 

Startup of the Year 

DC Smarter – DC Vision  

After a competitive pitching competition by ten shortlisted startups, DC Smarter emerged victorious in the Startup of the Year category. Their DC Vision solution leverages augmented reality and digital twin technology, allowing staff to visually take inventory of data centre assets, access asset details, and receive real-time training.

 

The Sustainability Award

Ericsson – RAN Deep Sleep (DS) Automation 

Ericsson’s RAN Deep Sleep (DS) Automation allows 5G radios to be turned off or run in low-power mode when not in use, optimising energy consumption for the network. This innovation, already live in over 80,000 cell sites in numerous markets, can result in energy savings of 70–80% per site, resulting in significantly lower carbon emissions and cost savings for operators.

 

Total Experience Award

e& 

e&’s prioritization of customer experience has been obvious this year, establishing a Customer Experience Department and creating the ‘CX Change Factory’ to ensure escalated customer concerns are resolved. This CX Change Factory systematically catalogues and addresses the root of every customer concern, resulting in a total reduction of recorded complaints by 60% over 12 months.

 

Woman in Telecoms Award

Josephine Sarouk, Bayobab Group 

Josephine Sarouk, the Managing Director of Bayobab Nigeria has been instrumental in acquiring critical operating licenses, commissioning the largest fibre optic project in Nigeria, and significantly enhancing connectivity for various stakeholders. Her leadership and focus on the personal growth of her team were highly praised by the judges, describing her as ‘an inspiration for women aspiring to a career in telecoms’.

 

XL Axiata and Smartfren tie the knot in US$6.5b merger deal

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.

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NetIX Hits a New Record of 4 Tbps Internet Exchange Traffic

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.