Indosat acquires MNC Play customer assets to expand FTTH business

Indosat Ooredoo Hutchison (IOH) has declared the acquisition of the customer assets of PT MNC Kabel Mediacom (MNC Play), a fiber-based network services provider in Indonesia. This purchase significantly expands Indosat's Fiber-to-the-home (FTTH) business, managed under the brand name Indosat HiFi. The acquisition marks a significant milestone in their strategy to expand this business and is projected to have a positive effect on EBITDA starting in 2024.

Through this acquisition, Indosat has added a substantial 300,000 fixed-home internet and entertainment customers to its fold, boosting its offering to include Internet Protocol Television Services (IPTV). The addition extends its customer base, already comprising of 100 million mobile and FTTH subscribers. Customers of Indosat HiFi can now avail themselves of integrated FTTH and IPTV services for an enhanced customer experience.

President Director and CEO of Indosat Ooredoo Hutchison, Vikram Sinha, expressed his delight at welcoming MNC Play customers into the Indosat family. He stated, "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 now 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."

The Indonesian fixed broadband market is expected to witness significant growth over the coming years, driven by the expansion of the fibre-optic network, rising household penetration, and increasing demand for high-speed broadband services. Globe Data, an analytics firm, estimates that fixed broadband accounts could grow at a CAGR of 10.6% between 2022 and 2027.

Speaking on the transition, Ade Tjendra, President Director of MNC Play, said, "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."

In the same deal, MNC Play's fibre optic network assets have been acquired by Asianet, a company of the Lightstorm group. Asianet will now possess, manage, and operate all aspects of its fibre-optic networks, thus providing a comprehensive service to its consumers.