Jakarta, Gizmologi – After the merger process of XL Axiata, SmartTel, and Smartfren into XLSMART, the government reportedly asked the company to return the 900MHz spectrum with a width of 7,5MHz. Previously, this spectrum belonged to XL Axiata.
For information, XL Axiata currently operates 45 MHz in the 900 MHz, 1,8 GHz, and 2,1 GHz frequency bands. The government's request to take over the spectrum was responded to by XLSMART at a press conference on the progress of the EXCL & FREN merger.
"If we look at the spectrum withdrawal for 900MHz, we feel that if it happens, it can strengthen our competitive position," said XLSmart Director & CFO, Antony Susilo.
Also Read: The Board of Directors and Commissioners of XLSMART, Including Retno Marsudi to Arsjad Rasjid
XLSMART Will Focus on 5G and AI
Antony continued, later with the acquisition of the 900MHz spectrum, it can help the company to further improve operational efficiency and can accelerate finding ways to monetize digital services. The company will focus more on investing in 5G services.
"XLSMART can further improve our operational efficiency, and we can further accelerate how we monetize digital services. This step allows the company to focus more on its investment in 5G," said Antony.
"We can focus on 5G, on AI-driven networks, and also on other digital services that have higher value. The point is, we want to focus on things that are, that can contribute to revenue growth and increase the value of our stakeholders," he continued.
When compared to the merger of Indosat Ooredoo and Hutchison 3 Indonesia (Tri) which is now Indosat Ooredoo Hutchison (IOH), the frequency spectrum returned by XL is currently larger. At that time, Indosat Ooredoo Hutchison returned 2×5 MHz MHz at a frequency of 2.100 MHz.
XLSMART is said to start operating or legal day 1 on April 16. The merger produces a new entity with a value of more than US$6,5 billion or around Rp104 trillion.
In the merger, XL Axiata will be the surviving entity, while Smartfren and SmartTel will merge into XLSMART. Axiata Group Berhad (Axiata) and Sinar Mas will become joint controlling shareholders.
Each company holds 34,8 percent of XLSMART shares and equal influence over the company's direction and strategic decisions. Once the transaction is completed, the equalization of ownership will result in Axiata receiving up to US$475 million.
"We see XLSMART as a powerful platform to accelerate digital connectivity across Indonesia. With our regional experience and technological expertise, we are confident that the company will set new benchmarks in innovation, efficiency, and customer satisfaction. We believe that this business combination will improve the financial health of the industry and we are confident that the company will emerge as a formidable player, enabling us to significantly accelerate investments in infrastructure and digital innovation and ultimately empower the community," explained Rajeev Sethi, President Director and CEO of XLSMART
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