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OPERATING COMPANIES BUSINESS REVIEW
Axiata Group Berhad | Annual Report 2016
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area. The Company will continue enhancing
self-care apps for the prepaid and postpaid
segments to provide customers greater
convenience and revamp online care channels.
Technology is the key enabler in supporting
the ever increasing demand for data traffic.
Enhancements to Celcom’s IT systems will be
supported by increased rate of Cloud adoption,
thus improving agility and optimizing cost in IT
operations. Celcom will continue to aggressively
invest in 4G LTE networks to deliver the best
video and data quality experience. Investments
are targeted to deliver both capacity and
coverage improvements, and include an increase
in fiberisation of backhaul to base station sites.
The Company will continue focusing on product
innovation, with the aim of generating new
revenue streams in adjacent markets, such as
the Internet of Things (IoT), payment services
and an enhanced service portfolio for Enterprise
customers. Celcom will also enhance its Data
Science and Advanced Analytics capabilities,
thus building firm foundations to become
a Digital Champion, offering a personalised
customer experience and leading data and
video experience quality.
BLENDED ARPU
43
41
2015 2016
BLENDED MoU
(Per Sub Per Month)
191
192
2015 2016
RM
Minutes of use/sub/month
Key Highlights
• Sustained focus on “3R – Revamp,
Rise & Reinvent” transformation
• More than 84,000 BTS in close to
100 cities & market leader in 4G
with over 8,000 BTS in close to 100
cities
• Nationwide UMTS900 for 3G data
services
• Launched Mobile Broadband (MBB)
Product
• 1st Indonesian telco to
commercially launch 4.5G Ready
on the 1,800 MHz spectrum
more than 90% of the population throughout
Indonesia. With over 20 years experience, XL
armedwith deep understandingof its subscribers
needs, is credited with bringing mobile services
to ordinary Indonesians when it introduced the
budget “IDR1/second” programme in 2007,
allowing more middle and lower income groups
access to mobile services. XL has grown from
a small company offering basic telephony
services into one of the country’s largest
telecommunications companies, with extensive
network infrastructure and services.
XL’s network runs on GSM 900/DCS 1800,
IMT-2000/3G technologies and 4G LTE and it
holds several licenses, including Closed Regular
Network (Leased Line), Internet Services
Protocol (ISP), Voice over Internet Protocol
(VoIP), Internet Interconnection Services (NAP),
and an e-money (electronic money) license from
the Central Bank of Indonesia, which enables XL
to provide remittance services to its subscribers.
As the second largest telecommunications
company in the market in terms of market
capitalisation, XL continues to innovate and is
transforming itself into a leading mobile data
provider, serving the burgeoning demand for
data amongst Indonesians. XL is dynamic in
managing and operating its business, and fast in
adapting to changes in the industry and market
landscape, to deliver excellent service quality to
its customers.
Business Review 2016
In 2016, XL continued with the implementation
of the “3R – Revamp, Rise & Reinvent”
Transformation Agenda to position the business
for data. In line with this, there was strong focus
on enhancing the Company’s data infrastructure
through a wider, stronger and better network
to attract data savvy customers. As a result,
XL’s 4G footprint now spans close to 100 cities
and areas across the country with more than
8,200 sites, with smartphone penetration rising
to 63%, the highest in the industry. By end
December 2016, XL had 29 million smartphone
subscribers, signifying an increase of 64% Year
on Year (YoY).
Given the low penetration of fixed broadband
in Indonesia, XL launched its Mobile Broadband
(MBB) solution XL Go which utilises Mi-Fi on
4G LTE and 3G networks to connect several
devices. During the year, increased growth in
4G LTE services and smartphone subscribers
contributed to total traffic growth of 162% YoY.
The Company improved its nationwide network
coverage by utilizing the UMTS900 frequency
for 3G services. This will be implemented across
2017, supported by superior mobile data
service quality. Digitalisation of Celcom’s core
business and channels, including digitalising the
value chain and engagement with dealer and
distributor partners, is another strategic focus
REVENUE
7.3
6.6
2015 2016
-10%
-18%
1
EBITDA & EBITDA
MARGIN (%)
41.8%
38.2%
3.1
2.5
2015 2016
RM Billion
RM Billion
PAT
1.7
1.2
2015 2016
-29%
2
SUBSCRIBERS
12.2
10.6
2015 2016
-14%
RM Billion
Million
1 & 2
Normalisation excludes holding company charge,
impact of edotco disposal, ESCAPE, Celcom Planet,
Employee Wish Plan and Sukuk interest.
Celcom
About XL
As one of Indonesia’s leading telecommunication
service providers, XL offers an array of
innovative telecommunications products and
services ranging from voice, SMS and Value
Added Services (VAS) to mobile data covering