Malaysia’s Axiata Group has confirmed a restructuring plan that will alter the roles of its Indonesian units to improve efficiency via more effective asset utilisation.
Under the plans, mobile operator XL Axiata will be retooled into a converged services firm, while fixed broadband provider Link Net will become a wholesale fibre access provider.
Hans Wijayasuriya, CEO of Axiata’s telecommunications business, noted that the move will allow XL to capitalise on opportunities in mobile convergence (FMC), while Link Net’s role as an infrastructure partner will allow it to “capture the wholesale opportunity of an underpenetrated fixed broadband market”.
Describing the move as ‘de-layering’, Wijayasuriya claimed that the strategy would “unlock the next phase of growth with an asset light business model” and “lead to the optimum configuration for value capture.”
Axiata acquired Link Net in June 2022, and the firm is aiming to connect 8 million homes to fibre across the next five years.