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Axiata Partners with Thaicom to Connect Underserved Areas in Indonesia with High Throughput Satellite Coverage

2017-05-02

Kuala Lumpur, Bangkok, Jakarta, 2 May 2017 – Axiata Group Berhad (“Axiata”) through its wholly owned subsidiary, Axiata Business Services Sdn Bhd (“Axiata Business Services’) announced it has signed a four-year, multi-transponder contract for leased capacity and teleport services with IPSTAR International Pte Limited (“IPSTAR”), a subsidiary of Thaicom Public Company Limited (“Thaicom”).

The partners inked the deal for Axiata Business Services to purchase the remaining capacity on IPSTAR over Indonesia to deliver Axiata’s operating company, PT XL Axiata Tbk (“XL”), over 1 Gbps High Throughput Satellite (HTS) capacity for the provision of broadband services in Indonesia.

According to the terms of the agreement, Axiata Business Services will use capacity of up to seven KU-band shaped and spot beams on the IPSTAR-1 broadband satellite located at 119.5° east for the provision of broadband services in Indonesia, including broadband access direct to residential and enterprise premises, and cellular network backhaul.

“We are leveraging on Thaicom’s capabilities in Asia to grow our enterprise business quickly and flexibly while providing reliable broadband services to all potential customers regardless of location,” said Asri Hassan Sabri, Group Chief Business Operations Officer of Axiata. “Where terrestrial-based connectivity is limited or unavailable, HTS connectivity serves as an enabler to unlock the digital ecosystem for new market opportunities. As the world’s first ever HTS, launched in 2005, Thaicom’s IPSTAR helps us to connect users in remote and underserved areas of Indonesia cost-effectively. We are confident that the partnership will enable us to continue to grow our business faster without infrastructure limitations.”

Dian Siswarini, Chief Executive Officer of XL, said, "As the biggest archipelago in the world, there are many areas and islands in Indonesia that have not been served by internet services as yet. We believe the availability of HTS will help us to cover these unserved areas with considerable economic potential. On top of that, it will enable us to support the local community’s economic growth and Indonesian government’s vision to accelerate the national development of digital economy across Indonesia."

Patompob Suwansiri, Chief Commercial Officer of Thaicom Public Company Limited, said, “We would like to thank Axiata for their trust in us to provide the HTS capacity needed to fuel XL’s market expansion plans. We are committed to working with leading mobile network operators throughout Asia Pacific to facilitate the growth of wireless broadband and other digital services in remote and underserved areas.”

Dominic P Arena, Group Chief Strategy Officer of Axiata, said, “This HTS partnership is highly strategic for Axiata and the beginning of what we believe can become a core future broadband delivery platform for our operating companies to deliver broadband connectivity, media & entertainment, IoT and other digital services to enterprise and consumer home segments. More importantly, this partnership allows us to provide the best connectivity option and reach to underserved communities, in line with Axiata’s broader goal of Advancing Asia by piecing together the best in innovation, connectivity and talent. ”

The IPSTAR-1 satellite was launched in 2005 and was the first HTS ever launched into orbit. IPSTAR cellular backhaul and direct to premise broadband connectivity provides telecom operators with the ability to expand their networks, launch new broadband services and reach underserved areas quickly and cost-effectively.

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About Axiata Group Berhad
As one of the largest Asian telecommunication companies, Axiata today operates in ten countries, servicing approximately 320 million subscribers. With a diverse portfolio in mobile network operations, communications infrastructure services and digital services, the Group pieces together the best in connectivity, technology and people in its vision of Advancing Asia.

Axiata has controlling stakes in market leading mobile operators in South East Asia and South Asia. Axiata Group of companies operate under the brand name of ‘Celcom’ in Malaysia, ‘XL’ in Indonesia, ‘Dialog’ in Sri Lanka, ‘Robi’ in Bangladesh, ‘Smart’ in Cambodia and 'Ncell' in Nepal. Further to this, the Group also holds strategic interests in ‘Idea’ in India and ‘M1’ in Singapore.

‘edotco’, the Group’s infrastructure company, operates in six countries to deliver telecommunications infrastructure services, amassing a portfolio of over 16,000 towers and 12,000 km of fibre. It aims to be one of the top regional tower companies and is committed to responsible and sustainable business operations.

Axiata Digital (AD), its digital services arm, captures the rapid growth in internet-based businesses through its portfolio of 29 digital brands, servicing growing demands in mobile money, mobile adverting, e-commerce, entertainment and education.

As a committed and long-term investor, Axiata provides employment to 25,000 people within its operations. In line with its sustainability goals, the Group actively supports and drives young talent development; disaster response and recovery; as well as green initiatives.