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Indosat, Nexmedia join hands in home internet business
Telecommunications operator PT Indosat, also known as Indosat Ooredoo, is teaming up with pay TV provider Nexmedia to launch a bundle package with high-speed internet connection to accommodate the increasing digitalization of entertainment content and higher demand for such services
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elecommunications operator PT Indosat, also known as Indosat Ooredoo, is teaming up with pay TV provider Nexmedia to launch a bundle package with high-speed internet connection to accommodate the increasing digitalization of entertainment content and higher demand for such services.
The NexSat combo is being introduced by both companies to provide home internet customers with easy bundling of Indosat Ooredoo’s 4G Plus internet network.
The Nexmedia bundle will be offered at a rate of Rp 190,000 (US$14.2) per month, connecting Indosat home users with Nexmedia’s premium TV channels. With the bundle, customers will also receive an Indosat Ooredoo Business package of 20GB in the 4G plus network and 6GB on 3G and 4G networks.
Indosat Ooredoo’s director and chief of wholesale and enterprise Herfini Haryono said that Indosat bundling will be especially useful for corporations that usually need a larger service through the Nexmedia package.
“The synergy between the two companies is also part of Indosat’s grand vision to become a leading digital provider, by providing on-demand entertainment options to a customer base that is used to the conveniences of high-speed internet and the myriad of entertainment choices at the tip of their fingers,” Herfini said at the unveiling event on Tuesday.
Nexmedia is operated by publicly listed media company PT Elang Mahkota Teknologi, which runs free-to-air television stations SCTV and Indosiar. It is currently available in the Greater Jakarta area.
“Our partnership with Indosat is not only meant to respond to market demand but also to provide best services to our customers,” Nexmedia marketing, sales and product director Andy Jobs said.
Indosat Ooredoo has partnered with several multimedia services in the past to further its status as a premier digital services provider, with partners including music streaming platform Spotify and Google’s Chromecast service.
Meanwhile, Herfini also elaborated slightly on the status of Indosat’s data center constructions in Surabaya, East Java, and Batam, Riau Islands. The Surabaya center will likely be commercially operational by the end of the year, while the Batam center will do so at the end of next year because of the longer investment processes.
The NexSat home service joins the operator’s other similar services such as its GiG home internet service. It also emerges as a rival to similar home internet services that rival operators have recently launched, such as XL Axiata’s 4.5G XL-Home Service.
Last year, Indosat recorded a 9 percent increase in revenue to reach Rp 29.2 trillion, 43 percent of which was booked from data services, 32 percent from call services, 21 percent from SMS services and another 5 percent from its value-added services.
It also recorded a net income increase by 184.4 percent in 2016 to Rp 1.1 trillion, which was contributed mostly by a more stable currency and the company itself shifting its foreign nominated debt to a rupiah nominated debt that led to lower interest expenses.
The company successfully added 16 million new cellular customers in 2016, bringing its current customer numbers to 85.7 million. However, the average revenue per user (ARPU) slightly decreased by 3.4 percent to
Rp 25,200 compared to Rp 26,000 in 2015.
