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Indosat M2 targets 75 percent revenue growth

Internet and multimedia services provider PT Indosat Mega Media (Indosat M2) is targeting a significant increase in revenue with the introduction of its new prepaid home fiber optic internet and pay-TV business

Winny Tang (The Jakarta Post)
Jakarta
Thu, April 5, 2018

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Indosat M2 targets 75 percent revenue growth

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nternet and multimedia services provider PT Indosat Mega Media (Indosat M2) is targeting a significant increase in revenue with the introduction of its new prepaid home fiber optic internet and pay-TV business.

The company’s revenue stood at around Rp 299 billion (US$20.93 million) in 2017, representing 1 percent of the total revenue of its parent company, major telecommunication firm PT Indosat Ooredoo, said Indosat M2 corporate secretary Syachrial Syarif.

At the launch of the new service on Wednesday, the company’s president director Hari Sukmono said it expected to increase year-on-year revenue by 75 percent “[because] we are a newcomer and there is a lot of room for growth.”

Indosat M2 claims its latest service, a prepaid home internet service called GIG 2GO, is the first of its kind in Indonesia and is targeted at people living in apartments and residential areas.

Hari said the service was driven by the company’s observation that many young families rented apartments instead of buying and therefore only stayed for a short period of time.

“They tend to avoid long term commitments when buying internet services. This prepaid scheme will give them flexibility,” Hari said.

Indosat M2 also claimed that GIG 2GO, which uses a fiber optic cable, can provide a more stable and faster internet connection. It also claimed that fiber optic is more resistant in all kinds of weather conditions.

The company expects to attract at least 100,000 customers to the newly-launched product this year.

GIG 2GO offers various packages starting from 90 days, with a bandwidth speed of 5 to 30 megabytes-per-second.

At present, Indosat M2 focuses on offering fiber-to-home (FTTH) services in apartments and residential areas. It covers 60 to 70 percent of apartments in Greater Jakarta.

The company has expanded its services to other big cities, such as Bandung in West Java, Semarang in Central Java, Yogyakarta and Surabaya in East Java.

Indosat M2 also plans to launch this month a pay-TV service to increase its revenue and meet its targets.

Hari said it would provide more exclusive content than its competitors.

“There will be content that will give us a competitive advantage over our rivals,” he said. While declining to elaborate on the details, Hari hinted the content would be related to upcoming sporting events.

This year, there will be two big events that are expected to boost the television industry’s revenue, namely the 2018 FIFA World Cup and Asian Games.

The pay-TV service is a growing business in Indonesia. As of 2016, there were 462 pay-TV operators. During that year, there were around 1.5 million customers of pay TV services, according to the Indonesian Cable TV Association.

Major telecommunications company PT XL Axiata earlier revealed its intention to enter the pay-TV market and prepared US$500 million to acquire a pay-TV company.

Fully owned by Indosat, Indosat M2 began full operation in 2000 when it started to build and deploy IP-based services, products and multimedia content in Indonesia.

In 2015, it introduced GIG Home Internet Giga Fiber, an internet service with FTTH technology with a speed of up to 1 gigabyte-per-second.

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