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Satnews Daily
May 5th, 2017

Underserved Indonesian Areas to be Connected via Thaicom and Axiata Partners

Axiata Group Berhad (“Axiata”) through its wholly owned subsidiary, Axiata Business Services Sdn Bhd (“Axiata Business Services’), 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”), more than 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°E for the provision of broadband services in Indonesia, including broadband access direct to residential and enterprise premises, and cellular network backhaul.

IPSTAR satellite artistic rendition. Image is courtesy of Thaicom.

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.

Asri Hassan Sabri, Group Chief Business Operations Officer of Axiata, reported that his company is leveraging on Thaicom’s capabilities in Asia to grow their enterprise business quickly and flexibly, all the while providing reliable broadband services to all potential customers, regardless of their location. 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.

Dian Siswarini, Chief Executive Officer of XL, added that as the biggest archipelago in the world, there are many areas and islands in Indonesia that have not been served by Internet services as of yet.The availability of HTS will help to cover these unserved areas with considerable economic potential. On top of that, the company will be able to support the local community’s economic growth and Indonesian government’s vision to accelerate the national development of digital economy across Indonesia.

Dominic P Arena, Group Chief Strategy Officer of Axiata, indicated that this HTS partnership is highly strategic for Axiata and the beginning of what all believe can become a core future broadband delivery platform for the operating companies to deliver broadband connectivity, media and entertainment, IoT and other digital services to enterprise and consumer home segments. More importantly, this partnership allows the firm 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.