Indosat bolsters FTTH business with MNC Play acquisition

Indosat Ooredoo Hutchison (Indosat) is expanding its fiber-to-the-home (FTTH) business with the acquisition of the customer assets of MNC Play, a fiber-based network services provider in Indonesia.

The Indonesian telco operator said the acquisition will add 300,000 fixed-home Internet and entertainment customers to Indosat's existing 100 million mobile and FTTH subscribers.

"This transforms the scale of our FTTH business, and we expect it to have a positive impact on EBITDA from 2024," said Vikram Sinha, president director and CEO of Indosat. "Home broadband will become an increasingly important contributor to Indosat's growth in the future and we have fortified our position in this important market.''

The acquisition significantly expands Indosat's FTTH business, which operates under the brand name Indosat HiFi. As part of the deal, the company also acquired MNC Play's Internet Protocol Television (IPTV) business, enabling the telco operator to bundle FTTH and IPTV services as an integrated package.

Ade Tjendra, president director of MNC Play, said that during the integration process both companies will ensure a smooth transition and maintain a reliable service to consumers.  

Indonesia's fixed broadband market is expected to grow significantly over the next few years driven by further expansion of the fiber-optic network, increasing household penetration and growing demand for high-speed broadband services.

According to the latest figures from Global Data, the country's fixed broadband market is projected to grow at a CAGR of 10.6% between 2022 and 2027.

"The growth of our FTTH business will also help to further our larger purpose, to connect and empower the people of Indonesia and accelerate the nation's digital transformation," said Sinha.

Meanwhile, as part of the same deal, MNC Play's fiber-optic network assets were acquired by Asianet, a Lightstorm group company, which will now own, manage and operate them.