Indosat Ooredoo Hutchison Completes Merger, Pursuing Digital Innovation and 5G Network

Starting the new year, Indosat Ooredoo and Hutchison 3 Indonesia announced that they had completed the merger after receiving all required legal and shareholder approvals. With a new name, Indosat Ooredoo Hutchison (IOH), will operate and remain a public company on the Indonesia Stock Exchange with the ticker ISAT.

The merger of these two businesses will unite two complementary businesses to create a world-class digital telecommunications and internet company in Indonesia. The Company has a better ability to compete and provide more value for all stakeholder.

Furthermore, this business merger has also changed the company's board of directors. Vikram Sinha, previously COO of Indosat Ooredoo, will lead Indosat Ooredoo Hutchison (IOH) as CEO. From Tri Indonesia, there are two who have served at IOH, namely Muhammad Danny Buldyansyah (Director & Chief Regulatory Officer) and Nicky Lee Chi Hung (Director & Chief Financial Officer).

From the board of commissioners, there are Ex-Indosat Ooredoo President Director Ahmad Abdulaziz AA Al Neama and Ex-President Director Tri Cliff Woo Chiu Man as joint commissioners. Patrick Walujo (Northstar Group). Meanwhile, from Indosat Ooredoo, there is Irsyad Syahroni in the same position. The former Minister of Communication and Information for the period 2014-2019 Rudiantara also joined as an Independent Commissioner.

Appointed President Director and CEO of Indosat Ooredoo Hutchison, Vikram Sinha said, the company is in a stronger position to become the most preferred digital telecommunications industry in Indonesia and become an important player in the 5G ecosystem and the nation's digital transformation.

“Today marks the start of an exciting new chapter for Indosat Ooredoo Hutchison. I am honored to lead a united company to become bigger and more competitive, backed by world-class experience and proven local expertise, in an effort to connect and empower all Indonesians," he said in an official statement.

He continued, "We will arouse the pride of the Indonesian people by contributing to the nation's digital and economic growth while preparing Indosat Ooredoo Hutchison to become one of the most trusted telecommunications companies in Southeast Asia."

This business merger has no impact on Indosat Ooredoo Hutchison's customers because customers will continue to receive services and offers. To mark the first day after the merger, the company is offering customers free calls for a month for up to 200 minutes a day.

Quote from Cash, Director & Chief Strategy & Execution Officer of Indosat Ooredoo Hutchison Armand Hermawan said, this merger will provide great benefits for all customers. The reason is that its financial strength can be ammunition for the company to provide better services, including expanding its coverage and network.

"There is an increase in efficiency because the company can divert investment to other areas, outside the areas that are already crowded with our signals," said Armand.

Regarding the 5G development plan, Director & Chief Regulatory Officer of Indosat Ooredoo Hutchison Danny Buldansyah added, the combination of these two efforts will produce sufficient spectrum so that 5G performances will be much better.

5G network development

Telecommunications industry observer Moch S. Hendrowijono said that with the additional capital, the company has strategic benefits with a larger scale and more efficient cost structure, aggregated frequency spectrum and more reliable capacity, speed and service.

This condition makes the company ready to invest in capital-intensive 5G networks, because there is efficiency in capital costs to expand coverage. "The integration of infrastructure allows them to expand their reach with lower capital costs, take advantage of the relocated infrastructure, and reduce duplication in the use of technology," he explained. Kompas.com.

Without much investment, they can increase the number of BTSs operated by relocating existing BTS, which is an advantage over other operators. Currently, there are 235.885 ex-Indosat BTS, 70.109 of which are 4G BTS, and ex-Tri BTS in more than 37.000 villages/kelurahan. There are 18.000 BTS of the two operators which are close together, so they can be relocated to expand the network which has the potential to increase the number of subscribers.

It is not impossible that the number of IOH customers will approach Telkomsel. Because as a modern license holder, IOH is obliged to serve all of Indonesia, not only Java and Sumatra.

Intensive digital service

After the digital sector was abandoned for some time, Indosat began to aggressively carry out various digital initiatives. Some that have been launched are IMove and IMBeats. iMove is an app wellness which offers a holistic approach to optimal health, starting with movement, nutrition, and emotional health.

While IMBeats is an app streaming music with a music library of more than 50 thousand music and video clips to enjoy. In addition to listening to streaming music, users can use the application to create song playlists, watch video clips, and read news from their favorite musicians.

Indosat's consumer application, namely myIM3 is now powered by various features, ranging from fintech (UCan with Bank QNB Indonesia), agency (Kios myIM3), video streaming (Vidio, KlikFilm, trueID), e-commerce (iStyle.id), virtual keyboard (Bobble AI), and gaming (myIM3 Games Club with AMK and Own Games).

While in Tri Indonesia itself, the digital sector is the company's focus given that 95% of its users are dominated by young people. Therefore, the company positions itself as a digital lifestyle provider by providing a variety of products, ranging from starter packs to AlwaysOn and Happy refills at low prices, long active periods, and equipped with unlimited internet products ranging from daily quotas to bundling packages for various customer's favorite applications. .

Customers can participate in the BonsTri points loyalty program, become entrepreneurs with Bima Agent, discover potential in playing games with H3RO, and get various conveniences in digital transactions through the bima+ application. H3RO products are equipped with Tri Primeline technology, which allows users to get priority access on the 4.5G Pro strong network, a lag-free experience with low latency technology. Not only the variety of H3RO products that are presented, 3 Indonesia also provides a place to hone the gaming potential of young people through the H3RO Esports Tournament.