Axiata Group laid out plans to position its two operating units in Indonesia as a converged service company and a specialist wholesale fibre company, with the goal of improving joint asset utilisation and operating efficiencies.

In a statement, Axiata explained the restructuring will enable mobile unit XL to take advantage of opportunities in fixed mobile convergence (FMC) and fixed broadband, with its Link Net business to provide wholesale fibre access.

As an infrastructure partner, Axiata stated Link Net will be positioned to “capture the wholesale opportunity of an underpenetrated fixed broadband market”.

It stated transferring its fibre infrastructure assets to Link Net and focusing on its FMC service offerings positions XL “to unlock the next phase of growth with an asset light business model”.

Hans Wijayasuriya, CEO of Axiata’s telecommunications business, stated the strategy aims to capture the growth opportunities in FMC and fixed broadband access sectors.

He noted its so-called delayering approach featuring a fibre company and converged service company “will lead to the optimum configuration for value capture”.

Axiata noted its acquisition of Link Net in June 2022 allowed XL to accelerate its FMC service offerings.

Link Net is tasked with passing 8 million homes with fibre within the next five years.