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The Axiata Group of Malaysia has announced a reorganization plan. This would change the roles of its Indonesian subsidiaries in order to increase efficiency through better asset utilization.

According to the plans, fixed broadband provider Link Net would change into a wholesale fiber access provider. Meanwhile, mobile operator XL Axiata will be restructured into a convergent services company.

According to Hans Wijayasuriya, CEO of Axiata's telecom division, the transaction will enable XL to take advantage of opportunities in mobile convergence (FMC). Also, Link Net will be able to capture the wholesale opportunity of an underpenetrated fixed broadband market. Thanks to its partnership with Axiata on infrastructure.

Wijayasuriya called this move “de-layering,” claiming it would “unlock the next phase of growth with an asset-light business model” and “lead to the optimal configuration for value capture.”

Axiata purchased Link Net in June 2022, and over the next five years, the company plans to install fiber optic connections in 8 million homes.

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