XL Axiata has rolled out its new fourth-generation (4G) mobile data service in Jakarta targeting high-yield customers.
XL says the upgraded service offers internet speeds of up to 150 megabits per second, the fastest in Indonesia. Its Super HotRod 4G LTE is a prepaid package providing 4.5 gigabits of data per month for 100,000 rupiah ($7). During November, the company is sweetening the deal with an additional 10 gigabits free.
Rival operators are already aggressively promoting 4G services after the government opened up the 1,800 megahertz band this year. XL claims its 4G is the fastest because it has moved its 2G and 3G services over to 900MHz and reduced clutter.
"Basically our value proposition is that we have the best quality," said Yessie Yosetya, XL's chief service management officer.
That value comes with a premium. Rival operator Indosat is offering five gigabits per month for about 60,000 rupiah, or 40% less. XL's recent focus has been on boosting average revenue per user (ARPU). In the first three quarters of the year, ARPU grew 28% year on year to 32,000 rupiah per month -- but with 29% of subscribers shed. XL President Dian Siswarini said the 4G rollout will help raise ARPU to at least 50,000 rupiah per month in 2016.
Some three million 4G subscribers are being targeted with services being rolled out in population centers including Bali's Denpasar, Medan, Surabaya and Yogyakarta. The denser parts of the islands of Kalimantan and Sulawesi are due to be added by year's end.
XL is the Indonesian unit of Malaysian mobile operator Axiata Group, and was previously noted for pursuing market share with discounts. The strategy was revised after a weak rupiah boosted the already rising cost of debt, hitting earnings hard.
Although Indonesia has seen a smartphone surge in recent years, low data charges have kept telecom profits elusive. While 4G represents only a fraction of the total user base, competition in the segment will be keen for the highest-yielding customers.
Source: http://asia.nikkei.com/Business/Companies/Premium-4G-faster-data-higher-price