The new firm will provide consultancy services for future collaboration between the two telcos
Indonesian telecom operator XL Axiata announced it will enter a joint venture with compatriot operator Indosat Ooredoo to provide consultancy services in future network collaboration between the two firms. The JV is dubbed PT One Indonesia Synergy.
“The purpose of the joint venture is among others to anticipate that the joint venture company will provide consultancy services in future network collaboration. The transaction parties are in the process of jointly exploring the possibility of entering into such a collaboration,” explained XL Axiata parent Axiata Group, in a statement.
The Axiata Group said the establishment of the JV is not expected to have a material impact on the group’s financial results for the current year. Formation of the JV is also not subject to shareholder approval, the company added.
In January, XL Axiata and Indosat Ooredoo announced the launch of a LTE network cooperation agreement using a multi-operator radio access network. The initial agreement covered several cities including Banyumas, Surakarta, Batam and Banjarmasin. Both firms said they plan to extend the cooperation to other cities across Indonesia. Both operators said they were committed to explore possibilities to extend the agreement to cover core network sharing in the future.
Indosat Ooredoo initially launched commercial LTE services in July 2015. The telco currently offers LTE through spectrum in the 900 MHz and 1800 MHz spectrum bands. XL Axiata launched LTE services in December 2014. The telco is also offering the services through the 900 MHz and 1800 MHz bands.
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