TLKM: Telecom Sales Ringing up at Home and Beyond

Indonesian Telcos See Good Revenue Growth and Margin Progression as Data Monetization Improves.

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XL Axiata's Recovery Finally Shows Signs of Progress Despite Telkomsel's Continued Dominance

XL Axiata - Transformation in Motion - On the Ground in J-Town

Indonesian Telecoms Look to A (Mostly) More Positive 2017 with Margins Starting to Recover.

Telkom Indonesia - Golden State Owned Enterprise to Continue Dominance in 2017

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XLSMART Telecom Sejahtera / Equity Bottom-Up

Aggressive 4G offers from Indonesian telco operators have driven dramatic data volume growth. So far pricing has been very weak, restricting revenue growth, but we think this may be about to change as the market moves into the monetization phase.Despite very low data prices, mobile internet already accounts for &gt;50% of <a href="https://www.smartkarma.com/entities/15028" target="_blank" data-smartkarma-citation="entities:15028:1">XL Axiata's (EXCL IJ)</a> revenue, and it is not much lower at <a href="https://www.smartkarma.com/entities/5737" target="_blank" data-smartkarma-citation="entities:5737:1">Indosat (ISAT IJ)</a>. If volumes continue to grow and pricing stabilizes (or the pace of decline slows) then we could see a period of rapid revenue acceleration for both smaller operators. It has less impact on PT Telkom <a href="https://www.smartkarma.com/entities/1051" target="_blank" data-smartkarma-citation="entities:1051:1">(TLKM IJ)</a> given its broader revenue base but would also be a positive. And it might just suit Telkom to allow it to happen.If data pricing does not stabilize, then the alternative could be for the two smaller operators to merge. We believe this would create $2.5bn of synergies. Either way, we see upside for all 3 operators, particularly XL Axiata and Indosat.Mobile internet as a % of sales<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/028/472/original/indo%20mi%20sales.jpg?1498101981" class="editor-image img-responsive" data-smartkarma-image-id="28472"></figure>

Aggressive 4G offers from Indonesian telco operators have driven dramatic data volume growth. So far pricing has been very weak, restricting revenue growth, but we think this may be about to change as the market moves into the monetization phase.Despite very low data prices, mobile internet already accounts for &gt;50% of XL Axiata's (EXCL IJ) revenue, and it is not much lower at Indosat (ISAT IJ). If volumes continue to grow and pricing stabilizes (or the pace of decline slows) then we could see a period of rapid revenue acceleration for both smaller operators. It has less impact on PT Telkom (TLKM IJ) given its broader revenue base but would also be a positive. And it might just suit Telkom to allow it to happen.If data pricing does not stabilize, then the alternative could be for the two smaller operators to merge. We believe this would create $2.5bn of synergies. Either way, we see upside for all 3 operators, particularly XL Axiata and Indosat.Mobile internet as a % of sales

Indonesian Telcos: Prospect of Better Data Monetization Offers a Path to Revenue Acceleration