XL Axiata launches 4G trial in Surabaya

16 Feb 2015

XL Axiata has announced the launch of advanced 4G mobile network trials in the area of Basuk Grace, in the capital city of East Java, Surabaya, as it continues to expand its Long Term Evolution (LTE) network coverage in Indonesia. In a statement to kick off the pre-commercial trials last Friday, the cellco’s director of service management, Ongki Kurniawan, said: ‘XL’s aim is to bring 4G services to the masses and it is putting in effort to continuously improve the quality of service we offer to customers and the people of Indonesia in general. There are many benefits presented by the introduction of 4G LTE, including fast mobile internet access that will not only benefit customers individually, but also support the business sector and the economy in general.’ Surabaya becomes the fourth city targeted by XL for 4G, based on a number of considerations such as high potential customer demand, availability of frequencies and the carrier’s desire to support what is a key economic centre in East Java. Trials are being carried out with select individuals in and around the Office of Surabaya, Airlangga University, as well as some shopping centres.

TeleGeography reports that XL Axiata, a majority owned subsidiary of Malaysia’s Axiata Group, recorded a net loss of IDR891.06 billion (USD70 million) for full year 2014, reversing a net profit of IDR1.03 trillion in the previous financial year. In a recent filing to the Indonesian Stock Exchange, the country’s second largest mobile operator by subscribers said revenue last year reached IDR23.46 trillion, up 10.3% year-on-year, but operating expenses surged 17.5% to IDR23.03 trillion to offset any gains in the top line. The operator also noted that the acquisition of fellow Indonesian cellco Axis Telekom Indonesia last year contributed to the net loss, adding that the weakening of the rupiah against the US dollar had a significant impact.

Indonesia, XL Axiata