XL Axiata contemplates network sharing with Indosat Ooredoo

11 Mar 2016

Online news portal IndoTelko quotes XL Axiata director Yessie D Yosetya as saying that the Indonesian cellco is considering a 4G network sharing agreement with rival operator Indosat Ooredoo, although he admits the plan is very much in the ‘early stage’ at this time. The official says that with Indosat Ooredoo having deployed multi-operator radio access network (MORAN) equipment on a limited basis – covering Banyumas, Surakarta, Batam and Banjarmasin – XL would be keen to capitalise on CAPEX savings through sharing deals, but notes that as it stands the regulatory position is unclear, making progress difficult. Further, he is urging the authorities to go further than simply agreeing for MORAN-based sharing and include multi-operator core network (MOCN) capable of providing participating operators with more efficient savings in terms of their capital expenditure for LTE. Yosetya says that while MORAN could lead to efficiency saving rates of around 10%-15%, MOCN can achieve 40% savings.

MORAN and MOCN are just two of five sharing models currently under consideration, the other three being based on CME sharing, roaming and MVNO-based models. Under MORAN, the cellcos can share base transceiver stations (BTS) but still use the spectrum separately, while MOCN allows not only BTS sharing, but also the utilisation of each other’s spectrum.

Indonesia, Indosat Ooredoo (incl. IM2), XL Axiata