XL Axiata cutting 2G network usage amid focus on data

20 Feb 2019

Indonesian mobile network operator (MNO) XL Axiata has revealed that since the start of 2018 it has been scaling back its legacy 2G (GSM) network to focus more on advanced mobile data services. The MNO’s President Director & CEO Dian Siswarini is quoted as saying: ‘Since the beginning of 2018, XL Axiata has begun to reduce 2G networks in certain areas while continuing to reduce capacity in other areas where 2G usage has decreased,’ before going on to explain that a move to reduce 2G capacity forms part of XL’s transformation strategy to become the leading mobile internet provider in the country. Under the programme the MNO will look to refarm 2G spectrum for 4G, though it notes the reorganisation has impacted its bottom line. FY 2018 operating losses topped IDR3.3 trillion (USD234 million) mainly the result of higher expenses for depreciation as 2G infrastructure was either shut down, demolished or written off, while full-year net losses reached IDR9 billion.

Indonesia, XL Axiata