EXCL and FREN raised their headline prices. EXCL and FREN raised the headline prices for their packages. EXCL raised the headline prices for its 7-day Xtra Combo Mini packages by ~42-67% MoM and its Akrab Combo packages (16GB and 23GB) by +3% MoM. However, for Axis packages, the company took aggressive steps; it revamped its Bronet package by adding more bonus quota in the packages while cutting the main quota in some of its packages, and it also cut the headline price of the Bronet 6 GB and Bronet 8GB packages by ~50% MoM, bringing down the effective data yield of the 30-days Bronet packages to IDR3,6/MB (-63% MOM). Regarding FREN, we noticed that the company had raised the headline prices for its packages across the board [Unlimited Package, Internet Package, and Kuota L Package] by ~10-25% MoM.
Some adjustments from IoH and TSEL. After raising its headline prices across the board in August, IoH cut the headline prices for its high-ARPU package [Freedom Internet 50 GB] to IDR 120k/30 days (-10 MoM), though we saw no adjustment for its Tri packages. Regarding TSEL, the company slightly adjusted its headline prices and added bonus quota to its Combo Sakti Max 14 GB, bringing down its effective data yield to IDR 4.14/MB (-1% MoM). As for BY.U and Live.on, We didn’t see any adjustment in Sept-23. Despite the aggressive stance taken by some MNO players, we believe that another price war is highly unlikely as the industry becomes ‘mature’. Also, it is worth noting that MNO players will benefit from higher data payload during the election period, which might provide more room for monetization.
Adjustments in FBB and FMC packages. First Media raised the speed limit on most of its Value products (Stream Value, Joy Value, etc) by ~17-67% MoM, and slightly lowered the speed limit on its Star Pro Package (-14% MoM), bringing down its average overall yield to IDR 4.1K/MBPS (-18% MoM). Meanwhile, Indihome lowered the headline price for its low-ARPU 2P package by ~2% MoM. As for other FTTH players, we saw minimal adjustments in packages and headline prices. From the FMC market, EXCL cut the headline price for its high-ARPU packages in XL Satu by ~31% MoM [Super User Packages] while raising its Smart Packages headline price by ~10% MoM. As for TLKM, we saw no adjustment in its FMC packages.
Maintain OW. Despite the aggressive stance taken by some of Indonesia’s MNO players, we believe that MNO companies will continue to focus their efforts on increasing their customer base’s ARPU. However, the competition in the FTTH and FMC markets will remain intense for a while, due to the relatively concentrated market.