More price hikes from TSEL. TSEL raised its mobile data package prices, particularly its 30-day plan, by ~5-60% in June. The headline price of its InternetMAX Lite package (3GB) was raised to IDR 25k (+68% MoM), and the price of its Internet OMG and CloudMAX bundle was raised to IDR 117k (+16% MoM). At the same time, however, TSEL also cut the headline price of its 7-day data package (Internet Sakti Mingguan, 10GB) to IDR 29k (-19% MoM) while it did not make major adjustments to the headline prices of its 3-day and 1-day data packages or by.U packages. We expect the upward trend in prices to continue, given TSEL’s strategy to focus on service quality instead of only offering competitive prices, which should create better competition in the industry.
Minimal adjustments from EXCL and FREN. EXCL did not make major adjustments to its headline prices since 1Q23 (in which EXCL raised its headline prices by ~7.5%). While the company left its headline prices relatively unchanged, it reduced the main quota of its XTRA Combo Regular package (30-day) by 2GB to ~20 GB (May-23: 22 GB), and it did not release any new package for its XTRA Combo Plus Regular since the removal of some of the cheaper, low-ARPU packages (XTRA Combo Plus Regular 4GB and 8 GB), which might entice its subscribers to up trading their data packages. Regarding the Live-on packages, we noticed that EXCL did not make any adjustments, either on prices or packages. Same as EXCL, FREN did not make any major adjustments to its headline prices, though it decided to cut the local data bonus in its Unlimited Nonstop 6 GB package to 4GB (prev: 6GB).
ISAT adds more bonuses to some of its packages. For its Freedom Internet 50 GB and 100GB packages, ISAT added 5GB of Tiktok data, and it also launched a new 30 GB package (Freedom Internet 30 GB), which offers various bonuses: 25 GB of zone data or 5 GB of Tiktok data (prev: 5GB of night quota) with a higher price of IDR 100k per month, while delisting some of its Freedom Combo packages (20GB/IDR 70k and 30 GB/IDR 86k). Regarding headline prices, both ISAT and Tri (Hutchinson) did not make any major adjustments to their prices in June. However, it is worth noting that after the completion of the IOH network integration in 1Q23, both ISAT and Hutch users experienced faster download speeds, especially Hutch users. We expect ISAT’s user base to grow in a positive trajectory this year with better blended ARPU, supported by aggressive package offerings and better user experience.
Maintain OW. We believe that competition dynamics are heading towards a better trajectory as all the telco players are focusing more on increasing their customer base’s ARPU. Meanwhile, we saw minimal adjustments in terms of FTTH’s headline prices, and we maintain our view that we may see intense competition in the FTTH market due to the low fiber penetration in Indonesia.