After exiting the e-commerce business last year, telco company XL Axiata has announced that it will invest $500 million to venture into pay TV, broadband and fixed line business.
XL Axiata president director Dian Siswarini said, a considerable portion of the investment will be used to either acquire or merge with an existing player in the target industry.
“Because if we build it ourselves, the digging around will take up a lot of time. So we will be partnering (with another company),” Dian said, as quoted by tempo.
The $500 million, she adds, will be spent in stages in five years. The first stage of the investment will take place in the second quarter of 2018, when the new venture will be launched.
“The plan is in Q2 we will launch, but still as partner, not yet (completing) merger and acquisition because it will take quite some time,” she said.
Dian added that the investment will also be used to build new broadband infrastructures in the near future.
XL Axiata is currently in partnership with publicly listed pay TV operator MNC Sky Vision to provide value added service in the form of a subscription television and super fast internet service. Dian, however, assured that the new venture will be different to the existing project but does not rule out possible collaborations with MNC Sky Vision.
“It is possible. The content could be from MNC, it can also be from the others. Basically the business model will be different to the current one,” Dian said.
The announcement by XL Axiata comes after the company exited the e-commerce business in 2017 when it pulled out of its e-commerce platform Elevenia. The company, along with partner its South Korean SK Planet Global, sold their entire stake of Elevenia to local conglomerate Salim group after struggling to keep pace with the growing competition the e-commerce industry.