Sector Update  /  Telecommunications  /   Click here for full PDF version 
 Author(s):   Aurelia   Barus     ; Belva Monica 

• In May26, TSEL 's data yield and average package prices improved, while
  EXCL
  /ISAT recorded optical declines in trends.
• The weaker
  EXCL
  /ISAT trends were mainly driven by more-for-more offerings and the addition of smaller packages.
• Overall, May26 trends remained positive for ARPU improvement. Maintain Overweight on the sector.

TSEL : improving data yield and average package prices
In May26, TSEL 's average data yield improved by 2%/1% mom in the Rp50k segments, while average package prices increased by 4%/8% mom, respectively. The improvement was driven by the removal of lower-yield, shorter-validity  Combo Special  and  Seru  packages, which were replaced with higher-yield, longer-validity offerings. For TSEL Lite, average data yield rose 1% mom, while average package prices increased 5% mom, supported by the removal of lower-priced weekly packages.

EXCL

: smaller package additions weighed on average mom metrics, despite the introduction of shorter-duration monthly packages
For XL, the introduction of new smaller packages in  Ultra 5G + and  Flex Mini  packages in the Rp50k segment, with data yield and average package prices declining by 3% and 4% mom, respectively. On the positive side, XL introduced a shorter-duration  Bebas Puas  monthly package with 106.25GB quota and 26-day validity, offering a higher data yield of Rp2/MB versus below Rp2/MB for existing ~100GB packages. For Smartfren, average package price and data yield declined by 17%/11% mom, mainly due to the removal of larger  Kuota  packages.

ISAT

: major package offering changes (more-for-more) led to lower data yield and package prices
For

ISAT

, average data yield/package prices in the >Rp50k and FTTH : Indihome - lower average price/speed following removal of Rp400k-500k packages
In May26, only IndiHome changed its offerings, while peers remained unchanged. IndiHome reduced the speed of several 300Mbps packages to 200Mbps in the Rp400k-500k segment, lifting price/speed by 50%. However, the removal of Internet+TV and triple-play packages reduced the number of packages in the segment to six (vs. 11 previously). As a result, overall data yield declined 27% mom, while the Rp200k-300k segment remained relatively flat and the >Rp600k segment saw an 18% mom increase in yield.
OW retain
Overall trends in May26 remained positive despite optical declines in

EXCL

/ISAT metrics. On-the-ground checks also suggest pricing discipline for starter packs remained intact. We retain our Overweight call on the sector.


Sumber : IPS