With Indonesia’s XL Axiata-Smartfren Merger, Telecom Consolidation Marches on

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With Indonesia’s XL Axiata-Smartfren Merger, Telecom Consolidation Marches on - The Diplomat

Quick Summary:

Amid both financial and geopolitical pressures, there has been a trend toward increased consolidation in Southeast Asia’s telecom industry.

The telecom sector is also increasingly influenced by geopolitical concerns, as states worry about foreign influence in critical national infrastructure like wireless networks.

They also have the added advantage of being majority owned by the government of Indonesia (the other 35 percent being held by Singapore’s Singtel), and are one of the most consistent contributors of dividend payments into the state budget.