National Telcos Set 2026 Course as Telkomsel Pushes 5G, Indosat Resets Pricing, XLSmart Chases Efficiency

JAKARTA, Investortrust.id — Indonesia’s telecom industry enters 2026 in a more rational, post-consolidation phase, with operators recalibrating strategies to prioritize sustainability, pricing discipline, and capital efficiency on Saturday, Jan 3, 2026. The shift marked a sector-wide move away from aggressive expansion toward stronger fundamentals and more selective investment.

As the market leader with 157.6 million mobile subscribers, Telkomsel, Indonesia’s largest mobile operator with nationwide coverage, focused on strengthening connectivity while deepening its digital ecosystem. The state-controlled operator expanded broadband capacity through autonomous network development, artificial intelligence deployment, and deeper Fixed Mobile Convergence integration.

The company, which is a subsidiary of state owned PT Telkom Indonesia (Persero) Tbk, said its strategy prioritized optimizing existing spectrum while preparing technically and operationally for new allocations such as the 700 MHz and 2.6 GHz bands. Management viewed spectrum efficiency as critical to sustaining long-term network performance without excessive capital strain.

Telkomsel’s 5G expansion targeted urban centers, industrial zones, and areas with high technology adoption potential. By the end of November 2025, it operated around 5,000 5G base transceiver stations nationwide, with future rollouts paced to device readiness and market demand.

In fixed broadband, Telkomsel continued to expand IndiHome coverage. Retail subscribers grew 9.4 percent year on year to 10.26 million in the January–September 2025 period, reflecting steady demand for bundled mobile and fixed services.

Including corporate customers, total IndiHome subscribers reached 11.5 million, up 7.5 percent from a year earlier. Product simplification and tighter mobile–fixed integration were used to strengthen customer loyalty and reduce churn.

Meanwhile, Indosat Ooredoo Hutchison, Indonesia’s second-largest integrated telecom operator, entered 2026 focused on restoring performance momentum and reinforcing its business fundamentals. The company adjusted service pricing while streamlining its asset portfolio to improve capital efficiency.

It recently divested part of its fiber-optic business through the creation of FiberCo, with market sources estimating up to 55 percent of ownership being sold. The move was aimed at unlocking asset value while allowing Indosat to concentrate on its core digital services.

President Director and Chief Executive Officer Vikram Sinha said the partnership reflected a long-term vision to build resilient digital infrastructure. He said the asset-light approach enabled the development of an independent fiber platform ready to meet future digital service demand.

Sinha added that the initiative supported Indosat’s transformation into an AI-driven company. He said FiberCo could serve as a catalyst for Indonesia’s broader digital ambitions.

At the national level, the FiberCo model was expected to expand domestic fiber coverage and strengthen inter-regional connectivity. Its open-access design allowed multiple service providers to utilize the infrastructure more efficiently.

A mid-sized national operator XLSmart, meanwhile, prioritized network and operational integration following its merger. The company focused on improving network quality, enhancing customer experience, and expanding home broadband services.

By the third quarter of 2025, XLSmart had extended coverage to around 192 cities through National Roaming and a multi-operator core network. Data and digital services remained its main revenue drivers, while solid cash flow helped balance integration costs with efficiency goals ahead of 2026.