Smartfren Telecom and Aviat Establish Strategic Collaboration in Indonesia
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Insights
The strategic collaboration between Aviat Networks and PT Smartfren Telecom Tbk signifies a proactive approach to capturing the burgeoning private LTE and 5G networks market in Indonesia. This partnership is poised to exploit the projected $7.4 billion market opportunity as forecasted by Omdia. By combining Aviat's expertise in wireless transport and Smartfren's substantial subscriber base, the alliance is expected to enhance service delivery and customer satisfaction in a diverse range of industries.
The integration of IoT technology within 4G/5G private networks could lead to increased operational efficiencies and the creation of new business models, particularly in sectors like healthcare, agriculture and smart cities. This move is likely to spur advancements in industry digitalization and automation, potentially increasing demand for high-speed wireless connectivity solutions. Stakeholders could see a positive impact on revenue growth and market share expansion as a result of this strategic alignment.
Indonesia represents a significant growth market for telecommunications, especially in the context of private network development. The collaboration targets a range of verticals, which could lead to a diversified revenue stream for both Aviat Networks and Smartfren. The focus on pre-sales and solution engineering, joint sales and integrated customer service indicates a comprehensive go-to-market strategy that could enhance the competitive positioning of both firms.
Moreover, the partnership's emphasis on IoT and ICT solutions aligns with global industry trends towards digital transformation and smart infrastructure. The strategic investment in local presence and service capabilities by Aviat, following its acquisition of NEC's Wireless Transport Business, suggests a long-term commitment to the Indonesian market, which could reassure investors about the sustainability of growth.
From a financial perspective, the strategic collaboration between Aviat Networks and Smartfren is likely to be accretive to earnings, given the large addressable market and the potential for cross-selling opportunities. Aviat's recent acquisition indicates an aggressive expansion strategy, which could lead to economies of scale and improved margins over time. The partnership's focus on end-to-end solutions, from pre-sales to customer support, is a strong value proposition that could lead to higher customer retention rates and increased lifetime value.
Investors should monitor the execution of this strategy closely, as successful market penetration and service delivery will be critical to realizing the projected financial benefits. The collaboration's long-term success will depend on the ability to adapt to regulatory changes, technology evolution and competitive dynamics within the Indonesian telecommunications industry.
Agreement Leverages Unique Capabilities from Each Company to Address Industry Digitalization and Automation in Private Networks Across Indonesia
According to Omdia, by 2027, private LTE and 5G networks combined will have a total market size of
The objective of the agreement is to capture this market opportunity by enhancing the competitive positioning, and better serving Indonesian clientele through pre-sales and solution engineering, joint sales and market opportunity development, and integrated customer service and support.
As a result of its recent acquisition of NEC's Wireless Transport Business, Aviat is now the leading wireless transport provider in the Indonesian market and offers a comprehensive portfolio of wireless transport and access solutions, along with local presence throughout the country. Aviat will serve as solutions provider for all equipment and services related to Smartfren's private networks offering.
With approximately 36 million subscribers at the end of 2022, Smartfren is the number four mobile operator in
About Smartfren Telecom
As part of Sinarmas business group, PT Smartfren Telecom Tbk ("Smartfren"/ IDX: FREN) is the only telecommunication service provider in
In addition, Smartfren also provides flexibility of data service experience through various choices of starter packs and data packages for various users such as Smartfren Unlimited Daily and Unlimited Nonstop. Smartfren offers consumers with the best internet communication experience in affordable price, as well as business solutions, digital services, and other innovations that help develop
About Aviat Networks
Aviat is the leading expert in wireless transport and access solutions and works to provide dependable products, services and support to its customers. With more than one million systems sold into 170 countries worldwide, communications service providers and private network operators including state/local government, utility, federal government and defense organizations trust Aviat with their critical applications. Coupled with a long history of microwave innovations, Aviat provides a comprehensive suite of localized professional and support services enabling customers to drastically simplify both their networks and their lives. For more than 70 years, the experts at Aviat have delivered high performance products, simplified operations, and the best overall customer experience. Aviat is headquartered in
Media Contact: Stuart Little, Aviat Networks, stuart.little@aviatnet.com
Investor Relations Contact: Andrew Fredrickson, Aviat Networks, andrew.fredrickson@aviatnet.com
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SOURCE Aviat Networks, Inc.
FAQ
What is the partnership between Aviat Networks, Inc. and PT Smartfren Telecom Tbk about?
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