NTT e-Asia Announces Major Investment in Indonesian Telecom WEAVE to Bridge Digital Divide
In a bid to significantly upgrade its digital connectivity footprint, NTT e-Asia is set to inject funds into WEAVE, a key player in Indonesia’s telecom sector. This strategic move is part of a broader initiative by NTT East, one of the world’s leading telecom groups, to enhance the Fiber-to-the-Home (FTTH) infrastructure in Indonesia.
Expanding Access and Driving Innovation
NTT East’s partnership with WEAVE aims to revamp and elevate the FTTH business standards within Indonesia, a region currently grappling with below-average broadband penetration. As recent data highlights, only 15% of the nation is connected via fixed broadband in stark contrast to higher rates in neighboring ASEAN countries. This gap predominantly affects the low- to middle-income households due to the relatively high costs associated with FTTH services.
To address these challenges, WEAVE, which commenced its cost-effective FTTH services in August 2023 at a competitive pricing of approximately USD 6 per month, relies on its expansive optical fiber network established along Java’s railway lines. The services have gained traction, amassing about 200,000 subscribers, with an ambitious goal to extend this reach to 40 million users.
Investment Details and Future Goals
The financial infusion by NTT e-Asia took the form of a subscription to new shares issued through a third-party allotment, diversifying the investment portfolio among key stakeholders including JIA (50.85%), NTT e-Asia Pte. Ltd. (49.0%), and LMM (0.15%).
Hashim Djojohadikusumo, Senior Advisor of SURGE, shared, “This partnership with NTT East marks a historic and transformative chapter for both SURGE and Indonesia. With NTT East’s global expertise, we are poised to diminish the digital divide and expedite our Affordable Broadband Initiative.”
Echoing this sentiment, Naoki Shibutani, President & CEO of NTT East, stated, “Our commitment at NTT East transcends just digital infrastructure; it’s about fostering societal benefit, supporting job creation, and stimulating economic growth. We intend to deploy our proven strategies from Japan to realize a more connected and inclusive Indonesian society.”
The Road Ahead
Looking forward, NTT East and WEAVE are dedicated to the continued expansion of the FTTH services, which will not only modernize individual connectivity but also support wider economic progress throughout Indonesia.
Industry Implications
This development is likely to set a precedent in the regional telecom and broadband industry by demonstrating the potential of strategic partnerships and technological investments in overcoming infrastructural and economic disparities. For consumers, the growing availability of affordable broadband services promises enhanced accessibility and connectivity, laying the groundwork for a more digitally inclusive future in Indonesia and potentially influencing similar advancements across Southeast Asia.
