Jakarta. Cellular operator XL Axiata (EXCL) is predicted to earn a total revenue of Rp 35 trillion ($2.3 billion) next year after consolidating additional subscribers from the recently acquired home internet provider Link Net.

Link Net has around 750,000 fixed broadband (FBB) customers and is expanding the home-passed network to cover 2 million more users.

“The consolidation of subscribers from Link Net and possibly also Smarfren Telecom will potentially increase XL Axiata’s revenues,” said Robertus Hardy, a senior market researcher at Mirae Asset.

XL Axiata’s revenue is projected to reach Rp 32 trillion for the current year.

Parent company Axiata Investment Sdn Bhd owns a 76 percent stake in Link Net, while XL Axiata holds another 19.22 percent. 

“The planned consolidation of customers will not change the structure of ownership,” XL Axiata spokesperson Reza Mirza said on Wednesday.

XL Axiata is pursuing market penetration in fixed broadband and fixed mobile convergence (FMC) businesses where there are only a few of players.

“We are confident that the collaboration between XL Axiata and Link Net will allow us to keep up with the growing demand for FBB and FMC services in Indonesia,” XL Axiata CEO Dian Siswarini said.

Link Net also has a non-binding agreement to transfer it retail services to XL Axiata so that it can focus on the core business of developing internet networks.