XL Axiata, Indonesia: A model for change
Ericsson partnered with XL Axiata to improve the user experience by focusing on long-term strategies, rather than just technology or features.
On the island of Java, Indonesia, home to more than 141 million people including a large student population, leading mobile provider XL Axiata realized it needed to find a new mobile broadband coverage solution to keep up with the increasing amount of data being consumed. Agus Simorangkir, Vice President, Project Management Office, XL Axiata explains: “Our company strategy is called ‘1-2-3-4’. That is, to become number one in quality, to double our revenue in three years and quadruple our number of connections. In order to achieve this we need to improve the customer experience.”
Currently, the main way that the industry has been able to do this is by building additional sites. However this increases opex and capex. XL Axiata sought a solution that would benefit the user while at the same time keep operating costs low. Ericsson proposed an innovative approach to network development and improvement, which focused on the customer’s long-term strategic needs.
A longstanding partner to XL Axiata, Ericsson had a solid understanding of the operator’s network and goals. Over the past few years, Ericsson had been working closely with XL Axiata in a consultative manner, running several joint consultative programs in order to create a strategic master plan. Building on this knowledge and experience, Ericsson developed a value proposition that showed how it could help XL Axiata to deliver the best customer experience.
Ongki Kurniawan, Chief Service Management Officer for XL Axiata, describes the working process: “Together, XL Axiata and Ericsson identified pain points for subscribers, and then with our sales team defined the experience we want to deliver. From this, Ericsson designed and deployed the new network. We then analyzed the customer experience again to make sure the network was providing the desired customer experience.”
A combination of Ericsson technology, services and support played a part in implementing the new network features. Services included project management, network optimization and a few additions of Ericsson’s latest radio technology. As a result of the project, network quality KPIs were improved by 50 percent and coverage increased by 60 percent. This in turn has contributed to a superior user experience and reduced churn.
Ongki Kurniawan expands on the benefits the company has gained: “The network improvements recommended by Ericsson meant that the improved KPIs could be achieved without the need for additional sites.
This reduced total cost of ownership (TCO) for the network. Furthermore, the net addition of customers has actually increased, which means that we are gaining market share.”
The big picture
The consultative approach taken by Ericsson has influenced XL Axiata’s way of working and helped them to focus on long-term strategies. “Operators need to see the bigger picture when it comes to network deployments and improvements. Simply increasing coverage by building more sites isn’t enough to improve the user experience – performance, reliability and sustainability are all key factors.”
The project has also brought the two companies closer together: “The cooperation between XL Axiata and Ericsson has shown that we can achieve great things together. I hope that the success from this project will serve as an example of best practice and encourage future collaboration,” says Ongki Kurniawan.
My name is Yuri Maulana Ishak and I work at the Santika Premiere Hotel in Yogyakarta, Indonesia. I have been an XL user for a long time – about four to five years.
I use XL’s network both for my work life and socializing with my friends. The network is suitable for business use, especially for my mobile activity, and many of my clients are XL users. I also have no problem accessing different apps and social media to keep in touch with my friends and family.
What I like about XL is that their service is very good, and I have coverage anywhere in the country. Their package offerings are varied, so the network supports all of my needs, such as making phone calls and accessing the internet and social media.
I recommend XL to all my friends, colleagues and family, because of its great value and service.
XL Axiata became the first private mobile services operator in Indonesia in 1996. Today, the company is one of Indonesia’s leading cellular service providers, offering a full range of telecommunications services that geographically cover 90 percent of the country’s 240 million people.