XL Axiata, Indonesia: Leading the way
XL Axiata enhances its M2M offering in Indonesia using Ericsson’s Device Connection Platform
In 2020, there will be 50 billion connected devices around the world, enabled through the growing use of Machine-to-Machine (M2M) communication. In Indonesia, and much of Asia Pacific, M2M is at an early stage. It has become a strategic part of a mobile operator’s business for existing and new networks, and provides an opportunity to address new markets, segments and industries.
XL Axiata aspires to be one of the top M2M players in Indonesia and aims to increase its number of connections. The company currently provides 6 different types of M2M services, benefitting more than 145,000 subscribers. These offerings include smart metering, point of sales solutions, e.g. banking terminals, fleet management, e.g. taxi monitoring, logistics and delivery, personal tracking and mobile surveillance.
Handling large-scale M2M communication is now a necessity for every mobile operator. In order to accelerate its M2M market plans, XL Axiata partnered with Ericsson on account of its local and global expertise and future-proof approach to M2M.
Ericsson delivered its Device Connection Platform (DCP), which offered XL Axiata the opportunity to increase revenue, decrease operational costs and shorten time-to-market.
Ericsson DCP is a managed (X-as-a-service) wholesale connectivity platform for mobile operators and MVNOs. As a cloud service, it enables operators to offer connectivity services to enterprise customers. The solution provides XL Axiata and its customers with the tools to deploy, manage and monetize millions of M2M and consumer devices. It reduces the cost of connecting these devices and avoids a large startup cost. This allows the operator to benefit from economies of scale.
With an M2M platform, XL Axiata’s enterprise customers gain the ability to monitor devices anytime and anywhere, as well as access information quickly and accurately. For example, Ericsson DCP provides access to key functions, including subscription management, device management and operator and enterprise self-service portals. The solution also integrates easily into existing systems for minimal disruption to service during migration.
A unique collaboration
XL Axiata was an early user of Ericsson DCP, and the task of migrating M2M support ran over three months. The project was unique in that the M2M engagement required Ericsson to work closely with XL Axiata, with Ericsson’s technical specialists directly supporting XL’s sales and solutions team.
"When we chose this DCP our main justification was not the platform itself. Our main justification was who is behind this platform," says Dian Siswarini, Chief Digital Service Officer, XL Axiata. "We don’t only want a technology provider; we want a business partner."
Ericsson and XL Axiata had a shared vision for the integration of the DCP platform for M2M. Through close cooperation and engagement on every level, Ericsson built an offer based on the business value for XL Axiata. This vision was communicated clearly and concisely between the teams, enabling efficient and effective project completion.
"XL Axiata shares our belief that M2M will play a major part in the growth of connected devices over the next few years," says David Hägerbro, Key Account Manager, Ericsson. "This enabled us to build a strong strategic partnership and provide a focused offering."
In addition to integrating the DCP platform, Ericsson is also offering assistance to XL Axiata with its sales activities, by providing Technical and Business Support.
"We made managing the day-to-day operations simple so that the M2M business could scale exponentially. We are providing verification services in order to manage the quality and performance of the M2M offering, ensuring that XL Axiata achieves a short time-to-revenue," says David Hägerbro.
This project was particularly significant due to the high number of devices that are supported. It was one of the largest M2M platform integrations in the Asia-Pacific region.
"This year we managed to double revenue, compared to last year. We also managed to double our corporate clients," says Arkav Juliandri, General Manager of M2M, XL Axiata. The operator also managed to quadruple its number of connections, as well as the size of the area that it provides for. "We serve quite a large portion of Indonesia and this is quite an achievement for the M2M team."
Smart meters are big business
As well as increasing its number of connections, XL Axiata has been able to expand its smart metering services. On the island of Java, smart meters are connected to electronic billboards, which are difficult and expensive to read manually. These limitations mean that wireless connectivity has become essential to the industry.
Smart meters are viewed as part of the future energy model for Indonesia. With their proven ability to handle meter reading, XL Axiata was able to win a major bid for business across Java. It means that in large cities such as Jakarta, electricity companies do not need to travel to every billboard to read the meter, thereby reducing costs and time.
XL Axiata is the second largest telecommunications operator in Indonesia. It offers a wide range of 2G and 3G voice, SMS, data and value-added services covering 90 percent of the population. XL Axiata is expanding into digital services, and was the first operator to launch Machine-to-Machine services in Indonesia.