Indonesia Rail Fiber: Surge’s Railway-First Broadband Strategy

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Introduction

Surge, led by Chief Executive Yune Marketatmo, is utilizing a “railway-first” fiber network strategy to enhance Indonesia’s broadband market, focusing on building along railway corridors and collaborating with the national rail operator and local ISPs. The company aims to provide faster, more affordable internet while contributing to national digital inclusion and education goals.

Network Deployment Strategy

Surge’s approach involves deploying fiber optic cables along railway corridors, leveraging the security and centralized access control provided by railway land. This strategy facilitates efficient network expansion, staying close to areas with high demand and managing costs effectively. The proximity to railway tracks allows Surge to reach millions of homes within a kilometer on either side of the track in Java.

Partnership Model

Partnerships are central to Surge’s model, particularly with the rail operator, utilizing a revenue-sharing agreement instead of fixed site rentals. This aligns incentives and encourages collaboration. Surge also provides software for ticketing, offers free high-speed Wi-Fi to passengers, and grants capacity for internal IT and signaling. Additionally, the company collaborates with technology partners to access mature platforms, global best practices, and AI-enabled operations tools.

Commercial and Social Outcomes

Surge reports year-on-year revenue growth of around 66 percent and an EBITDA margin close to 79 percent. The company aims to raise fixed broadband penetration from approximately 15 percent to between 50 and 60 percent, increase average speeds, and support education and small business growth. The company is also collaborating with Indonesia’s local ISPs.

Spectrum Acquisition

Surge, through its subsidiary PT Telemedia Komunikasi Pratama, has secured the 1.4 GHz N50 80Mhz spectrum in the recent spectrum auction. This will allow Surge to deploy 5G-based Fixed Wireless Access (FWA) that complements our FTTH networks, creating a strong and efficient hybrid model for broadband expansion. This aims to support digital inclusion and increase competition in the market.

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Conclusion

Surge is implementing a “railway-first” fiber network strategy, focusing on building along railway corridors, partnering with the national rail operator and local ISPs, to deliver faster, more affordable internet while advancing national goals for digital inclusion and education. The company has secured the 1.4 GHz N50 80Mhz spectrum.

Company Summary

Surge: A company focused on expanding broadband access in Indonesia using a “railway-first” fiber network strategy.

PT Telemedia Komunikasi Pratama: A subsidiary of Surge.

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