Passpod Enters Internet Service, Focuses on Tier-2 and 3 Cities
PT Yelooo Integra Datanet Tbk (IDX: YELO) or known by its product Passpod announced that it has acquired 49% stake in PT Telemedia Communication Pratama (TKP). TKP itself is known as an internet service provider (ISP) based on fiber optic under the Viberlink brand.
Based on disclosure, the acquisition value is 147 million Rupiah. Equivalent to 147 shares with a price per share of 1 million Rupiah. The existence of this company has transformed the TKP business model into a Digital ISP.
“This makes the entire operational process to be transferred through digital channels. So that the user experience of connectivity services will be more attractive and rich in other features,” said YELO President Director Wewy Susanto.
It was also conveyed, later Viberlink will be focused on providing high-speed internet (up to 1GB) to remote villages in Indonesia. The market focus is for the general public and SMEs in the region.
“We continue to accelerate the development of fiber optic-based internet infrastructure that stretches across Java Island for villages in tier-2 and tier-3 areas. As we see the increasing demands in the market.” Wewy said.
Strengthen Internet Service Business
Passpod’s seriousness to enter the connectivity business demonstrated by the appointment of a new commissioner at the EGMS in January 2022. The company appointed Fadzri Sentosa who was a former director of Indosat as the President Commissioner of YELO.
Its big mission, Passpod is to build a digital ecosystem based on connectivity. This is also done to welcome the Metaverse which will soon be enjoyed by many people.
“The Metaverse technology world in developed countries, internet infrastructure is no longer a problem. Meanwhile, in developing countries like Indonesia, especially in tier-2 and tier-3 cities, it is still an unresolved issue because Indonesia is an archipelagic country,” Wewy added.
Business Disrupted Due to Pandemic
Previously, Passpod was known as a “Wifi On-demand” service provider, to help consumers get connectivity for use at home and abroad. His business has also grown by adding attraction/event ticket options and insurance on its website.
Focusing on travelers, pandemic affected Passpod services which has reduced tourist mobility – especially overseas. In 2019, Passpod still posted a profit (before income tax) of 1.8 billion Rupiah.
However, in 2020 they lost (loss before income tax) of up to 43 billion Rupiah to support business operations. Meanwhile, as per the Q3 2021 report, the company reported a decrease in losses of 19.6 billion Rupiah.
The entry of Passpod as a Digital ISP will certainly be a diversification for their busines. As well as an effort to increase profits in the midst of a tourism climate that is still not conducive.
However, to play in this business, they will face various existing players. Even so they deciding to focus on tier-2 and 3 cities. Because in many cities in the area a number of ISPs have also been selling their services.
The market potential is very large. According to data from the International Telecommunication Union, customers for home internet services in Indonesia until 2019 have exceeded 10 million.
The potential is still growing, along with the need for affordable connectivity at home, especially in supporting WFH and SFH. However, apart from connectivity, the trend of internet service providers also provides added value. For example in the form of cable TV or SVOD services.
Of course, this is a PR for Passpod and Viberlink as Digital ISP providers. Which is to develop a strategy so that the services provided can be relevant to the needs of today’s society.
Last year, the issuer of technology services PT Yelooo Integra Datanet Tbk. (Passpod) recorded a surge in revenue in the first half of 2021 amid an increase in digital product sales during the PPKM period.