Good day, and thank you for standing by. Welcome to Telkom Indonesia Q1 of 2024 results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you need to press star one one on your telephone. You will then hear an automatic message advising your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the call over to Ahmad Reza, SVP Corporate Communication and Investor Relations. Thank you, Bapak. Please go ahead. Thank you, Desmond. Ladies and gentlemen, welcome to PT Telkom Indonesia conference call for the unaudited results of the Q1 of 2024. There will be an overview from our CEO and followed by the Q&A after the session. Before we start, let me remind you that today's call and the responses to question may contain forward-looking statements within the meaning of Safe Harbor. Actual results could be different materially from projections or estimations and may involve risks and uncertainties that may cause actual results to be different from what we discuss today. Ladies and gentlemen, it's my pleasure now to introduce Telkom board of directors who are joining us today. First is Mr. Ririek Adriansyah as our President Director and CEO, Mr. Heri Supriadi as the Finance and Risk Management Director, Mrs. Venusiana as Enterprise and Business Service Director, Mr. Bogi Witjaksono as Wholesale and International Service Director, Mr. Budi Setyawan Wijaya as a Strategic Portfolio Director, Mr. Honesti Basyir as the Group Business Development Director, Mr. Herlan Wijanarko as the Network and IT Solutions Director, Mr. Afriwandi as Human Capital and Management Director. Also present are the board of directors of Telkomsel. First is Mr. Nugroho as the President Director, Mr. Mohamad Ramzy as our Finance and Risk Management Director, Mr. Derrick Heng as the Marketing Director, Mr. Adiwinahyu Basuki Sigit as a Sales Director, and Mr. Wong Soon Nam as a Planning and Transformation Director. And now hand over the call to our CEO, Mr. Ririek Adriansyah, for his overview. Thank you, Reza. Good afternoon, ladies and gentlemen. Welcome to our conference call for the unaudited Q1 year of 2024 results. We appreciate your participation in this call. The quarter of the year 2024 will be considered to be an exciting and dynamic year and hard to be predicted in terms of business and economic stability. We have witnessed the macroeconomic downturn and the direction toward higher inflation worsened by geopolitical situations. The newly elected government and its administration in Indonesia post-election process will also be considered by all investors as a key player in shaping the future of the political, social, economic, and business stability. Amidst the potential recession and the rising of inflation, as well as continuous increase of commodities, Telkom Group dedicated to improving the services and serving an even broader segment. It is resulting in a stable ARPU and the increase of traffic, indicating the improvement of customer productivity, supported by leading infrastructure to maintain dominance in the telecommunications sector. Telkomsel becoming the greatest revenue contributor to the group, which manage B2C business, such as mobile and fixed broadband. Telkomsel capture future customers by adopting a strategic localized approach, aimed to maintain dominance and sustainable growth of convergence revenue share. With the integration of IndiHome, Telkomsel Lite and by.U become more relevant, allowing us to engage youth and mass market segment through cross-selling and upselling within our stores. Telkomsel also maintain the dominance by implement consumer value maximization, or CVM, supported by network coverage and quality leadership. On the B2B business, Telkom conditionally implement five bold move strategies, especially in the data center or DC monetization and Infraco business enhancement. We plan to fully unlock our data center business within the year of 2024 by finding strategic partners who could contribute not only capital, but also expertise, management, and access to the DC market. The growth of B2B business, especially in data center business, is very high. We are fully aware that the opportunity in DC needs a timely go-to-market strategy. Leading supply will create additional operating costs, while lagging supply will absolutely wipe out opportunities. The capacity and scale are an important opportunity for value creation and sustainable market with extremely strong competition. An updated view on the topic of Telkom and IndiHome remains intact. Telkom Group, nevertheless, will implement organic and inorganic efforts to pursue the capacity of 400 MW within 6 years onward to year 2030. Infraco initiative has also been progressing in this business cycle with the Telkom Infrastruktur Indonesia, will serve as its mandate to commence infrastructure asset management service in 2024, before it assumed to have higher duty as the asset owner of Telkom Infra fiber infrastructure in 2025. On the B2B Services, our transformation and business process enhancement between our business unit division and business unit subsidiaries requires positive results. Synergy and efficiency among them have been established, and now we are ready to come up with a product portfolio to serve government, enterprise, and small-medium enterprise segments. During the Q1 of 2024 unaudited financial result, Telkom Group revenue grew by 3.7% year-on-year to IDR 37.4 trillion, with EBITDA stood at IDR 19.4 trillion, increased by 2.2% from the previous year. Our successful effort in promoting data and internet revenue, as well as managing our expenses, creates better middle and middle line profitability. On our operating net income, it grew 3.1% year-on-year to IDR 6.3 trillion, after stripping out mark-to-market effect from GoTo. The company recorded positive consolidated revenue growth in Q1 2024 as compared to the same period last year, with a good profitability level supported by growth of mobile business. Revenue increased 32.7% year-on-year to IDR 28.5 trillion, consists of IDR 21.9 trillion from mobile and IDR 6.6 trillion from fixed broadband business. Digital business revenue of Telkomsel remains strong growth with digital growth by 8.6% year-on-year, and increase its contribution to mobile revenue to 89.9% from 84.4%, in line with the company's strategy to capture new strategic initiative and focus on quality customers. Telkomsel continues to maintain dominance both in the fixed and mobile, with a customer-oriented approach and productivity improvement. We have expanded mobile customer base to 159.7 million, while reaching 8.9 million in-home B2C customers. Mobile ARPU remains stable with the improvement of payload as we provide better value to stay relevant with the market and grow the profitable revenue shares. We capture future customers through the Telkomsel Lite and by.U, as we aim to become the largest convergence operator in Indonesia. Securing the youth and mass market segment is important and part of our fundamental strategy to drive sustainable performance. Telkomsel has prudently designed these products to better cater the customers' needs and experience while ensuring the relevance compared to other offerings in the market. Consequently, we believe these tailored products will mitigate the risk of price wars and internal churn, given the customization for specific segment and localized quota allocation. We're committed to continue the healthy conduct initiative, smart acquisition, and securing quality customers, as indicated by increased payload and customer consumption. As a market leader, we aim to maintain profitability and act rationally to continue fostering healthy and constructive competition within the industry. In the Q1 of 2024, wholesale and international business segment contributed revenue to Telkom Group in the amount of IDR 4.8 trillion, growth by 17.8% as a result of growing international wholesale voice business and digital connectivity infrastructure business. Data center business has been prepared as our B2B future revenue growth, along with the double-digit growth of data center demand in Indonesia and the region, with the initiative to find out a strategic partner in data center who own not only capital, but also management capability and strong marketing channel. Telkom Group has initiated monetization, and hope that to finish the monetization process by end of 2024. Telkom has provided data center services with a capacity of 42 MW, with an average utilization of 70%. During the Q1 of 2024, Telkom has recorded data center and cloud revenue of IDR 449 billion, which grew 6.4% year-on-year. PT Telkom Data Ekosistem, which was established in 2022 and operate under the name of NeutraDC as the brand, has been working with the local governments, various kinds of business, and even hyperscale companies that need a lot of data space. Currently, NeutraDC is focusing on expanding its ready-to-use capacity by 18 MW by end of 2024 at the Cikarang Hyperscale Data Center, with the various customer segment, including, among others, hyperscaler, banking, as well as government. Our existing competitive advantages over the competition in providing complete infrastructure modes, including fiber, will further be monetized under our subsidiary, PT Telkom Infrastruktur Indonesia, which has been established since the Q4 of 2023. Telkom is focusing toward unlocking new potential for maximizing the value of its fiber infrastructure. We will generate additional synergy value by optimizing the network utilization, consolidating capital expenditure, boosting external revenue, delivering premium network services, enhancing operational efficiency, and establishing a strategic partnership. Telkom Group boosts remaining idle capacities in order to conduct infrastructure sharing by B2B business division. Commencing 2024, Telkom Infrastructure Indonesia is actively preparing for daily operational readiness and conduct dry run exercise as the learning stage to ensure operational excellence in managed service operation and seamless transition of Telkom's end-to-end network infrastructure asset transfer in the coming year. Currently, Mitratel owns 38,100 towers after organically added 120 towers in the Q1 of 2024, maintaining its position as the largest tower provider in Southeast Asia. During Q1 2024, Mitratel successfully added almost 400 tenants, resulting in improving tenancy ratio to 1.52 from 1.46 in the same period last year. In addition, Mitratel enjoys site diversification, as around 59% of towers are located ex-Java, while the remaining 41% are located in Java. On a similar basis, Q1 2024, Mitratel recorded revenue of IDR 1 trillion, or grew by 7.3% year-over-year, driven by tower leasing revenues. EBITDA and net income grew by 9.9% and 4.0% year-over-year respectively. EBITDA margin expanded to 83.5%, increased by two percentage point, and net income margin was 43.6%, decreased by zero point eight percentage point. Colocation number and the number of tenants grew by 16.6% and 8.4% year-on-year, respectively. For the moment, Mitratel demonstrated a strong financial position with a drastically low leverage ratio of 1.7 net debt to EBITDA as compared to the industry. This allows the company to better withstand economic downturns and take advantage of growth opportunity while providing stability to shareholders. Mitratel continue expanding its fiber to the tower business as part of its strategy to strengthen its product portfolio to become a digital infrastructure company. Mitratel achieved significant growth in its fiber optic network by adding around three point seven thousand kilometer during the Q1 of 2024, resulting in a total network length of thirty-six point three thousand kilometers. Enterprise segment recorded revenue of IDR 4.5 trillion during the Q1 of 2024, with the B2B Digital Services and enterprise connectivity solution as the larger contributor in the enterprise segment. We continue to strengthen our capabilities in the cloud business, digital IT services, and cybersecurity, including building strategic partnership with the global technology player. In this initiative, there are several areas that we are now strengthening with our businesses. Development in the government segment, large enterprise will focus on B2B platform and vertical solution. On our regional territory, we are focusing on IndiHome to capture the SME markets. On the ESG strategy initiative, Telkom has launched Access ESG decision for sustainability by Telkom Indonesia. The program with Telkom's performance achievement are described in each of the following three sustainable strategies and pillar. First, right environmental, which approach focusing on the environment aspect, Telkom has proactively taken concrete actions, such as reducing carbon emissions through waste management activities, especially in water and rehabilitating coral reefs. Telkom Group has used environmentally friendly energy sources such as solar cells, biodiesel, and micro hydro. In addition, Telkom Group also support the use of environmentally friendly transportation by encouraging the use of electric vehicles among its employees. Second is the right people. The effort to develop HR competency has continued to be strengthened through extensive training and education program. Concrete steps have been taken in managing the digital talent readiness program, initiative in aiming at developing employees' digital capabilities to adopt the change and digital technology. We focus on developing working environment which support diversity and inclusivity. The third one is development, and Telkom consistently implementing sustainability governance, business ethic and compliance with applicable regulation and supervise to ensure compliance with the relevant norms and business ethics by establishing a data protection officer, or DPO organization, with a more precise map of roles and functions. The company also refer to the provisions of international standard, one of which is ISO 27001, to intensify data protection and security. That is the ending of my remarks, and thank you for your kind attention. Thank you, Ririek. We will now begin the Q&A session. When raising your question, please speak clearly and state your name and your company. Operator, may we have the first question, please? Thank you. As a reminder, to ask question, please press star one one and wait for your name to be announced. Our first question comes from Piyush Choudhary from HSBC. Please go ahead. Yeah, hi, this is Piyush from HSBC. Thanks for the opportunity. Three questions. Firstly, on the mobile, how has been the impact of Telkomsel Lite plan, and any changes on your, mobile revenue outlook for 2024, post, this plan launch? Secondly, any update on, spectrum, auction timelines? And thirdly, on IndiHome B2C, what is, driving the revenue down quarter-on-quarter? And we saw IndiHome B2C ARPU is also down. So any reasons for the same, and what's the outlook, for IndiHome B2C revenue? Thank you. Yes. Hi, Piyush, this is Derrick. Your first question on the impact of, Telkomsel Lite plan. You know, the traction of Telkomsel Lite is aligned to our internal plan. We have seen improvement of payload. We have seen renewal trends in less than one month. However, we are cautiously monitoring progress, and we will adjust as necessary with regards to the market movement. Yeah. I mean, we all know the, the prepaid market is highly dynamic, so, we will always look at whether the impact is still manageable. But our focus is on targeted segments- ... we are looking at, predominantly Java with, localized quota offerings. Yeah. So Piyush, to add on the number one questions, I think you can see the result today, both traffic, our traffic profile- Excuse me. Hello. Yeah. A lot of echo. We can't hear you properly. Oh, okay. Thank you. Hi, Piyush. Yeah, to add to what Derrick answers, this is Sigit. For the first questions about the Telkomsel Lite, I think if you take a look on our result on Q1, today we see that the digital business of broadband, we are growing around 8.6%, and that is one of the things that we've seen that our productivity of broadband, which is in mobile, are showing the positive progress. And especially if you take a look also on the traffic growth, it is 14% compared to last year. I think it is also improving. And on top of that, I think from the Telkomsel Lite perspective, we've seen that this our strategy has been right to address various segments, including mass and also youth. And 3 question on IndiHome, B2C, revenue as well as ARPU. I think from the point of view of the group, our our fixed broadband are been stable. However, after the first 6 months of legal day one, we are doing the stability period, where we are actually migrating the consumer business to Telkomsel. And then I think starting to this year, especially in Q1 and probably also Q2, there are still alignment needed between consumer type of businesses as well as the enterprises. So if you take a look on the certain segment, like, for example, consumers in the home, there's a little bit of revenue down on Q&Q basis as well as ARPU down. That's due to the alignment of the customer type. However, if we see from the progress on the sales side, for example, we're able to add the net add of 222,000 in the quarterly basis in Q1, which showing the positive progress. On top of that, what we can update to you, that we are progressively also increasing the penetrations by helping addressing a mid- to low-segment as well, in order to continue penetrate our fixed broadband penetration across the nation. Thank you. Yeah, to add on the first question about the revenue outlook, Piyush, this is Ramzy from Telkomsel. We still maintain our outlook for mobile by.U low- to mid-single digit. And on the spectrum auction, till now, I think we still wait for the official announcement from the government. As they are preparing the documentation and also the terms and conditions, we expect that the auction would be at the latest in the second half this year. Thank you. Thank you for the questions. Our next question comes from Kelsie Santoso from Goldman Sachs. Please go ahead. Yes, good afternoon, management. This is Kelsie. Thank you for the opportunity. My question's on mobile. So both prepaid and postpaid subscribers were quite flat Q&Q, but ARPU continued to contract. So wanted to understand what led to the decline, and why this hasn't translated into subscriber growth, and perhaps what you're seeing on the ground when it comes to competition, and how do you expect these to trend in the coming quarters? And then my next question is on the cost side, saw that you managed to drive efficiency in several line items. Could you elaborate on what led to the reduction in O&M expense quarter and quarter? I think before Ramzy continues with the answer, let me address about the ARPU in mobile. If you see the ARPU in mobile, it is comprised of the digital connectivity legacy, digital connectivity revenue, as well as revenue coming from the, okay, our legacy in, and in this case, our voice and SMS, which is also a decline in the same time. If you only see the with the ARPU coming from the digital connectivity, it is supposed to be increased from time to time. I think with the smaller contribution coming from the legacy from time to time, we eventually will see the growth in the ARPU. So that's the reason of, I think, ARPU contraction, as you mentioned. Yeah. If, if I may add also, I think, Kelsie, if you compare to quarter by quarters, I think there's also a seasonal impact on Q1 compared to Q4, that's also impacting the mobile ARPU. And on top of that, I think if you see also competition on the ground, our ARPU level are still above the peers. So this is showing that we actually are always able to monitor and maintain the profitability that is compared to the peers. And in terms of competition, where we launch also Lite, and also we have some portfolio that we have, we are actually able to, you know, maintain the competition level, across the nation, especially in Java, where we have a comparison market shares against the peers. Yeah, to respond on the cost efficiency side in Telkomsel, actually, on the Q&Q, we have O&M growth by -2.7%, which is one of the most driver is last year, last quarter. We have one of impact on the surface tower in which particularly related with the inflation application on the contract. The other part is also on the WSA contract with parents, which is related with our IndiHome operation, Kelsie. ... Yep, got it. Thank you. Thank you for the questions. One moment for the next question. Next question comes from the line of Marissa Putri of UBS. Please go ahead. Hi, management. So my first question is sort of follow up to the previous question on IndiHome. Granted that ARPU decline as you expand your target market, but decline in ARPU is so far also not offset by growth in subscribers. And you also mentioned about alignment happening during the transition period. Can management probably elaborate more on this? And what can we do on IndiHome side? And my second is, I guess, correct me if I'm wrong, but I think the By.U quota is also not limited by areas or not just in the four local quota. So what is group strategy to kind of limit or ensure that there's no cannibalization happening from By.U to main Telkomsel brand? And lastly, it's a bit more kind of accounting maybe question. So revenue from non-mobile, I think, has been very erratic on Q and Q basis. So if you see consumer specs and also enterprise business, I think in the last earnings call, mentioned that, you know, the group deliberately not pursuing some business as you're trying to wind down, some segment in enterprise. So how should we think about these two segments? And, are there any accounting issues as you are separating IndiHome from the parent as well? Thank you. Yeah, allow me to answer the number one questions on the IndiHome ARPU decline. I think as we also penetrating to our strategy penetrating to various segments, including mid to low segments, of course, the ARPU will also compensate at this level. However, our strategy is not always only doing the you know penetration to mid to low segment. Also, we're trying to also add up some you know increase of the ARPU by shifting the customer and focusing our hero product to this higher speed and higher ARPU from the existing customer. So we've been able also to focus on 50 and 100 Mbps, where we are actually doing the same and trying to increase the contribution on those, higher ARPU level, to balance the compensation of, ARPU decline, where we are addressing the lower segments, besides the, alignment that we're talking about between, enterprise and also, also consumers. This is Derrick. I will answer the question on by.U. We have not seen any cannibalization of by.U from the customer segment perspective. by.U is our strategy targeting at the youth and the digitally savvy. When we look at the cohort of by.U customers, in fact, we are getting new, new customers for this group of young customers. At the same time, even if there is any migration from our prepaid to by.U, the ARPU actually increased for this youth segment. So it is something that we will continue to focus on this underserved segment, because the youth is our customers of tomorrow. There are specific strategies that we have done to engage this group of unique customer segments. Yeah, and to add to that, I think for the by.U, besides the branding strategy that we have been continuously monitor, the internal rotational terms are limited. We also limit some area like Papua, Maluku, where we have seen that the price will not be very much need to be maintained. And we are not having that kind of product within those typical area that we are actually strong and dominant in those areas. Yeah. To add, the youth segment, it is, it's aligned to our FMC strategy, where we look at the household as a segment. So within the household, not only you have the high-value decision maker, the family decision maker, but we're also engaging the more value segments as well as the youth in the family. So it is part of our strategy to look at household as an account rather than a individual mobile line. On your third question, Marissa, understood that's quite, I think to see the revenue recognition coming from that enterprise, especially when with regard to the, I think, IndiHome case. As we've previously mentioned in the, I think, previous call, that there's an issue of kind of how we recognize the revenue from IndiHome separated to enterprise and also the consumer. Especially for the enterprise side, whenever we use basically the brand of IndiHome for connected subscriber from the enterprise. So we need to see from principal and agent discipline on this one. So basically we need to do a kind of accounting treatment on this one. We are in the process of fixing this one. Later we have going to have the fix, let's say, answer or how we going to treat this one in the more, I think, firm way. But if you see, overall, the revenue that we recognize from this is not changing. Whatever the revenue we get from external customer, both from consumer and enterprise altogether, becoming total revenue in the group level- ... I think we're going to answer this to you directly, how we see about our accounting treatment on this side, about Kelsie. Sorry. Thank you, Management. Thank you. [crosstalk] Thank you. [crosstalk] One moment for the next question. Our next question comes from Arthur Pineda from Citi. Please go ahead. Hi. Thanks for the opportunity. Three questions today. First thing, on mobile competition, are you seeing any reactions from your competitors following the launch of Telkomsel Lite? It's been a few months since then. Just wondering if there's any worsening, intensifying competition. Second question I had is regarding cost optimization programs. Are you able to elaborate target cost savings for this year following your mobile convergence as well as parent-level optimization? Third, if I could just clarify, I know this is, I think this was mentioned earlier, on the B2B versus B2C revenue. So basically, it's just a reclassification between Telkomsel and Telkom, is that correct? If that's the case, how does this actually impact the transaction value wherein Singtel entered into the deal? Because presumably, there were certain assumptions made on consumer revenues then. Thank you. Arthur, can you repeat on the third question, please? I think your voice is quite soft. Yeah, sorry. On the third question, I just wanted to understand on the B2B, sorry, B2C revenues. I understand it declined. Is it just merely a reclassification between consumer and enterprise? So it's just moving the revenues from Telkomsel to Telkom. If so, how does that actually impact the transaction value wherein Singtel entered into the deal? Because presumably, there was an idea in terms of the revenues generated by B2B and B2C. Thank you. Okay. Hi, hi, Arthur. This is Derrick, I'll answer the first question. Yeah, Telkomsel, you know, has prudently designed products such as Telkomsel Lite. We want to better cater to certain mass value segments, and we want to ensure the relevance of our pricing competitiveness as compared to other offerings in the market. So we, consequently, we believe that these tailored products will mitigate the risk of price wars and internal churn. And given the customization of these specific segments, and with very targeted localized quota consumption and allocation, we are committed to continue this healthy conduct initiatives. The acquisition is sharp, and it is targeted, and we want to ensure quality customer acquisition, and it is indicated by the increased payload and the customer consumption. So as a market leader, we will strive to maintain profitability. We will act rationally to continue fostering healthy and constructive competition within the industry. Yeah. To respond on your second question on the cost optimum, actually, we continue the effort that we already captured since the beginning of the FMC integration. Last year, we effectively succeed to book for the cost saving around IDR 100 billion, plus the uplift revenue, about IDR 400 billion. This year, we expect to expand that cost optimization programs, which include on the content cost aggregation and also the customer interaction management that we provide the agent, as well as the integration of the digital touchpoint that previously conducted through different application, such as MyIndiHome, MyTelkomsel, as well as MyOrbit. This year, we plan to integrate those apps to become one. Also, the sales force management that we use the performance-based incentive rather than perhaps canvass. So all of these initiative would expect to also contribute to additional cost improvement in our expense after. Thank you. Any, any number related to that? Is there any specific cost savings targets? We do not disclaim the exact number, but overall, the uplift, both from revenue as well as the cost impact for this synergy, we expect this year around IDR 1.3 trillion-IDR 1.8 trillion. So basically, well, to repeat, supposed to be seen from the group level as well, because some of these efficiency going to also happen in the parent company. We also get some efficiency in the CapEx side. The way we, basically install per line, supposed to be also cheaper compared before. And also, I think the cost, operation and maintenance per line in service is also supposed to be, declined as well. So this going to, accumulated in the group level. Yeah. Thank you for the questions. Oh, sorry. The third question has not been answered yet. Oh, okay. Arthur, good afternoon to you. Arthur, your fourth question with regard to B2B and B2C revenue reclassification, and how does that affect the FMC valuation, right? Is that correct? Yes. So, so firstly, is it merely reclassification that we're seeing, that's why we're seeing that decline on the Telkomsel booking? Because you're booking it now as enterprise. And two, how does that relate to the transaction value that was enacted before? Because presumably there were some assumptions on revenues back then. Right. -which now is being moved on to enterprise. Right. So, Arthur, thank you for that question. At the point of that valuation of the IndiHome business, it is purely based on the B2B, B2C IndiHome revenue. So this is purely a reclassification. Some of the revenue at the time of reporting are grouped under IndiHome, which is consumer. So this an exercise to kind of clean it up, to classify it according to the different segments. So in as far as the valuation of the FMC business are concerned, it remain consistent, and it does not have any impact. Thank you. Understood. Thank you. Thank you for the questions. Our next question comes from Henry Teja, from Mandiri Sekuritas. Please go ahead. Hi. Yeah, thank you, management. Perhaps two questions from me, related to the Telkomsel Lite. So allow me to deep dive on this. So, just curious, the response from the competitors in the market, how do you see, you know, response on the ground? Do you see some, you know, any reactions from XL or Indosat? And then, second, you mentioned how Telkomsel want to maintain the profitability, healthy market conduct, and, you know, basically in the market. So just curious, is there any, you know, solid plan from the Telkomsel to increase product prices this year? And sorry, and perhaps one more thing, on the data traffic growth. We highlight that you book a strong data traffic growth in the Q1, right? So what are the key drivers of this strong data traffic growth in the Q1? And should we expect this figure or trend to be sustainable in the following quarters? So perhaps those are three my questions. Thank you. Yeah, Henry, this is Derrick. I will address your questions on Telkomsel Lite. So Telkomsel Lite as a product, you know, we target at increased product competitiveness in the market, while we ensure that the ARPU uptrend remains intact through productivity gain, and it is aligned to the income, and the usage, and the ability to pay for the value segment. So we will maintain this subscriber base and growth, while adhering to healthy market conduct, ensuring the profitability remains uncompromised. So if you look at the construct of Telkomsel Lite, it leverages on local, and a little bit of the nationwide quota, just to provide the ability for a very targeted rollout to optimize relevance and to achieve yield comparable to competitors, which covers the more than 200 cities nationwide. So this is our segment of focus. Yeah. As mentioned earlier, it also supports the FMC rollout strategy, of which as a household, there are layers of different customer segments within the family. So this is able to help us grow and serve segments. Yeah. Your question on competition and response from our competitors. So I think we will all continue to apply the right pricing and offerings. And if we look at this, especially to existing base, we talk a lot about CVM, where we'll be able to be granular, where we are able to be very relevant to the usage of our customers. So that we will expect that the mobile ARPU to stabilize and increase in line with the usage. Yeah. So we believe that competitors will also continue to improve profitability and therefore maintain healthy market conduct. Yeah. This is our take to the industry. Yeah. Can I add a bit on part, Derrick? I think explanation on this one. What we have to previously, we only have a single brand for prepaid, basically. It is responsible around 90% of our revenue to that one. So it is not flexible for us to, let's say, to address what specific reason, like, to address this market, new segment and so on, by jeopardizing the one brand that carries so much revenue for us. The second thing, yeah, that you don't need to worry about, this is mostly in local quota, and this is acquisition package. After, so the subscriber needs to top up, cannot buy the new one again on this one. So it is also limit, basically the intervention by having, let's say, intervention to bring to our customer base. The third is, because this is comprised of mostly local quota, it mean not going to what create the kind of competitive unnecessary in the area in which we are not targeted. So this is also limit the competition, the area that we have target. And the third, in term of price, we are also still premium compared to our competitor on this one. So this is also kind of thing that you need to be not to worry on this one. The last one, actually, if we compare to many, many years back, maybe about 10 years ago, there's still big elasticity in the market, and we can still adding quite many subscriber base at the time. So when we decrease the price, we're going to have quite good elasticity. With the current condition, I think the market already are almost mature. You don't expect too much, I think, less elasticity on this one. We need to responsible to manage our, I think, market condition. I believe other operator also need to see the same way. I think that's a additional explanation to Pak Derrick. Yeah, and on the third question, on data traffic, I think what we've seen, the reasons why the data traffic increase in Q1 is, one, because there is an increase of data users of 11% compared to last year's. And this increased data users also come along with the productivity of payload per subs that we've seen also improve, which I think is one of the key driver that we take a look on our success in our product portfolio strategy today and going forward. And with the improve of productivity with our offering so far, we believe that if we can maintain those attractiveness and consumptions within the networks and within our services, that will also lead to the sustainability. Yeah, just to conclude on the profitability side, I think with all the initiative that we, we done, actually we want to stimulate the productivity of the customer. But on that point, I think the resource has already been there, so it doesn't impact significantly to additional cost. And also, from time to time, we monitor our network quality as well as the productivity. And for that point, I think we still expect that we can drive the profitability level in Telkomsel around 46%-48%. Okay, I think that's very clear. Thank you, management, and good luck for the upcoming results. Thank you for the question. Our next question comes from Sigrid Chiu from JP Morgan. Please go ahead. Thank you. This is Sigrid from JP Morgan. Thank you very much for the opportunity. And management, can I just ask if it's possible for you to give us a breakdown of the changes in subscriber in the mobile customer category, meaning you're targeting mass and youth at the moment, so... And you also have your traditional mobile customer. So what's the increase and decrease in category that gave you a flat quarter-over-quarter mobile subscriber number? And my second question is, so, so you mentioned that Telkomsel Lite is currently meeting your internal goal. I'm just wondering if you can share that goal with us. And looking at the quarter-over-quarter flat subscriber number, will you in the future make the plan more competitive to sort of reach your market share target? And my last question is, I'm not sure if I hear this right, but at the start of the briefing you mentioned that you are looking to offload data center business by the end of 2024. Could you just give us more detail on that, please? Thank you. Hi, Sigrid, this is Derrick. To answer your questions, the profile of our customers. So, with the launch of Telkomsel Lite, just to share, the traction has been positive. When we had Telkomsel Lite and by.U as our sub-brands, it helped to serve the youth and mass market segment, while leveraging on personalized offers to maintain the dominance in West Java to drive the ARPU through CVM. And we could see the improvement of our market share. So this strategy was to really target a segment, and it will help us to address future customers. So by adopting a strategic localized approach, we aim to minimize competition impact and sustainably grow our market share. Yeah. We also talk about, these new plans, it's really an integration, to our FMC strategy. So Telkomsel Lite and byU will become even more relevant as it allows us to engage in cross-selling, upselling to households, where these form the part of the household segment. So we will continue to maintain margin optimization and market share, retention. So it is important to capture these customers of tomorrow, since we aim to become the, convergence operator, to grab share of these underserved customers. Yeah. So, this is, our approach to expand our fixed broadband business into new segments, ring-fencing existing subs through retention and CVM, and to drive better customer journey, so that, the main objective is to drive sustainable performance while maintaining dominance-... productivity, as well as to elevate, the customer experience. So, let me answer the second question. I think the flat year-on-year subscriber growth is one of the things is due to the seasonality, because we compare Q1 compared to Q4. And if you take a look on what we have so far, in term of, our market share and Fixed Broadband share, across the quarter one, there's been an, internally seen that there's an improvement of what we have done so far. There's an increase of Facebook share, as well as the data usage. It's also show that there's a traction on the broadband, penetration or mobile penetration and usage, across our subscribers. And on top of that, I think we always been... I mean, in term of subscriber base, there's always the customers who have a multi SIMs that we always, you know, manage to not continue to stay with us if there's no more in our networks. However, I think mainly the Q-on-Q flat is due to the seasonality. Can you repeat the third question? Is it the third question regarding the data center? Uh, yes. Okay. Pak Honesti, you want to answer about the data center? What is the plan for 2024 on the data center? Oh, okay. Honesti here, thank you for your question. Yeah, actually, until the, this quarter, we operate already, 32 data center facilities. The total capacity is around 40 MW. So this year, we also, have a plan to put, to, to add more capacity, up to 18 MW. So totally, until, December of this year, Telkom data center will have, 60 MW capacity. Does this answer your question? Yeah, sure. Thank you very much. Thank you for the questions. One moment for the next question. Our next question comes from the line of Sukriti Bansal from Bank of America. Please go ahead. Hi, am I audible? Yeah. Yeah, thank you for taking my questions. Just want to, I think, follow up on the previous question on Telkomsel's traction. Is it possible for you to just roughly quantify what percentage of your customers right now are on Telkomsel Lite? And where do you see this going as an overall base of your customers? What your target on Telkomsel Lite? Also, if the data payload increase that we've seen in this quarter, is this majorly driven by the launch of Telkomsel Lite? Hi, Sukriti. Hi. This is Derrick. You have more questions? Hi. Yeah. Okay, Yeah, one more- No. Yeah. One more question. Yeah, one more question. Maybe I'll just list the question, and then you can answer both. So the second question is, you know, there's, you said that overall in the year, you expect IDR 1.8 trillion of synergy impact from IndiHome integration. In 1Q, is it possible to quantify what was this, you know, if there was any impact? And is there, is there any way to break up how you see this in the coming quarters, through the year? And, also, just one, quick one is, we've seen a couple of major reclassifications in the last two quarters in 4Q, with the voice revenue being declassified and the B2B IndiHome revenue being declassified in this quarter. Are the major reclassifications now behind us, or are there more that we can expect in the coming quarters? That's all. Hi, Sukriti, this is Derrick. Just to share some thoughts about our color and on Telkomsel Lite. You know, it's still early days for Telkomsel Lite. What we want to share is the traction of the Telkomsel Lite has been positive, and it was really meant to serve the mass market segment. And we want to leverage on personalization to drive our engagement in Java. Yeah. If you look at the uptake post the Telkomsel Lite, so we have recorded a higher traffic growth of +14.4% year-on-year in Q1, as compared to the 9% year-on-year growth in the last FY. We also look at the increase of data users, that's +11% year-on-year. The main objective of Telkomsel Lite is really to maintain and improve our market share, our customer productivity, and profitability. Yeah. To add to the data payload increase, I think besides the Telkomsel Lite initiative, of course, we have a lot of initiative on our existing customer, who also drive productivity on our side. And I think mainly in this quarters, what we've seen is that the growth of digital business of 8.6% are come from both the acquisition product, which we use Telkomsel Lite as a brand, and also others subsequent portfolio in the existing, like, CVM and all others, who also boost up the productivity on our subscribers. So that's why I think if you can see the increase of traffic been very positive in our side. Okay. On the reclassification of the B2B IndiHome from the total IndiHome revenue, we're going to, I think, finalize by next quarter all the impact of this. I mean the Q2 of this year. I think if you relate to the reclassification of the legacy business last year, it is a one-off reclassification that we did for the IFRS, and it's a different case on this kind of reclassification that we have in IndiHome. So it is not a repeating reclassification that we did, which is 2 different subjects that we are discussing here, to clarify on that. To add on your last question about the IDR 1.8 trillion EBITDA uplift breakdown. Internally, we have that breakdown. It comprise from uplift revenue either from cross-selling or upselling both fixed and mobile. Secondly, it comes from the OpEx efficiency, that some of them already been discussed earlier. And third, is from better effects. All of that comes from both parties, Telkomsel, as well as our parent, Telkom. But we do not disclose this in detail to you now. Understood. Thank you for the question. Okay. We have- Thank you. Thank you. We have no more questions from the phone line. I would like to hand the call back to Bapak Reza for closing. Thank you everyone for participating in today's call. We apologize for those whose questions could not be addressed here. So if you have any further question, please don't hesitate to contact us directly. Thank you. That does conclude today's conference call. Thank you for your participation. You may now disconnect your line.