Mobile Authentication Traffic Management Deal Between XLSMART and iBASIS
PT XLSMART Telecom Sejahtera Tbk (formerly PT XL Axiata Tbk and PT Smartfren Telecom Tbk) entered into a strategic management‑service agreement with iBASIS, a global provider of communications solutions for operators and digital players. The contract, signed on 16 September 2025, designates iBASIS as the sole international and national authorized gateway for mobile authentication traffic within the XL‑network prefixes.
Key Elements of the Agreement
- Scope: The agreement covers the management of mobile authentication traffic, aiming to improve both efficiency and security in the XLSMART network.
- Roles: iBASIS will handle all authentication traffic, ensuring that authentication requests and responses are processed through its established infrastructure.
- Strategic Fit: The partnership aligns with XLSMART’s long‑term strategy to strengthen its business operations and digital services by leveraging advanced authentication technology.
Relevance to XLSMART’s Operations
XLSMART is a major communication service provider in Indonesia, offering telecommunication, network, and multimedia services to consumers and businesses. With a market capitalization of approximately €2.2 billion and a 2025‑09‑16 closing share price of €0.121, the company is positioned in a competitive segment of the wireless telecommunication services industry.
The introduction of iBASIS as the authorized gateway is expected to:
- Reduce latency and improve reliability for mobile authentication requests.
- Enhance security by centralizing authentication processes through a proven, global platform.
- Support XLSMART’s ongoing expansion of digital services and potential new product offerings.
Market Context
On 17 September 2025, the Indonesian composite index (IHSG) reached a new all‑time high, closing at 8,025.18 after Bank Indonesia cut the BI Rate by 25 basis points to 4.75%. The index’s upward movement was driven by gains in several large‑cap stocks, indicating a favorable environment for technology and communication sector stocks. While the news about XLSMART’s partnership with iBASIS did not directly influence the index, it reflects the broader trend of Indonesian operators investing in digital infrastructure to capture growth in mobile and data services.
Conclusion
The strategic management‑service agreement between XLSMART and iBASIS marks a significant step in enhancing the company’s mobile authentication capabilities. By leveraging iBASIS’s expertise, XLSMART aims to deliver more secure and efficient authentication services, positioning itself for continued growth in Indonesia’s dynamic telecommunications market.