Wireless carrier Axiata Group Berhad (KLSE:AXIATA) and conglomerate PT Sinar Mas Group are moving forward with plans to merge their telecommunications operations in Indonesia, people familiar with the matter said. The owners of PT XL Axiata Tbk (IDX:EXCL) and PT Smartfren Telecom Tbk (IDX:FREN) are discussing the structure of a potential transaction that would create a $3.5 billion entity with about 100 million customers, the people said. A deal could involve a mix of cash and shares, they said, asking not to be named as the process is private.