The performance of fixed broadband access penetration in Indonesia is far below the average. This poor performance is an indication that operators have not implemented competitive strategies optimally. This study aims to investigate the effect of customer demand and supplier performance on competitive strategy. A survey technique was used to collect data. The analysis units were 38 business units of the operators and the observation units were the senior management and customers of these business units. The data was then analyzed using partially least square SEM. The result showed that customer demand had a negative significant effect on competitive strategy, while supplier performance had a positive significant effect on competitive strategy.