- 39 - transactions. In July 2010, MoCI replaced this regulation with MoCI Regulation No.11PERM.KOMINFO072010 “MoCI
MoCI Regulation No.112010 recognizes IPTV as a convergence of telecommunications, broadcasting, multimedia and electronic transactions and provides that only a consortium comprising at least two Indonesian entities may be licensed as an
IPTV provider. Each consortium must together hold licenses as a local fixed network provider, internet services provider and one broadcast services provider. Such consortium may only provide IPTV services in the area covered by all three required
licenses. MoCI Regulation No.112010 further requires that IPTV services be delivered through a wire network.
L. Satellite
Our international satellite business is highly regulated. In addition to being subject to domestic licensing requirements and regulation for the use of orbital slots and radio frequencies as stipulated in MoCI Regulation No. 13PM.KOMINFO82005
dated September 6, 2004 which is partially amended by MoCI Regulation No.37PM.KOMINFO122006 dated December 6, 2006 “MoCI Regulation No.372006”, our satellite operations is also regulated by the Radio Communications Bureau of the
International Telecommunications Union.
Furthermore, MoCI Regulation No.372006 dated December 6, 2006 requires foreign satellite operators to obtain a landing right license to operate in Indonesia which requires such foreign satellite operators to coordinate with domestic satellite operators,
including us, to ensure that no Indonesian satellite and terrestrial systems will be disrupted by their operation.
M. Consumer Protection
Under the Telecommunications Law, each network provider is required to protect consumer rights in relation to, among others, quality of services, tariffs and compensation. Customers injured or damaged by negligent operations may file claims against
negligent providers. Telecommunications consumer protection regulations provide service standards for telecommunication operators.
N. USO
All telecommunications operators, whether network or service providers, are bound by a USO regulation that requires them to contribute to providing telecommunication facilities and infrastructure in the interest of opening equal access to
telecommunications throughout all regions in Indonesia, which is generally done by way of financial contribution. MoCI Regulation No.32PERM.KOMINFO102008 dated October 10, 2008 regarding the USO as amended by MoCI Regulation
No.03PERM.KOMINFO022010 dated February 1, 2010 “MoCI Regulation No.322008” stipulated, among others, details services that shall be provided in relation to USO regulation, which is providing telephone, SMS and internet access services in
remote and other areas of Indonesia that have been classified as USO regions where it is not economical to provide these services.
USO payment requirements are calculated as a percentage of our and Telkomsel’s unconsolidated gross revenues, net of bad debts andor interconnection charges andor connection charges. Pursuant to Government Regulation No.72009 dated January 16,
2009, regarding Tariffs for Non-Tax State Revenue that apply to the Ministry of Communication and Information “GR No.72009” and Decree No.05PERM.KOMINFO22007 dated February 28, 2007, the current USO tariff rate is 1.25 of gross
revenue, net of bad debts andor interconnection charges andor connection charges. Subsequently, in December 2012, Decree No.05PERM.KOMINFO22007 was replaced by Decree No.45 year 2012 of the MoCI which was effective from January 22,
2013. The Decree stipulates, among other things, the exclusion of certain revenues that are not considered as part of gross revenues as a basis to calculate the USO charged, and changed the payment period which was previously on a quarterly basis to
become quarterly or semi-annually.
O. Telecommunication Regulatory Charges
