Consumer Protection AR TELKOM 2014 ENG

to modernize legacy network into a network that used a broadband access infrastructure. We have 13.3 million homepass of broadband access while Telkomsel digital network was strengthened by 85,420 base stations. We continue to pursue development of our network infrastructure to offer a more efficient and cost-competitive service as part of the Government’s Master Plan for the Acceleration and Expansion of Indonesias Economic Development “MP3EI” in line with our transformation into a TIMES provider under our Indonesia Digital Network IDN program. In the framework of developing high-quality, efficient and competitive infrastructure in terms of the costs in delivery services, we continue to pursue the development and improvement of the network infrastructure, known as Telkom One Network, which was built and operated by Telkom Group. Our IDN program involves the following three program developments: 1. id-Convergence “id-Con”: convergence of the node service network infrastructure into a multi-service and multi-screen integrated NGN. 2. id-Ring: development of our transport network infrastructure into an IP-based and optical backbone network. 3. id-Access: development of our customer access network infrastructure into a high speed broadband access through fiber optic and Wi-Fi networks. Fixed Wireline Network As of December 31, 2014, we managed 9.7 million fixed wireline connections. In the master plan and IDN infrastructure, our target was to modernize legacy network into a network that used a broadband access infrastructure. Operating Statistics As and for the year ended December 31, 2014 2013 2012 2011 2010 Exchange capacity 13,946,801 13,918,369 13,908,003 12,180,214 11,237,229 Installed lines 10,341,807 10,650,652 11,109,156 11,005,208 10,510,048 Lines in service 9,698,255 9,350,806 9,034,010 8,688,526 8,302,818 Lines in service are subscriber lines and public telephone lines, including the lines in service that we operate under revenue-sharing arrangements. Fixed Wireless Network Our fixed wireless infrastructure consists primarily of mobile switching centers “MSC” and base station sub systems “BSS”, which consists of a base station controller “BSC” and a base transceiver station “BTS”. According to the Decree of the Minister of Communication and Information of the Republic of Indonesia No. 934, dated September 26, 2014, approval has been given for the allocation of radio frequency 8 MHz in the range of 880-887.5 MHz paired with 925-932.5 MHz from our Company to Telkomsel. On June 27, 2014, we entered into a Conditional Business Transfer Agreement with Telkomsel to transfer parts of our fixed wireless business and migrated subscribers to Telkomsel. However, we plan to continue to operate the Flexi service till the end of 2015 or until our remaining Flexi customers have migrated to Telkomsel, if earlier. Cellular Network Our cellular services, which are operated by our subsidiary, Telkomsel, have the most extensive network coverage of any cellular operators in Indonesia. Telkomsel currently operates on the GSMDCS, GPRS, EDGE,3.5G and 4G networks. The GSMDCS network consists of 7.5 MHz of bandwidth on the 900 MHz frequency and 22.5 MHz of bandwidth on the 1.8 GHz frequency. Telkomsel’s 3G network uses 15 MHz of bandwidth on the 2.1 GHz frequency. The range of cellular services on the GSM network provided by Telkomsel extends to all cities and districts in Indonesia. In 2014, Telkomsel has added 15,556 unit of BTS. As of December 31, 2014, Telkomsel’s digital network was supported by 85,420 BTS. 151 2014 Annual Report PT Telkom Indonesia Tbk Persero Data and Internet Network In 2014, we continued to improve the quality of our data network by providing additional capacity and coverage. In this year, we provided broadband access using MSAN technology with 13.3 million homepass. As of December 31, 2014, we have expanded our metro ethernet network by 874,450Mbps which is able to provide broadband services throughout Indonesia. The Metro ethernet is also used as the main link for the IP DSLAM, MSAN for Speedy which is in the process of being rebranded to IndiHome broadband, softswitch, IP VPN and GPON broadband for mobile backhaul, corporate business solutions and triple pay services. As of December 31, 2014, we have added additional 11,802 BTS node B, bringing it to a total of 38,836 BTS node B. As of December 31, 2014, we have extended the capacity of our internet gateway to reach an installed capacity of 390,2 Gbps. This ensures the adequacy of the capacity of the internet gateway so that it is able to anticipate the expected growth in broadband traffic for both fixed and mobile. In 2014, we also operated a content distribution network “CDN” with a capacity of 261Gbps in collaboration with Akamai, Google and Yahoo. Throughout 2014, we continued to expand the scope of Indonesia’s Wi-Fi services by deploying additional network access points either through internal development programs and various forms of cooperation with third parties. As of December 2014, a total of 177,514 access points have been installed. Data Center Our subsidiary, Telkomsigma, manages our data center. With the support of Telkom Indonesia’s network across Indonesia, we expect Telkomsigma’s data center to reach a total building area of 100,000m 2 by 2015. With the capabilities of this network, Telkomsigma will be able to provide integrated data storage solutions for many companies in Indonesia, including for those located far from the big cities. Transmission Network As of 2014, our broadband network serves as the backbone for our entire network infrastructure. Our backbone telecommunications network consists of transmission networks, remote switching facilities and core routers, which connect a number of access nodes. The transmission links between nodes and switching facilities comprise a terrestrial transmission network, in particular fiber optic, microwave and submarine cable networks, as well as satellite transmission networks and other transmission technologies. Transmission Network Capacity number of Transmission medium circuits E1 STM-1 STM-4 STM-16 STM-64 STM-256 As of December 31, 2012 131,546 720 92 55 260 3 2013 131,303 736 100 58 337 3 2014 129,557 708 108 63 398 2 Note: The backbone transmission unit uses E1, STM1 equivalent to 63 E1, STM4 equivalent to 4 STM1, STM16 equivalent to 4 STM4, STM64 equivalent to 4 STM16, and STM256 equivalent to 4 STM64. STM or Synchronous Transfer Mode STM is the unit typically used in backbone transmission networks. Facilitating broadband services requires high capacity transmission networks using nxSTM-1 units. E1 units are used to support legacy services. 152 2014 Annual Report PT Telkom Indonesia Tbk Persero FINANCIAL AND PERF ORMANCE HIGHLIGHT MANA GEMENT REPOR T PREF A GENERAL INF ORMA TION OF TELK OM INDONE SIA MANA GEMENT’S DISCUSSION AND ANAL Y SIS CORPORA TE GO VERNANCE SOCIAL AND ENVIRONMENT AL RE SPONSIBILITY APPENDICE S