g. revenue sharing arrangements “rsa”
We have entered into separate agreements with a number of investors under revenue sharing arrangements to develop ixed line services, public card phones including their maintenance and related supporting telecommunications facilities.
For further details regarding the revenue-sharing arrangements, see Note 39 to our Consolidated Financial Statements.
2. new economic Business and strategic Opportunities portfolio
We have categorized our Information, Media and Edutainment “IME” business portfolio as new economic business “NEB” and strategic opportunities, with a range of services. Information includes value added services “VAS”,
managed applications performance “MAP”, e-Payment and IT enabler Services “ITeS”. Media includes free to air “FTA” and Pay TV services. Edutainment includes ring back tone “RBT”, SMS content, Portal and other services.
We have designated our subsidiary, Metra, as a sub-holding company to focus on developing Telkom’s IME business.
netWOrk Infrastructure
In line with the transformation of our business and infrastructure network, Telkom has improved its infrastructure network to form what we envision as the Telkom One network, which is intended to be a jointly developed network used by various Telkom
units, particularly Telkomsel. Our network development using the Telkom One concept aims to result in the more eicient deployment of resources and will allow, for example, Telkomsel to draw on Telkom network resources in regions where it needs
greater capacity to meet demand. The aim is also to transform Telkom’s infrastructure into high quality, eicient and cost competitive infrastructure to deliver our TIME services. This infrastructure transformation comprises the following:
a. Service transformation, by prioritizing support for multiplay and convergence services with broadband as the primary driver;
b. Network transformation, which is directed at all IP networks as well as the convergence of Telkom’s infrastructure through the implementation of IP Multimedia Sub System “IMS”;
c. Operational transformation, to support more eicient operational implementation and is focused on managing the customer experience; and
d. OBCE transformation, by emphasizing the transformation of our information technology and systems. In April 2010, the JaKaLaDeMa submarine and iber optic cable project linking Java, Kalimantan, Sulawesi, Denpasar and
Mataram was successfully completed.
fixed line network and Backbone
a. fixed Wireline network
Our ixed wireline network consists of a hierarchy of local and trunk telephone exchanges. Subscribers’ telephones are connected to their local exchange by an outside plant, or facilities that include wireline iber optic and copper and
local wireless transmission connections and the related distribution facilities. As of December 31, 2011, we managed 8.6 million ixed wireline connections. However, under our Infrastructure, Service
and Operational Master Plan INSYNC2014 2008-2014, we aim to upgrade our legacy network to a NGN which supports new wave services and network operation methods. We also aim to upgrade our network infrastructure to
all IP infrastructure. Our target is to provide full NGN services by 2014.
PT Telkom Indonesia, Tbk. 2011 Annual Report Moving Forward Beyond Telecommunications
The following table shows data related to our FWL network from 2007 to 2011:
As and for the Year Ended December 31, Operating Statistics
2007 2008
2009 2010
2011
Exchange capacity 10,732,304
11,038,818 11,094,063
11,237,229 12,180,214
Installed lines 9,704,576
9,838,537 10,013,565
10,510,048 11,005,208
Lines in service
1
8,684,888 8,629,783
8,376,793 8,302,818
8,688,526 Subscriber lines
8,324,197 8,302,730
8,038,294 7,980,337
8,323,175 Public telephones
360,691 327,053
338,499 322,481
278,505 Leased lines in service
2
6,338 6,084
4,273 3,988
3,662 Fixed wireline subscriber pulse production millions
3
75,451 62,940
54,186 9,403
5
8,054
5
Fault rate
4
3.8 3.5
3.1 2.5
2.2 1 Lines in service are subscriber lines and public telephone lines, including the lines in service that we operate under revenue-sharing arrangements.
2 Excludes leased lines for our network and multimedia businesses. 3 Consists of pulses generated by local and domestic long-distance calls, excluding calls from public pay phones and cellular phones.
4 Faults per 100 connected lines per month. 5 In million minutes for year ended December 31, 2010 and 2011.
The following table sets out information relating to our fixed line network in each of our operating area that serves customer segment as of December 31, 2011:
Sumatra Area
Jakarta Area
West Java Banten Area
Central Java Yogyakarta
Area East Java
Area Kalimantan
Area Eastern
Indonesia Area
Total
Local exchange capacity 1,435,014 3,947,821
1,918,052 1,222,573
1,966,263 615,138
1,075,353 12,180,214 Total lines in service
1,192,960 3,003,752 810,170
827,076 1,494,643
453,657 906,268 8,688,526
Capacity utilization
1
83.1 76.1
42.2 67.7
76.0 73.7
84.3 71.3
Installed lines 1,601,598 3,764,827
877,513 1,066,114
2,037,752 568,979
1,088,425 11,005,208 Utilization rate
1
74.5 79.8
92.3 77.6
73.3 79.7
83.3 78.9
Population millions
2
51.5 20.7
43.9 36.0
37.8 14.1
37.4 241.4
Telkom line penetration
3
2.3 14.5
1.8 2.3
4.0 3.2
2.4 3.6
1 Capacity utilization lines in useexchange capacity and utilization rate lines in serviceinstalled lines of FWL. 2 Index number from Statistics Indonesia estimated igures.
3 Telkom’s penetration based on estimated population igures.
b. fixed Wireless network
To support our ixed wireless network, our infrastructure consists of mobile switching centers “MSC” that are connected to every other trunk exchange. Each MSC is connected to a base station sub system “BSS”, which consists
of a base station controller “BSC” and a base transceiver station “BTS”. These, in turn, connect the customers’ handheld devices and ixed wireless terminals to our ixed wireless network.
The number of ixed wireless connections in service has declined from 18.2 million in 2010 to approximately 14.2 million in 2011.
The following table shows data relating to our ixed wireless network since 2007:
As and for the Year Ended December 31, 2007
2008 2009
2010 2011
Exchange capacity MSC
2
12,831,841 15,885,020
23,393,631 24,048,993
33,261,850 Installed lines BTS
2
9,383,924 19,861,324
27,653,553 27,344,151
27,635,751 Lines in service
1
6,362,844 12,725,425
15,139,057 18,161,278
14,237,522 Subscriber lines
6,335,452 12,698,827
15,115,892 18,142,955
14,221,413 Public telephones
27,392 26,598
23,165 18,323
16,109 Fixed wireless subscriber pulse productionminutes
production millions
3
9,144 12,304
14,627 11,768
7,931 1 Lines in service are subscriber lines and public telephone lines, including the lines in service that we operate under revenue-sharing arrangements.
2 BTS and MSC capacities in 2007 and 2008 were calculated on the assumption of a traic allocation per subscriber of 30 mE. 3 Consists of minutes of usage from local and DLD calls, excluding calls made from public pay phones and mobile cellular phones.
PT Telkom Indonesia, Tbk. 2011 Annual Report Moving Forward Beyond Telecommunications