- 32 - Our cellular customers can access on-line services through Telkomsel website on “MyTelkomsel” menu that launched in
B. Corporate Customers
We categorize our corporate customers into business, enterprise, wholesale and international groups based on a numbers of criteria such as contribution to our revenues, our customers geographic scope of operations and the type and range of products
and services procured from us. As part of our strategy to provide streamlined customer service, we operate account management teams to manage our relationships with our corporate clients who are supported by the Telkom Solution House,
SME Centers and Contact Centers, as described below.
1. Account Management
Our Business Service Division caters to business customers, which include micro customers, SMEs, local governments, cooperatives and rural credit banks. Our Business Service Division accounts managers and representatives managers
manage customers directly by conducting site visits and telephonically. We categorize business customers into three groups based on our customer’s line of business, namely public and general services, construction and manufacturing
services, and trading and business services. In addition, we also manage customers through community management, value added resellers, marketing and sales using web-based technology, and tele-account management.
Our Enterprise Service Division serves large enterprise customers including State-Owned Enterprises, national corporations and multinational corporations. Our Enterprise Service Division account managers and representatives primarily
manage relationships by conducting visits to our clients offices. We categorize enterprise customers into thirteen groups based on
our customers’ line of business, namely bank management services, education management services, energy resources services, financial management services, government management services, hospitality business services, healthcare
welfare services, logistic transport services, manufacturing agribusiness services, media communication services, military police services, property construction services, and trading distribution services.
Our Wholesale Service Division caters to wholesale customers which are categorized into the following carrier service groups:
– Group carrier service 1: handling OLO Telkomsel, PT Hutchison CP Telecommunication “Hutchison”, AXIS, PT
Sampoerna Telekomunikasi Indonesia and PT Pasifik Satelit Nusantara. –
Group carrier service 2: handling OLO Indosat, XL-Axiata, Bakrie Telecom, Smart Telecom, Batam Bintan Telecom and PT Indonesia Comnets Plus “ICON+”.
– Group carrier service 3: handling operators within the business scope of ISP, VoIP, closed user group, call center and
satellite provider. Our subsidiary, TII, caters to international carriers who provide TIMES portfolio overseas. The priority of provision of the
services is determined in line with the opportunity in every countries where TII operates. We operate account management teams which are headquartered in Jakarta
, in Singapore, Hong Kong and Timor Leste. Beginning in 2013, TII
commenced operating telecommunication services in Hong Kong-Macau, Timor Leste, Australia, Myanmar, Malaysia, Taiwan and The United States of America.
2. Telkom Solution Houses and SME Centers
We offer special services to our corporate customers through our Telkom Solution Houses located in Jakarta, Denpasar and Surabaya. We also operate SME Centers in Jakarta, Surabaya, Bandung, Palembang, Balikpapan and Makassar. Our
SME Centers function are as a community and business center.
3. Contact Center
We provide a 24-hour contact number “500250” for business customers and a 24-hour toll-free number “08001Telkom” “08001835566” for enterprise customers.
Service Level Guarantee Program
We offer service level guarantees, which guarantee a specified minimum level of service to customers in terms of product quality and customer handling.
For individual customers, the program is available for fixed line, Flexi as well as data and internet subscribers. The service level guarantee is applicable to customers applying for new connections, a change in type of service, resolution of service disruption,
resumption of disconnected service and complaints over customer billing. Under this program, we will provide non-cash compensation such as free subscriptions for a limited period, if we fail to meet the minimum standard.
- 33 - For the corporate customer segment, the service level guarantee is provided under a contract agreed between us and the relevant
customers. We offer service level guarantees to OLOs and certain wholesale customers who use our SL Digital, IP Transit and Metro-E products. Our guarantee covers the availability of our services and the time taken to install and repair the equipment we
provide. We divide service levels guarantees for such customers into five classes of service Bronze, Silver, Gold, Platinum and Diamond which represent different levels of price, products and services offered and technical parameters guarantee.
Customer Satisfaction and Loyalty
We routinely engage independent market analysts to conduct surveys and market research on our customers levels of satisfaction and loyalty. In 2013, we achieved the following levels of the Customer Satisfaction Index “CSI” and Customer Loyalty Index
“CLI” using the “top two boxes” and “top three boxes with seven scales” methods, whereby survey participants are asked to rate their satisfaction and loyalty on a scale from one to five or seven. CSI and CLI ratings are based on the percentage of participants
which have provided the top two ratings out of five or top three ratings out of seven. Our CSI and CLI ratings are as follows:
– personal customer segment: 80.16 in CSI and 67.64 in CLI.
–
business customer segment: 91.23 in CSI and 87.27 in CLI.
–
enterprise customer segment: 94.28 in CSI and 97.26 in CLI.
DISTRIBUTION AND MARKETING STRATEGY
The following are the primary distribution marketing channels for our products and services: 1.
Plasa Telkom and GraPARI are outlets that function as walk-in customer service points, where customers have access to the full range of Telkom and Telkomsel’s respective products and services. Customers can also access GeraiHalo outlets, which are
managed by third parties and provide a more limited range of cellular services. 2.
Contact Centers handle enquiries regarding our products, services and customer transactions. Our contactcall centers currently do not handle payments. Our contact centers also operate our customer care telecaring and telemarketing programs.
3. Partnership Stores are extensions of our distribution channels, in cooperation with a variety of third-party marketing outlets such
as computer or electronic stores, banks, and others. 4.
Feet on The Street are sales agents that conduct direct marketing of our products, particularly for our Speedy products, through door-to-door sales, open table discussions, exhibitions, product demonstrations, and other similar activities.
5. Authorized dealers and retail outlets are sales and distribution outlets for a variety of telecommunication products such as
Speedy Instan cards, Flexi subscription cards, starter packs, prepaid SIM cards and top-up vouchers. These dealers are non- exclusive, and they receive a discount on all of the products they receive. Retail outlets also include outlets jointly operated by us,
Telkomsel and PT Pos Indonesia, as well as other outlets such as banks.
6. Account Management Teams who manage relationships with our individual, business, and corporate customers.
7. Telkom Solution Houses are places where an enterprise customer can obtain information on a variety of TIMES solutions,
products and services, and the latest technology. At these Telkom Solution Houses, we provide free live demonstrations such as Speedy, Hotspot, PDN, IP-Phone, live demonstrations for commercial products such as video conference, enterprise
consultation and ecosystem business solutions for customized TIMES for corporations, and simulated demonstrations such as e- Payment VPN over GSM and Flexi.
8. SME Centers function as a communication center supported with advanced office facilities, a community center where our
customers can interact, and a commerce center especially for e-Commerce solutions. 9.
Our website which provides customers with information on the entire range of our products and services, multimedia as well as telephony, through the official company websites at www.telkom.co.id and www.telkomsel.com.
Marketing Strategy
Marketing communications and distribution channels are important in ensuring that our productservice offerings are directed at and reach the right customer segment. In addition to marketing using traditional offline media such as advertisement placement in
television, print media, newspaper, and radio as well as during local events, we have also begun to intensify product marketing through the digital online media within various digital communities as well as building popularity in social networks.
Plasa Telkom and GraPARI outlets are our direct distribution channels. In addition to its function as a direct channel for our product distribution, these outlets also handles after-sales service for our customers, and disseminates information on programs, promotions
and products to customers and end users. This distribution channel enables us to monitor and improve service quality, complaint handling performance, and customer satisfaction level in general. As of December 31, 2013, we operated 572 Plasa Telkom and 86
GraPARI outlets through Indonesia.
In the distribution of Telkom Flexi and Speedy Instan card SPIN Card and mobile cellular products, we engage a partnership of best- performing dealers, giving each of these partners a designated and exclusive sales area cluster to manage. As of December 31,
- 34 - 2013, we have partnerships with 53 official dealers that manage more than 83,000 retail outlets in 96 clusters. In addition, we also
For kartuHalo, Telkomsel focuses on corporate and professional customers with high usage volumes. Marketing for this segment is undertaken by special corporate account teams, which are also responsible for maintaining long-term relations with our customers
through efforts to provide solutions suitable to the needs of the corporate customers.
The simPATI and Kartu As products are designed to appeal towards a much wider target segment and particularly to younger customers. Telkomsel uses above and below the line marketing channels to promote its brands, including campaigns aimed at schools
and special interest groups, placing print advertisements, billing insertions, point-of-sale presentations, and events promotion and sponsorship.
In keeping with changes in consumer behavior and lifestyle trends, we consistently develop sales partnerships on a national scale with number of partners. These comprise of sales of bundled products through sales outlets owned by the respective partner, such as
Samsung and Intel, among others.
As part of our strategy to promote internet technology to the broader public and to improve customer knowledge about broadband internet products and application, we have engaged in an initiative to develop Broadband Learning Centers BLCs. At our BLCs,
we provide facilities including air conditioned rooms, personal computers with internet connections, blackboards, educational materials, and teachers and other speakers from our internal as well as in cooperation with other institutions. The BLCs program
primarily targets non-internet users, as well as communities that are interested in deepening their knowledge on internet and information technology topics, such as students and collegues. In addition to facilitate events, the BLCs facilities can also be used by
communities for events related to education and information technology development. As of December 31, 2013, we operate a total of 218 BLCs in various locations throughout Indonesia.
Telecommunications Industry in Indonesia
Indonesias telecommunication industry has shown rapid growth ever since the transformation of the telecommunication sector from monopoly to competitive, enacted by the Government through Law No.36 Year 1999 on Telecommunication. This growth is moreover
further accelerated by advances in communication technology using radio frequencies, as alternative telecommunication means to communication through cable networks and satellite.
Compared to the growth of fixed wireline telephony for many decades that eventually stagnated at only around 9.4 million lines, the telecommunication teledensity in Indonesia has since experienced a very significant jump in less than 20 years to more than 310
million lines, driven primarily by the growth of cellular telephony, as well as fixed wireless telephony. The cellular telephony business also continues to grow through a variety of innovations as well as constant adaptation to changes in market demands and consumer
preferences. While the growth in voice and Short Messaging Service “SMS” has showed signs of declining in recent years, there was at the same time a marked strengthening in the growth of data communication and mobile internet access services.
There are a number of factors or conditions that point to good growth prospects for Indonesias telecommunication industry, including: 1.
Indonesias demographics, with the fourth largest population in the world and a fast growing middle class segment, as well as Indonesias economy that has shown stable and respectable growth in recent years, are expected to drive further demands for
telecommunication and data services. 2.
While internet penetration in the country is still relatively low compared to peer countries in the region, people in Indonesia is becoming increasingly exposed, and are increasingly adopting global trends in digital lifestyle, as shown especially in the marked
increase of smartphone usage with more affordable prices as well as higher levels of social networking media activities. We expect that the growth of mobile internet services will continue to be fueled on the back of the increasing popularity of
smartphones, tablets and other internet-enabled mobile devices in Indonesia, faster data transmission of wireless networks, and increasingly affordable smart devices and mobile internet services.
3. The increasingly open and tight competition among telecommunication operators, which is expected to result in improved
service quality, higher industry efficiency, and constant innovations in products or services, and will eventually drive more growth in Indonesias telecommunication industry.
Legal Basis and Regulation
The framework for the telecommunications industry is comprised of specific laws, government regulations, ministerial regulations and ministerial decrees enacted and issued from time to time. The current telecommunications policy was first formulated and articulated
in the Government’s “Blueprint of the Indonesian Government’s Policy on Telecommunications”, contained in MoC Decree No.KM.721999 dated September 17, 1999 which was intended to:
increase the telecommunication sector’s performance in the era of globalization;
- 35 -
increase transparency and predictability of the regulatory framework;
create opportunities for national telecommunications operators to form strategic alliances with foreign partners;
create business opportunities for small and medium enterprises; and
facilitate new job opportunities.
A. Telecommunications Law
