Cellular Interconnection AR TELKOM 2015 ENG.

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PT Telkom Indonesia Persero Tbk Pursuant to MoCI Regulation No.82006 and ITRA Letter No.246BRTIVIII2007 dated August 6, 2007, we submitted a RIO proposal to the ITRA in October 2007, which covered adjustments for operational, coniguration, technical and service oferings. In December 2007, we and all other network operators signed new interconnection agreements that superseded previous interconnection agreements between us and other network operators which also amended all interconnection agreements signed in December 2006. On February 5, 2008, the ITRA required that we and other operators begin implementing the cost-based interconnection tarif regime. On April 11, 2008, pursuant to Directorate General of Post and Telecommunication “DGPT” Decree No.2052008, the ITRA and the MoCI approved RIO proposals from all operators to replace previous interconnection agreements. The RIO approved in 2008 was efective until July 29, 2011 when new interconnection charges were implemented as stipulated in ITRA Letter No.227BRTIXII2010 dated December 31, 2010 regarding the Implementation of Interconnection Charges in 2011. This was the result of interconnection charges recalculation conducted in 2010 by MoCI that was agreed on by all operators and outlined in a Memorandum of Understanding. The results of this interconnection charges reform caused a slight decrease in interconnection costs. On December 12, 2011, the ITRA changed the SMS interconnection fee basis from a “Sender Keep All” basis to a cost basis interconnection fee calculation which required certain amendments to RIOs agreed upon in 2011. MoCI Regulation No.82006 stipulates that the RIO of telecommunications network operators generating operating revenue that is equal to or more than 25 of the combined revenues of all telecommunication operators that serve the same respective segment, must obtain ITRA’s approval, necessitating changes in our and Telkomsel’s RIOs which were approved on June 20, 2012. Up until the publishing of this report, no recalculation of interconnection fees for 2012 had been done as doing so would have been preceded by an evaluation on interconnection charges in 2011.

9. VoIP

In January 2007, the Government implemented new interconnection regulations and a ive-digit access code system for VoIP services pursuant to MoCI Decree No.06PM.KOMINFO52005. Under the Decree, the preix for VoIP, which was originally 01X, was changed to 010XY. On April 27, 2011, the MoCI issued Regulation No.14PERM.KOMINFO042011, as partly revoked by MoCI Regulation No.11 of 2014, which imposed quality control standards in relation to VoIP services and this became efective three months thereafter, to which we and other operators must adhere to.

10. IPTV

Several provisions in the MoCI Regulation No.11PERM. KOMINFO072010 “MoCI Regulation No.112010” regarding the Implementation of Internet Protocol Television IPTV Service has been amended by Regulation No.152014 regarding the Implementation of Internet Protocol Television IPTV Service that became the legal basis for the IPTV licensing and regulates the provision of IPTV services, including the rights and obligations of IPTV providers, technical standards, foreign ownership requirements and the use of domestic independent content providers. 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. Referring to MOCI Regulation No.152014, the licenses that we needed, among others: a local ixed network license, mobile network or ixed closed network license, b operating internet accessISP license, and c broadcasting operation of subscription television broadcasting services institution license.

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PT Telkom Indonesia Persero Tbk Each consortium must must together hold licenses as a local ixed network provider, internet services provider and one broadcast service provider. This was in line with the removal of the provisions concerning Provider License the Broadcasting Implementation of Broadcasting Subscription Institute via cable, become the Broadcasting Implementation of Broadcasting Subscription Institute of Television Broadcasting. In the Government Regulation No.522005 regarding the Broadcasting Implementation of Broadcasting Subscription Institute “LPB” mentioned that the broadcasting could be conducted via satellite, cable and terrestrial. Broadcasting via satellite could reach nationwide, while cable and terrestrial have a range of a particular region. LPB licenses of broadcasting via satellite owned by PT Indonusa Telkomvision became our legal basis became our legal basis to enforce IPTV services nationally.

11. 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, 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.

12. Consumer Protection

Under the Telecommunications Law, each network provider is required to protect consumer rights in relation to, among others, quality of services, tarifs and compensation. Customers injured or damaged by negligent operations may ile claims against negligent providers. Telecommunications consumer protection regulations provide service standards for telecommunication operators.

13. USO

All telecommunications operators, whether network or service providers, are bound by an 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 inancial 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, detail services that shall be provided in relation to USO regulation, which is providing telephone, SMS and internet access in remote and other areas of Indonesia that have been classiied as USO regions where it is not economical to provide these services. USO payment requirements are calculated as a percentage