introduction of Competition in the indonesian telecommunications industry

172 PT Telkom Indonesia Persero Tbk December 3, 2007, “MoCI Decree No.432007”, which delayed the deadline for the implementation of three digit access code for DLD calls throughout all the area code in Indonesia until September 27, 2011. Pursuant to MoCI Decree No.432007, we opened our network to the “01X” three-digit DLD access service in Balikpapan by April 3, 2008. Since that date, our customers are able to make DLD calls from Balikpapan by irst dialing Indosat’s “011”. As stipulated in MoCI Regulation No.432007, we have provided a nation- wide network for three-digit access code for ixed and ixed wireless DLD with “01X” that can be used by Indosat or other licensed operator starting September 27, 2011. To date, no other licensed operators have submitted a request to us to connect their networks and enable DLD access. 6. IDD Services We received our IDD license in May 2004 and began ofering IDD ixed line services to customers in June 2004 using the “007” IDD access code. The Indosat IDD access code is “001”. Our December 2005 interconnection agreement with Indosat enables Indosat’s network customers to access our IDD services by dialing “007” and our network customers to access Indosat’s IDD services by dialing “001”.

7. Cellular

Cellular telephone service is provided in Indonesia on the radio frequency spectrum of 1.8 GHz DCS technology, 2.1 GHz UMTS technology and 900 MHz GSM and UMTS technology. The MoCI regulates the use and allocation of the radio frequency spectrum for mobile cellular networks. Telkomsel has obtained frequency allocation for cellular services on the 900 MHz, 1.8 GHz and 2.1 GHz frequency bands. The allocation of bandwidth in the 2.1 GHz frequency spectrum is regulated by: • MoCI Decree No.19KEPM.KOMINFO22006 dated February 14, 2006 regarding the Determination of Winner of IMT-2000 Mobile Cellular Operator Selection at 2.1 GHz Radio Frequency Band. • MoCI Decree No.268KEPM.KOMINFO92009 regarding the Determination of Additional Allocation of Radio Frequency Bandwidth Blocks, Tarifs, and Payment Scheme Radio Frequency Spectrum Right of Usage Fees for IMT-2000 Moble Cellular Operators at 2.1 GHz Radio Frequency Band. • MoCI Decree No.191 Year 2013 regarding the Determination of PT Telekomunikasi Selular as Winner in the Selection of Users of Additional Frequency Bandwidth at 2.1 GHz Radio Frequency Band for IMT- 2000 Moble Cellular Operators. The Minister of Communication and Information released his decree regarding the management of the 1,8 GHz radio frequency band on April 29, 2015, through Decree No.192015 on 1800 MHz Radio Frequency Bands Regulation for the Management of Cellular Mobile Networks, in which cellular mobile network providers on 1800 MHz radio frequency band must reallocate the use of radio frequency on 1800MHz radio frequency band by November 2015.

8. Interconnection

The Telecommunications Law expressly prohibits monopolistic and unfair business practices and requires network providers to allow users to access other users or obtain services from other networks by paying interconnection fees agreed upon by each network operator. Government Regulation No.522000 dated July 11, 2000 regarding Telecommunications Operations provides that interconnection charges between two or more network operators must be transparent, mutually agreed upon and fair. On February 8, 2006, the MoCI issued Regulation No.8 PERM.KOMINFO022006 on Interconnection “MoCI Regulation No.82006”, mandated a cost-based interconnection tarif scheme for all network and services operators replacing the previous revenue-sharing scheme. Under the new scheme, interconnection charges are determined by the network operator on which a call terminates based on a long-run incremental cost formula. MoCI Regulation No.82006 requires operators to submit to the ITRA annual RIO proposals containing proposed interconnection tarifs for the coming year. Operators are required to use the cost-based methodology in preparing RIO proposals, and the ITRA and MoCI are required to use the same methodology in evaluating the RIO proposals and approving interconnection tarifs.