Telecommunication Regulatory Charges AR TELKOM 2014 final

We operate two satellites, namely Telkom-1 and Telkom-2. Telkom-1 has a capacity of 36 transponders consisting of 24 Standard C-Band transponders and 12 extended C-band transponders, while Telkom-2 has a capacity of 24 C-band transponders Standards. Both satellites are controlled from the main control station in Cibinong - Bogor, West Java, and to ensure the continuity of services, since early 2014 we have had a backup control station in Banjamasin Borneo. In addition to our Telkom-1 and Telkom-2 satellites, we also lease transponder capacity for 35 TPE transponder equivalent, 36 Mhz, comprising 9 TPE from the JSAT- 5A 132 BT satellite, 10 TPE from the Etuelsat 172A 172 BT satellite, 8 TPE from the Chinasat-10 110 BT satellite, 6 TPE from the Intelsat-8 169 BT satellite, and 1 TPE from Koreasat 75 BT. Besides operating the satellite, we also provides 161 link of IP backhaul links for ourselves network or as well as 322 earth station with around 1.36 Gbps capacity. Transponder capacity for this link mostly through lease transponder capacity from Foreign. To maintain the continuity and developing of this business, we have entered into a contract for the construction of Telkom-3S satelite and are preparing for the procurement of Telkom-4 as a replacement for Telkom-1. Telkom-3S has a 49 TPE capacity that consists of 24 TPE standard C-band, 12 TPE Extended C-band and 13 TPE Ku-Band. Meanwhile, Telkom-4 as a replacement for Telkom-1 with the development of coverage to India has a capacity of 60 TPE which consists of 24 TPE standard C-band with coverage of Indonesia, 24 TPE standard C-band with India coverage and 12 TPE extended C-band with coverage of Indonesia. Telkom-3S which is currently under construction is planned to be rolled at the end of 2016, while Telkom-4 is planned to be rolled at the end of 2017. In line with the construction of Telkom-3S and Telkom-4, we are currently planning the placement of Telkom-2 RFS post Telkom-3S and Telkom-1 RFS post Telkom-4. The placement of these two satellites, then in 2018, we will operate four satellites with a total capacity of 169 TPE. To increase the value, we formulate one door policy in the provision of capacity for Telkom Group. In order to implementate this policy, we are currently exploring the patterns of of cooperation with operators include cooperation in providing capacity through long-term leases, joint development of a satellite in the orbit slot which covers Indonesia and acquisition of satellites in the orbit. RESEARCH AND DEVELOPMENT As a technology-based company, we continue to focus on our product and service through ongoing research and development program to create new innovations. Our research and development activity are under Innovation Strategic Portfolio Directorate, Innovation Design Center “IDeC” unit. The following are main activity of IDeC: Act as TIMES product development center, through innovation incubation management, either from internal or external party of the Company. Productservice innovation activity is carried out in a product incubation adopting Lean Startup method. Under this method, customer’s admired product will be created to be the solution for the customer’s issue. Product innovation incubation phase in Telkom covers customerproblem validation, product validation, business model validation, and market validation. These phases are also applied for innovation driven from internal and external of the company’s proposed by the Startup through Indigo program. New digital business ecosystem development. Through a convergent perspective and coherent effort carried out, several new digital business ecosystem developments is performed through series of business analysis phase on current ecosystem and by giving new benefits acquired from digital technology implementation. In this digital business ecosystem, comprising of ready to be developed products. Research on new technology, infrastructure, product and business. Infrastructure research is a new technology implementation view activity starting with technology scanning to the determination of it systemequipment standardization, prove of concept practice and quality assurance activity performed through laboratory testing or sampling test activity on its implementation. The infrastructure developed is supporting factors and integrated part with the developed products and services. These infrastructure research activities refer to technology roadmap applied by NITS Directorate. 153 2014 Annual Report PT Telkom Indonesia Tbk Persero Preparation of technology standard and implementation of product infrastructure quality assurance. As sequence of technology and product implementation preparation, a technology standard is prepared as a specification manual for infrastructure equipment. This technology standard will be further functioned as quality assurance testing reference for the infrastructure equipments to be implemented. Besides undertaking quality assurance on infrastructure equipment, a product quality assurance function is also developed before entering commercial phase. The execution of quality assurance product includes namely testing phase for application security, response time and user experienceuser interface. Provision of solutions and technical analysis on operational issues Besides developing new technology and conducting quality assurance, IDeC Unit supports problem solving for operational issue in form of technical analysis. To support this function implementation, an infrastructure test bed has been developed to simulate infrastructure behavior and provide solution of occurred problems. According to our 2014 Core Program, to support Telkomsel Double Digit Growth, Indonesia Digital Network and International Expansion, the IDeC also covers 10 areas including: Creative Center Indigo Incubator, eTourism, Portal Hi Indonesia, Apps. Hi City, Mini Lab IDN, Radio 2.0, Smart Home Box, Smart Building, Upoint Phase 2, SDP IMS Integration. As part of our Indigo Incubator Program in 2014 for external innovations, there were 398 proposals submitted by startups of which we selected 17 product innovations to be incubated through Bandung Digital Valley BDV and Jogja Digital Valley JDV business incubators. We routinely make investments to improve products and services. We have spent about Rp 13 billion, Rp 14 billion and Rp 4 billion US 3 million respectively for the years 2012, 2013 and 2014. 154 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