- 44 - B.
Cellular
Telkomsel holds licenses to operate a nationwide mobile cellular telephone network using 7.5 MHz of radio frequency bandwidth in the 900 MHz band, 22.5 MHz of radio frequency bandwidth in the 1800 MHz band, and 15 MHz of radio frequency bandwidth
in the 2100 MHz band. The licenses do not have a set expiry date, but will be evaluated every five years. Telkomsel also hold licenses from the Indonesian Investment Coordinating Board that permit Telkomsel to develop cellular services with national
coverage, including the expansion of its network capacity. In addition, Telkomsel holds permits and licenses from and registrations with certain regional governments andor governmental agencies, primarily in connection with its operations in such
regions, the properties it owns andor the construction and use of its BTS.
C. International Calls
We commenced our international call service in 2004. Our license for operating a fixed network to provide international call services was adjusted in 2010 to meet the requirements of MoCI Decree No.012010 with the issuance of MoCI Decree
No.3832010. The license does not have a set expiry date, but it will be evaluated in 2015.
We have a license to operate a closed fixed network based on MoCI Decree No.398KEPM.KOMINFO112010, which amends the previous license, to meet the provisions in MoCI Decree No.012010. The license allows us to lease the installed closed fixed
network, to among others,
telecommunication network and service operators, including providing an international telecommunication transmission facility through a SCCS directly to Indonesia for overseas telecommunication operators.
According to MoCI Decree No.16PERM.KOMINFO92005 dated October 6, 2005 concerning Provision of International Telecommunications Transmission Facilities through SCCS, overseas telecommunications operators wishing to provide an
international telecommunications transmission facilities through the SCCS directly to Indonesia are required to set up a partnership with a fixed network of international call services or closed fixed network provider. In line with MoCI Decree
No.162005, the international telecommunication transmission facilities provided through SCCS are served by us on the basis of landing rights attached to our license to operate fixed network of international call services. We have also secured landing rights
based on the landing right Letter No.006-OSDJPT.6HLS32010 dated March 2, 2010 from MoCI.
On March 2, 2010, the MoCI issued Decree No.75KEPM.KOMINFO032010 granting our subsidiary, TII, a license to operate a closed fixed line network which enables TII to provide international infrastructure services. Separately, TII secured landing
rights in Indonesia from the DGPT to provide international telecommunications transmission facilities through SCCS. D.
VoIP
We are licensed to provide internet telephony services for public needs as stated in DGPT Decree No.384KEPDJPTM.KOMINFO112010 dated November 29, 2010 on Voice over Internet Protocol VoIP services. This
license does not have a set expiry date, but it will be evaluated every five years. Telkomsel is also licensed to provide public VoIP services based on DGPT Decree No.226DIRJEN2009 regarding the provision
of ITKP services. This license does not have a set expiry date, but it will be evaluated every five years by the Government.
E. ISP
We are licensed as an ISP under DGPI Decree No.83KEPDJPPIKOMINFO42011 dated April 7, 2011. This license does not have a set expiry date, but it will be evaluated every five years.
Telkomsel is also licensed to provide multimedia internet access services with nation-wide coverage under DGPT Decree No.213DIRJEN2010. This license does not have a set expiry date, but it will be evaluated annually, with a comprehensive
evaluation every five years.
F. Internet Interconnection Service
We hold a license to provide internet interconnection services by referring to DGPI Decree No.331KEPM.KOMINFO092013 dated on September 24, 2013 regarding license for Internet Interconnection Service Network Access Point for PT
Telekomunikasi Indonesia Tbk. This license does not have a set expiry date, but it will be evaluated every five years.
G. BWA
In July 2009, we won a tender for a BWA license and the right to provide BWA services in twelve zones, comprising eight zones on 3.3 GHz North Sumatra, South Sumatra, Central Sumatra, West Kalimantan, East Kalimantan, West Java, JABODETABEK
and Banten and five zones on 2.3 GHz Central Java, East Java, Papua, Maluku, and the northern part of Sulawesi.
- 45 - In August 2009, the MoCI issued Ministerial Decree No.237KEPM.KOMINFO72009 regarding the Appointment of the
MoCI Regulation No.192011 also stipulates domestic component obligations for telecommunications devices and equipment used in providing BWA on the 2.3 GHz radio frequency. Initial domestic component obligations are 30 for subscriber stations
and 40 for base stations, to be increased to 50 within five years.
As a result of the switch to neutral technology under MoCI Regulation No.192011, we lost vendor support for our preferred technology, which is based on fixed BWA technology. Vendors instead preferred to support the mobile BWA technology selected
by other operators. Mobile BWA technology competes with Telkomsel. We therefore returned 4 of the 5 zones, which we had received. We retained our BWA license for Maluku zone so we would continue to qualify as a BWA operator on 2.3 GHz and
have the right to access the BWA networks maintained by other operators.
Becoming a broadband wireless access operator is in line with the transformation of our business to TIMES, which requires us to have infrastructure that is capable of responding to an increasingly complex market and the demand for ever more convergent
products and services, whether in the consumer, enterprise or wholesale segments.
H. Data Communication System “SISKOMDAT”
