new economic Business and strategic Opportunities portfolio

c. Broadband network Backbone

The development of our broadband network was our primary focus in 2011 due to its key role as the infrastructure backbone of the Telkom as a whole. The backbone of our telecommunications network is made up of transmission, trunk switches and core routers that connect several access nodes. The transmission links between nodes and switching facilities include microwave, submarine cable, satellite, iber optic cable and other transmission technology. The following table shows our backbone transmission capacity as of December 31, 2010 and 2011: 2010 Capacity number of Transmission medium circuits E1 STM-1 STM-4 STM-16 STM-64 Terrestrial transmission network Optical iber cable 25,467 319 46 26 121 Microwave 4,566 16 - - - Submarine cable 2,368 37 7 - 10 Satellite transmission network 666 - - - - Total 33,067 372 53 26 131 2011 Capacity number of Transmission medium circuits E1 STM-1 STM-4 STM-16 STM-64 Terrestrial transmission network Optical iber cable 23,891 327 49 27 194 Microwave 4,456 16 - - - Submarine cable 2,245 37 7 - 14 Satellite transmission network 680 - - - - Total 31,272 380 56 27 208 Note: The backbone transmission unit uses E1, STM1 equivalent to 63 E1, STM4 equivalent to 4 STM1, STM16 equivalent to 4 STM4, and STM64 equivalent to 4STM16 units. Synchronous Transfer Mode “STM” is the unit typically used in backbone transmission networks. Facilitating broadband services requires a high capacity transmission network using nxSTM-1 units. E1 units are used to support legacy services. We operate the Telkom-1 and Telkom-2 satellites as well as 205 earth stations, including one satellite master control station. Our Telkom-1 satellite has 36 transponders, including 12 extended C-band transponders and 24 standard C-band transponders, while Telkom-2 has 24 standard C-band transponders. Both satellites are used for the following purposes: • Network backbone transmission; • Rural telecommunications services; • Back-up transmission capacity for national telecommunications networks; • Satellite broadcasting, VSAT and multimedia services; • Satellite transponder capacity leasing; • Satellite-based leased lines; and • Teleport earth station up linking and down linking service to and from other satellites. In addition to our two satellites currently in service, we lease transponders from other satellite providers, including 11 transponders from GE 23, two transponders from Apstar-1, two transponders from Sinosat and 10 transponders from JCSaT5a. We provide satellite transponder leasing, satellite broadcasting, VSAT, audio distribution, and terrestrial and satellite- based leased lines. Our customers include businesses and other telecommunications operators. Customers can enter into agreements that cover periods from several minutes to long-term contracts for one to ive years. The maximum annual tarif per transponder is US1.2 million, although in some instances we can ofer discounts for long-term customers. In anticipation of the growth in demand for satellite services and to support our business strategy with regard to providing TIME services, we signed a contract on March 2, 2009 for the procurement of the Telkom-3 Satellite System with a joint stock company, “Academician M.F. Reshetnev” Information Satellite Systems” ISS Reshetnev from Russia. PT Telkom Indonesia, Tbk. 2011 Annual Report Moving Forward Beyond Telecommunications