d. fixed Wireless services
This service uses limited mobility CDMA technology. We ofer these services under the “Telkom Flexi” and “Flexi” brands. We have created a separate business unit, the Telkom Flexi Division “DTF”, to manage this segment.
In 2011, we launched several new ixed wireless products and services, which are described below:
Flexi’s Programs Descriptions
Flexi Bebas Bicara This program ran from February 2011 to December 2011. Ofering free local and long distance
calls Clear Channel 01017 to other Flexi users in the Jabodetabek-Sekapur-Banten area, it was later extended to other areas in Indonesia. This program ofered diferent program advantages in
diferent areas. Flexi Mobile Broadband
Launched in October 2011, this program ofered EVDO based internet access initially in seven cities Medan, Pekanbaru, Jakarta, Bandung, Denpasar, Banjarmasin and Makassar. It was later extended
to Yogyakarta, Surabaya and Malang.
Flexi Android This program was launched as part of a package joining Flexi and an Android-based smartphone and is
used to access Flexi Mobile Broadband. Customers can obtain various program advantages such as Free Flexi Mobile Broadband for one month, and 100 minutes of local F2F Free Voice and long distance 01017
for 30 days with the purchase of a Flexi Android ZTE Blade handset package. Flexi Market
This is an online apps store ofering various applications for Android-based Flexi devices. Features include:
• Online Application Store ofering Applications, Games, Music, Books, and others. • Online Transactions, which enables Flexi users to download or purchase applications from Flexi
Market directly from their Flexi handsets.
• Direct Billing Capability, which allows Flexi users to pay for the applications they purchase from
Flexi Market online by debiting pulses for prepaid customers or billing postpaid customers.
• Advertisement Platform, will allows advertisers to advertise on the top banner of a Flexi Market
page.
• 3rd Party Community Support, which is open to Content Providers CPs and the developer
community using the Google Android Interface Programming Application and an easy integration process.
• Download and Sales Statistics, which enables developers and CPs who are members of Flexi
Market to track their performance through statistics that can be downloaded online, and to ind out and bill the revenues they are entitled to online.
Going forward, we remain committed to continuing improve the performance of Telkom Flexi to make it the leader in the ixed wireless business, for example by capitalizing on the synergies with our other products and services,
entering into strategic partnerships and exploring options for mergers with other ixed wireless operators to grow our market share. We expect these synergies to make an increasing contribution to our revenues.
e. Interconnection services
As the leading telecommunications operator in Indonesia, we receive revenue from our competitors that use our network.
Following the implementation of the cost-based interconnection scheme, in December 2006 we entered into new interconnection agreements with other domestic operators. These new agreements address the requirements of
Telkom’s RIO. On February 5, 2008, the Government issued a regulation governing tarif adjustments to the cost-based
interconnection regime introduced on January 1, 2007. This regulation required Telkom and Telkomsel, along with
EVDO Package Speed up to
Promo 1,200 KBps
Get 300 KBps
Set 600 KBps
Go 1,200 KBps
Daily Tarif
2,500 2,500
5,000 8,000
FUP MB 500
500 750
1,000 Weekly
Tarif 15,000
15,000 30,000
45,000 FUP MB
1,000 1,000
1,600 2,000
Monthly Tarif
50,000 50,000
80,000 120,000
FUP MB 3,000
3,000 4,000
5,000
PT Telkom Indonesia, Tbk. 2011 Annual Report Moving Forward Beyond Telecommunications
10 other telecommunications operators in Indonesia, to align their interconnection charges with those imposed by the new regime by April 1, 2008. On April 11, 2008, the Government approved RIOs from the dominant operators
those controlling more than 25 of the market, including Telkom and Telkomsel, as the reference for determining cost-based interconnection tarifs.
In a press release issued on December 30, 2010, the Government stipulated that telecommunications operators should apply the results of their interconnection tarif calculations for 2011 efective January 1, 2011 as a reference
for the new cost-based interconnection tarifs.
For the years ended December 31, 2007
2008 2009
2010 2011
millions of minutes
Mobile Cellular Interconnection
1
Incoming paid minutes 4.970,0
6.626,9 5.748,5
4.924,0 4.777,2
Outgoing paid minutes 7.251,8
5.879,4 4.622,9
3.973,9 3.462,3
Fixed Line Interconnection
2
Incoming paid minutes 923,5
1.362,3 1.547,8
1.414,9 999,6
Outgoing paid minutes 1.437,1
1.988,5 1.910,6
1.502,2 1.097,0
Satellite Phone Interconnection
Incoming paid minutes 5,1
3,2 1,8
1,3 0,6
Outgoing paid minutes 2,3
1,6 1,0
0,8 0,4
International Interconnection
3
Incoming paid minutes 1.208,5
1.409,8 1.475,4
2.046,7 2.504,1
Outgoing paid minutes 162,9
165,5 160,4
161,2 158,3
Total
Incoming paid minutes 7.107,2
9.402,1 8.773,6
8.386,8 8.281,6
Outgoing paid minutes 8.854,1
8.035,0 6.695,0
5.638,2 4.718,0
1 Includes interconnection with Telkomsel. 2 Fixed line interconnection minutes reflect interconnection with the networks of PT Bakrie Telecom formerly PT Radio Telepon Indonesia
or Ratelindo, PT Batam Bintan Telekomunikasi, Indosat and Mobile 8 Phone beginning in 2008. 3 International interconnection minutes are derived from interconnection with Indosat’s international network and also derived from
interconnection with Bakrie Telkom’s international network beginning in 2009, incoming and outgoing calls using TIC-007.
For the years ended December 31 2007
2008 2009
2010 2011
millions of minutes Incoming paid minutes
2,663.2 3,637.6
3,379.6 2,857.1
2,697.4 Outgoing paid minutes
4,188.0 3,270.6
2,611.9 2,184.5
1,895.0
f. network services
We directly manage the provision of network services for a range of customers that include our business partners, other businesses and other licensed telecommunications operators. We provide satellite transponder leasing,
satellite broadcasting, VSAT, audio distribution, and terrestrial and satellite-based leased lines. Our customers may enter into agreements with periods from several minutes of broadcasting to long-term contracts for one to
ive years. We also have other supporting businesses, which include the supply of towers for the installation of BTSs for
cellular operators. We manage this business through our subsidiary, Mitratel.
PT Telkom Indonesia, Tbk. 2011 Annual Report Moving Forward Beyond Telecommunications
g. revenue sharing arrangements “rsa”
We have entered into separate agreements with a number of investors under revenue sharing arrangements to develop ixed line services, public card phones including their maintenance and related supporting telecommunications facilities.
For further details regarding the revenue-sharing arrangements, see Note 39 to our Consolidated Financial Statements.
2. new economic Business and strategic Opportunities portfolio
We have categorized our Information, Media and Edutainment “IME” business portfolio as new economic business “NEB” and strategic opportunities, with a range of services. Information includes value added services “VAS”,
managed applications performance “MAP”, e-Payment and IT enabler Services “ITeS”. Media includes free to air “FTA” and Pay TV services. Edutainment includes ring back tone “RBT”, SMS content, Portal and other services.
We have designated our subsidiary, Metra, as a sub-holding company to focus on developing Telkom’s IME business.
netWOrk Infrastructure
In line with the transformation of our business and infrastructure network, Telkom has improved its infrastructure network to form what we envision as the Telkom One network, which is intended to be a jointly developed network used by various Telkom
units, particularly Telkomsel. Our network development using the Telkom One concept aims to result in the more eicient deployment of resources and will allow, for example, Telkomsel to draw on Telkom network resources in regions where it needs
greater capacity to meet demand. The aim is also to transform Telkom’s infrastructure into high quality, eicient and cost competitive infrastructure to deliver our TIME services. This infrastructure transformation comprises the following:
a. Service transformation, by prioritizing support for multiplay and convergence services with broadband as the primary driver;
b. Network transformation, which is directed at all IP networks as well as the convergence of Telkom’s infrastructure through the implementation of IP Multimedia Sub System “IMS”;
c. Operational transformation, to support more eicient operational implementation and is focused on managing the customer experience; and
d. OBCE transformation, by emphasizing the transformation of our information technology and systems. In April 2010, the JaKaLaDeMa submarine and iber optic cable project linking Java, Kalimantan, Sulawesi, Denpasar and
Mataram was successfully completed.
fixed line network and Backbone
a. fixed Wireline network
Our ixed wireline network consists of a hierarchy of local and trunk telephone exchanges. Subscribers’ telephones are connected to their local exchange by an outside plant, or facilities that include wireline iber optic and copper and
local wireless transmission connections and the related distribution facilities. As of December 31, 2011, we managed 8.6 million ixed wireline connections. However, under our Infrastructure, Service
and Operational Master Plan INSYNC2014 2008-2014, we aim to upgrade our legacy network to a NGN which supports new wave services and network operation methods. We also aim to upgrade our network infrastructure to
all IP infrastructure. Our target is to provide full NGN services by 2014.
PT Telkom Indonesia, Tbk. 2011 Annual Report Moving Forward Beyond Telecommunications
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