IPTV AR TELKOM 2014 ENG

to modernize legacy network into a network that used a broadband access infrastructure. We have 13.3 million homepass of broadband access while Telkomsel digital network was strengthened by 85,420 base stations. We continue to pursue development of our network infrastructure to offer a more efficient and cost-competitive service as part of the Government’s Master Plan for the Acceleration and Expansion of Indonesias Economic Development “MP3EI” in line with our transformation into a TIMES provider under our Indonesia Digital Network IDN program. In the framework of developing high-quality, efficient and competitive infrastructure in terms of the costs in delivery services, we continue to pursue the development and improvement of the network infrastructure, known as Telkom One Network, which was built and operated by Telkom Group. Our IDN program involves the following three program developments: 1. id-Convergence “id-Con”: convergence of the node service network infrastructure into a multi-service and multi-screen integrated NGN. 2. id-Ring: development of our transport network infrastructure into an IP-based and optical backbone network. 3. id-Access: development of our customer access network infrastructure into a high speed broadband access through fiber optic and Wi-Fi networks. Fixed Wireline Network As of December 31, 2014, we managed 9.7 million fixed wireline connections. In the master plan and IDN infrastructure, our target was to modernize legacy network into a network that used a broadband access infrastructure. Operating Statistics As and for the year ended December 31, 2014 2013 2012 2011 2010 Exchange capacity 13,946,801 13,918,369 13,908,003 12,180,214 11,237,229 Installed lines 10,341,807 10,650,652 11,109,156 11,005,208 10,510,048 Lines in service 9,698,255 9,350,806 9,034,010 8,688,526 8,302,818 Lines in service are subscriber lines and public telephone lines, including the lines in service that we operate under revenue-sharing arrangements. Fixed Wireless Network Our fixed wireless infrastructure consists primarily of mobile switching centers “MSC” and base station sub systems “BSS”, which consists of a base station controller “BSC” and a base transceiver station “BTS”. According to the Decree of the Minister of Communication and Information of the Republic of Indonesia No. 934, dated September 26, 2014, approval has been given for the allocation of radio frequency 8 MHz in the range of 880-887.5 MHz paired with 925-932.5 MHz from our Company to Telkomsel. On June 27, 2014, we entered into a Conditional Business Transfer Agreement with Telkomsel to transfer parts of our fixed wireless business and migrated subscribers to Telkomsel. However, we plan to continue to operate the Flexi service till the end of 2015 or until our remaining Flexi customers have migrated to Telkomsel, if earlier. Cellular Network Our cellular services, which are operated by our subsidiary, Telkomsel, have the most extensive network coverage of any cellular operators in Indonesia. Telkomsel currently operates on the GSMDCS, GPRS, EDGE,3.5G and 4G networks. The GSMDCS network consists of 7.5 MHz of bandwidth on the 900 MHz frequency and 22.5 MHz of bandwidth on the 1.8 GHz frequency. Telkomsel’s 3G network uses 15 MHz of bandwidth on the 2.1 GHz frequency. The range of cellular services on the GSM network provided by Telkomsel extends to all cities and districts in Indonesia. In 2014, Telkomsel has added 15,556 unit of BTS. As of December 31, 2014, Telkomsel’s digital network was supported by 85,420 BTS. 151 2014 Annual Report PT Telkom Indonesia Tbk Persero