Telecommunication Regulatory Charges AR TELKOM 2014 ENG

Data and Internet Network In 2014, we continued to improve the quality of our data network by providing additional capacity and coverage. In this year, we provided broadband access using MSAN technology with 13.3 million homepass. As of December 31, 2014, we have expanded our metro ethernet network by 874,450Mbps which is able to provide broadband services throughout Indonesia. The Metro ethernet is also used as the main link for the IP DSLAM, MSAN for Speedy which is in the process of being rebranded to IndiHome broadband, softswitch, IP VPN and GPON broadband for mobile backhaul, corporate business solutions and triple pay services. As of December 31, 2014, we have added additional 11,802 BTS node B, bringing it to a total of 38,836 BTS node B. As of December 31, 2014, we have extended the capacity of our internet gateway to reach an installed capacity of 390,2 Gbps. This ensures the adequacy of the capacity of the internet gateway so that it is able to anticipate the expected growth in broadband traffic for both fixed and mobile. In 2014, we also operated a content distribution network “CDN” with a capacity of 261Gbps in collaboration with Akamai, Google and Yahoo. Throughout 2014, we continued to expand the scope of Indonesia’s Wi-Fi services by deploying additional network access points either through internal development programs and various forms of cooperation with third parties. As of December 2014, a total of 177,514 access points have been installed. Data Center Our subsidiary, Telkomsigma, manages our data center. With the support of Telkom Indonesia’s network across Indonesia, we expect Telkomsigma’s data center to reach a total building area of 100,000m 2 by 2015. With the capabilities of this network, Telkomsigma will be able to provide integrated data storage solutions for many companies in Indonesia, including for those located far from the big cities. Transmission Network As of 2014, our broadband network serves as the backbone for our entire network infrastructure. Our backbone telecommunications network consists of transmission networks, remote switching facilities and core routers, which connect a number of access nodes. The transmission links between nodes and switching facilities comprise a terrestrial transmission network, in particular fiber optic, microwave and submarine cable networks, as well as satellite transmission networks and other transmission technologies. Transmission Network Capacity number of Transmission medium circuits E1 STM-1 STM-4 STM-16 STM-64 STM-256 As of December 31, 2012 131,546 720 92 55 260 3 2013 131,303 736 100 58 337 3 2014 129,557 708 108 63 398 2 Note: The backbone transmission unit uses E1, STM1 equivalent to 63 E1, STM4 equivalent to 4 STM1, STM16 equivalent to 4 STM4, STM64 equivalent to 4 STM16, and STM256 equivalent to 4 STM64. STM or Synchronous Transfer Mode STM is the unit typically used in backbone transmission networks. Facilitating broadband services requires high capacity transmission networks using nxSTM-1 units. E1 units are used to support legacy services. 152 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 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