introduction of Competition in the indonesian telecommunications industry

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PT Telkom Indonesia Persero Tbk Pursuant to MoCI Regulation No.82006 and ITRA Letter No.246BRTIVIII2007 dated August 6, 2007, we submitted a RIO proposal to the ITRA in October 2007, which covered adjustments for operational, coniguration, technical and service oferings. In December 2007, we and all other network operators signed new interconnection agreements that superseded previous interconnection agreements between us and other network operators which also amended all interconnection agreements signed in December 2006. On February 5, 2008, the ITRA required that we and other operators begin implementing the cost-based interconnection tarif regime. On April 11, 2008, pursuant to Directorate General of Post and Telecommunication “DGPT” Decree No.2052008, the ITRA and the MoCI approved RIO proposals from all operators to replace previous interconnection agreements. The RIO approved in 2008 was efective until July 29, 2011 when new interconnection charges were implemented as stipulated in ITRA Letter No.227BRTIXII2010 dated December 31, 2010 regarding the Implementation of Interconnection Charges in 2011. This was the result of interconnection charges recalculation conducted in 2010 by MoCI that was agreed on by all operators and outlined in a Memorandum of Understanding. The results of this interconnection charges reform caused a slight decrease in interconnection costs. On December 12, 2011, the ITRA changed the SMS interconnection fee basis from a “Sender Keep All” basis to a cost basis interconnection fee calculation which required certain amendments to RIOs agreed upon in 2011. MoCI Regulation No.82006 stipulates that the RIO of telecommunications network operators generating operating revenue that is equal to or more than 25 of the combined revenues of all telecommunication operators that serve the same respective segment, must obtain ITRA’s approval, necessitating changes in our and Telkomsel’s RIOs which were approved on June 20, 2012. Up until the publishing of this report, no recalculation of interconnection fees for 2012 had been done as doing so would have been preceded by an evaluation on interconnection charges in 2011.

9. voip

In January 2007, the Government implemented new interconnection regulations and a ive-digit access code system for VoIP services pursuant to MoCI Decree No.06PM.KOMINFO52005. Under the Decree, the preix for VoIP, which was originally 01X, was changed to 010XY. On April 27, 2011, the MoCI issued Regulation No.14PERM.KOMINFO042011, as partly revoked by MoCI Regulation No.11 of 2014, which imposed quality control standards in relation to VoIP services and this became efective three months thereafter, to which we and other operators must adhere to.

10. iptv

Several provisions in the MoCI Regulation No.11PERM. KOMINFO072010 “MoCI Regulation No.112010” regarding the Implementation of Internet Protocol Television IPTV Service has been amended by Regulation No.152014 regarding the Implementation of Internet Protocol Television IPTV Service that became the legal basis for the IPTV licensing and regulates the provision of IPTV services, including the rights and obligations of IPTV providers, technical standards, foreign ownership requirements and the use of domestic independent content providers. MoCI Regulation No.112010 recognizes IPTV as a convergence of telecommunications, broadcasting, multimedia and electronic transactions and provides that only a consortium comprising at least two Indonesian entities may be licensed as an IPTV provider. Referring to MOCI Regulation No.152014, the licenses that we needed, among others: a local ixed network license, mobile network or ixed closed network license, b operating internet accessISP license, and c broadcasting operation of subscription television broadcasting services institution license.