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Broadband Economy:

Evolution & Strategies of Implementation


Beyond Telco
Series
Hanang Setiohargo
VP Core Network & Transmission Engineering
Telkomsel
Workshop BKE-PII, METI &
MASTEL 2011
Jakarta, 16 June 2011

Dynamics of Telco Industry Global & Local Trend
Telkomsel Role to Drive Broadband & Digital lifestyle
Business
Regulation as Catalyst to Drive Broadband

Content
World, Indonesia, Telkomsel in numbers:

Worldwide mobile connections: *)
1995 5 million mobile connections
2010 5 billion mobile connections 7 connection for every living person in 2020
2020 50 billion mobile connections
Indonesian internet users:
31 mio in 2009E according BMI report or 30 mio in 2010 according Internet World Statistic
Rank 16th in the world for internet users**)
Indonesian Q1 2011 mobile connections >190 mio 80% population (238 mio Indonesian pop.)
There are 183.3 mio subscribers from 3 largest GSM mobile operators alone by EOQ1 2011.
Telkomsel Stats:
>60% of mobile device are data capable of some sort
<60% of data capable device actually use data service
An indication that a lot of smartphone that is not optimally used
*) Source: GSMA
**) Source: Internet World Statistic
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Transforms from a cautious telco legacy into a model of experimentation, innovation
and economic development in frontier markets, embracing new opportunities in:
Telkomsel Role in ICT Landscape
healthcare,
education,
logistics,
financial services
Media and Entertainment, etc

3Key Success Factors
Telkomsel Toward Beyond Telco
Devices Applications Platforms
Indonesia has achieved a very high cellular
penetration by early 2010, this fact lead
Telkomsel to move into Beyond Telco
business model where legacy operator must
embrace and innovate for 3 key success
factors: Devices, Applications (contents) and
Platforms.
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10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
G
i
g
a

B
y
t
e
s

-
G
i
g
a

B
y
t
e
s
Data Service Payload - Average Daily
Monthly Trend
HSDPA
PS 3G
EDGE
GPRS
Sumbagut
Sumbagteng
Sumbagsel
Jabotabek
West Java
Central Java
East Java
Balinusra
Kalimantan
Sulmalirja
Telkomsel Footprint in Broadband Landscape
The Ultimate 40 Big
Cities of Wireless
Broadband in 2011
Telkomsel implement Invest Ahead of
Growth for broadband development and
Believe that the grow of traffic will be
increased rapidly as the ecosystem is
more and more enable for the business
takes off
Telkomsel Footprint for Rural
MERAHPUTIH USO ST3
Telkomsel is serious to
become as Agent of
Change in the industry
especially for Broadband
coverage. Initial step as
USO Implementer and
expand to touch Remote
economy zone with
Merah Putih initiative and
even to the ocean liner
Telkomsel as Agent of Change for Developing Un-Touched Economic Zone as to
Develop a Nation Wide Coverage for Broadband
Initiative Sites
USO
(Government initiative for
Remote Areas)
25,444
Merah Putih (Telkomsels
initiative for Remote Areas)
291
Situation
Progress Development
Key Levers
Impose tower sharing among
mobile operators w/ conduct
on B2B but tower licence
permits are set by local
government.
Floor
Price
TOWER
sharing
4 G bandwidth allocation is being exercised i.e. issue of re-farming
and new frequency allocation
The draft of Convergence should cover the potential of new
industries (i.e. internet, medical, media and entertainment, etc) that
will merge in Broadband business
Blue print of IPv6 is being formulated
ICT Fund for promoting broadband
Advanced
Broadband

4G
Issues
Setting Floor Price for is
essential to maintain the
momentum of coverage
acceleration of Broadband
The degree of regulation will be
elevated from minister to
presidential level ( Kepres)
Coverage of tower sharing area
is being formulated - national
scale
Tsel 3G freq will be relocated in
line with the Government to
award additional 3G freq to
NTS and 3
Regulation as Catalyst to Drive Broadband
Tower Sharing will
increase the
acceleration of
broadband deployment
i.e. scalability access in
the less economical
coverage
Frequency must be
treated as non-
renewable resources
thus the utilization
means to leverage the
industry growth

4G as new enabler to
new opportunities
should be developed
with clear structure for
future industrial
architectural landscape
especially for the
purpose of beyond
telco business

Present Mid Term
BHP Freq
Demand for broadband
require additional bandwidth
Telkomsel endorsed the
implementation of floor price
to ensure that the customer
will get the highest quality and
promote the digital lifestyle
Imagine .
How Broadband create the future.
THANK YOU

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