MY Presentation as one of The Keynote Speech On Vietnam Telecoms International Summit. Melia Hotel, Hanoi Mei 19st-21st 2009

1. Nurturing Digital Broadband Service and Lifestyle :
Building Successful Business Models for 3G in an Emerging Market
By :
Saiful Hidayat
Head of IT Service Policy
PT. Telekomunikasi Indonesia
Ha Noi , May 20th 2009

2. TELKOM in Brief
TELKOM is an TELKOM listed in the Number of employees at
InfoCom service Indonesia Stock Exchange the Group approximately
provider in Indonesia, (ISE), London Stock 30,000
owned by the Exchange (LSE) and New
government of York Stock Exchange
Indonesia (51.2%) and (NYSE) in November 14, Main Subsidiaries :
public shareholders 1995.
(48.8%).
The largest publicly
listed company Market Capitalization as
in Indonesia (+15 of Dec 2007 is USD 20
% market bn and aimed to achieve
capitalization at ISE). USD 30 bn by 2010
2

3. Content
!

4. Service Delivery Platform | Home
Business Context Shift

5. Telco Strategic Business Risks:
The Down Escalator……
1. Decline ARPU
2. Failure to generate New
Business model
5. Regulatory risk
6. Competition from Internet
Companies
7
4 2
10
5
1
8
3
6 9
Source: E&Y

6. Telco’s Business Environment Challenge :
“Running Up on The Down Escalator”

7. Strategy to be the Winner : Telco vs Internet
Service Control SDP & IMS
Source : Fokus Fraunhofer

8. TELCO 2.0 :
Telco as Data, Service & Content Pipes, and Service & Content Platform
Content
Providers OTT Products
Retailers Protected
Products
Millions of
$$
Government Customers
$$
Packets
Google Thousands
PLATFORM: of Segments
E-Commerce
ASPs
IT & SDP
Wholesale Access
Telco (Retail)
Source : Telco 2.0 Forum www.Telco2.Net

9. Content
!

10. Broadband as the Driver of Growth

11. A New Game for Everyone
Source: Gerd Leonhard, (www.mediafuturist.com) Open is King

12. Seamless Mobility - TIME
Location, Time and Device Agnostic
Find Child’s GPS
Location on TV
Watch Shows
on Demand, Download the
Answer Video Latest Tunes
Call on TV
Work Watch TV on
from Home Train, Program
DVR for Tonight
Make
Wait Time Schedule a Meeting
Productive
Conference Conduct Telepresence
Face-to-Face Meeting
Keep YOU Informed, Connected, Entertained and Secure as You Move Through Life -
at Home, at Work, and on the Go

13. Customer Transition
Rise of the Empowered Consumer
Passive
Watch
Broadcast TV Pick
Video On
Demand Participate
Community Produce
Services Create/Remix
Content
User to Provider
Experience
Provider to User
Empower
Interact Complete
Personalization, Customization
Transact Socialization
Broadcast Network
One Service Responsiveness
Fits All

14. corresponded
Market share
Towards Long Tail service revenues
Service
Reduce cost Exposure
and reuse
Create
profitable
Mission Critical Services
new
business Situational Services
models Capture
revenue and
participate to
long tail
Opening to 3rd party service revenues
Number of services
Core Services Open Cooperation Web 2.0
Core Services Open Cooperation Web 2.0
Performance, reliability, Best Effort
QoS, ...
Service Life-Cycle Rapid development
In house – specific skill Communities – no specific skill

15. Content
!

16. Indonesia ICT Penetration
as of July 2008
8,6 M 14,96 M 120,46 M 35 M 6M
TELKOM 99% TelkomFlexi 51% Telkomsel 46% Internet Kiosk 43% Speedy 65% (600K)
BBT <1% Esia 41% Indosat 28% Campuses 3% Wireless BB
StarOne 6% XL 20% Schools 1% (Telkomsel 70%)
Mobile-8 2% Mobile-8 3% Offices 41% Others
Hutch-3 3% Households 12%
Note :
Indonesia population around 230 million 2009
~ 80%

17. Indonesia’s Wireless Market
Indonesia is a Country with the Largest Number of Wireless
Operators in the World
(11 Operators with 23 brands/products)
Sumber : Mobile World

18. However, competition in the future will be intensified as several new
entrants supported by global players joined the industry and have
been in the market (Data: Oct 2008)

19. From the most expensive to the cheapest
Competition in the This has resulted in tariffs
Indonesian mobile business moving from being one of
has driven down prices Impact the most expensive in the
considerably in past 24 region to one of the
months cheapest
RPM Comparison in 2005 RPM Comparison today

20. “Are 3G subscribers REALLY USING 3G?”
• 3G users are at about 6 millions
• Most of them are using HIGH SPEED INTERNET
• No other killer application!
Problem : Lack of LOCAL CONTENT!
Sources: detikinet.com, 2008 and SHARING VISION 2009

21. 3G Subscribers Expectation:
Price, Quality and... CONTENT!
Total
Jakarta Bandung
& '$
# & -$
.
& ( ) *$
# & ( ) /$
0
+ , #$
- + , #$
/
% quot;$
# % #$
.
Source: SHARING VISIONTM, 3G Market Survey, n = 100 Responden, April 2008
ource: Responden,

22. Content
!
%12

23. Providing Platform for Content and Application
is Must for Surviving !
Source : Fokus Fraunhofer

24. TELKOM Approach for Providing Content and Application
Platform : Nurturing Digital Life Style
Community
Customer
Experience &
Empowerment
Thru Rich Content
Integrated Business
Operation
SDP
NGN-IMS
Converged Service
Infrastructure Mashup Orchestration

25. Roadmap to NGN-IMS and SDP
• 2014 – Full Convergence, Broadband and rich
Application, The Future Lifestyle
• 2013 – Data Connectivity, dominant revenue and
the best player data provider in the Region
• 2012 - Fixed and Mobile Convergence , a
technology to shift the operator paradigm to serve
competitive services
• 2011 – Development of Content Biz Model, Step to Full
Network and Service Provider
• 2010 - Deliver IPTV via Triple Play network, one step to Digital
Entertainment Era at home.
• 2009 – Flexible Services and mobility, Flexi a Wireless Connectivity
as a priority solution.
• BW Internet : Global 40 Gb, Domestik 40 GB
• SDP Readiness
• 2008 – Platform Consolidation to NGN in order to support broadband and network simplification, One
Platform to fit for all access and services
• 2007 – TDM for BB & NB Acces Connectivity
• BW Internet : Global 5 Gb, Domestik 5 GB

26. SDP (Service Delivery Platform) :
For Service Exposure in the Long Tail Business Model
PORTAL
IT/Applications Content Services
SDP OSS
Service Delivery Platform BSS
Wireline Broadband Wireless
Benefit of SDP :
• Integrated single platform with open architecture for all services
• Allows TELKOM to discover new business opportunities
and models at “Internet Speed”
• Simplifies planning of network and services
• Reduces urgency to move to all IP-core network
• Platform for service aggregation across networks and devices

27. Integrated Business Operation :
From Reactive to Proactive Service
Service Operations
Service Operations
Customer Service
Customer Service & Quality
& Quality Network Operations
Network Operations
r
360r view
Standardized & Integrated INFUSION Application
! quot; #$ quot; # % &

28. Indigo Implementation :
Community and Creativity Building
#
$
!
% & ' () * +
,
quot;
%
%
!
Pleasant Environment

29. Creative Content Incubation
Indigo : Content Incubation
- Band Community blog.
- Indie & Music News.
- Review album.
- Music distro.[music webstore].
- Chart musik & rating.
- Interactive discussion.
- Music Fashion.
- E Magazine download.
- Band of the month.
- Music program content.
- Music Collaboration
- “FREE” Download and Streaming
- Widget and Links

30. The Infrastructure
Digital Content & Applications
Digital Content & Applications
Game Education Music Animation Schools Govt SMEs
Digital Payment
Digital Payment
Service Platform
copyright SDP media
Digital Asset Management portal
protection server
Broadband & Broadcast
Broadband & Broadcast

31. A New Integrated Strategy NEEDED to SURVIVE!
Broadband and 3G as ACCESS
Life style of customer as SERVICE EXPERIENCE FOCUS
PROSUMER or CROWDSOURCING as paradigm
SDP as Orchestrating Plattform
NGN-IMS as Backbone Network
People CREATIVITY and INNOVATION as main objectives
Which will create INNOVATION ECONOMY!
ECONOMY
Through
Supported by and !

32. Russian
Spanish
Japanese
Brazilian Portuguese
Terima Kasih
Italian
Merci
French
Danke German
Thank You Arabic
English
Thai
Traditional Chinese