Broadband
Digital Lifestyle
Industry & Business Perspective
December, 2010
TELKOMSEL

• Don’t focus on your customer – Engage them
to co-innovate your services
• Don’t create products & services – Create
consumer experiences, enrich them by adding
value

The facts
• Mobile broadband growth has exceeded expectations, but comparable profits
have yet to emerge.
• Data usage is extremely high (2 petabyte / month) – huge cost and 82.51% data
payload is coming through unlimited package
• Mobile netters are mainly Browsing, Gaming, Downloading, Social Networking and
Chatting – Internet jungle offers everything mostly for free or piracy
• Customer choose affordable data enabled handsets (one available for Rp. 600k
and GRPS ready) – 80% of new handset sold are already data ready
• Content & Application has becoming more popular than ever - 15% contributing
from TELKOMSEL operating revenue
• Broadband has becoming a commodity to fulfill people needs in digital lifestyle
culture – customer demand increases, but with low willingness to pay

INDONESIA in a glance…
80% mobile ownership within age Indonesians are the most prolific users of social
8-24 year old group. The highest media:
level in the region. • 31 million facebook users – 2nd largest after US
• Highest Twitter penetration rate worldwide (20.8%
or 1-to-5)
• 2nd largest total users of Opera mobile browser
• World highest mobile browsing intensity, 661 pages
per month/person
• The largest BlackBerry Users in the region (1.3
million)
• 5th Largest Internet Market in Asia (after
China, Japan, India and South Korea)
Data ComScore, Opera, Checkfacebook.com
Fixed Fixed Cellular
Wireline Wireless Broadband
± 8.7 mn ± 29 mn ± 2.5 mn ± 170 mn
Total
Industry Penetration Penetration Penetration
Prepaid cards 97.5%
16% 2% 71% Postpaid cards 2.5%
Note :
Indonesia population around 238 million Source: Telkom Internal market research - as of September 30, 2009 `

TELKOMSEL dynamics 25 Million Unique Users download & subscribe to
MOBILE GAMES, MUSIC, INFO..etc
subscriber base 95mio 7 million m.facebook.com active
500 Million P2P SMSes transacted DAILY
Psst: More than our next two competitors added up.. visitors
2 Petabyte data usage /
month 7 Million chargeable CONTENT-SMSes purchased DAILY
500k BlackBerry Active Users 16 Million high-end 3G Devices
600k downloads daily NSP
RBT is 87% of total music Industry 15 Million Data Users
The most complete Social Networking Service and
Device Manufacture Access Share
100%
Chatting product line ups
90%
1,000 Games on deck
80%
Mobile WEB usage 70% 56% 57% 55% 52%
6% 2%
19% Nokia
60%
20% SonyEricsson
50% Nexian
<18
40% Samsung
18-27 20%
20% RIM
28-37 23% 21%
30%
3% Other
38-47 3%
20% 3% 3%
>48
10% 18% 21%
15% 16%
0%
53% Feb Mar Apr May
Data from Eyeka.asia – June 2010 Data from AdMob Mobile Metrics – May 2010

The monetization model
Pricing Strategy and New Business Models Reverses the Decline in Profitability
We need to identify the winning value proposition for each market segment
Devices Corporate
M-Ads Content
New models:
•Broadband Content Subscription/Purchase Model
• Video, Games, Music, etc
•Feature Phone with a set of application
• Video, Game, Soccer phone
•Mobile Advertising
Fair-use schemes have been applied. In •Ad-funded mobile news paper
Telkomsel 82.51% of data payload is •Mobile Data Premium
consumed within Unlimited Package. • Video Premium Data
• Personal Tools (part of cloud computing)
• Secure storage, Address Book, Calendar
“Mobile data traffic is derived by digitization, personalization, and virtualization. Mobile technology in the future will
be user-centric and integrated, not application-centric, people will store data centrally and access it through multiple
screens” Obermann – CEO Deutsche Telecom (CTIA – March 2010)

Lessons Learnt and Strategic Paces must be taken
The pyramid
Focus in 2011
Building Blocks – 3 Strategic Focuses
Enlarge the Industry Service Leadership Commercial Viability
Basic Principles
Going to the bottom of the pyramid
Business
Pricing Marketing Model
Niche & Sachet Market Evolvement of Multiparties
Effective Marketing

The organization
Resources focus towards new businesses
John Kotter – Our Iceberg Is Melting:
“We believe strongly that the world need much more We need to transform…
action from a broader range of people – action that is
informed, committed and inspired – to help us all in
Discipline and Competency focuses are
an era of increasing change.” transforming into End-to-End perspective.
TRIGGERS CHALLENGES RESULTS
New Perception New Business Processes New Product & Services
New Description New Competencies New Pricing Scheme
New Re-Action New Job Descriptions New Profitability Rate
New Expectation New Target
New Competition New Levels of Achievement
New Audit & Compliance levels
New Quality of Services
New Core and Mediation Technology
New Marketing and Promotion
New Legal & IPR aspects

kiitos
Let’s google that