Telkomsel on the Broadband & Digital Lifestyle Industry & Business Perspective. December, 2010.

1. Broadband
Digital Lifestyle
Industry & Business Perspective
December, 2010
TELKOMSEL

2. • 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

3. 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

4. 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 `

5. 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

6. 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)

7. 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

8. 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

9. kiitos
Let’s google that