TELKOM Consistently Handle TIME

Bandung. August 26, 2010- Entering third quarter 2010, PT. Telekomunikasi Indonesia Tbk (TELKOM), more convince themselves as reliable operator of TIME (Telecommunication, Information, Media dan Edutainment) business. The performance properly maintained is indicated by, amoang others, improvement of  new wave business and TELKOM contribution to the state in the form of either dividend or taxes.

As explained by Vice President Public and Marketing Communication TELKOM, Eddy Kurnia, TELKOM contribution to the state as tax and dividend payer is significant. ”Besides, TELKOM has succeeded in improving community accessibility to telecommunication facility, information, media and edutainment,” he said.

Financially, TELKOM is able to achieve the 11^th rank in net income and the 15^th rank in revenue among companies in Asia engaged in TIME portfolio and the 2^nd rank in all business portfolio nationwide.

Now TELKOM serve total subscribers of telephone at 111 million, covering 88 million of cellular, 15 million of fixed wire less, and 8.3 million of fixed wireline. TELKOM achievement up to first semester 2010 is, among others, indicated by:
• Number of new cellular subscribers increasing 6.7 million or growth at 16.2% to be  88.3 million.
• Number of subscribers of fixed broadband (Speedy) reaching 1.4 million or growth at 73.6% compared to the same period in the previous year. • Up to June 30, 2010, revenue increase at Rp 1,631 billion or growth at 5% most of which coming from revenue in data, internet and service of IT.
• Increase of EBITDA at Rp 529 billion or 2.9% of Rp 18,253 billion to be Rp 18,782 billion.

As explained by Eddy Kurnia, TELKOM contribution particularly in increasing community access to telecommunication facility will always be improved in the future, considering the increase of 1% community access to telecommunication facility will also increase economic growth between 3-5% of nationwide.

Improvement of such accessibility is more significant if related to the efforts to enhance national defense, security and unity of the Republic of Indonesia (NKRI). ”TELKOM continues to increase service coverage even to outer islands,” said Eddy Kurnia. In early August, for instance, TELKOM has launched Sebatik Broadband Village at Pulau Sebatik, East Kalimantan being in direct border with Tawau, Malaysia. Awareness to the community in the border has not been done by other operators, except TELKOM.

In mid of tight competition, cheaper tariff service and decrease of revenue from fixed wireline service, TELKOM is continuously growing. ”From operational sector, TELKOM is sufficiently strong by the establishment of new infrastructure. Besides, number of subscribers and also traffic either data or voice show an improvement,” explained Eddy Kurnia.

TELKOM now has high growth at new wave business, particularly on broadband service, so that its contribution to total consolidated revenue reaching over 15%, while  contribution to un-consolidated revenue over 23%. This condition is sure to be a strong foundation to grow in the future.

In line with comodification of connectivity service, trend of growth of telecommunication industry is now more supported by content and content based devices like Google, Facebook, BlackBerry and iPhone, where innovation occurs more fast and subscribers have various options.

Realizing the trend, TELKOM, in order to maintain competitive sustainable growth, will more focus on handling content and directed to content based operator, so that TELKOM will always be relevant seen from the subscribers point of view. That is the reason why since 2009, TELKOM has decided to enter into future business portfolio, that is, TIME (Telecommunication, Information, Media and Edutainment). In the content and on line service, TELKOM develop plasa.com and  IPTV (Internet Protocol Television) launched in semester 2 year 2010.

However, to maintain competitive and sustainable growth, TELKOM makes strategy of maintaining legacy business and building new wave business portfolio. TELKOM also succeeds in accelerating implementation of NGN (Next Generation Network) development based on Internet Protocol and expected that infrastructure for this triple play service can be launched also this year.

New Wave business and corporation service business like information technology, UKM (Small and Medium Enterprise), Edutainment and Media are expected to be a key support in future growth. In 2009, TELKOM revenue coming from New Wave business grows at 82.8% and expected it will continue in 2010. Focus on New Wave business is a foundation for TELKOM transformation in managing network infrastructure, organization and corporate culture.