New Telkom: Transformation Leadership Rinaldi Firmansyah CEO of Telkom Indonesia Jakarta, May 2010
Content Telkom Indonesia in Brief Telco Industry Telkom Scenario of Indonesia ICT Industry
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Cakupan Layanan TELKOM Group Meliputi: 33 propinsi and 440 kotamadya/kabupaten
Jakarta Surabaya Layanan Konsumen Divisi Barat (Sumatera, DKI Jakarta & Jawa Barat)
Layanan Konsumen Divisi Timur Telkom terbagi atas 2 (dua) Divisi Layanan Konsumen (sebelumnya ada 7 Divisi Regional)
(Jawa Tengah, DIY Yogjakarta, JawaTimur, Kalimantan dan Kawasan Timur Indonesia )
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Telkom and Subsidiaries (ownership)
Government of Indonesia
Public/Listed
52.47%
47. 53%
Consolidated 65%
100%
100%
100%
100%
(Cellular) (IT Services)
(Multimedia)
(Edutainment)
(Tower business)
100%
100%
(Telco Equipment)
(International business) 60%
80%
75%
99.99%
(Property & construction)
100% 15.86%
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Content Telkom Indonesia in Brief
Telco Industry Telkom Scenario of Indonesia ICT Industry
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Service Providers are headed for change
Source : Cisco
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[Forbes-16Nov09] The $10 Phone Bill
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Structural problems forecast by industry execs
Total Mobile Voice Minutes, Broadband Europe Data (fixed/mobile ISP pro Other (Games, websites) Private Voice Apps & Handsets (e.g. Skype) Enhanced Carrier Voice (e.g. NGN)
Traditional Telephony
200 7
201 2
2017
ce: STL Partners Telco 2.0 Survey on Voice and Messaging, April 2007, n=161
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3 Operators vs. 11 Operators Slowing Growth
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China Unicom (China)
10
Bharti Airtel (India)
11
Customer see services from 3 (or more) Screens Last Mile
Last 100 Meters
fixed
Last Meter: 3 (or more) Screens
Mobile
cable
FTTC
wireless
FTTH
satellite
wireless
PDA
TV
other
iPad PC Desktop
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Portal and Media/Content valuations are very attractive relative to telcos ….
ternet/Portal Valuations Global Top 3
Combined Revenues ($B)
Combined Market Valuation ($B)
Revenue multiple
Portals
7.6
Telcos
0.9
Media / Content
1.5
e: Yahoo Finance (Jan 2008), SEC Filings, A.T. Kearney analysis
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Telco Value will Shift ….
Telco
Telco 2.0
(all IP, modular, interoperable, layered)
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Power Play Telco (Device-NetworkApps) 3
Party Partnershi p rd
Content & Apps. as value leader to core services ubiquitous Core Service
Portal
Services & Apps
Distribution Cloud Users
UI OS & Devices
Content
OSSBSSSDP (Enabler)
(Game, Music, Education, Sport)
Distribution is King, but Content is KINGKONG (Increase adoption + Loyalty + Usage and reduce churn) = “Customer Lock in”15
rce : Amdocs (adopted), Telco 2.0 Conference, 2009
Indonesia is obsessed about mobile !
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From the most expensive to the cheapest (Deutsche Bank Analyst Report, Aug 08)
Competition in the Indonesian mobile business has driven down prices considerably in past 24 months RPM Comparison in 2005
Impact
This has resulted in tariffs moving from being one of the most expensive in the region to one of the cheapest
RPM Comparison today
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Indonesia is also obsessed about social media
Indonesia user: 18,943,640 Male: 10.703.156 (56,5%) Female: 8.240.484 (43,5%)
50% login daily
Mar 01, 2010
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Content Telkom Indonesia in Brief Telco Industry
Telkom Scenario of Indonesia ICT Industry
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What types of change and when we need it? Transformational Change. (transform the business) We are here!
Maturity
Profit
Decline
Strategic Reorientation (altering/adopting new strategy)
Strategic Adjustments
growth
Corporate Turn around
Loss
(tactical changes)
time
Start up
Corporate Lifecycle 20
Telkom Contribution to the Government In Trillion Rupiah Dividend
23.6 20.9
3.3
3.3
15.9
Tax Others (BHP, USO)
13.1
4.4
2009
4.4 2010P
Note : - Data is cash base - Dividend for fiscal 2008 =Rp.3.1 Tn & Interim Dividend 2009=Rp.275 bn and 2009 DPR 55% - Terjadi Penurunan Tarif PPh Badan, Pasal 21 & Pasal 23 di tahun 2009
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The 10 strategic initiatives are driving TELKOM to transform its business from F.M.M to T.I.M.E.
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Indonesia ICT Penetration Amid intensifying competition, Telkom remains market leader in all product lines March 2009
Fixed Wireline
Fixed Wireless
Mobile/ Cellular (GSM)
Internet
Broadband
8,7 M
28 M
180 M
35 M
3,9 M
TELKOM 99%
INDOSAT BBT
Penetration 4%
Internet Kiosk Telkomsel 46% TelkomFlexi 57%
Esia StarOne Mobile-8
Penetration 12%
Indosat XL-Axiata Hutch-3 AXIS
Penetration 77%
ote : ndonesia population around 234 million
Campuses Schools Offices Households
Fixed BB
Speedy 1,16 M (76%)
Mobile BB 2,2 M (Telkomsel 66%) Others
Penetration 15%
Penetration 2%
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HOW? “Four themes of TELKOM’s Transformation” 1
2
SI-5. Integrate NGN
3
Strengthen Core Business SI-1. Optimizing FWL SI-2. Consolidate & Grow FWA Business & Manage Wireless Portfolio SI-8. Streamline subsidiary Grow New Wave portfolio SI-3. Invest in Broadband SI-4. Integrate Enterprise Solutions & Invest in Wholesale SI-6. Expand into IT Services SI-7. Expand to Media & Edutainment SI-9. Business Alignment
Business Structure & Portfolio Management
4
Culture Transformation
SI-10. Transform Culture
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Sejarah Singkat Transformasi TELKOM Transformasi Fase-1 2002 Implementasi duopoly Restructuring
1948 Pengambil alihan oleh pemerintah RI, menjadi PTT 1884 Pendirian perusahaan telegraf 23 Okt 1856 Layanan telegraf pertama di Indonesia
1974 Pemisahan PN Telekomunika si menjadi PERUMTEL dan 1965 PT INTI Pemisahan PTT menjadi PN Pos & Giro, dan PN Telekomunika si
1995 (Go Public) Listing di JSX, SSX, NYSE, LSE & TSE (POWL) Perjanjian KSO pada 5 DIVRE 1991 Transformasi dari PERUMTEL menjadi PT. TELKOM Restrukturisasi dari 12 WITEL menjadi 7 DIVRE
2001 Mulai dilakukan terminasi KSO Penghentian Cross ownership dg Indosat TELKOM akuisisi 35% kepemilikan Indosat di Telkomsel 1999 Reformasi industri telekomunikasi berdasarkan UU No 36 Penghentian hak eksklusif layanan telepon tetap TELKOM
Transformasi Fase-2 2003 - 2007 Transformasi dari Asset-based Company ke Customer-Centric Company Transformasi dari Infocom ke TIMES business based Company Tranformasi dari Infocom ke FMM
Pemicu: berakhirnya era monopoli & memasuki era kompetisi
2008 - Onward Transformasi dari FMM ke TIME SASARAN: Menciptakan posisi unggul dengan memperkuat bisnis LEGACY dan menumbuhkan bisnis NEW WAVE untuk mencapai Revenue Share sebesar 60% pada tahun 2014
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Monetizing TELKOM 2.0: Two Sided Business Model
Data Pipe Source : Telco 2.0 : executive brainstorming
POPS (People Oriented Profit Sharing) Biz Model to Encourage “Innovation Economy”
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Telkom Business Portfolio (T.I.M.E) Telecommunication
Media
Fixed Wireline Fixed Wireless Cellular Broadband Access TELKOM Lo Satellite kal
Pay TV
Information IT Services
Edutainment Portal E-Commerce Content
Customers Retail/Individual
SME
Enterprise
Wholesale
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Telkom Portfolio Business To achieve the strategic objectives, TELKOMGroup shall implement organic and non-organic initiatives …
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I.M.E Strategy Crafting : Creativity Supply-Monetizing Demand-Capture Synergy
Product Portfolio “Where To Play” – “Who To Plays” Finance Busines s Managed IT Services
IT Services
• e-Money • Remittance • e-Gov • e-Health • eTransaction
• Sys Integration • IT Consulting, SAP • DC - DRC
Finance Services BPO Pay TV & IPTV
Music
• Full Track • RBT • Speedytrek
Game
Sport
• Life Match • Highlights • Clips
Social Network
Educatio n
• Online learning • Edu Mgt
Super Portal
“How To Play”
• B2B Payment • Switching Gw. • Payment Apps
• Contact Center • BPO
• Premium contents • Internet conn. • MMO • Casual online • Downloadabl e • Social Media • File sharing
• e-Commerce
Captur e
Nurtur e
• Partnershi p • Acquisitio n • Joint Venture • Alliance
• Excellent Business Model • Digital Creativity (crowd sourcing) • Digital lifestyle
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TELKOM 2.0 Approach for Providing Service and Content Platform : Enabling “Innovation Economy”
Community
Customer Experience & Empowerment Thru Rich Content
NGNIMS
Integrated Business Operation
Converged Infrastructure
SDP
Service Mashup Orchestration 30
Towards a Converged MultiService Network
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Telkom Super Highway Topology
Main IP Core Link :
- 465.6 GBps 3 pair Terra Router 3 x 2 x 77.6 GBps
Songkhla
SATUN
Metro Ethernet BANDA ACEH
Medan
METRO
TIS (Thailand)
Metro Ethernet
34.5 GBps
PENANG
METRO
AAG (Hongkong, USA) DMCS, M320
PBRM320
PADANG Pakanbar u
- 170 GBps 8 pair Core Router 8 x 2 x 10 GBps & 1 x 10 GBps
International Link :
M320 MEDAN M320
-E
IP Core Link :
BATAM
JAMBI
-E
BENGKULU
M320
MANADO
Metro Ethernet
SINGAPORE
SANGATA
TERNATE
Banjarmasi SAMARNDA PALU PONTIANAK n Metro BALIKPAPAN Ethernet METRO -E KETAPANG Jakarta PKL.BUN
SORONG
M320
PALEMBANG Metro BATURAJA
METRO
METRO
Metro Ethernet
PAREPARE M320
AMBON
JAYAPURA TIMIKA
MAKASAR METRO
M320
M320
Makassar
FAKFAK
M320
JAKARTA M320 SEMARANG
-E
-E
M320
BANDUNG
Metro Ethernet
Jawa Barat METRO
M320
BANJARMASIN
Ethernet
Palemban BDR LAMPUNG g
M320
-E
-E
Metro Ethernet
Jawa Tengah METRO
-E
M320
SURABAYA M320 DENPASAR M320
ENDE
MATARAM WAINGAPU Metro Metro
Ethernet
Ethernet
Jawa Timur
Denpasar
METRO
METRO
-E
AAG Consortium : Development of Asia-Amerika Internet Gateway 1.92 Tbp/s Capacity
-E
DLI
MERAUKE
KUPANG
Softswitch MSAN/DSLAM
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Integrated Business Operation : From Reactive to Proactive Service
C4
i-SURE
Customer Service
Service Operations & Quality
Network Operations
360° view
Standardized & Integrated INFUSION Application Complex, multi-vendor, multi-domain network 33
Indigo Implementation : Digital Community and Creativity Building • Kampung digital • Blog fest • MyFlexiLAND communicate • Video share & share
• Music production • Music performance •Indigo Centre work hard • Game arena
& fun
Pleasant Environment
• • learn • & grow •
• create & • • innovate •
Santri Indigo Game course Indigo workshop Jurnalism
Pasar kreasi Indigo competition Indigo award Speedytrek 34
Legacy and New Wave Revenues as of March 31, 2010
Total (Rp. Bn)
15,6 16,5 18 87 1,770
13,849
Q1/09
2,344
New Wave Business 33%
The increasing emphasis on the new wave business was the foundation for the Company’s transformation
Our New Wave business has grown significantly 14,243Legacy Business (33%) 3%
…and the contribution to total revenues reached 14% (Q1/2010) from 11% (Q1/2010)
Q1/10
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Legacy and New Wave Revenues
8.45 %
10.9 3%
91.55 %
89.07 %
16.56 %
83.44 %
23.7 9%
76.21 %
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T.I.M.E Contribution 2009
T I M E TELKOM CONSOLIDATED
2008
Telecommunication Telephony 1) SMS Internet
YoY Growth
2008
2009
42,146 9,893 3,020
42,130 0.0% 9,238 6.6% 6,708 122.1%
69% 16% 5%
65% 14% 10%
Subtotal
2,297 0 57,357
2,179 0 60,256
5.2% 71.7% 5.1%
4% 0% 95%
3% 0% 93%
Subtotal
447 64 169 38 101 819
850 90.1% 53 17.2% 168 0.8% 94 148.6% 107 6.4% 55.4% 1,273
1% 0% 0% 0% 0% 1%
1% 0% 0% 0% 0% 2%
2,722 2 4 340 3,068
25.1%
Subtotal
2,175 2 2 334 2,513
4% 0% 0% 1% 4%
4% 0% 0% 1% 5%
60,690
64,597
6.4%
2)
Network & Wholesale Others
Information Network & System Integration 3) Application 4) IT Development OLTP (Online Transaction Process.) BPO (Biz. Process Outsourcing) Media & Edutaintment Entertainment Education Community Directory Service Total Revenue
Actual
Portion
2.2% 91.0% 1.9% 22.1%
100% 100%
Legacy with significa nt growth
New Business for New Telkom
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T.I.M.E Contribution (Q12010) T I ME TELKOM CONSOLIDATED
Ytd Mar 2009
Ytd Mar 2010 Actual
Ach.
Portion YoY Ytd Mar Ytd Mar Growth '09 '10
Telecommunication Telephony
9,842 9,850
101%
0%
63%
59%
SMS
2,483 2,761
93%
11%
16%
17%
Internet
1,296 2,124
107%
8%
13%
Network & Wholesale
64%
1,560 1,309
93%
16%
10%
8%
Others
0 2
1%
5975%
0%
0%
15,182 16,046
98%
6%
97%
97%
Network & System Integration
102 141
138%
38%
1%
1%
Application
11 2
9%
85%
0%
0%
IT Development
72 63
309%
12%
0%
0%
OLTP (Online Transaction Process.) 11 16 BPO (Biz. Process Outsourcing) 29 31
34%
49%
0%
0%
194%
8%
0%
0%
225 253
125%
13%
1.4%
1.5%
Entertainment
181 273
384%
1%
2%
Education
51%
0 0
82%
0%
0%
0%
Community
0 0
26%
25%
0%
0%
Directory Service
30 14
93%
55%
0%
0%
212 288
330% #DIV/0!
36% #DIV/0!
1.4%
1.7%
15,618 16,587
100%
6%
100%
100%
Subtotal Information
Subtotal Media & Edutaintment
Subtotal Total Revenue
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Program SDM Transformasi
TAHUN
SD
SLTP
SLTA
D1
D2
D3
S1
S2
S3
Grand Total
1,412 2,498 10,118 3,018 3,200 2,596 4,557 771 9 28,179
2006
1,355 2,393 9,937 2,998 3,121 2,555 4,511 777 11 27,658
2007
1,333 2,115 8,661 2,716 2,594 2,470 4,643 819 10 25,361
2008
433 1,346 8,460 2,259 2,001 2,225 6,796 1,485 11 25,016
2009
269 1,030 7,454 2,185 1,737 2,164 6,736 1,568 11 23,154
2010 (April)
222 901 6,804 2,066 1,524 2,000 6,555 1,568 11
-30%
2005
21,651
Pensiun Dini (ERP): 2006 = 1.528 orang 2007 = 787 orang 2009 = 1.029 orang 39
Terima Kasih
