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Glossary

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3G
Is the generic term for third generation mobile telecommunications technologies. 3G offers high speed connections to cellular phones and
other mobile devices, enabling video conference and other applications requiring broadband connectivity to the internet.

ADS
American Depositary Share (also known as an ADR), is a certificate traded on a U.S. securities market (such as New York Stock Exchange) representing a number of foreign shares. Each of our ADS represents 40 of our Series B Shares.

ARPU
(Average Revenue Per User) serves as an evaluation statistic in connection with a network operator’s subscriber base. It is computed by dividing total revenues (including gross interconnection revenues) for a given period by the respective average number of subscribers for such period, except that for mobile cellular services revenues do not include connection fees, interconnection revenues, international roaming revenues from non-subscribers and dealer discounts.

ATM
(Asynchronous Transfer Mode) is a transfer mode in which the information is organized into cells. It is asynchronous in the sense that the recurrence of cells containing information from an individual user is not necessarily periodic.

B2B
(Business-to-Business Electronic Commerce) is a technology-enabled application environment to facilitate the exchange of business information and automate commercial transaction designed to automate and optimize interactions between business partners.

Backbone
Refers to the main telecommunications network consisting of transmission and switching facilities connecting several network access nodes. The transmission links between nodes and switching facilities include microwave, submarine cable, satellite, optical fiber and other transmission technology.

Bandwidth
Refers to the capacity of a communication link.

BSC
(Base Station Controller) refers to equipment that is responsible for radio resource allocation to mobile station, frequency administration and handover between BTSs controlled by the BSC.

BSS
(Base Station Sub System) refers to the section of cellular telephone network which is responsible for handling traffic and signaling between a mobile phone and the network switching subsystem. BSS is composed of two parts: the Base Transceiver Station (BTS) and the Base Station Controller (BSC).

BTS
(Base Transceiver Station) refers to equipment that transmits and receives radio telephony signals to and from other telecommunication systems.

Capacity Utilization
Refers to the ratio of lines in service to local exchange capacity or installed lines.

C Band
C band is a portion of the electromagnetic spectrum in the microwave range of frequencies ranging from 4 to 8 GHz. It was the first frequency band allocated for commercial ground-to-satellite communications. A typical C band satellite uses 3.7-4.2 GHz for downlink, and 5.925-6.425 GHz for uplink.

CBHRM
(Competency Based Human Resource Management) refers to an approach of human resource management that focuses on the skills and talents needed to be able to perform a particular task or job effectively.

CDMA
(Code Division Multiple Access) is a wide-band spread-spectrum network technology.

DCS
(Digital Communication System) is a mobile cellular system using GSM technology operating in the 1800 MHz frequency band.

Defined Benefit Pension Plan
Refers to a type of pension plan in which an employer promises a specified monthly benefit on retirement that is predetermined by a formula based on the employee’s earnings history, tenure of service and age, rather than depending on investment returns. It is ‘defined’ in the sense that the formula for computing the employer’s contribution is known in advance.

Defined Contribution Pension Plan
Refers to a type of retirement plan in which the amount of the employer’s annual contribution is specified. Individual accounts are set up for participants and benefits are based on the amounts credited to these accounts (through employer contributions and, if applicable, employee contributions) plus any investment earnings on the money in the account. Only employer contributions to the account are guaranteed, not the future benefits. In defined contribution plans, future benefits fluctuate on the basis of investment earnings.

DGPT
Is the Director General of Post and Telecommunications.

Distribution Point
Is the point of interconnection between the drop-wire and the secondary cable running to a cabinet and/or a local exchange.

DLD
Refers to domestic long-distance telecommunication services such as long-distance telephone calls and leased lines services.

Downlink
Refers to the receiving portion of a satellite circuit extending from the satellite to the earth.


Drop-wire
Is the wire connecting the subscriber’s premises to the distribution point.

DSL
(Digital Subscriber Line) is a technology that allows combinations of services including voice, data and one way full motion video to be delivered over existing copper feeder distribution and subscriber lines.

DTH
Direct-to-Home satellite broadcasting or DTH is the distribution of television signals from high-powered geostationary satellites to small dish antennas and satellite receivers in homes across the country.

Dual band
Refers to the capability of a mobile cellular network and mobile cellular handsets to operate across two frequency bands, for example GSM 900 and GSM 1800.

Duopoly System
Is a system allowing only two national operators, which in Indonesia’s case are TELKOM and Indosat, to provide fixed line telecommunication services including domestic long distance and international long distance.

e-business
Refers to electronic business solutions including electronic payment services, internet data centers and content and application solutions.

Earth Station
Is the antenna and associated equipment used to receive or transmit telecommunication signals via satellite.

Erlang
refers to a unit of measurement of telephone traffic equal to one hour of conversation.

FTTx
(Fiber to the x) is a generic term for any broadband network architecture that uses optical fiber to replace all or part of the usual metal local loop used for last mile telecommunication. The generic term originated as a generalization of several configurations of fiber deployment such as fiber to the home, fiber to the node, fiber to the building etc.

Fixed Cellular
Refers to a form of fixed wireless technology that uses conventional cellular network configurations to link a subscriber at a fixed location to a local exchange.

Fixed Line
Refers to fixed wireline and fixed wireless.

Fixed Wireless
Refers to a local wireless transmission link using cellular, microwave or radio technology to link a subscriber at a fixed location to a local exchange.

Fixed Wireline
Refers to a fixed path (wire or cable) linking a subscriber at a fixed location to a local exchange, usually with an individual phone number.

Frame Relay
Is a packet-switching protocol (in which messages are divided into packets before they are sent) for connecting devices on a computer network that spans a relatively large geographical area.

Gateway
Is a peripheral that bridges a packet based network (IP) and a circuit based network (PSTN).

Government
Refers to the Government of the Republic of Indonesia.

GPRS
(General Packet Radio Service) is a data packet switching technology that allows information to be sent and received across a mobile network and only utilizes the network when there is data to be sent.

GSM
(Global System for Mobile Telecommunication) is a European standard for digital cellular telephone.

HSPA
(High Speed Packet Access), is a collection of mobile telephony protocols that extend and improve the performance of existing UMTS protocols. A further standard, Evolved High Speed Packet Access (HSPA+), is a wireless broadband standard defined in 3GPP release 7. It introduces a simpler IP-centric architecture for the mobile network bypassing most of the legacy equipment. HSPA+ boosts peak data rates to 42 Mbit/s on the downlink and 22 Mbit/s on the uplink.

IDD
(International Direct Dialing) is a service that allows a subscriber to make an international call without the assistance or intervention of an operator from any telephone terminal.

IDX
Refers to the Indonesia Stock Exchange.

INSYNC2014
Refers to Indonesia Synchronized 2014, TELKOM’s Infrastructure, Service and Operation Master Plan to provide improved technological solutions to fulfill lifestyle needs for quality multimedia services at competitive prices. Under this master plan, we have launched various infrastructure and telecommunication services based on NGN.

Installed Lines
Refer to complete lines fully built-out to the distribution point and ready to be connected with subscribers.

Intelligent Network or IN
Is a service-independent telecommunications network where the logic functions are taken out of the switch and placed in computer nodes distributed throughout the network. This provides the means to develop and control services more efficiently allowing new or advanced telephony services to be introduced quickly.

IP
(Internet Protocol) is the method or protocol by which data is sent from one computer to another on the Internet.

IP DSLAM
(Internet Protocol Digital Subscriber Line Access Multiplexer). A Digital Subscriber Line Access Multiplexer (DSLAM) allows telephone lines to make faster connections to the internet. It is a network device, located near the customer’s location that connects multiple customer Digital Subscriber Lines (DSLs) to a high-speed internet backbone line using multiplexing techniques.

IP VPN
Is a data communication service using IP Multi Protocol Label Switching (MPLS) and based any to any connection. This service is connected to the data security system, L2TP and IPSec. The speed depends on the customer’s needs, ranging from 64 Kbps to 2 Mbps.

ISDN
(Integrated Services Digital Network) is a network that provides end-to-end digital connectivity and allows simultaneous transmission of voice, data and video and provides high-speed internet connectivity.

ITRB
Refers to the Indonesian Telecommunications Regulatory Body.

Kbps
(Kilobits per second) is a measure of speed for digital signal transmission expressed in thousands of bits per second.

KSO
(Kerjasama Operasi) or Joint Operating Scheme, is a unique type of Build, Operate and Transfer arrangement that TELKOM previously entered into with a consortium of partners in which the consortium invested and operated TELKOM facilities in regional divisions. The consortium partners were owned by international operators and private domestic companies, or in cases where TELKOM had acquired the consortium partner, by TELKOM. Since the acquisition of TELKOM’s last remaining KSO partner, KSO VII, in October 2006, TELKOM no longer maintains joint operation schemes with KSO partners.

KSO Agreements
Refer to the agreements, as amended from time to time, that governed the operation of the network in the relevant KSO region for the KSO Period. See KSO Period.

KSO Period
Refers to the period covered by a KSO Agreement.

KSO Unit
Refers to a regional division of our Company that was, and when it was, previously managed and operated pursuant to the relevant KSO Agreement.

LAN
LAN is a network of interconnected workstations that enables network resources sharing. Typically, LAN covers a limited area (for example, within a building).

Leased Line
Is a dedicated telecommunications transmissions line linking one fixed point to another, rented from an operator for exclusive use.

Lines In Service
Refer to revenue-generating lines connected to subscribers, including payphones, but not including mobile cellular subscribers or lines used internally by us.

Local Call
Is the call among subscribers in the same numbering area without require any prefix number.

Local Exchange Capacity
Refers to the aggregate number of lines connected at a local exchange and available for connection with outside plant.

MHz
(Megahertz) is a unit of measure of frequency. One MHz is equal to one million cycles per second.

Microwave Transmission
Is a transmission consisting of electromagnetic waves in the radio frequency spectrum above 890 million cycles per second and below 20 billion cycles per second.

MMS
(Multimedia Messaging Service) is a service that enables a costumer to send a multimedia message to a receiving customer.

MoC
Refers to the Ministry of Communication. See MoCI.

MoCI
Refers to the Ministry of Communication and Information, to which telecommunications regulatory responsibility was transferred from the MoC in February 2005.

Modern License
Is an operational license, contemplated in the Telecommunication Law, which replaces the existing operational license for basic telecommunications services.

MoF
Refers to the Ministry of Finance.

MSAN
(Multi Service Access Network) represents the third generation of optical access network technology and is a single platform capable of supporting traditional, widely deployed, access technologies and services as well as emerging ones, while simultaneously providing a gateway to an NGN core. MSAN will enable us to provide triple play services that distribute high speed Internet access, voice packet services and IPTV services simultaneously through the same infrastructure.

MTR
(Minimum TELKOM Revenues) is the specified minimum amount payable monthly by each KSO Unit to TELKOM under the KSO Agreements.

NGN
(Next Generation Network) is general term that refers to a packet-based network able to provide services, including telecommunication services, and able to make use of multiple broadband, Quality of Service-enabled transport technologies and in which service-related functions are independent from underlying transport-related technologies. A NGN is intended to be able to, with one network, transport various types of information and services (voice, data, and all sorts of media such as video) by encapsulating these into packets, like it is on the Internet. NGNs are commonly built around the Internet Protocol.

Node B
A BTS for a 3G W-CDMA/UMTS network

NSS
(Network Switching Subsystem) is a core part of a GSM system. The NSS handles switching functions, mobility management and manages the communications between mobile phones and other telephone networks.

OLO
(Other License Operator) refers to operators other than TELKOM.

Optical Fiber
Refers to cables using optical fiber and laser technology whereby modulating light beams representing data are transmitted through thin filaments of glass.

Outside Plant
Is the equipment and facilities used to connect subscriber premises to the local exchange.

PBH or Revenue Sharing Arrangement
(Pola Bagi Hasil) is a type of Build, Operate and Transfer arrangement scheme between TELKOM and domestic private companies. Under this scheme the private company invests in the telecommunication facilities to be operated by TELKOM.

PDN
(Packet Data Network) is a digital communications network which breaks a groups data to be transmitted into segments called packets, which are then routed independently.

PPLT
Refers to Penyediaan dan Pengembangan Layanan Telekomunikasi or Provision and Development of Telecommunications Services program established by TELKOM to provide telecommunication infrastructure to certain regions where telecommunication services are not available.

PSTN
(Public Switched Telephone Network) refers to the telephone network operated and maintained by TELKOM.

RAS
Remote Access Services (RAS) refers to any combination of hardware and software to enable the remote access to tools or information that typically reside on a network of IT devices. A RAS server is a specialized computer which aggregates multiple communication channels together.

RIO
(Reference Interconnection Offer) is a regulatory term covering all facilities, including interconnection tariffs, technical facilities and administrative issues offered by one telecommunications operator to other telecommunications operator for interconnection access.

RSA
Refers to the Revenue Sharing Agreement

RUIM or RUIM card
(Removable User Identity Module) is a smart card designed to be inserted into a fixed wireless telephone that uniquely identifies a CDMA network subscription and that contains subscriber related data such as phone numbers, service details and memory for storing messages.

SLJJ
Refers to Sambungan Langsung Jarak Jauh or domestic long distance.

Satellite Transponder
Is the radio relay equipment embedded on a satellite that receives signals from earth and amplifies and transmits the signal back to earth.

SIM or SIM card
(Removable User Identity Module) is a “smart” card designed to be inserted into a fixed wireless telephone that uniquely identifies a CDMA network subscription and that contains subscriber related data such as phone numbers, service details and memory for storing messages.

SMS
(Short Messaging Service) is a technology allowing the exchange of text messages between mobile cellular phones and between fixed wireless phones.

SMSOE
SMSOE is an abbreviation of State Minister of State owned Enterprise.

Softswitch
Softswitch is a central device in a telephone network which connects calls from one phone line to another, entirely by means of software running on a computer system. This work was formerly carried out by hardware, with physical switchboards to route the calls.

SOA
The Sarbanes-Oxley Act (SOA) of 2002, enacted July 30, 2002), also known as the ‘Public Company Accounting Reform and Investor Protection Act’ and ‘Corporate and Auditing Accountability and Responsibility Act’ and commonly called Sarbanes-Oxley, Sarbox or SOX, is a United States federal law enacted on July 30, 2002. It is named after sponsors U.S. Senator Paul Sarbanes and U.S. Representative Michael G. Oxley.

Switch
Is a mechanical, electrical or electronic device that opens or closes circuits, completes or breaks an electrical path, or selects paths or circuits, used to route traffic in a telecommunications networks.

TIME
TIME is an abbreviation of Telecommunication, Information, Multimedia and Edutainment.

Trunk Exchange
Is a switch that has the function of connecting one telephony switch to another telephony switch, which can be either a local or a trunk switch.

UMTS
(Universal Mobile Telephone System) is one of the Third Generation (3G) mobile systems within the ITU’s IMT 2000 framework.

USO
(Universal Service Obligation) is the service obligation imposed by the government on all providers of telecommunications services for the purpose of providing public services in Indonesia.

VoIP
(Voice over Internet Protocol) is a means of sending voice information using the Internet Protocol.

VPN
(Virtual Private Network) is a secure private network connection, built on top of publicly accessible infrastructure, such as the Internet or the public telephone network. VPNs typically employ some combination of encryption, digital certificates, strong user authentication and access control to provide security to the traffic they carry. They usually provide connectivity to many machines behind a gateway or firewall.

VPN Frame Relay
VPN service uses frame relay network

VSAT
(Very Small Aperture Terminal) is a relatively small antenna, typically 1.5 to 3.0 meters in diameter, placed in the user’s premises and used for two way communications by satellite.

WAP
(Wireless Application Protocol) is an open and global standard for network communications that enables mobile users to access and interact with mobile information services such as email, websites, financial information, online banking, information and entertainment (infotainment), games and micro payments.

Wi-MAX
(Worldwide Interoperability for Microwave Access) is a telecommunications technology that provides wireless transmission of data using a variety of transmission modes, from point to point links to portable internet access.

WLL
(Wireless Local Loop) is a means of providing local loop (the physical connection from the subscriber’s premises to the carrier’s point of presence or POP) facility without wires, which allows carriers to provide local loop with approximately one Gbps or more in aggregate bandwidth per coverage area. WLL is particularly effective in rocky or soggy terrain. 

 
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