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Glossary

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 "3G"

is the generic term for third generation mobile phone technologies. 3G offers very high speed connections to cellular phones, enabling video conference and other applications requiring broadband connectivity to the internet. Users connecting to the internet from a laptop using either a cell phone and data cable or a PCcard also benefit from 3G.

"ADS"

American Depositary Share, which is a certificate (known as an ADR) being traded on a U.S. securities market (such as New York Stock Exchange) representing a number of foreign shares. One ADS of TELKOM represents 40 of TELKOM’s Series B Shares. The ratio of shares to ADS is 40:1.

"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 the mobile cellular service, 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.

"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.

"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.

"DGPT"

is the Director General of Post and Telecommunications.

"distribution point"

is the point of interconnection between the dropwire and the secondary cable running to a cabinet and/or a local exchange.

"DLD"

refers to domestic long-distance telecommunications 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.

"dropwire"

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.

"DTR"

(Distributable TELKOM Revenues) is the monthly revenue share payable by each KSO unit to TELKOM under the KSO Agreements, being a specified percentage of total KSO revenues in a KSO unit after deduction of specified KSO operating expenses and MTR.

"dualband"

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.

"existing installations"

refer to telecommunications facilities, including telephone lines, network infrastructure and related assets in existence in each KSO Division as of the beginning of each KSO Period plus certain facilities and equipment constructed or installed by TELKOM in the KSO Units after such dates to be managed by a KSO Investor.

"fixed cellular"

refers to a form of fixed wireless technology which 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.

"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.

"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.

"installed lines"

refer to complete lines fully built-out to the distribution point and ready to be connected to 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.

"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 with a consortium of partners in which the consortium invests and operates TELKOM facilities in regional divisions. The consortium partners are owned by international operators and private domestic companies, or in cases where TELKOM has acquired the consortium partner, by TELKOM.

"KSO Agreements"

refer to the agreements, as amended from time to time, governing 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 TELKOM managed and operated pursuant to the relevant KSO Agreement.

"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 TELKOM.

"local call"

is the call among subscribers in the same numbering area without any prefix number being required.

"local exchange capacity"

refers to the aggregate number of lines at a local exchange connected and available for connection to outside plant.

"MHz"

(Megahertz) is a unit of measure of frequency. 1 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.

"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.

"MTR"

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

"NSS"

(Network Switching Subsystem) is core part of GSM system. NSS handle switching functions, mobility management function and manages the communications between mobile phone other telephone network

"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.

"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) is a telephone network operated and maintained by TELKOM.

"RIO"

(reference interconnection offer) is a regulatory term covering all facilities, including interconnection tariffs, technical facilities and other administrative issues offered by one telecommunications operator to other telecommunications operators 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"

(Subscriber Identity Module) is a “smart” card designed to be inserted into a mobile cellular telephone that uniquely identifies a GSM 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.

"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 network.

"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 trunk switch.

"UMTS"

(Universal Mobile Telephone System) is a one of the Third Generation (3G) mobile systems being developed 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.

"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 of technology platform that enables mobile users to access and interact with mobile information services such as e-mail, Web sites, financial information, on-line banking, information and entertainment (infotainment), games and micro payments.

"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 1 Gbps or more in aggregate bandwidth per coverage area. WLL is particularly effective in rocky or soggy terrain.

 

 

 

 

 

 

 

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