Presentation Material for 'Kongres XXIII Serikat Penerbit Surat Kabar' event held in Bali 7-9 June 2011.

1. Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Surat Kabar
The Future of Digital Publishing
Today’s agenda:
- Indonesian telco penetration & Telkomsel Highlights
- Teens Rules Indonesian mobile market & internet usage
- Teens market: Customers are changing
- What’s beyond printing?
- Social Media Networks
- Making Digital Content Pay
- Summary: Key points

2. Indonesian Telco Penetration and
TELKOMSEL Dynamics
Fixed Fixed
Wireline Wireless Broadband Cellular
± 8.7 mn ± 35 mn ± 3 mn ± 200 mn
Indonesian Telco
Penetration Penetration Penetration Penetration Prepaid cards 97.5%
16% 2% Postpaid cards 2.5%
71%
Source: Telkom Internal market research
35 Million Unique Users download & subscribe to
Mobile Games, Music, Info..etc
500 million P2P SMSes transacted DAILY – 800 million per day during Ied
7 Million chargeable CONTENT-SMSes purchased DAILY
Network in 15 PELNI
subscriber base 100 mio 35,000 BTS (7.000 BTS for 3G) ships
Psst: More than our next two competitors added up..
600k downloads daily Broadband in 21Mbps and 25 big
NSP cities
1.5mio BlackBerry Active Users
25 Million Data Active
RBT is 87% of total music Industry 1,2 Gbps Blackberry Users
Nation Wide
network
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar

3. Content is a Serious Business for TELKOMSEL
Digital Music, Games, Entertainment, Religious Contents, and other Cultural Heritage Contents
1. Indonesian is ready to take off on CREATIVE INDUSTRY
Telkomsel support Indonesian Government program to nurture Creative Industry,
including digitalization on Indonesian Culture Heritage
2. Core business is slowing down and getting Red. Value Added becoming the new Blue
Ocean
Revenue Contribution from New Business
(Digital Music, Content, Mobile Advertising, and T-Cash)
<5 25%
8% 15%
%
Before 2009 2010* 2014*
2008 *Revenue Forecast from New Business
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar

4. TELKOMSEL Technology Roadmap
Evolutionary step through GPRS, EDGE, W-CDMA/HSDPA and LTE
1 - 21
Mbps
Hot spot with High Trial LTE
speed Internet
LTE
512 WiFi
kbps
Enhancement
Voice & Data
Capacity
384 Enhancement
kbps GPRS Services
W-CDMA/HSDPA
Post-Paid Pre-Paid
GPRS GPRS Video Call
MMS MMS
170 3G
Trial
kbps simPATI Mobile Data
SMS Wap, Web, SMS EDGE
Trial
GPRS
9.6
kbps GSM
1995 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar

5. Transforming from Telecommunication Company to Lifestyle Company
Digital Music, Content and Application Focus
1. From Single product to Total Lifestyle & Entertainment Packages
Lyric Community
Video Video
Rich Content Device Photo Payment
Text Play
Rich On-device Rich Full
Based Ring
Cont Portal Ring
ent Cont tone Music Enterta
ent tone
RBT RBT Video inment Apps
Content Concert
Search RBT Full
Full Track Ticket
Track
Shows
2002 2006 2007-2010 Merchandising
2010 - then
2. From Mass Market approach to Niche and Multiple Market (Community Approach)
3. Entertainment & Lifestyle centric approach:
• Developing new and upcoming artist exclusively
• Working with well known artist to promote new exclusive contents
• Enrich delivery channels through diverse handset and OS types
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar

6. Services for Future Mobile Broadband
Communication to Lifestyle Assistance
Broadband Services Driven
Now Future
Education Services Financial Services
Communication to Lifestyle Assistance
New Wave Business Telkomsel
Healthcare Services Transport Services
Health record, Medicine, etc Tracking, ticketing, cargo, traffic info
Entertainment & Media Services
Music, games, apps, TV, Social media, etc
14
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar

7. Indonesian teens rules!
Now drive Indonesia's mobile phone market
Demand on smartphones is very high
Indonesian Teens Population Composition
10-19
20%
80%
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar Source: http://www.nielsen.com

8. Youth and young adults, age of below 27, are contributing
more than 70% of Mobile WEB usage in Indonesia
6% 2%
19%
20%
<18
18-27
28-37
38-47
>48
53%
Data from Eyeka.asia – June 2010
Indonesians are the most prolific users of mobile internet & social media:
• 31 million facebook users – 2nd largest after US
• 3rd largest twitter user world wide
•Highest Twitter penetration rate worldwide (20.8% or 1-to-5)
• 2nd largest Operamini mobile browser users
• World highest mobile browsing intensity, 661 pages per month/person
• The largest BlackBerry Users in the region (5 million)
• 5th Largest Internet Market in Asia (after China, Japan, India and South Korea)
• Top ranked in Mobile WEB advertising: BuzzCity top 2, InMobi top 3 and AdMob top 5
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar Data ComScore, Opera, Checkfacebook.com, buzzcity.com, inmobi.com

9. Attitude of Net Generation:
Freedom Collaboration
Give Me Choice and the More the Better Let Me Help You Make Your Product or Service
Better
Customization Entertainment
Make It My Own
Make It Fun
Scrutinity Speed
I Will Check It Out Before I Go to the Store
Serve Me Now
Integrity Innovation
Does This Company Deserve My Money?
Give Me the Latest
But are they Loyal to us ?
Giving us Value and willing to Spend ?
Source : Grown up digital - Don tapscott
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar

10. Customer wants more
Shifting from NEED to LIFESTYLE
Changing from Traditional phone types into:
• Lifestyle Mobile Phone : iPhone vs Blackberry vs BB like phone (Nexian, CSL BlueBerry, LG).
• Internet Centric Device : iPad, Samsung Galaxy Tab, Dell Streak Motorola Xoom, BlackBerry Playbook.
Shifting Between
Need Lifestyle
Netbook Tablet
PC Laptop
iPad,
Smartphone Samsung Galaxy tab
“Handphone” Blackberry, iPhone,
Android
Complexities:
• Smartphone, Data capability (EDGE, 3G, 3.5G, LTE), Touch screen, Camera, GPS, Gesture interface.
• More varieties of Mobile phone OS: Symbian, Linux, Android, RIM, iOS (iPhone), Windows Mobile.
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar

11. Tour of the last 210 years of information (+5 years)
Time for Social Media Distribution and Rich Content targeted Segments
Technology changes, but so do Societal norms
Trust in news brands has eroded over time
Value of brands (relationship-based) being replaced by search (transaction-based)
Business Model is transforming
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar Sources: Where is everyone? http://www.baekdal.com/media/market-of-information,Apr 2009

12. What’s beyond print?
Traditional printing ePaper Interactive and Rich WEB site
$?
OS & Devices Interdependencies
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar

13. 26% apps developed for iPad go into Books or News category
Books, References, 1
8%
Games, 22%
News, 8%
Social networking, 2%
Utilities, Productivity,
9% Entertainment, Music
, 15%
Lifestyle, Hobbies, 13
% Education, Health, 13
%
Sources: Macstories.net, Federico Viticci, “Tha AppStore has now over 10,000 apps” 12/6/2010
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar

14. In general, most mobile apps are paid
Share of paid apps on different platforms and their average price
Sources: Distimo App Store Analytics, “ Mobile Application store. State of Play”, 18/6/2010
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar

15. Social Media Networks: Explosive uptake
Participatory Journalism / We Media / Citizen Journalism
The act of a citizen, or group of citizens, playing an active role in the
definition:
process of collecting, reporting, analyzing and disseminating news and information. The
intent of this participation is to provide independent, reliable, accurate, wide ranging and relevant
information that a democracy requires.
Emerging Media Ecosystem
Information flow through different
types of Social Medias Networks:
•Blogs
•Social networks
•Micro blogs (twitter)
•Podcasts
•Social bookmarking
•Wikis
•Online video
•Widgets
•Photo sharing
•Virtual worlds
•Forums
•Presentation sharing
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar

16. Making digital content pay
To charge or not to charge? Three-step process to create a successful model for the
sale of online/mobile content will involve the following:
1. Find the sweet spots
•Exclusivity
The content must be truly exclusive and not easily
replaceable by substitutes.
•Target audience
Some kinds of content have a natural target audience that
is more willing to pay for the content than other audiences.
•Popularity
Certain content areas are more popular than others, and
attract larger audiences.
Give them all or just a selection? 2. Build winning concepts
A clearly differentiated user experience. This might include
interactive elements in news and magazine applications.
Deeper content offerings. These should go beyond the standard
in certain carefully targeted topics, such as
sports, finance, cooking, or health, to name a few.
Add-on services. Publishers can enrich content with premium and
complementary services such as conference calls with journalists
or live video streaming.
3. Define the right pricing mechanism
Publishers should look to differentiate their content
offerings, creating a variety of products and packages at multiple
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar prices Sources: PaidContent.co.uk, Booz&Co: Making Digital Content Pay 2010

17. Summary: Key Points
• 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
• Rethink your brand - No longer just promise or image, it
become a relationship
• Develop a strategy to plug into influence networks. (Social
network, Blog, Instant messaging, YouTube, etc)
• Move the Net Generation into the center of your marketing
campaigns. They influence all other generation
• Create additional values through Rich and Attractive
Contents
• Indonesian Market goes for Mobile Distribution Channels
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar

18. Terima Kasih
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar

19. Indonesia, the next big thing in digital media
Extensive activities among social network sites,
Portals Acquisitions:
•Koprol by Yahoo!
•Kaskus by GDP (Djarum)
•Disdus by Groupon
Other facts:
• 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
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
Korea)

20. Mobile Phones Penetration, in INDONESIA
Handset & Consumers penetration figures. Customer expect more than just traditional services
subscriber:
200mil. by January 2011
240 mil. eo 2011
• Users adopt mobile devices from the start instead of migrating from landlines to mobile services.
• Mobile ownership was up 54% in 2010 from 20% in 2005, whilst the use of landlines have decreased from 25% to 11%.
• 20% have more than one SIM card and 9% have two phones for personal use.
• 58% of consumers spending less than Rp. 50,000 (@USD 5) per month in 2010 compared to only 18% in 2005.
• Low-spending category contributed to the increasing popularity of CDMA telephones, with 26% market share 2010.
• More than 70% of youths in the 15 - 19 year old category own mobile devices, while the number of 10 - 14 year old
with mobile phones more than tripled in this five-year period.
• Instant messaging or chatting is the top use of the phones for today’s young Indonesians, who prefer this use of the
devices over voice calls or texting.
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar

21. Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar

22. Others upcoming Tabs?
iOS, Android?
Kindle ?
iPad ? Social Media ?
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar