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Telkomsel, Indonesia




Key Data


Telkomsel (PT Telekomunikasi Selular) is the largest mobile telecommunications operator in Indonesia with a share of more than 52% of the total Indonesian cellular market, which at the end of 2004 consisted of over 13.5 million active users (expected to increase to 15 million during 2005).

The company has a nationwide network covering about 80% of the population of the fourth most populous country in the world with a population of over 250 million people (this is one of the growth hotspots for mobile telecommunications in the Asian market). Telkomsel operates a Dual Band GSM 900/1800 network in Indonesia, complete with GPRS services, WiFi hotspots and EDGE technology in selected locations.

The company is jointly owned by PT Telekomunikasi Indonesia (65%) and Singapore Telecom (35%). The company has been extremely active in 2004 in enhancing and expanding its network coverage to increase its 80% coverage to nearer 98%. Telkomsel have awarded at least five different contracts during 2004. One of the largest was to Siemens in late 2004 for the estimated sum of €380 million for enhancement and expansion of the GSM network over the next three years. Siemens supplies all three wireless carriers in Indonesia - Telkomsel, Indosat and XL (formerly Excelcom). With a market share of over 35%, Siemens is the number one provider of equipment for wireless networks in the country.

NETWORK CAPACITY EXPANSIONS

Siemens Communications Group has a framework agreement to expand the Telkomsel GSM network by increasing the capacity of Telkomsel's wireless and switching networks (Siemens last supplied equipment in 1994 for the network). Siemens will be supplying new network technology and installing it on a turnkey basis. The contract covers capacity expansions for both the radio and core network. To do that, Siemens will be installing additional base stations and upgrading the network with new switching technology.

IP-BASED VOICE COMPRESSION

Telkomsel has deployed during the latter half of 2004 an IP-based voice compression network infrastructure equipment from Nuera Communications, Inc. to help meet subscriber growth and to reduce operating expenses.

The first mobile service provider in Indonesia to deploy IP-based voice compression technology in their network, Telkomsel uses Nuera ORCA GX-8 Voice over Internet Protocol (VoIP) media gateways to interconnect the mobile switching centres (MSC) within the Telkomsel GSM network. The system allows the conservation of bandwidth needed to interconnect the MSCs, which reduces costs.

MPLS INFRASTRUCTURE

Datacraft was selected in mid 2004 for a contract to expand Telkomsel's Multi-Protocol Label Switching (MPLS) network (first installed in two phases during 2001-02) to a further 33 locations across the country. The project, which involves the installation and migration of network equipment, is worth $2.5 million.

The network is comprised of equipment from Cisco Systems; MPLS is used to help ensure that all packets in a particular flow take the same route over a backbone, delivering the quality of service (QoS) required to support real-time voice and video as well as service level agreements (SLA) that help guarantee bandwidth.

Telkomsel's Datacraft-designed MPLS infrastructure is based on Cisco Systems' advanced routing and switching technology. Cisco 7500 Series and 7200 Series Routers provide Telkomsel with redundancy, reliability, and performance at the network backbone, while redundant Cisco Catalyst 3550 Series Switches at the outer sides of the MPLS backbone provide entry point and help ensure non-stop services for subscribers. The high-performance MPLS backbone provides predictable and guaranteed services for delay-sensitive applications such as billing record information, VoIP and WAP.

To ensure the network expansion is completed on time and within the designated budget, Datacraft Primer, the company's installation and project management service, is being deployed. In addition, Telkomsel is making use of Datacraft Professional Services to extend its previously installed iBOSS integrated network management system (iNMS) to provide consolidated event and performance management of the new infrastructure.

EDGE ENHANCEMENTS

Nokia has been supplying equipment and expertise for Telkomsel since 1996 including GSM and GPRS infrastructure and turnkey services for the operator's network. During 2004 Nokia started to install EDGE enhancements to the Telkomsel network in major population centres in the country, starting with the capital Jakarta.

EDGE will allow the network to increase the speed of mobile multimedia services to over three times those encountered previously by using GPRS (achieving an average data rate of 80kbps to 160kbps per user with mobile terminals supporting 2 to 4 timeslots). Jakarta is the most important market for this kind of service (concentration of population and business) and EDGE will allow video streaming, interactive gaming and high-speed data transmission for business-to-business applications.

Map of Indonesia showing main population centres. During 2004 Nokia started to install EDGE enhancements to the Telkomsel network, starting with the capital Jakarta.
Cisco Systems Catalyst series switch
Siemens S57 GSM mobile handset such as will be used in Indonesia
Telkomsel uses Voice over Internet Protocol (VoIP) media gateways to interconnect the mobile switching centres (MSC) within the GSM network.
VoIP media gateways reduce the amount of bandwidth needed to interconnect the mobile switching centres.