TLKM 2015

TLKM: development of IT Infrastructure as key success factor of double digit growth

Analysis

In 2015 Telkom attained high growth rate in its revenue which is at 14.2 % compared to revenue in 2014. The biggest portion of revenue came from data, internet and IT service, it was more than 46.7 % of total revenue at 2015. It exceeded revenue from cellular which was at 36.4 % of total revenue.

In cellular segment, Indonesia has more than 340 million subscribers; Telkom acquired more than 47 % of total market share. The market shares of competitors which consist of indosat, Htchison and XL Axiata subsequently are at 21 %, 16% and 13 %.            

In data, internet and IT services revenue in 2015 increased more than 26.5% compared to its revenue in 2014. The growth was participated by indihome subscribers, data cellular and internet revenue. The subscriber of mobile broadband increased from 31.2 million users in 2014 to 43.8 million users in 2015. The new adopted technology of smart phone may be possibly support the product.

For satellite segment, the company plans to replace recent satellite with new satellite that has wider range of coverage. Telkom 3S, its new satellite, is able to cover region of asia pacific and india.

The trend of revenue tend to not follow the economic growth, the slower of economic growth in indonesia in 2015 is not influencing the revenue growth of the company. The revenue experienced double digit growth, indeed. The increase may be probably occurred due to wider range of IT infrastructure over the islands in archipelago, as the result of that the company experienced double digit growth due the growth of subscribers in cellular service, mobile broadband service and etc.

The company set its position as the leader in digital industry, they allocated its fund to build IT infrastructure in each sector that comprises land, air and sea. In 2015 the company established the undersea fiber optic broadband highway from aceh to papua. Through this infrastructure the customer in papua, sulawei and Maluku islands are able to access better internet data connection service. The company has also built more than 100 thousands 3G and 4G BTS.

Bundling Product with Citibank: Citi-Telkomsel Credit card

In 2015Citibank launched its innovative product, it is a bundling product between Banking product and telecommunication company’s product, Citi-Telkomsel Credit Card, the claimed that the product is the first bundled credit card product in indonesia (annual report Citibank, page of 15). Telkomsel is also having partnership with other state owned bank such BRI, BTN and etc.