Telkom uses GIS to increase IndiHome subscriptions


Telkom uses GIS to increase IndiHome subscriptions

The state-owned telecommunications company PT Telekomunikasi Indonesia, Tbk (Telkom), has undertaken an ambitious fibre-to-the-home project called IndiHome, a triple-play offering that packages phone, Internet, and cable television services. Telkom used to have a monopoly on telecommunication services, but in 1999, the government passed a law that deregulated telecommunications and terminated Telkom's exclusive right to provide telephone and other communications services.


The Challenge

Telkom has diversified to include telecommunications, information (IST), media, and edutainment services. Delivering high-quality products to IndiHome subscribers is an important part of Telkom's business plan. The company must be competitive to ensure that it has a strong subscriber base for its services. IndiHome set an ambitious goal at the start of 2016 to double the number of subscribers by the end of 2017. To do that effectively, Telkom needs to understand potential customers and plan its infrastructure wisely.

The Solution 

Telkom made an investment in enterprise geographic information system (GIS) technology in early 2016. Initially, staff set out to map their customers and their relationship to each Optical Distribution Point (ODP). Each ODP can serve eight customers, and staff analysed this network to make sure that customers are as close as possible to these access points to ensure optimal service. In some cases, staff have reassigned customers to different ODPs.

Telkom has been using spatial analytics to understand the characteristics of its existing customers. Staff have extracted the demographic profile of their customers, along with demographic segmentation maps, to understand where the company's best prospects are located. This data helps staff plan both their infrastructure road map and their marketing efforts, with a concrete understanding of what needs to happen where, to meet the company's ambitious growth goals.

Telkom uses ArcGIS Desktop to map infrastructure and conduct spatial analysis and ArcGIS Enterprise to share information and field applications throughout the organisation.

The Results

The infrastructure mapping effort has had a direct impact on costs because Telkom staff have been able to plan the shortest possible route to each home. This ensures that connections use the least amount of cable and require the least amount of installation labor. Telkom has driven down both its fixed capital expenses and its operational expenses.

GIS analysis has also had an impact on growing IndiHome's subscriber numbers. Current users number 2.65 million, up from just 1.95 million a year ago. While the 36 percent growth can't all be attributed to GIS, the technology has certainly contributed to it. Telkom has seen phenomenal growth in the number of IndiHome subscribers, but the company still needs to add 1.8 million subscribers to meet its target.

Telkom is relatively new on the GIS journey. The company has begun by provisioning its GIS with data from the Indonesia Central Bureau of Statistics, point of interest (POI) and location data, and the Telkom Group's internal data that contains location information. The company has begun exploring additional use cases in other areas of operations, such as routing and tracking field trucks for improved efficiency.

Telkom uses GIS to increase IndiHome subscriptions