Managed Global DIA Service (~Service Design & Process)

MARKET DEMAND
Indonesia DIA Landscape
Market price vs ASTINET price

$6,478.35
Indonesian DIA Price for 20 Mbps
(Telegeography, extrapolated)

+79.9%

$3,600.00 Max +13.2% Max +4% TELKOM Astinet Regular Services

Median Median Vs Others (JaBoDeTaBek)
IDR 13,691,640 IDR 11,500,060
-79.7%
(1USD 14,200) (1USD 14,300) PROVIDER BW MRC
$1,999.00 Min -13% Min -4% First Media 25 Mbps 7,000,000
Biznet 30 Mbps 6,000,000
$1,363.50 (nationwide)
$1,091.20
$837.20
$964.20 ISAT 20 Mbps 14,342,900
$728.00 $804.20
$837.20 $771.20 Telkom 20 Mbps 14,030,000
$728.00

Notes
2016 2017 2018 Q2 2019 • Telkom price = calculator 2018
Minimum Median Maximum • Telkom best price to TELIN: 20% off
MARKET DEMAND
Indonesia DIA Landscape
Historical order, market price vs ASTINET price

Last 2 Years demand from

TATA for Indonesia site Last 3 Years demand of ASTINET thru TELIN
(min 20 Mbps) (number of connections)

BANDWIDTH SITE 250

20 Mbps 11
22.5 Mbps 1 200

25 Mbps 14
150
30 Mbps 10
35 Mbps 1
100
40 Mbps 2
50 Mbps 13
50
70 Mbps 1
100 Mbps 8 0
<10 Mbps 10 Mbps >10 ~ 20 Mbps 20 Mbps >20 ~ 50 Mbps >50 Mbps
150 Mbps 1
200 Mbps 1 2017 2018 2019

TOTAL 63 <10 Mbps 10 Mbps >10 ~ 20 Mbps 20 Mbps >20 ~ 50 Mbps >50 Mbps
2017 22 5 0 4 16 4
2018 159 6 3 5 10 9
2019 220 33 30 11 14 18
MARKET DEMAND
IZO Internet WAN
Product / Service Definition

Based on performance data, IZO WAN Internet is fairly comparable to its

MPLS service (Gartner)

• IZO Internet WAN presents a new approach for

creating an Internet VPN with predictable service
quality.
• IZO Internet WAN is best-deployed with MPLS for
hybrid networks, for the purpose of connecting a
large number of small sites in many markets
• Designed to build internet VPNs over the public
Internet, with performance comparable to MPLS for
business critical applications that require
performance guarantees
VALUE CHAIN
High Level Element of Service
Stitch the Astinet DIA service - TATA

TELIN TELKOM

ASTINET services
Integration with TATA
TATA
Margin
% + A. NNI setup
B. Upstream cost
• Guaranteed (regular/premium)
• 2 IP for each customers (for IZO
and internet breakout)

Resources used : Resources used :

• Total of integration cost
Activities
• Provisioning & delivery process to TATA’s end
customer
• L1 service towards TATA
• Interconnection monitoring
• /24 IP Block
• 2nd IP for internet break-out per customer
Activities
• DWS, escalate the SBR which proposed by
Telin, flagging the customer
• NITS, reserve the requested /24 IP Block
• DSS, product/service management (create
new field at NCX: price, package, feature, etc)

Remarks:
• Effective rate is differ in average -30% compared to tariff (excl Telin Margin)
SIMULATION
Proposed pecentage of upscale
.
1. To Compensate delayed time to sell

Block 256Host IP
of 1st Year Revenue
/24 IP #1 #2 #3 … #128
IDR
Gap
17,055,061,333
IDR 1,699,840,000
128 of /31 IP Host
(each cust assigned with /31 address) 59 days to sell
(DWS, current & new cust, 2019-20) IDR
15,355,221,333 MRC additional charge
IDR 1,106,677
or +8%

89 days to sell
(DWS, new cust only 2019-20)

2. To Compensate the resources/costs 3. Margin

A. NNI setup in Telin SG :
1. Router lease
2. Cost of port
3. Cabling and xConnect
B. Upstream cost (on negotiation process, deal breaker)
C. Telkom side : reservation of /24 (one time), cost for additional IP per customer
SERVICE CHAIN
What’s Next
RoW – AS7713 – RoW (future roadmap)
Country A
AS XXXX
+ +
Cost of DIA Services in Country A
• Incl last mile to customer premises
• Incl termination to nearest PoP
ACTIVITIES
• Provide DIA services with reserved /24
IP Block for TELIN
• Advertise the /24 IP Block to AS 7713
• Allow /24 IP advertisement from TELIN
• Ensure best path towards assigned PoP
Country B
AS 7713
AS XXXX
Country A Country B
PoP PoP
Cost of each PoP Cost of DIA Services in Country B
• Cross connect, cabling • Incl last mile to customer premises
• Cost of peering (if any) • Incl termination to nearest PoP
ACTIVITIES ACTIVITIES
1. Utilize ASN 7713 as HUB of various DIA services • Provide DIA services with reserved /24 IP Block for
from Global ISP/Carrier TELIN
• Advertise the /24 IP Block to AS 7713
2. Create deterministic routing between DIA • Allow /24 IP advertisement from TELIN
services across Global ISP / Carrier
• Ensure best path towards assigned PoP
a. Adv /24 IP Block to Global ISP/Carrier
b. Allow /24 IP Block adv from Global
ISP/Carrier
3. Supply of DIA services with deterministic routing
BUSINESS PROCESS
Demand of Indonesia DIA from Global Carrier / ISP
RoW – AS7713 - INDONESIA

RoW INDONESIA
AS 7713
AS XXXX
DIA Services
SG BTM

+
Cost of BTM - SG Cost of DIA Services in IDN
• Cross connect, cabling at SG • Incl last mile to customer premises
• Incl termination to TELIN’s Internet GW (Batam)
• Using cost of international internet of ASTINET
(as revenue for Telin SG)
Price to Global (as Revenue for Telkom and Telin HQ)
(if order coming from subs. Telin HQ may provide lower
Carrier / ISP margin of DIA services)

Margin %
BUSINESS PROCESS
Role map
.

TELIN H.Q TELIN Subsidiaries

(Indonesia) (Outside Indonesia)

Technical
• Responsible for technical development of
utilizing AS7713 as hub of services
• Assist subsidiaries during integration process
• Maintain global infrastructure required within
the services
• Responsible for provisioning within
INDONESIA market
Technical
• Responsible of integration process for
domestic DIA segment
• Utilize existing peering arrangement with
respective global carrier/ISP for the integration
process
• Responsible for provisioning to customers
within the market
• As nearest PoP for relevant market within
Telin Group (ex: SG as nearest PoP for IDN)

Commercial
Commercial
• Secure agreement with domestic DIA provider
• Secure agreement with domestic DIA provider
(Incumbent as priority)
(Telkom as priority)
• As supplier of domestic DIA services for other
• As supplier of INDONESIA DIA services for
Telin market
Telin Subsidiaries
• As re-seller of DIA services from H.Q/other
• As re-seller of DIA services from subsidiaries
subsidiaries
WRAPE UP
What’s Next
.

With TELKOM With TELIN Subsidiaries

PKS Arrangement Things to do

The agreement would at least consist several
key items :
• Principal terms to fulfill technical requirement
• The services would apply for minimum 20
Mbps Bandwidth requirement
• Pricing policies
• Encourage subsidiaries to peer with potential
Global carrier / ISP and had agreement in
place regarding this specific services
• Discuss about business scheme between
subsidiaries and H.Q
WRAP UP
What’s Next
RoW – AS7713 – RoW (future roadmap)
Country A
AS XXXX
+ +
Cost of DIA Services in Country A
• Incl last mile to customer premises
• Incl termination to nearest PoP
ACTIVITIES
• Provide DIA services with reserved /24
IP Block for TELIN
• Advertise the /24 IP Block to AS 7713
• Allow /24 IP advertisement from TELIN
• Ensure best path towards assigned PoP
Country B
AS 7713
AS XXXX
Country A Country B
PoP PoP
Cost of each PoP Cost of DIA Services in Country B
• Cross connect, cabling • Incl last mile to customer premises
• Cost of peering (if any) • Incl termination to nearest PoP
ACTIVITIES ACTIVITIES
1. Utilize ASN 7713 as HUB of various DIA services • Provide DIA services with reserved /24 IP Block for
from Global ISP/Carrier TELIN
• Advertise the /24 IP Block to AS 7713
2. Create deterministic routing between DIA • Allow /24 IP advertisement from TELIN
services across Global ISP / Carrier
• Ensure best path towards assigned PoP
a. Adv /24 IP Block to Global ISP/Carrier
b. Allow /24 IP Block adv from Global
ISP/Carrier
3. Supply of DIA services with deterministic routing
Thank You
KEY POINT
Discussion with Telkom
April 21st 2020

Fulfillment Confirmation need to be addressed to

TATA

In principal, Telkom open to fulfill the demand with
several notes as below
• Minimum bandwidth is 20 Mbps
• Prioritize to be served under IPv6, while IPv4 will
be depend on availability but most likely not easy
to obtain
• Whether the reserved block can/cannot be shared
to others
• Total number of required /24 block and the
expectation of timeline/projection to fill each of
each block
• Required block of IP address for end customer
(/30 or /31)
• Expected service to be delivered to end customer
(contended or guaranteed)
• Service coverage distribution
KEY POINT
Discussion with TATA
-

Tech Integration

• Currently TATA-Telin have existing 100G circuits at Singapore SVQ and SVW
• We need to split the interface with two vlans for service IPT and IZO, both will have different vlans and
BGP session and redundany between svq/svw.
• 1G BW can be rate limited on PE side over the 100G links
• 1Hr. Down time would be required to configure. Scheduled call to be raised for the activity with Telin
NOC and Tata NOC.
• /24 ip pool to be reserved by Telin and to be announced only towards TCL on the IZO BGP session and
same prefix should not be announced towards any other upstream.
• Non-IZO IP for the LAN side should be from Telin Internet range IP’s for internet breakeout.
• IPV6 readiness
NEXT ACTION
Commercialization of Managed DIA Services
PKS arrangement

is a new global IP product platform initiative within Tata Communications launched Oct’ 2014.  In support of this initiative, we would be interested in the potential purchase
from Telin on your domestic enterprise Internet service as part of an E2E solution servicing our global enterprise customer base and with option for Telin to resell our Internet
WAN global ecosystem to your enterprise customers with requirements in the countries which we have coverage without needing to invest any monetary for license and IP
PoPs.
 
•                     Internet WAN is a Network solution which is based on using the Public Internet linked to SLA guarantees.
•                     It is a global Internet based WAN service that provides businesses the security, flexibility and predictability of a private network, via the global
reach of Tata and its partners’ public IP backbones.
•                     Tata is looking to deliver this new service initiative (IZO Internet WAN) for its global enterprise customer base looking to connect into countries around the globe
serviced by our selected valued partners.
•                     The initial launch in October 2014 until now gathered 122 countries through an ecosystem of local providers/partners.
•                     A number of RFPs are currently work in progress as we are communicating.
•                     Based on the market trends, we realize what the market requires is an Internet-based network solution for networking among HQ, branches, cloud
service providers, mobile devices etc.
•                     Tata feel that global communications are moving into a new direction and the public Internet cloud is the vehicle. Most companies and enterprises
are already moving towards a public cloud infrastructure, away from the high cost of MPLS type private networks.
 
  As discussed during our call, there are several important key technical requests we ask of our partners:
 
·                     Reservation of /24 IP address range for customers. This will be increase in blocks of /24 whenever the IP addresses runs out for customers.
•                     Setting up deterministic routing across the partner network towards Tata‘s AS6453 network for customers within the /24 IP Address range. This is where we
introduce the concept of “Deterministic routing”, which is the whole basis of the IZO product. In public Internet, traffic may flow from ISP to ISP with no one
having control of traffic flow. However, what we have done is put in place agreements with various partners globally for symmetric routing of traffic between Tata
and the partner. This means that:
·          
o     
o All IZO traffic that is coming to our partner is sent back to Tata, and vice versa instead to any other provider/peer.
o This gives us full control and visibility of the traffic, even when it is not riding on our network.
o This ensures predictability and consistency of performance.
o This is done by technically tuning the BGP attributes, allotting specific IP address block for IZO which will force all IZO traffic to be sent back to our