Product Definition

POST-Paid Service

VersionDateProduced By

V 0.12nd April 2001CGEYDraft

V 0.23rd April 2001CGEYDraft

V 1.04th April 2001CGEYDelivered and Reviewed by IM3 Mgmt Team

V 1.15th April 2001CGEYIncorporating Comments from Mgmt Team Review

CONTENTS

11Introduction

1.1The Purpose of This Document11.2Competitive Situation and Target Market11.2.1Indosat IM311.2.2Market Description11.2.3Competitive Environment11.2.4Market Positioning for the Post Paid Service11.2.5Customer Segments21.2.6Product and Service Offerings32Product Description32.1Product Description32.2Launch Schedule and Customer Numbers32.3Product Feature Set33Technical Specification53.1Network Topology and Roll-Out53.2The Short Message System (SMS)53.2.1Inter-User Messaging53.2.2SMS Content63.3The Voice Mail System (VMS)63.4Circuit Switched Data (Fax and Dial-Up Data)73.5Unified Messaging Service (UMS)73.6WAP Wireless Internet74Customer Experience74.1Distribution74.1.1Assembly of Post-Paid Starter Packs74.1.2Distribution of Starter Packs and Other Materials to Dealers74.1.3Dealer Support84.2Buying the Post-Paid Service94.2.1Application Information and Supporting Documentation94.2.2Deposits and Physical Credit Checks104.2.3Post-Paid Service Activation104.3Billing the Post Paid Service104.3.1Bill Production104.3.2Bill Contents114.3.3Payments114.3.4Bill Follow-Up Process (Dunning)124.3.5Credit Limits and Credit Limit Processing124.4Support for Post-Paid Customers134.4.1Support at Dealer Outlets and IM3 Shops134.4.2Support Through the IM3 Contact Centre134.4.3Account Inquiries and Management144.5Account De-Activation155Post-Paid Tariff Structure155.1Numbering Scheme155.2The Zoning Scheme155.3Golden Numbers165.4Post-Paid Pricing Plan165.4.1Calls Not Charged165.4.2Peak and Off-Peak Periods175.4.3Charging Periods175.4.4National Roaming Within the IM3 Network175.4.5National Roaming Within the IM3 Network175.4.6International Roaming for Post-Paid Customers175.4.7Incoming Collect Calls176SLA Requirements186.1Interconnect Agreements186.2Roaming Agreements186.3Payment Processing Agreements19

1 Introduction

1.1 The Purpose of This Document

This document is the Product Definition for the IM3 post-paid mobile phone service scheduled for full commercial launch on 1st November 2001.

The document is not intended to provide detailed technical data on how the IM3 network will function to deliver a mobile phone service. Instead, it is intended to be a communication between the Product Manager and the rest of the IM3 organisation describing the key points of the service and indicating, at a high level, the requirements for delivering and supporting the service. The document should be read by managers and staff in IM3 who will be taking responsibility for delivering some aspect of the post-paid service.

Finally, this document is not a static product as it describes the current view of the service and many aspects are likely to change as the launch date draws closer. The document is owned by the IM3 Product Manager, who will be responsible for maintaining and re-issuing the Product Definition appropriately as these changes occur.

1.2 Competitive Situation and Target Market

1.2.1 Indosat IM3

PT Indosat Multimedia Mobile (Indosat-M3) is the wholly owned mobile subsidiary of parent company PT Indonesian Satellite Corporation (Indosat), the incumbent international telecommunication services provider in Indonesia. Having recently been granted a new mobile license by the government, Indosat-M3 is currently in the process of constructing a GSM 1800 nationwide mobile network in Indonesia. Indosat-M3 plans to commence commercial operations on 1 August 2001 and will be the fourth nationwide GSM operator in the country

1.2.2 Market Description

The Indonesian wireless market has experienced high levels of growth in recent years and is expected to hold strong potential in the coming years. Drivers for growth have primarily been improved economic conditions, decrease in handset prices, and the continued popularity of prepaid services. With over 3 million subscribers in the wireless marketplace today, analysts expect the number of wireless users to reach an estimated 10 million by 2004, outstripping the pace of fixed line growth.

1.2.3 Competitive Environment

As a result of deregulation in the telecom sector in 2000, there are currently 5 national and 11 regional licensed mobile operators in Indonesia. Figure 1 (below) summarises the relative positions of the three GSM players who currently dominate the Indonesian market with an estimated 95% of the market.

1.2.4 Market Positioning for the Post Paid Service

Indosat-M3 will offer a value for money proposition for its subscribers, seeking to provide high quality products at a medium price level. High quality products will consist of a comprehensive range of products and services in addition to high product and network quality. The company will price its services at a medium level, slightly below those of Telkomsel.

Figure 1: Comparison of Current Market Leaders for GSM Services

OperatorSystemMarket

ShareMarket Positioning

TelkomselGSM 900 & 1800*45% Medium Quality / Medium Pricing

Comprehensive network coverage

Satelindo

GSM 900 & 1800*30% Low Quality / Low Pricing

Relatively strong network coverage

Excelcomindo

GSM 900 & 1800*20% High Quality / High Pricing

Weak network coverage

*Recently awarded incremental GSM 1800 spectrum to increase their individual spectrums.

1.2.5 Customer Segments

Four target customer segments that have been identified for Indosat-M3. These are shown in Figure 2 below along with some of their key characteristics.

Figure 2: IM3 Customer Segments

Customer

SegmentNetwork

QualityNetwork

CoveragePrice

SensitivityAdditional

Needs*

ConvenienceYesNoYesNo

Wanna-BeYesNoYesYes

MobileYesYesYesNo

TechieYesYesNoYes

*Additional needs include VAS, customer service, and bundling of products / services

At launch, Indosat-M3 will look to prioritise its target customer segments as listed below:

1. Convenience: Large customer segment with basic needs will help Indosat-M3 build a large subscriber base.2. Wanna-Be: Small, niche customer segment interested in more advanced data services will help Indosat-M3 generate higher ARPU.3. Mobile: Large customer segment will have lower prioritisation at launch due to their need for network coverage.

4. Techie: Small, niche customer segment will have the lowest prioritisation at launch due to their need for comprehensive network coverage as well as advanced voice and data services.

As Indosat-M3 develops its core competencies and as the market matures, the companys prioritisation of target customer segments will evolve.

1. Mobile: Large customer segment with potential to generate higher ARPU if educated and introduced to VAS.

2. Techies: Small customer segment with large growth and ARPU potential as high-end VAS gain increased attractiveness.

3. Wanna-Be: Small customer segment with potential for increased ARPU based upon VAS development.

4. Convenience: Large customer segment representing the mass market with low ARPU potential and high potential to churn.

1.2.6 Product and Service Offerings

Indosat-M3 plans to offer a more comprehensive range of products and services than its competitors.

2 Product Description

2.1 Product Description

The IM3 post-paid GSM service will be based on the companys 1800MHz GSM network. For launch it will be a feature-rich service which will include SMS, Unified Messaging and WAP internet access for customers with a suitable handset. At launch all post-paid customers will be given the same standard service.

2.2 Launch Schedule and Customer Numbers

The schedule for the post-paid service is to have full commercial launch on 1st November 2001. Figure 3 (below) shows the high and low estimates for pre and post paid customer numbers during 2001 and through to the end of 2002. Approximately 20% of all subscriptions sold are expected to be post-paid accounts.

Figure 3: Pre/Post Paid Customer Projections

2.3 Product Feature Set

In addition to allowing inbound and outbound voice calls the IM3 post-paid service will include the advanced features described in Figure 4 (overleaf). The table describes each feature briefly and indicates the default setting for post-paid subscribers. The settings shown are those for the launch of the post-paid service in November 2001 and may be changed after that time.

Figure 4: Post-Paid Service Feature List

3 Technical Specification

3.1 Network Topology and Roll-Out

The Post-Paid service will be provided over the IM3 cellular network. This is shown at a high level in Figure 5 (below) and full details and specifications of the network design, equipment can be found in the following documents:

Kontrak Pengadaan & Instalasi Infrastuktur Indosat Multi-Media Mobile (IM3) GSM 1800 (Ref 5277/KTR/OPS/00) produced by Ericsson, the network contractor for IM3, in October 2000.

Program Kerja Dan Anggaran. Bagian Perenncanaan Dan Rekayasa Divisi Mobile PT Indosat. This covers the network roll-out and coverage plans, network transmission requirements and the numbering scheme to be adopted.

Figure 5: IM3 High Level Network Diagram

The overall schedule for the roll-out for the network across Indonesia is shown in Figure 6 (overleaf). and further information can be found in the documents listed above. The schedule shows that full coverage is expected by the launch of the post-paid service in November.

3.2 The Short Message System (SMS)

3.2.1 Inter-User Messaging

IM3 users will be able to send and receive short messages of up to 160 characters from other users of the IM3 service and with customers of other Indonesian mobile operators. This assumes that negotiations currently underway yield appropriate commercial agreements as scheduled (currently agreement is expected of 15th June).

Figure 6: IM3 Network Roll-Out Plan

3.2.2 SMS Content

IM3 post-paid subscribers will have access to a number of information services on demand through the SMS service. This element of the service is described in the separate product definition document for IM3 Wireless Data Services..

3.3 The Voice Mail System (VMS)

IM3 will be using a voice mail system provided by Teknoman. Details of the system can be found in the document: Rencana Kerja Dan Syarat-Syarat (RKS) Pengadaan Dan Pemasangan Perangkat Messaging Services. The voice mail system will be accessible from IM3 handsets through a three digit short code of (222). Access to the system will also be possible from any fixed or mobile phone with DTMF functionality on a standard land line number (XXXXXXXX - TBD). This will need to be followed by dialling the relevant MSISDN followed by # and then the users PIN.

3.4 Circuit Switched Data (Fax and Dial-Up Data)

The post-paid service will be provided with the capability of supporting circuit switched fax and data at 9.6 kbs as standard. The fax and data services will be available through a single MSISDN.

3.5 Unified Messaging Service (UMS)

This element of the post-paid service is described within the separate product definition document for WAP wireless data services.

3.6 WAP Wireless Internet

This element of the post-paid service is described in a separate product definition document.

4 Customer Experience

4.1 Distribution

4.1.1 Assembly of Post-Paid Starter Packs

Post-paid Starter Packs will be assembled at IM3 Headquarters by the SIM Card Management Team. A post-paid Starter Pack will consist of:

SIM Card with:

- MSISDN

- PUK

- serial number

- expiry date Details the IM3 post-paid Service in Bahasa and English

Tariff structure in Bahasa and English

Locations of IM3 Shops and useful telephone numbers in Bahasa and English

Customer will be provided with separate documents showing up to date coverage maps and details of how to read their IM3 bill.

Post-Paid Starter Packs will have a face value, which will be determined closer to the launch date. Dealers may discount this price as part of their own sales promotions.

4.1.2 Distribution of Starter Packs and Other Materials to Dealers

Figure 7 (overleaf) shows the distribution channels for:

SIM cards (in the form of Starter Packs)

Pre-Paid Vouchers

Point of Sale (POS) sales and marketing collaterals

The key points to note are:

Regional Dealers are supplied through the IM3 shops, which hold stocks of Starter Packs and marketing materials

National Distributors and the will be re-supplied directly from IM3 HQ by contacting the Dealer Administration team

IM3 shops will be re-supplied directly from IM3 HQ

Sales to customers will be primarily from the outlets owned by the National Distributors and Regional Dealer although some sales may be made from the IM3 Shops

Initially there will no IVR in front of the call centre ADC. However an IVR may be added soon after launch if necessary to process incoming calls more effectively.

4.1.3 Dealer Support

Figure 7 also shows the support structures that will be available for both end users of the IM3 post-paid service and the distribution chain.

Support for National Distributors: Distributors will be supported through the Dealer Administration team based at IM3 headquarters. This team will process requests for starter packs and marketing materials, as well as act as a Single Point of Contact (SPOC) into the IM3 organisation.

Support for Regional Dealers: Regional Dealers will be supported by their Regional Dealer Managers (RDMs). The RDMs will co-ordinate requests for starter packs, vouchers and marketing materials form the dealers and ensure that requests are in line with agreed quotas and targets. The RDMs will also assist the dealers in development of joint promotions and other marketing campaigns with IM3 co-ordinating the support from IM3 as necessary.

Figure 7 IM3 Sales Distribution and Support Structure

4.2 Buying the Post-Paid Service

Note that in their review of version 1.0 of this Product Definition on 4th April the IM3 management team elected to change the previously define post-paid sales and activation process. The revised process developed in the review meeting depends heavily on the capabilities of the billing and customer care systems to be installed and its feasibility will be reviewed by IM3 when this selection is clear.

When a definitive process is determined Section 4.2 of this Product Definition will updated to reflect the revised approach.

Customers will buy post-paid Starter packs from dealer outlet, IM3 shops and IM3 temporary outlets. Purchase of the IM3 post-paid service through the call centre will not be possible at launch in November 2001.

However, this channel my become active if (or when) IM3 negotiate Card-Not-Present transaction agreements with appropriate financial institutions in Indonesia.

The process for the sale of post-paid Starter Packs through dealer outlets and IM3 shops is described in the high level process flow SALES 230 - Post-Paid Sale at Outlet. Further details are given in the IM3 Standard Operations Manual.

4.2.1 Application Information and Supporting Documentation

The customer must complete and sign an IM3 Post paid Application Form, providing the information shown in Figure 8 (below) along with the supporting evidence indicated.

The sales assistant must check and validate all information and supporting documentation supplied by the customer.

Both the sales assistant and the customer must sign and date the Application Form

Figure 8: Data Required for Post-Paid Applications

InformationEvidence

NameOfficial KTP Card

Passport

Residential AddressRecent (within three months) utility or phone bill bearing his name and address as supplied on the IM3 application form.

Billing Address (if different)None but residential address must be supplied

IncomeLetter from employer or recent pay-slip.

Method of Payment

(Bank Account Details

(Credit Card Details)Banks Statement of Account bearing applicants name and address as supplied on the IM3 application form.

4.2.2 Deposits and Physical Credit Checks

To obtain a post-paid SIM customers should pay a deposit of Rp 200,000. (To Be Finalised)The amount of the deposit will be finalised closer to the launch date but will set at a figure greater than the cost of acquiring a pre-paid subscription. The cost of a pre-paid subscription will be finalised for the pre-paid launch in August.

If the customer will not pay a deposit the dealer outlet will contact the local IM shop to arrange a physical credit check by their local third party credit checking contractor. No Starter Pack is given to the customer in these circumstances and the outlet will arrange to inform the customer when the credit check has been carried out so that he can collect a Starter Pack.

The payment of a deposit or the completion of a successful physical credit check will be recorded on the Application Form.

4.2.3 Post-Paid Service Activation

When a Starter Pack is given to the customer the IM3 Sales Support Team have to set-up the account on IM3s systems. This is done in the following stages:

the outlet call the IM3 Sales Support team to request that the account be set up. For clarity and accuracy the outlet may also fax a copy of the completed forms to the Sales Support team.

The Sales Support team enter the customer and order details on the IM3 system.

The Sales Support team pass the account to the IM3 Activation Team for final activation of the account.

The Activation team call or SMS the customer to inform them that their account is now set-up and active.

The outlet sends completed Application Form to the IIM3 Sales Support for their records.

The process of activation is described the high level process listed below and in the IM3 Standard Operations Manual.

SALES 230 Post-Paid Sale at Outlet

ACT02 Post Paid Account Activation ACT07 Post-Paid Account Set-Up.

4.3 Billing the Post Paid Service

4.3.1 Bill Production

Customers of the IM3 post-paid service will receive a monthly bill for the service. At launch the following restrictions will apply:

there will be only one billing cycle for all customers (additional cycles may be added as the customer base grows);

non-itemised billing will be given as standard (itemised billing will be offered as a chargeable option);

there will be one bill format for all corporate customers and one format for all non-corporate customers (both will have itemised/non-itemised variants). More bill formats will be developed at a later date.

there will be no electronic or on-line billing. However, the goal will be to offer this as soon as possible after launch.

The detailed format of the bill will be finalised closer to the launch date.

The actual printing and distribution of the bills will be outsourced to an external contractor. IM3 will provide the sub-contractor with bill data in ASCII file format. The contractor will provide bill image back to IM3 in PDF format on CD ROM.

4.3.2 Bill Contents

The monthly bill will contain:

billing period (start and end dates) TO BE AGREED barcode

account name, number and MSISDN

date of bill production;

payment due date;

customer name, address and account number;

last invoice amount ;

payments received since last invoice;

an opening balance for current invoice;

periodic charges;

one-off charges

charges for all calls made since the date of last payment;

adjustments made;

any discounts applied;

interest charges for overdue amounts;

total charges without taxes;

a total payable including taxes;

a closing balance.

Bills will periodically include an updated coverage map.

Some one-off payments will be spread over multiple bills.

4.3.3 Payments

At launch customers will be able to pay their bills in the following ways:

Payment

Made AtPayment

Methods

AvailableAssumptions and Dependencies

IM3 ShopsCash

Credit CardAvailable at Launch

Dealer OutletsCredit CardAvailable at Launch

IM3 Call CentreCredit CardOnly possible when IM3 establish card-not-present transaction agreements with one or more local financial institutions.

BanksCash

Credit Card

Account TransferOnly possible when IM3 establish the necessary agreements with one or more local banks.

Corporate account holders may be allowed to pay by company cheque.

4.3.4 Bill Follow-Up Process (Dunning)

Following the issue of a bill the customer will be given 17 days to make a payment and the payment due date will be included on the bill. If no payment is received by the due date a bill follow-up (dunning) process will be invoked as described in Figure 9 (below).

Figure 9: The Bill Follow-Up Cycle

IM3 will not charge for overdue amounts if payment is received before the next bill cycle.

Otherwise a fixed late payment fee will appear on the following months bill.

Selected customers will be contacted on day 18 if no payment has been received.

If no payment is received by the end of the dunning process the customers account will be terminated and the associated MSISDN placed in quarantine in preparation for re-use by another customer at a later date.

Outstanding balances will be written-off.

IM3 may pass uncollected debts to a third party collection agency.

4.3.5 Credit Limits and Credit Limit Processing

IM3 post-paid customers will be assigned a credit limit at the time their account is established. The credit limit will be less than any deposit taken.

The current balance of the customer will be monitored as calls are made, rated and assigned to the account by the billing system.

As the customer nears the credit limit IM3 customer care will contact them to request interim payment. When the customers outstanding balance reaches the credit limit barring of outbound and in-bound roaming calls will be imposed on the account until a payment is received. Figure 10 (overleaf) shows this process.

Figure 10: Credit Limit Processing

4.4 Support for Post-Paid Customers

4.4.1 Support at Dealer Outlets and IM3 Shops

End users of the IM3 post-paid service will be able to obtain support directly from staff in dealer/distributor outlets and by visiting or calling their local IM3 shop.

Dealer outlets will be trained to respond to general or common inquiries and to direct the customer to the call centre for more complex issues or questions especially any requiring access to the customer care and billing systems that will not be available at the outlets.

Staff in IM3 shops will be trained to answer a wider range of inquiries but will also refer customers to the call centre whenever the problem or question is too complex.

4.4.2 Support Through the IM3 Contact Centre

The IM3 contact centre will therefore be the primary source of customer care for all IM3 customers (pre-paid and post-paid). The centre will be staffed 24 hours a day 365 days a year to provide support whenever it is required.

The centre will accept all communications from customer, including:

telephone inquiries;

fax inquiries;

correspondence;

e-mails .

At launch incoming e-mails will be delivered to a specific e-mail address and a dedicated mail-room team will be assigned to respond to them. Similarly there will be a central fax machine and a dedicated team of CSRs to receive and respond to inbound fax inquiries.

A set of KPIs for contact centre performance have been developed.

At a later stage the various contact points will be integrated into the CRM client workstation to allow all CSRs to handle inquiries form all streams from their desk. Figure 11 (below) shows the target integrated contact centre structure.

Figure 11: Target for Integrated Contact Centre Infrastructure

The contact centre will contactable through a three digit short code on IM3 handsets (111). Calls to the contact centre using this short code will be free of charge and the number will be accessible even when outgoing call barring has been imposed on the customer due to late payment of bills.

Customers will also be able to call the contact through a local landline number (XXXXXXX TBD) which will be accessible from other networks. Calls to this number placed from other networks may be subject to charges depending on the policies and tariffs of the operator concerned.

Figure 12 (overleaf) shows how the call centre will be organised to provide immediate support to customers with problems that are easy to resolve (First Tier Support). For more intricate problems clear escalation paths will be provided to more experience CSRs (Second Tier Support). Persistent problems or issues arising from system or equipment

4.4.3 Account Inquiries and Management

Through the IM3 call centre post-paid customers will be able to perform a range of account management and inquiry tasks, including:

Account Management

Name/Account Holder Change Request

Address Correction on Returned Mail

Customer Profile Changes

Adds and Upgrades

Service Cancellation

Lost or Stolen SIM

Billing Enquiry

payment inquiries

charging questions

bill disputes

Figure 12: IM3 Call Centre Structure

4.5 Account De-Activation

Customers will be able to de-activate their post-paid account by calling the contact centre or by visiting or calling their local IM3 shop.

Customers will require to produce evidence of their identity when deactivating their service through a shop. When deactivating through the contact centre customers will asked to verify their identity by providing information not shown on their monthly bill - such as date of birth.

Upon de-activation customers will be provided with a final bill of outstanding charges.

De-activating customers will be passed to the IM3 Retention Team.

5 Post-Paid Tariff Structure

5.1 Numbering Scheme

IM3 post-paid subscribers will be given the four digit prefix 0855 and allocated numbers according to the geographical area in which the subscription is purchased as shown in Figure 7 (overleaf) and in more detail in Figure 13 (overleaf).

5.2 The Zoning Scheme

The current plan is that IM3 numbers will be divided into four ZONES based. All customers will therefore belong to one of these Zone according to the telephone number they are allocated. The Zones will form the basis of charging for calls within the IM3 network. A rate table to support this will be developed for the billing system.

Figure 13: IM3 Post-Paid Numbering Scheme

5.3 Golden Numbers

The IM3 marketing department (or the billing system if possible) will identify MSISDN numbers that are likely to be highly attractive to users and therefore command a premium price. These numbers will not be allocated to SIM cards distributed to dealers in the normal fashion but will be withheld for sale as special Golden Numbers.

A list of Golden Numbers available and their price will be distributed to dealer outlets and IM3 shops. Customers willing to pay the higher price and wait for their SIM card will be able to select any number from the list and collect a SIM card with that number from the IM3 outlet. The dealer will contact the IM3 call centre to check that the number selected is still available.

5.4 Post-Paid Pricing Plan

At launch all post-paid customers will be placed on the same tariff and pricing plan.

The overall tariff structure as decided in IM3s internal pricing workshops in March 2001 is shown in Figure 14 (page 20). A number of specific aspects of the tariff are discussed below.

5.4.1 Calls Not Charged

The following calls will not be charged to IM3 post-paid customers:

Incoming calls (except inbound international and national roaming calls)

Calls that are not completed

Calls of less than 3 seconds duration (considered as not completed)

The call set-up time will not be charged.

5.4.2 Peak and Off-Peak Periods

IM3 will establish peak and off-peak charging periods for calls as shown in the table below.

Monday

to FridaySaturdaySundayPublic Holidays

08:00 22:00PeakPeakOff PeakOff Peak

22:01 07:59Off PeakOff PeakOff PeakOff Peak

5.4.3 Charging Periods

Calls will be charged for duration measured in time periods as follows:

local: charge per 20 second period

long distance: charge per 15 second period

international (IDD): charge per 6 second period

The calls duration will be rounded up to the nearest whole time period for charging purposes.

5.4.4 National Roaming Within the IM3 Network

Customers will be charged for incoming calls while they are roaming within the IM3 network and may be charged an additional fee for outgoing calls made while roaming.

NOTE: The exact definition of when a customer is or is not roaming in this context has still to be fully defined. Nor is it clear that the network and mediation systems are fully able to support this.

5.4.5 National Roaming on Other Networks

It is likely that at launch there will be no inter-operator roaming for IM3 post paid customers. A possible exception to this is Satellindo, in which Indosat has recently acquired a controlling interest.

If appropriate commercial agreements and technical infrastructure can be developed IM3 customers will be able to roam on the Satellindo network. The tariffing for this service will be developed by the IM3 Product Manager.

5.4.6 International Roaming for Post-Paid Customers

Post-paid customers will be able to roam on networks in other countries when they travel overseas. The list of countries and operators with which roaming agreements have been established will be maintained and distributed by the IM3 Marketing Department.

The international roaming facility will not be activated automatically for post-paid customers. The facility will be activated by IM3 on request provided the customer has established an acceptable payment history over a period of at least three months.

IM3 may also request payment of a roaming deposit.

5.4.7 Incoming Collect Calls

Incoming collect calls to post-paid customers will not be permitted

Figure 14: The Post-Paid Tariff Structure at Launch

6 SLA Requirements

6.1 National Distributor and Regional Dealer Agreements

IM3 must establish agreements with national distributors and regional dealers to secure adequate distribution of its starter packs and re-charge vouchers. Agreements should cover:

number, location and quality and appearance of stores to be maintained

targets for SIM and voucher sales

payment and commission structures

liabilities for lost and stolen SIM cards and Voucher

frequency and content of sales reports

contact and escalation points

6.2 Interconnect and Numbering Agreements

6.2.1 Local Interconnects

The following interconnections and interconnect agreements will be required to allow IM3 pre-paid customers to place calls to customers on other networks.

other between IM3 and PT Telkom

other between IM3 and the other Indonesian cellular operator

between IM3 and its Indosat parent for international traffic

Agreements should cover:

expected traffic volumes and prices

format, accuracy and speed of delivery of CDRs

payment terms and conditions

The interconnect agreements and the associated physical interconnections MUST be in place and fully operational by the Friendly City Launch in July 2001.

6.2.2 Interconnect Agreements - Roaming

International Roaming will not be part of the pre-paid service for the launch in August. therefore development of the commercial agreement and physical interconnection and processing of TAP files will not be required until November.

However, a revenue opportunity may be lost if incoming overseas mobile users cannot roam on IM3s network and to avoid this loss the roaming facilities should be in place for 1st July.

A national roaming agreement should be developed as soon as possible with Satelindo to maximise the coverage gain afforded by IM3s recent purchase of the company.

6.2.3 Numbering Schemes for Special Numbers and Short Codes

IM3 should finalise its scheme for special numbers and short codes to ensure that, if roaming with Satelindo (or other operators) is implemented, no confusion occurs when these numbers are dialled.

6.3 Bank/Credit Card Agreements

6.3.1 Card-Not-Present Transaction Agreements

For IM3 to be able to implement its plans to offer credit card payment for pre-paid and post-paid services through the call centre the company must negotiate agreements to accept payment without any card being physically present or inspected. These agreements should include:

data to be collected at point of sale

processing turnaround times

commissions or handling fees to be paid

method of reconciliation and payment

security and liability for fraudulent transactions

6.3.2 Payment Handling (for Post Paid)

For the launch of the post-paid service IM3 must development suitable agreements with banks (and possibly other organisations) for the handling of bill payments to IM3. These agreements should cover:

transaction volumes, turn-around time, processing quality and error rates etc

method of reconciliation, handling fees to be paid

dispute handling and escalation processes

security and liability for fraudulent transactions

6.4 Print Outsourcer

IM3 needs to appoint an outsourcer for the print and distribution of its bills to post-paid customers. The agreement needs to describe:

numbers and frequency of bills

performance criteria for the delivery of bill data to the printer by IM3

performance criteria for the printing and distribution of bills

payment and payments terms

6.5 Credit Checking / Starter Pack Delivery

IM3 may outsource checking of potential customers to verify their name and address and assess their credit-worthiness before selling any service (pre-paid or post-paid) to them. The same contractor may be asked to deliver Starter Packs.

IM3 will therefore needs to identify a suitable contractors (or contractors) to carry out the checks. These agreement need to outline

number and type of checks to be completed

payments and payment conditions

performance criteria check completion times, check accuracy

6.6 Debt Collection

IM3 may also wish to appoint an external debt collection agency to recover unpaid bills from post-paid customers. This is not essential and would not be required until the launch of the post-paid service in November. Ideally, IM3 will sell its bad debts for a percentage of the debt value to minimise the management effort involved.

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