Telkom and ZTE Develop Win-Win Cooperation in Deploying IPTV/OTT STB in Indonesia

Telkom is the largest fixed-line operator in Indonesia, with approximately 5 million fixed-line subscribers, accounting for about 90% of the country’s market share. Since 2010, Telkom has been working with ZTE on an IPTV project. Through years of sincere cooperation, Telkom has attracted more than 2 million IPTV users, and the IPTV project has become one of ZTE's largest overseas sites.

New Products and Solutions to Enhance Competitiveness

Telkom chose ZTE as its cooperative partner because ZTE could continually offer cutting-edge technologies and solutions. Early in 2014, ZTE deployed a converged IPTV/OTT platform solution for Telkom. To improve user viewing experience, Telkom adopted special functions supplied by ZTE such as low bit rates and high definition, and also used DASH-based Multi-DRM for video delivery. Moreover, ZTE continually rolled out latest product solutions ranging from screen management and advertising services to the big video 3.0 smart operations platform that will be commercially used and to the new-generation INK6 template. 
The horizontal and vertical scope of the TV industry chain is relatively wide, and only positive integration can be a benign development. In the IPTV/OTT set-top box (STB) project, Telkom and ZTE worked closely to build the IPTV ecosystem including the headend, DRM, third-party value-added services, and multi-ecological terminal operating system. The ecosystem helped Telkom introduce multiple popular Chinese TV channels and mature game platforms, hence enhancing their brand competitiveness.

Telkom has adopted the latest STB models made by ZTE. Since 2017, ZTE has supplied 4Kp60 STBs that are characterized by high security and superior performance, fulfilling Telkom's needs for developing new services. ZTE's Android TV STBs have also been used to improve Telkom's brand competitiveness.

To build a mature business incubation mechanism, Telkom and ZTE co-founded a Joint Innovation Center (JIC) in 2015. Since then, the two sides have discussed and formulated multiple topics each year, and implemented verification and closure. So far, several JIC innovation projects have been completed. In the Digital Experience Center built by Telkom in 2019, a number of ZTE product solutions have been deployed. Customers are regularly invited to visit ZTE booth and experience new services. ZTE has been committed to providing the best solutions for mainstream operators worldwide.

Active Response to Improve User Satisfaction

To satisfy the user needs, Telkom has to customize its IPTV/OTT STB system and terminals such as tailor-made EPG templates. Assisted by ZTE, Telkom carries out numerous custom development programs every year. For some of the more customized needs, Telkom arranges expert on-site communication and implements tests on-site if necessary. Especially after the commercial use of Android STBs, user demands grow rapidly. Telkom has built an AppStore that introduces three mainstream OTT content providers (iFlix, Catchplay, HooQ) and several APP providers at a time. With the help of ZTE, Telkom has completed customization and commercialization within a short period of time. This has greatly enhanced the ecological dominance and integration capabilities of Telkom in the regional market. Moreover, Telkom and ZTE hold regular meetings, collect user requests and feedback questions, and give solutions in a timely manner.
Since 2016, Telkom has cooperated with ZTE in implementing interoperability tests for the IPTV/OTT STB platform. From the formulation of standard specifications to the final implementation of commercial use, they have invested a lot of manpower to address the issue of openness. The open IPTV/OTT STB platform has been highly recognized by high-level leaders from Telkom.

Timely Delivery to Ensure Service Continuity

Telkom needs to purchase IPTV/OTT STB terminals regularly for sustainable development. ZTE is required to comply with Indonesian national regulations and implement localized production of STBs. Every step from market access to import, production, and delivery requires precise control to ensure terminal supply. Because Indonesia is a multi-regional, multi-island country with a complex geographical environment, it poses a higher challenge to local logistics and after-sales services ranging from transportation to delivery and acceptance. In the case of a sharp depreciation of the Indonesian rupiah exchange rate in 2018, ZTE kept stable product supply to Telkom, ensuring that users are uninterrupted in IPTV services.

Telkom and ZTE will continue to adhere to the concept of sincere cooperation and work together for a win-win future. Telkom will continue to roll out new products and services to meet user needs, enhance competitiveness, and strengthen its market position.

[Keywords] Telkom, IPTV/OTT STB, Indonesia, Joint Innovation Center