Driven by the challenging business environment as to the commoditization of voice services, the rise of mobile broadband technology and the changes in the competition landscape telecom operators are at the urgent need to redefine their business model. This thesis discussed the business model transformation of telecom operator by taking a case of PT. XYZ. The study was a qualitative study. The result of the study showed the success of PT. XYZ in adopting new business model in the broadband era as a basis for the company?s long term growth. However the study also found that the revenue growth from the broadband was still insufficient to compensate the declining growth of voice revenue. The study further suggested PT. XYZ to engage in the innovation industry to secure its sustainability.