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FTTH Council Asia Pacific:FTTx trends - 16 country review

© Copyright Ovum. All rights reserved. Ovum is part of the Datamonitor Group.1

FTTx trends - 16 country review

February 2014

Julie Kunstler

Principal Analyst

[email protected]

Table of Contents

Section Page

Methodology 3

Project Deliverables 4

Australia 5

Section Page

Malaysia 84

New Zealand 92

Pakistan 106


Bangladesh 18

China 27

Hong Kong 37

India 47

Indonesia 62

Japan 75

Philippines 118

Singapore 133

South Korea 145

Taiwan 154

Thailand 169

Vietnam 182

Ovum’s Methodology

� Ovum conducted an independent assessment and analysis on broadband deployments with specific focus on FTTH activity in the Asia Pacific region, focusing on 16 countries: Australia, Bangladesh, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.

� We analyzed information on the FTTH subscriber bases in each country. We developed FTTH subscriber forecasts based on deployment and investment plans and realistic implementation schedules. We also studied other types of wireline access in each country.

� We gathered information concerning along FTTH regulatory issues and announcements for each country.


� We gathered information concerning along FTTH regulatory issues and announcements for each country. Information was gathered from reports, announcements, press releases and interviews provided by regulatory agencies, other government agencies, communications service providers, vendors and investment groups.

� We have developed opinions on the drivers and inhibitors of FTTH in each country as reflected in our FTTH and household penetration forecasts. We have also developed forecasts for other types of wireline broadband including DSL and cable modem.

� In addition, we gathered basic information concerning LTE and WiMAX for selected countries. Broadband wireless is becoming a stronger and stronger driver for the use of fiber-based (including FTTH) mobile data backhaul solutions.

Ovum’s project deliverables

� Our deliverables include:

� Detailed excel workbook containing:

� Wireline broadband subscriber actuals and forecasts for FTTH, DSL and cable modem each country from 2011 t0 2017.

� Wireline household penetration actuals and forecasts for FTTH, DSL and cable modems for each country for 2011 to 2017.

� Summary tables and graphs for the Asia Pacific region including ranking of countries by FTTH subscriber base and household penetration for 2013 and forecasts for 2017.


subscriber base and household penetration for 2013 and forecasts for 2017.

� Presentation of FTTH subscribers, forecasts and household penetration to be shared with the FTTH Councils around the world and used at the upcoming FTTH Council Europe Conference.

� Detailed presentation (approximately 200 slides) of FTTH market activities in each country.

� Detailed presentation of the FTTH Asia Pacific market, including subscribers, subscriber forecasts, drivers, challenges and technologies, at the upcoming FTTH Council Asia Pacific Conference. In addition, this presentation will also discuss new revenue opportunities for service providers based on FTTH networks.

Note: Service providers and regulators in different countries each have their own definition of broadband. Consequently, there is little consistency between service providers and regulators within a country, let alone across countries.

Australia


Australia Profile

General Information

� Estimated Population – 22.3 million

� Urban – 89%

� Estimated Households – 8.8 million


� Wireline Broadband Connections – 6.0 million

� Wireline Broadband Penetration by Household – 67.5%

� DSL – 54.9%

� Cable – 10.8%

� FTTH – 1.8%

Broadband Overview

Subscribers (‘000)

Trend in broadband access technology

� Broadband subscriber in Australia grew by 4.6% to reach 12.1 million in June 2013 compared to 11.6 million in June 2012.

� Approximately 78% of these broadband subscribers were household users and the remaining 22% comprised of corporate

and government customers.

� Fiber was the fastest growing Internet access technology, which increased by 26% to reach 115,000 connections in June

2013.


Subscribers (‘000)

Speed June 2012 December 2012 June 2013

DSL 4,632 4,727 4,787

Cable 917 918 934

Fiber 52 91 115

Satellite 94 92 93

Fixed Wireless 30 49 49

Mobile Wireless 5,862 5,995 6,150

Other broadband 10 7 3

Total broadband 11,597 11,897 12,131

* Subscribers with dial-up connections are not considered here.

Australia - Broadband Overview

Trend of high speed broadband demand

� Demand for high speed broadband data has been increasing over the past few years in Australia.

� Volume of data downloaded by broadband connection increased by 58.5% to reach 657,262 Terabyte in June 2013 as

compared to 414,537 Terabyte in June 2012.

� As of June 2013, the download speed with the highest proportion of subscribers was in the 8Mbps – 24Mbps range.


Subscribers (000s)

Speed June 2012 December 2012 June 2013

256 Kbps – 1.5 Mbps 980 609 394

1.5 Mbps – 8 Mbps 5,067 4,212 3,970

8 Mbps – 24 Mbps 4,094 5,406 5,976

24 Mbps or above 1,458 1,645 1.785

Total 11,600 11,873 12,126

* Subscribers with speeds less than 256kbps are not considered here.

Australia – FTTx Status (1/5)

� National broadband network is Australia’s national wholesale only, open access communications network that is being built

to provide high speed broadband service by leveraging the three types of technology fiber, fixed wireless and satellite,

depending on location.

� NBN Co, a government-owned corporation, was established in 2009 to design, build and operate the high speed national

broadband network.

� First trial rollout of national broadband network started in Tasmania in July 2010 and first NBN services went live in

National Broadband Network (NBN)


� First trial rollout of national broadband network started in Tasmania in July 2010 and first NBN services went live in

Armidale in May 2011 with a coverage of 2,900 premises.

� NBN Co signed an agreement worth A$9 billion with Telstra to access its infrastructure for a period of 35 years.

� As per the agreement, Telstra proposed to disconnect its copper, co-Axial and fiber broadband subscribers and slowly

migrate to NBN network.

� A similar kind of agreement was signed between Optus and NBN Co for approximately A$800 million where Optus will

shift its HFC customers on NBN network.

� In December 2010, the corporate plan 2011- 2013 was prepared and key objectives and targets were set for NBN Co.

This corporate plan was replaced by a new corporate plan 2012-15 which was prepared in August 2012.


National Broadband Network (NBN)

� Corporate plan 2012-2015 targets -

• Complete the transit network in FY2015 with deployment of dark fiber connectivity, 121 Points, of Interconnect (PoIs)

and more than 650 Fiber Access Nodes (FANs).Remaining FANs, more than 400 to be built over the FY2016 –

FY2021period.

• Deploy 206,000km of Gigabit-capable Passive Optical Network (GPON) by FY2021.


• Spend A$37.4 billion as capex for development and maintenance of broadband network by June 2021.

• Pass 12.2 million premises by fiber and 1 million premises by fixed wireless & satellite by FY2021.

• Connect 8.5 million premises by fiber and 0.2 million premises by fixed wireless & satellite by FY2021.

• Launch two satellites with commercial operations starting in mid-2015.

• Implement Telstra definitive agreement and Optus HFC agreement.


Strategic review outcomes

� In September 2013, Federal Election was held in Australia and the subsequent change in the government from Labor

to the Liberal National Coalition prompted a strategic review of national broadband network.

� The strategic review found that:

• The rollout will miss its forecast completion date by three years, which will finish in June 2024 instead of

December 2021.


• NBN plan might require funding of A$73 billion (an additional A$29 billion) compared to A$44 billion in the

current 2012–2015 corporate plan.

• It may require more than A$19 billion of additional capex i.e. A$56 billion compared to A$37 billion in 2012–

2015 corporate plan.

• In the current NBN Corporate plan, revenues are overestimated by $13 billion through 2021.

• Continuation of NBN will require a cumulative increase in opex of more than $5bn until the new network

completion date of 2024.

• Generate a much lower IRR, 2.5% versus 7.1%.


Strategic review – Rollout status



� NBN Co has suggested an alternative to use optimized “Multi-Technology Mix” (MTM) for faster rollout.

� The Optimized Multi-Technology Mix scenario will result in the following outcomes according to NBN Co.:

• Faster roll out of NBN by choosing the most economically efficient technology depending on various regions.

• The MTM scenario will require funding of A$41 billion, i.e. A$32 billion less compared to A$73 billion of old NBN.

Strategic review - Recommendations


• About 91% of premises in the fixed-line footprint can have access to download rates of at least 50Mbps by 2019

and 98%-100% premises with 25Mbps by 2020.

• Uplift of the revenues leading to cumulative revenues of around A$18 billion over FY2011-21.

� A multi-technology approach would deploy FTTP, FTTN, FTTB/DP and HFC in addition to fixed wireless and satellite.

� The plan envisions a split of 26% FTTP, 44 % FTTN and 30% HFC.

� 2014 update:

� By June 2014, the rollout is expected to pass a total of only 357,000 brownfields premises with fiber, against a

target of 1.129 million as set out in the August 2012 corporate plan.

Australia - NBN technology options


Australia - NBN Projected Target


Australia – LTE Status

� The 4G landscape in Australia is accelerating at a rapid pace due to increasing high speed data demand from subscribers. The top three Australian carriers are spending billions upgrading their networks to high-speed 4G LTE services.

� LTE was first launched in Australia by Telstra in September, 2011 in eight capital cities and 30 regional centers across Australia.

� In 2014, Telstra is aiming to switch its focus to the introduction of faster speeds via the deployment of LTE-Advanced (LTE-A) technology and has already started LTE-A field trials.

� Telstra spent A$3,793 million on capex in 2013 with major portion to rollout 4G LTE services and it has committed to invest A$1.3 billion for the spectrum purchase to support growing demand for mobile content and data.


invest A$1.3 billion for the spectrum purchase to support growing demand for mobile content and data.

� Vodafone and Optus are the other two major operators who are currently providing LTE services in Australia.

� Optus launched its LTE service in Newcastle in April 2012, with capital city coverage available through 2013. It had 1.37 million LTE subscribers in September 2013.

� Optus is planning to invest $2 billion over next two years on 4G services. It has recently completed a A$230 million acquisition of the Vividwireless Group from Seven Group Holdings to get access to 98MHz of spectrum in the 2.3GHz band for its TD LTE network.

� Optus had already successfully trialed LTE Advance technology on its network in December, 2013.

Australia – LTE Status

� In June 2013, Vodafone also launched its LTE services on its1800 MHz band in Sydney and Perth, with partial coverage in Melbourne, Adelaide, Brisbane, Gold Coast, Newcastle and Wollongong.

� Vodafone is going to increase its coverage with the addition of 2,000 LTE sites during the course of the year and has plans to invest $1 Billion over two years on network upgrades.

� National broadband network company of Australia also launched LTE services in April 2012.


Bangladesh


Bangladesh Profile

General Information


� Urban – 36%




� Wireline Broadband Connections – 34k


� DSL – 0.04%

� FTTH – 0.06%

Bangladesh – market overview and spending drivers

Spending drivers Remarks

2G->3G->4G

• Bangladesh's telecom regulator, BTRC, has concluded a long-awaited 3G auction, raising BDT40.81 billion ($525.2 million). BTRC allocated 25 MHz of spectrum to four operators. Robi, Airtel and Banglalink each secured 5 MHz and Grameenphone secured 10 MHz of spectrum.

• Five companies including Ollo, Banglalion, Qubee, Telecom Company Mango and BTCL would be offering LTE services, after the approval from BTRC.

• In 2013, the regulator initiated work to allow private investment for the installation of another submarine cable SEA-ME-WE-5, which would act as a backup link for SEA-ME-WE-4, the only


International connectivity

submarine cable SEA-ME-WE-5, which would act as a backup link for SEA-ME-WE-4, the only submarine cable connecting Bangladesh to the world.

• In December 2013, upgrading of Dhaka- Cox's Bazar submarine cable backhaul link from 40(4x10) Gbps to 240 Gbps was awarded to Netas Telecommunikasyon. The work will be accomplished through Asset Procurement under M&O wing, BTCL at a cost of US$2.9M.

• Meanwhile, the state-owned Bangladesh Submarine Cable Company Limited (BSCCL) has started work to connect the country with second submarine cable SEA-ME-WE-5 and is expecting to complete the installation by December 2014.

Drivers and challenges

• Business drivers for broadband still remains triple-play and quad-play services. However, the biggest challenge for operators is to offer economical solutions given the market’s price sensitivity.

• Other challenges that mobile operators faces are the taxes and regulatory reforms in the country. Around 60% of operator’s revenues goes in taxes and levies, which is higher than the international average.

Bangladesh - BTCL Profile (1/2)

� BTCL is the incumbent fixed line operator in Bangladesh. Established in 1953.

� BTCL has the largest telecom infrastructure comprising copper cabling, microwave links, satellite links, optical fiber networks, etc. As of September 2013:

� PSTN Telephone Capacity – 2.26 million

� PSTN Telephone Connections – 1.43 million

� At present, BTCL is providing telephone service to about 1 million telephone subscribers and all the subscribers can


million telephone subscribers and all the subscribers can access to dial-up internet service.

� It also offers ADSL2+ Broadband internet service known as Bcube and had capacity of about 47,000 as of June 2013:

� Number of connections – 13,000

� Number of districts covered – 45

� Speed - 128 kbps to 2Mbps

� Length of deployed optical fiber cable – 8,220 KM

� Optical fiber bandwidth capacity of BTCL – 8Gbps

Bangladesh - BTCL Profile (2/2)

� In 2013, the Government approved a development project of BTCL to lay 8,220 km optical fiber cable to connect 290 upazillas, so that the rural population can also avail themselves of broadband services. The Government funded project cost will be around BDT50 billion and is expected to be completed by December 2015.

� In another project, BTCL has planned to connect 1006 union parishads through optical fiber. They are also working to connect 108 more union parishads from another region. After completion of these projects, 479 out of 486 upazillas will be brought under broadband umbrella. This project would cost around BDT7.18 billion.

� BTCL has started the project of installation of Next Generation Network (IMS) based telecommunications Network for Digital Bangladesh (NTN) in 2012 worth 21.27 billions BDT, the project is expected to be completed by June 2016.


2016.

� Under this project the company would be constructing NGN (IMS) Platforms, rolling out OFC Network up to 3500 km, building data centers, providing broadband –FTTX and ADSL (100,000 subscriber) along with Video on Demand, IP TV, etc.

� An ongoing project (ILDTS Policy-2007 Compliance Project) funded by BTCL is expected to be completed by March 2014. In this project the company has planned Installation of IGW with NGN facility, installation of ICX at Dhaka, Chittagong, Sylhet, Khulna & Bogra, upgrading BTCL’s existing IIG, central billing system, computerized accounting system. The total cost of the project is BDT1.07 billion.

� BTCL has funded Replacement of old Digital Telephone System of Dhaka city project initiated in September 2009 and expected to complete by June 2014, costing BDT2.48 billion. In this project the company would be providing the NGN based Switching & MGW, MGC, Access gateway, PSDN, AAA, NMS, FTTX, XDSL and optical fiber of 450 km.

Bangladesh - Fiber@Home Profile

� As of July 2013, Fiber@Home had already fulfilled its three-year fiber optic roll-out obligations as its network was available in 23 districts and 90 upazilas.

� In June 2013, Fiber@Home had leased 1,900km fiber optic connectivity from the PGCB to cover different upazilas of Chittagong, Barisal, Rangpur and Rajshahi division.

� The company is spreading the long haul transmission network (STM-4 to STM64 / DWDM having E1 drops) of around 1200km across Bangladesh and covered 500 KM network in Dhaka city.

� Fiber@Home has covered almost all the major cities of Bangladesh with FTTx network and provide GPON (ITU-T Standard) speed of 2.4 Gbps (Downloads) & 1.4 Gbps (Uploads). They are also providing Metro Ethernet with 40 Gbps of Cross Connect with MPLS.


Cross Connect with MPLS.

� With financing by local investors, it has built a backbone network up to the upazila (sub-district level) headquarters of the country. It has built underground optical fiber Metro Ethernet Network in multiple metropolitan cities and already reached the major districts and upazilas. This fiber optical transmission network has become the major backbone for all kinds of telecommunications and electronic entertainment services.

� Fiber@Home was awarded the International Terrestrial Cable (ITC) service provider license by the regulator in January 2012, providing the country additional international connectivity other than the SEA-ME-WE 4 submarine Gateway.

� In October 2012, the NTTN licensee Fiber@Home signed a bilateral Transmission Network Sharing (TNS) agreement with the mobile operator Robi Axiata to utilize the transmission network more efficiently and to reduce its operating costs.

� In September 2010, the Bangladeshi government announced its long-term plan to implement seven telecom projects at a cost of $923.8 million (BDT64.34 billion) to transform Bangladesh into a digital country by 2021. The projects focus on rolling out broadband wireless and fiber optic cable networks in order to improve the country’s broadband infrastructure. The aim of these projects is to lower operating costs and make the services affordable to the population through the unification and standardization of the networks.

� In September 2011, the government proposed to install optical fiber networks at 1,000 union parishads (UPs) to ensure qualitative and efficient ICT facilities at a lower cost. By then, BTCL was completing the installation of optical fiber facilities at 100 UPs with its own financing. BTCL has been entrusted with the charge of installing the optical fiber facilities at the 1000 UPs covering all the 64 districts in next two years, subject to the final ECNEC approval in line with the government's ‘Digital Bangladesh’ campaign under the Vision-2021.

Bangladesh - Government Initiatives


‘Digital Bangladesh’ campaign under the Vision-2021.

� In January 2012, the Executive Committee of the National Economic Council (ECNEC) approved the 'Optical Fiber Cable Network in 1000 Union Parishad Project with a view to expanding information communication technology to village level. The project involving BDT71.9 million aims at setting of 11,060 km optical fiber cable line in 1000 union parishad across 64 districts of the country.

� In October 2013, Ministry of Posts & Telecommunications (MoPT) has presented a project proposal under which state-owned Bangladesh Telecommunications Company Ltd (BTCL) would deploy a potential 700,000 new landline connections and countrywide fiber-optic next generation network transmission infrastructure.

� In August 2013, BRTC proposed to amend the Broadband Wireless Access (BWA) licensing guideline and suggested the below changes aiming to rollout internet connectivity rapidly to make the "digital Bangladesh" campaign successful.

� WiMAX operators in the country could offer LTE services.

� To issue BWA licenses to another two or three new firms for spreading internet connectivity rapidly in rural areas.

� The WiMAX operators were supposed to reach their coverage to 64 districts including upazilas and villages in phases by five years of receiving the licenses.

� In June 2013, the Bangladesh Telecommunications Regulatory Commission (BTRC) has suggested following amendments in the telecom infrastructure category.

Bangladesh - Regulatory Initiatives


� Telecom regulator has planned to give more licenses in telecom infrastructure category to bring the country under fiber optic network for boosting information communications sector.

� The NTTN operators are authorized to develop and maintain any kind of network infrastructure across the country. The mobile phone operators and others have to take rent or lease the infrastructure from the NTTN operators for network coverage.

� BTRC’s amendment in the NTTN (Nationwide Telecommunication Transmission Network) guideline set BDT10 million as license fee instead of existing BDT30 million and annual license fees set BDT1.0m from BDT2.5 million.

� The guideline also reduced the roll out period to 5 years from 10 years by which the operators have to reach the fiber optic connection to upazila level.

� New entrants will get the opportunity for network transmission business, once the amendment is approved from telecom ministry.

Bangladesh – WiMAX Status

� The Bangladesh Telecommunications Regulatory Commission (BTRC) issued WiMAX license to four applicants in 2008 namely Banglalion Communications, Augere Wireless Broadband, Brac Bdmail Network and BTCL. Total WiMAX users in Bangladesh reached up to 505,000 by June 2013.

� In November 2013, the telecommunications ministry had confirmed the WiMAX spectrum to the Ollo brand for BDT2.46 billion and allocated the most valuable 40MHz spectrum on 2600 bands.

� The Association of Mobile Telecom Operators of Bangladesh (AMTOB) has shown their discontent of uneven playing field on this spectrum allocation without auction. The WiMax operators working with BWA would not be able to provide voice services like mobile operators and could only offer voice calls via IP.

Operator WiMAX rollouts / plans

• Augere launched WiMAX for the first time in Bangladesh during October 2009 under the


• Augere launched WiMAX for the first time in Bangladesh during October 2009 under the Qubee WiMAX brand. Augere announced full coverage of Dhaka in August 2010.

• Augere doubled its internet speed provided at 256 Kbps and 512 Kbps, to 512 Kbps and 1 Mbps respectively, in April 2011.

• In March 2012, Augere announced that its network in Bangladesh had reached 125,000 WiMAX subscribers, representing a year-on-year growth of 178%.

• Qubee conducted the LTE trial services in the end of 2013 and has planned to launch the services by mid 2014.

• In January 2010, Banglalion launched its WiMAX service for consumer and business users initially in major areas of Dhaka.

• Its network is spread across 7 divisional headquarters and more than 30 major districts of the country, with more than 600 base stations.

• Banglalion has around 185,000 WiMAX customers as on September 2013.

China


China Profile

General Information

� Estimated Population – 1,349.6 million

� Urban – 52%






� DSL – 31.6%

� Cable – 1.6%

� FTTH – 12.6%

China – FTTx overview

� China Telecom dominates the Chinese FTTx installations followed by China Unicom and China Mobile.

� Both EPON and GPON are being deployed in China.

� China’s service providers and FTTx component and equipment vendors have been active in various PON standards and industry committees, such as those covering 10G EPON, XG-PON, SIEPON, intelligent ODN and OTDR for optical layer management.

� China continues to lead the world in consumption of PON OLT port and ONT/ONU equipment.

� Together, Huawei and ZTE dominate PON equipment shipments for consumption within China and around the world. Huawei has been very successful at penetrating numerous countries in Europe, the Middle East and South and Central


Huawei has been very successful at penetrating numerous countries in Europe, the Middle East and South and Central America.

� China’s consumption:

� Focusing on OLT port shipments, consumption by China represented 71% of worldwide OLT port shipments for the 4-quarter period (3Q12-2Q13).

� Focusing on ONT/ONU shipments, consumption by China represented 66% of worldwide ONT/ONU shipments for the 4-quarter period (3Q12-2Q13).

� Even with very large consumption of PON equipment, China’s FTTH household penetration was just under 13% at year-end 2013.

� There has been criticism around current broadband speeds in China. The Data Center of China Institute (DCCI) recently reported that the average download rate is 1.77Mbps. According to Akamai's State of the Internet report, China's average Internet connection speed ranked 98th in the world. Within the Asia-Pacific region, China ranked 10th, ahead of Indonesia, Vietnam, the Philippines, and India but behind seventh-ranked Thailand and ninth-ranked Malaysia.

� Given the relatively low household penetration rates and broadband speeds, the China government disclosed new initiatives in August 2013.

China – Wireline broadband versus other countries

� Wireline broadband household penetration in China lags when compared with that of developed countries within Asia-Pacific and around the world.

� The following figure shows countries with the 20 highest wireline broadband household penetration rates as of year-end 2012 and how China's rank of 32, compares.

China and top 20 wireline broadband household penetration rates, 2012


China – FTTx government initiatives

� Government Initiatives - background

� In April 2009, China’s State council announced in its Electronics and Information Industry Adjustment and Revitalization Plan, that the government wanted to speed-up the “deployment of next-generation internet and broadband fiber access network” from 2009 until 2011. The stimulus plan from the government consists of funding support for state-owned carriers to rollout 3G and FTTx.

� The proposal aims to reach an FTTx subscriber base of 80 million in China. This initiative will provide broadband access at 8 Mbps in urban areas, 2 Mbps in rural areas and 100 Mbps in commercial buildings. The government plans to spend about 150 billion Yuan for this purpose.


� Major new initiatives were announced in 2013:

� In mid-August 2013, China’s State Council released the Broadband China initiative setting broadband penetration and bandwidth goals.

� The goal for wireline broadband access is 50% household penetration by 2015 with FTTH services in all urban areas by 2020.

� Bandwidth goals include 50Mbps for urban households and 12Mbps for rural households by 2020.In January 2013, China's Ministry of Industry and Information Technology (MIIT) issued a

China – Dominance of China’s PON vendors

� China’s PON equipment vendors hold dominant market share:

� Huawei held 40% of the PON equipment market on a revenue basis followed by ZTE with 22% market share.

FTTx PON revenue market share


China – Service Providers - Capex analysis

� The top 10 carrier spenders in 2012 included China Mobile (1st place), China Unicom, and China Telecom.

Global capex by carrier, 2012: $336bn


China – Service Providers – Revenues and capex

� Operator revenues:

US$ millions 2008 2009 2010 2011 2012

Fixed

1 China Unicom (HK) $12,014 $11,948 $12,028 $12,732 $13,182

2 China Telecom Limited $25,211 $25,399 $24,473 $25,060 $26,158

Mobile

1 China Mobile (HK) $59,144 $66,088 $71,576 $81,554 $88,711

2 China Unicom (HK) $10,346 $10,556 $13,250 $19,575 $26,083



� Operator capex:


US$ millions 2008 2009 2010 2011 2012

Fixed

1 China Unicom (HK) $5,315 $8,111 $5,984 $7,827 $9,317


Mobile

1 China Mobile (HK) $19,575 $18,916 $18,335 $19,848 $20,167

2 China Unicom (HK) $4,862 $8,330 $4,370 $4,014 $6,477

3 China Telecom Limited $966 $953 $1,578 $2,482 $2,975

China – China’s Service Provider – 2013 capex plans

� 2013 Capex plans:

Carrier 2013 outlook/guidance

China Mobile After spending $20bn in 2012, China Mobile announced a 49% increase for 2013, pushing planned capex to over $30bn. Transmission is a beneficiary, up from 28% to 31% of capex. Mobile stays at just over 40%, but China Mobile is building more than 200,000 TD-LTE


Mobile is building more than 200,000 TD-LTE base stations in 2013.

China Unicom China Unicom aims to have the highest Chinese revenue growth in 2013 but expects a big decline in capital intensity from 40% in 2012. The carrier aims to improve margins and ROI. 3G coverage, FTTx, and IP RAN will be the focus of capex investments.

China Telecom China Telecom expects small upticks in both fixed and mobile capex in 2013, with total spending growing from CNY72.5bn in 2012 to CNY75bn. FTTx is a big focus.

China – Service Providers – LTE plans

� LTE Plans:

Mobile Operator LTE FDD LTE TDD LTE Commercial

Launch

LTE Spectrum HSPA+RAN Vendors LTE RAN Vendors LTE EPC Vendors Notes

China Mobile NA Commercial December 2013 1900MHz, 2300MHz,

2600MHz

NA ALU, Datang, Ericsson,

Huawei, New Postcom,

NSN, Potevio, ZTE

ALU, Ericsson, Huawei,

NSN, ZTE

Press reports LTE

won't be fully

commercial until 2014


China Telecom Planned Planned NA 2100MHz, 2300MHz,

2600MHz

NA ALU, Datang, Fiberhome,

Ericsson, Huawei, NSN,

New Postcom, ZTE

ALU, Ericsson, Huawei,

NSN, New Postcom Equip.,

ZTE

Press reports LTE

won't be fully

commercial until 2014;

2.3 & 2.6GHz for LTE

TDD

China Unicom Planned Planned NA 1800MHz, 2300MHz,

2600MHz

Ericsson, Huawei,

ZTE

Unknown Unknown Press reports LTE

won't be fully

commercial until 2014;

Hong Kong


Hong Kong Profile

General Information


� Urban – 100%





� DSL – 38.9%

� Cable – 7.0%

� FTTH – 56.6%

Hong Kong - Broadband Overview

Broadband internet traffic volume (Terabytes)

195,890

216,206

200,000

250,000

� Broadband internet traffic volume has been continuously increasing in Hong Kong .


1,119 3,21314,953

40,321

63,217

85,34997,253

108,786118,472

145,414

166,631

0

50,000

100,000

150,000

Nov-01 Nov-02 Nov-03 Nov-04 Nov-05 Nov-06 Nov-07 Nov-08 Nov-09 Nov-10 Nov-11 Nov-12 Nov-13

Hong Kong - Regulatory Initiatives

� Office of the Communications Authority (OFCA), has played a major role in developing the telecom sector.

� In 2010, Office of the Communications Authority (OFCA ) introduced a voluntary building registration scheme to promote

the installation of fiber-based broadband access networks.

� In January 2013, the OFCA enhanced its broadband performance test website to support measurements of high-speed

broadband services. The enhanced system allowed broadband users to measure fixed broadband connections with speeds

of up to 300Mbps.


of up to 300Mbps.

� As of April 2013, the second stage of voluntary building registration scheme to promote fiber-based broadband access

announced registration of approximately 13,500 buildings (covering 2.2M households or 82% of household coverage).

� In April 2013,OFCA extended voluntary registration scheme for buildings with optical fiber access networks to cover also

non-residential buildings in Hong Kong. The scheme registered more than 1,500 non-residential buildings representing

18% of the total non-residential buildings in the territory.

Hong Kong - PCCW Profile (1/3)

� PCCW broadband subscribers grew by 2% in June 2013 compared to June 2012.

� In July 2013, this operator launched Hong Kong’s first 1 Gbps Wi-Fi service supported by its own optical fiber terrestrial

transmission network. PCCW-HKT has more than 12,000 hotspots throughout Hong Kong.

Broadband subscriber growth



PCCW fiber network coverage


* FTTB ready means FTTH service can be available within 29 days of receiving a service order, building management access permitting.

** FTTH ready means FTTH service can be available within 4 days of receiving a service order.


� Fiber-To-The-Home (FTTH) Service continued to attract new customers and existing customers for service upgrade.

� As of June 2013, there were 362,000 FTTH subscriber which grew by 60% compared to June 2012.

PCCW fiber subscriber growth


Hong Kong - Other Players (1/2)

Operator Details

� Hong Kong Broadband Network (HKBN) pioneered FTTH service in Hong Kong.

� As of April 2013, its fiber optic network covered more than 2 million households and 1,800

commercial buildings.

� As of Aug 2013, its residential fiber-optic network coverage reached 660,000 subscriptions.


� In January 2012, the Government announced that it allowed China Telecom (Hong Kong)

International Limited to lay a submarine optical fiber cable within an area of about 1.85

hectares of foreshore and seabed from Sha Shek Tan at Chung Hom Kok and extending

through southeast waters to the eastern boundary of Hong Kong.

� The submarine optical fiber project was a part of South-East Asia Japan Cable System

(SJC) and used 40G SLTE and OADM Branching technologies. In June 2013, SJC started

operations.

Hong Kong - Other Players (2/2)

Operator Details

� In May 2013, Transmode signed a three year frame agreement with HGC to supply a ROADM-based

100G optical backbone network for a new high capacity network in Hong Kong.

� In December 2013, HGC launched 3HOME BROADBAND Total Wi-Fi Solution as part of 3Home

Broadband with speeds up to 1Gbps.

� As of January 2014, HGC’s residential fixed-line service,3Home Broadband covered more than 1.7

million Hong Kong households.


� Wharf T&T is backed by the fiber-optic network and is one of the leading ICT service

provider in Hong Kong.

� As of April 2013, the company covered 5,000 commercial buildings, offering fiber-to-the-

desk business broadband network and diversified cloud services to 90% business

customers.

� In June 2013, it received ‘Technology Company of the Year 2013’ in recognition of

performance in technology development and excellence in business execution.

million Hong Kong households.

Hong Kong – BWA Status

� In December 2013, China Telecom Hong Kong announced plans to deploy 4G service using LTE2600MHz from Hong Kong

station to Kowloon station in February 2014. The company also launched a new application, namely, “2cm” allowing China

Mobile Hong Kong 4G Pro service plan customers to trade unused data with another customer.

� In November 2013, PCCW-HKT planned to expand 4G LTE mobile network coverage to the East Rail Line, West Rail Line

and Ma On Shan Line, enabling commuters to enjoy 4G services along more MTR lines. The company also partnered with

Huawei to deploy Voice over Long-Term Evolution (VoLTE) in Hong Kong.


� In January 2013, Hong Kong Broadband Network acquired Y5ZONE and planned to invest HK$200 million in network

expansion and technology upgrade. The company planned to reach 15,000 hotspots by June 2013; to upgrade technology

and apply high-end devices to boost capacity and performance; and significantly improve bandwidth up to 1,000Mbps.

� In March 2013, Hong Kong auctioned 50MHz of 2.5/2.6GHz LTE spectrum for $198.4 million. PCCW's HKT won 2x5MHz

for HK$290 million, CSL won 2x5MHz for HK$310 million, SmarTone bought two paired 5MHz blocks for HK$640 and

China Mobile Hong Kong won a single block for HK$300 million.

India


India Profile

General Information

� Estimated Population – 1,220.8 million

� Urban – 34%






� DSL – 5.28%

� Cable – 0.39%

� FTTH – 0.04%

India - Internet Access (Including Broadband)

Technology trends for Internet access


Note: 1 Lakh = 0.1 Million

India - Broadband Landscape – June 2013

Broadband Access - Technologies & Market Share


India - National BB plan – a driver for future growth (1/3)

� In December 2010, Indian regulator, TRAI, unveiled a national broadband plan and submitted recommendations on its $13 billion national broadband plan to facilitate rapid growth of broadband services in the country.

� Under this plan, TRAI proposed the construction of an open access fibre-optic network to connect all cities, towns and villages with populations of more than 500, with funding from the Universal Service Obligation Fund (USOF) and a loan from the government.

� Private players will be permitted last mile connectivity for renewable licenses for service like voice, data, video and otherhigh speed internet services.

� In the first phase of network deployment all cities, urban areas and gram panchayats would be covered by 2012, while the second phase would see the infrastructure connect all remaining locales with more than 500 inhabitants by 2013.


TRAI Recommended Broadband Targets: million (2010-14)*

� The network itself would be capable of supporting downlink speeds of up to 10Mbps in 63 of the country’s metros and larger cities by 2014.

Note: *As per National Broadband Plan 2010

� In October 2011, Government of India approved setting up of National Optical Fiber Network (NOFN) to provide

connectivity to all the 250,000 gram panchayats in the country. This is to be achieved by utilizing existing fibers of PSUs

(BSNL, Railtel and Power Grid) and laying incremental fiber to connect to gram panchayats wherever necessary.

� Bharat Broadband Network Limited (BBNL), a Special Purpose Vehicle (SPV) created in February 2012 for implementing

the project, will be laying the incremental cable from wherever it exists, usually at the block level, to the gram panchayat

level. This will involve laying about 500,000 kilometers of optical fiber.

� In May 2012, GoI approved National Telecom Policy-2012 (NTP-2012) which addresses the vision, strategic direction and

the various medium term and long term issues related to telecom sector.

� Some of the primary objectives of NTP-2012 included to provide affordable and reliable broadband-on-demand by the

year 2015 and to achieve 175 million broadband connections by the year 2017 and 600 million by the year 2020 at

India - National BB plan – a driver for future growth (2/3)


year 2015 and to achieve 175 million broadband connections by the year 2017 and 600 million by the year 2020 at

minimum 2Mbps download speed and making available higher speeds of at least 100Mbps on demand; and to offer high

speed and high quality broadband access to all village panchayats through a combination of technologies by the year

2014 and progressively to all villages and habitations by 2020.

� In June 2012, GoI formed a coordination committee to give a push to NOFN deployment. The objective of the committee

was to assess requirements of various central and state ministries and departments for a pan-Indian network to offer

government-to-citizen (G2C) services down to the panchayat level.

� To implement the project, BBNL undertook three pilots covering 58 gram panchayats in Rajasthan, Andhra Pradesh, and

Tripura. Laying of OFC was completed for all 58 gram panchayats in October 2012.

� In December 2012, GoI signed an MoU with three telcos - BSNL, PGCIL, and RailTel - for rollout of NOFN. PGCIL won

Andhra Pradesh, Jharkhand, Odisha, and Himachal Pradesh. RailTel won

Tripura, Nagaland, Mizoram, Manipur, Meghalaya, Arunachal Pradesh, Gujarat, Tamil Nadu, Puducherry, Dadra & Nagar

Haveli, and Daman & Diu. The remaining state and union territories have gone to BSNL.

� In terms of gram panchayat break-up, BSNL will connect around 178,000 gram panchayats, followed by PGCIL and

RailTel with 36,000 each. All these telcos have fiber on the ground which would be utilized for connecting gram

panchayats. BBNL will deploy incremental fiber from wherever it exists in block to gram panchayat by utilizing the

combined resource of all telcos thereby reducing the overall cost of the project.

� The government has provided broadband connectivity to only 60 gram panchayats by the end of November 2013. It

has been deferring the completion date of NOFN roll out from the initial target of December, 2012. It was pushed back

to December 2013.

� Recently, the Department of Telecom approved the three-phase implementation of NOFN and plans to cover 100,000

gram panchayats in the first phase up to March 31, 2014, 200,000 gram panchayats by March 31, 2015 and the rest

by September 30, 2015.

India National BB plan – a driver for future growth (3/3)


Bandwidth Requirement – Meeting Broadband Targets: million (2012 and 2014)*

Note: *As per National Broadband Plan 2010

by September 30, 2015.

� After the completion of NOFN project, village panchayats are expected to get broadband connectivity with high speed

of up to 100Mbps.

India - National Optical Fiber Network allocations


India - BSNL FTTx Outlook (1/2)

� The incumbent BSNL has adopted a plan to first migrate transit network (TAX) into

NGN and then migrate local network. By 2015, it plans full migration to NGN by

replacing PSTN. During this period, BSNL plans to deploy IP backbones across

circles, zones and at the national level. BSNL’s IP core will include about 32 soft

switches and 119 locations trunk media gateways. Also, the operator 's tentative plan

for Class 5 NGN is to deploy 22 million PSTN ports by 2013-14.

� BSNL’s roll out plan is to achieve six million FTTH broadband connections, including

two million in rural areas covering around 1,000 cities/towns and over 20,000

villages, by 2015. The government is pushing for a mixed private-public approach for

broadband infrastructure similar to Singapore/Malaysia and sharing of network

resources in the areas of cellular coverage and FTTx deployment policy.

Spending Drivers

NGN

FTTx & Video


resources in the areas of cellular coverage and FTTx deployment policy.

� In January 2013, the operator announced plans to buy telecom gear worth INR4 billion from China's Huawei to upgrade

its landline network. The NGN project, which involves replacement of nearly 40,000 fixed-line exchanges across the

country, will be carried out in two phases, starting 2013-14.

� BSNL aims to spend INR80 million on the expansion of Optical Fiber Cable (OFC) network in 335 gram-panchayats of

Indore division covering 1600 km. It has already begun cable laying work for this purpose.

� Operator also announced plans to offer fixed broadband services in the North East (NE) using the already existing optical

international fiber link between Kolkata and Dhaka.

� BSNL covered over 160 cities through its FTTH services by the end of March 2013.

� In September 2013, BSNL introduced new FTTH plans which start from INR3,999 per month which offers 10Mbps up to

50Gb and 512Kbps as post FUP speed.

India - BSNL FTTx Outlook (2/2)


India - Other Players (1/2)

MTNL

� In September 2012, MTNL introduced new ultra high speed tariff plans for FTTH broadband service with core network

speed up to 10Gbps in Mumbai telecom circle.

� In June 2013, MTNL launched “FTTH symmetric Broadband Plans”, four new FTTH broadband plans with 10Mbps

download and upload speed for Delhi circle starting from INR1,000 per month.

� In November 2013, MTNL introduced two new FTTH Broadband plans with 100Mbps and 50Mbps downloading and

10Mbps uploading speed for its high end customers in Delhi circle.


� RIL plans to offer FTTH network for 4G and collaborate with other service players for voice and data services.

� It intends to connect 30 million homes and reach out to 100 cities through its FTTH in the coming five years ending

December 2017.

RIL

� In August 2012, Bharti Airtel launched optical fiber FTTH broadband at certain locations in Delhi NCR with speeds

ranging from 16Mbps to 100Mbps. Plans start from INR1,599 per month to INR5,299 per month.

� Bharti Airtel introduced 100Mbps broadband plans in Mumbai in April 2013.

India - Other Players (2/2)

Bharti Airtel


� In September 2012, Tata DoCoMo launched new FTTH broadband plans starting from 512Kbps to 100Mbps.

� In October 2012, Radius Infratel announced plans to launch FTTH-based 1Gbps broadband service for residential

consumers across nine cities in India. These cities include Bengaluru, Chennai, Pune, Mumbai and Chandigarh among

others.

� Reliance Communications has an extensive fiber network in India with over 190,000 route kilometers of national optic

fiber network as of March 2013.

� In July 2013, Tata DoCoMo revised its tariffs for FTTH broadband service offering in Bangalore enabling customers to

enjoy data usage worth 20GB at 4Mbps speed for as low as INR1,000 per month.

Others

India – BWA / WiMAX Status (1/3)

Operator Major BWA / WiMAX plans

� In 2010, Bharti Airtel acquired BWA license spectrum in Kolkata, Karnataka, Punjab and

Maharashtra (excluding Mumbai) circles.

� Bharti Airtel launched its 4G LTE services in Kolkata (April 2012), Bengaluru (May

2012), and Airtel postpaid 4G services in Pune in October 2012.

� In December 2012, Bharti Airtel sought the government's approval for testing voice

services on its 4G networks. At present, voice services are not available in the 2300 MHz

band, the frequency on which 4G or LTE services will be offered in the country.

� In October 2013, acquired 100 % stake in Wireless Business Services , a company


� In October 2013, acquired 100 % stake in Wireless Business Services , a company

Qualcomm company, holding BWA licenses in Delhi, Mumbai, Haryana & Kerala.

� In December 2013, the company announced plans to launch voice call facility on its 4G

LTE network in Bengaluru by the end of 2013. It has been offering 4G data services in

Pune, Kolkata, Chandigarh, Mohali, Panchkula and Bengaluru.

� In January 2013, Videocon Telecom (formerly Videocon Mobile Services) announced

plans to roll out LTE services in the second half of 2013, using its recently acquired

spectrum licenses.

� The 2G spectrum won by Videocon in 2012 spectrum auction is paired and

liberalized, thus allowing it to roll out next generation networks and services by adapting

highly spectrally efficient 4G technology.

� The operator won spectrum in the telecom circles of Madhya

Pradesh, Chhattisgarh, Haryana, Gujarat, Uttar Pradesh (East and West), Bihar and

Jharkhand.



� In June 2010, Infotel Broadband acquired pan-India BWA spectrum for INR128.5bn and

RIL bought 95% stake in Infotel Broadband for INR48bn in June 2010.

� In December 2012, RIL inked a deal with Moscow-based Spirit DSP to license its

TeamSpirit Video and Voice engine to RIL subsidiary Infotel. This will be used to provide

Skype-like video and voice calling services (VoIP) to its subscribers over its LTE network.

� In January 2013, RIL completed its fourth successful 4G trial in Jamnagar, Gujarat, which

could eventually lead to pan-India rollout of its WiMAX broadband services. It conducted

first three trials in March, August and October of 2012.


� In March 2013, RIL partnered with Samsung to make use of Samsung’s LTE technology

for its 4G service in India.

� Reliance Jio Infocomm (previously Reliance Infotel) & RCOM signed a network sharing

agreement in April 2013, thereby enabling Reliance Jio Infocomm to utilize fiber pairs

across RCOM’s 120,000 km inter-city fiber optic network to provide 4G services. In the

same month, Reliance Jio Infocomm signed a international data connectivity agreement

with Airtel allowing Reliance Jio to connect to the world’s major business hubs and ISPs.

� In December 2013, Reliance Jio Infocomm signed infrastructure sharing agreement with

Bharti Airtel. The deal encompasses fiber (inter- and intra-city), towers, submarine fiber

and in future even joint laying of fiber and roaming on each other’s networks.

� Reliance Jio Infocomm signed contract with Samsung in December 2013 to purchase

active BTS infrastructure for 4G networks and it is excepted that Reliance Jio Infocomm

will to roll out its 4G services in early 2014.


� BSNL launched a new WiMAX Broadband plan for INR399 with 2 Mbps downloading

speed in Kerala in October 2012.

� In August 2013, BSNL introduced four new WiMAX plans with a lowest plan of INR250

which offers 1GB of data at the speed up to 2Mbps. It began offering three unlimited

plans starting from INR525 at the speed of 512Kbps but a cap at 4GB, after consuming

4GB of data, the speed reduces to 256Kbps.

� In October 2013, BSNL launched new Postpaid WiMAX Business Plan(BUWI 850) for

Punjab and Kerala customers.



� Aircel won BWA licenses in 2100MHz band in eight circles for INR45bn as spectrum fee.

� In December 2013, Aircel partnered with ZTE to deploy its 4G LTE network in India. ZTE

will deploy 4G LTE network for Aircel in Chennai, rest of Tamil Nadu and few other critical

business circles in the initial phase.

Punjab and Kerala customers.

� In December 2013, BSNL launched FTTH facility at Sripuram Telephone Exchange in

Tirunelveli Junction of Tamil Nadu. In the same month, the company deployed FTTH

technology in Shillong, Meghalaya.

Indonesia


Indonesia Profile

General Information


� Urban – 51%



� Wireline Broadband Subscribers – 3.6 million


� DSL – 4.8%

� Cable – 0.9%

� FTTH – 0.1%

Indonesia broadband overview

� The short term plan of “Indonesia Broadband Plan” aims to provide broadband services to 30% of population by 2014.

� The country’s ambitious Palapa Ring project to create seven fiber optic backbone rings is on track and is expected to be fully connected by fiber by 2014.

� Government’s economic plan MP3EI aimed at upgrading the broadband infrastructure in the country has already created a fiber network across various islands.

� Currently 69.6% of all cities in Indonesia are connected to the optical based backbone. Fiber optic backbone is expected to connect 497 cities by 2015.

� Operators like XL Axiata, Telekom Indonesia are investing into next generation technologies and deploying fiber optic


Operators like XL Axiata, Telekom Indonesia are investing into next generation technologies and deploying fiber optic cables.

Optical based backbone development

Indonesia - Broadband target set up in 2013 for 2017

Infrastructure Infrastructure

2013 2017


� Fixed Broadband: 15% household (1Mbps), 30% buildings (100Mbps) and 5% population

� Mobile Broadband: 12% of population (512Kbps)

� Fixed Broadband: 40-75% household (2Mbps), 50%-80% buildings (1Gbps) and 25% populations

� Mobile Broadband: 75% of population (1Mbps)

Indonesia - Spenders & Vendors

� Capital expenditure on fixed-line infrastructure has been declining.

� Capex of fixed operators in Indonesia lowest among major Asian economies.

� Capex to sales ratio continues to fall.

� However, efforts for modernization of fixed

Indonesia Telco Capex: $3.4B (2012)

$3,500

$4,000

$4,500

$5,000


� However, efforts for modernization of fixed infrastructure are underway.

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2008 2009 2010 2011 2012Fixed Mobile

Indonesia - Telekom Indonesia profile

� Telekom Indonesia is an incumbent operator in Indonesia.

� Telkom Indonesia spent approximately Rp1,864 billion as capital expenditure in 2012 for the development of backbone and broadband networks.

� True Broadband Plan:

� With true broadband plan, Telekom Indonesia is planning to provide broadband connectivity with speed of up to 20-100Mbps and coverage in 497 cities nationwide by end of 2015.

� Telekom is targeting 13 million homes with fiber access by 2015.

� Operator spent US$150 million in 2012 on fiber optic network development and planned to build a 47,000-


� Operator spent US$150 million in 2012 on fiber optic network development and planned to build a 47,000-kilometer fiber optic network spanning from Aceh to Papua.

� In next phase, Telkom Indonesia is going to deploy 5,600 km of submarine cable network linking Manada and Papua with estimated cost of Rp2.4 trillion.

� This investment is a part of master plan to build nationwide broadband access. Telkom has planned to invest $2.3 billion from 2011 to 2015 to provide 20 Mbps to 100 Mbps internet access.

� Telekom Indonesia also launched an initiative for the development of “Indonesia Digital Network” (IDN) to create high speed fiber optic broadband network and backbone network. IDN consist of three components, Indonesia digital Access (id-Access), Indonesia digital ring (id-Ring) and Indonesia digital convergence (id-Con).

Indonesia Digital Network


Indonesia – MP3EI master plan

� MP3EI is economic development plan launched by the President of Indonesia in May 2011 that aims at making Indonesia the 10th largest economy in the world with a targeted GDP of $4.5 trillion by 2025 with investment of $230 billion.

� Under MP3EI plan, the government of Indonesia has set a target of deploying a national broadband network covering approximately 30% of households in Indonesia and 20 million customers by 2015

MP3EI focused development on 8 main sectors and 6 economic corridors


Indonesia – MP3EI master plan� The government & operators have

identified the following plans to improve the broadband penetration in country:

• Integration of national broadband network into MP3EI.

• Development of “Nusantara Super Highway” with terrestrial and undersea fiber.

• Fiber optic backbone network “Palapa Ring” for 33 provinces and 460 districts.

• Mega project “Indonesia Digital Network” to create digital access, digital rings and digital convergence by 20%

40%

60%

80%

Wireline access transformation target 2010 – 2015


digital rings and digital convergence by Telekom Indonesia.

• IDR18,660 trillion investment in development of fiber optic coverage and base transceiver station at Kalimantan.

• Palapa ring fiber optic network project to connect Sumatra, Java, Kalimantan, Sulawesi and other islands.

• Investment of IDR3,990 trillion by the government to improve backbone and fiber optic coverage in the metro region and the deployment of base station at Bali-NT.

0%

20%

upto 1 Mbps 19% 15% 11% 7% 3% 2%

1-4 Mbps 60% 53% 42% 29% 19% 8%

20 Mbps 21% 31% 43% 56% 68% 75%

100 Mbps 0% 1% 4% 7% 11% 15%

2010 2011 2012 2013 2014 2015

Indonesia – Palapa Ring

� “Palapa Ring” is a national optical fiber network project which is a part of MP3EI master plan that was initiated by the government and a consortium of seven telecommunication operators to roll out fiber optic network.

� The fiber network with seven rings is expected to cover 33 provinces and 460 districts in eastern Indonesia with a total length of 35,280 km of submarine cable and 21,807 km of underground cable.

� As of now as many as 27 provinces already have access to broadband internet via the Palapa Ring.

� The first phase of the project, called the Mataram-Kupang Cable System (MKCS) has covered 1,041 km with cost of Rp600 billion.

� In the second phase of the project, Telkom Indonesia is going to deploy 5,600 km of submarine cable network linking Manada and Papua with estimated cost of Rp2.4 trillion.


Indonesia – WiMAX

� In August 2009, Indonesia awarded eight WiMAX licenses

to incumbent mobile players Telkom, Indosat and six other

companies for 15 zones national wide.

� In August, 2010 three operators lost their licenses as they

were not able to meet the rollout obligations and only five

operators, namely Telkom, Indosat Mega

Media, Berca, Jasnita and First Media remained in market.

� First Media invested US$50 million in WiMAX network and422

554

686

806

500

600

700

800

900

Mobile W

iMAX connections ('000)

Mobile WiMAX connections in Indonesia


� First Media invested US$50 million in WiMAX network and

became the first player to launch WiMAX services in June

2010. First Media aims to invest US$350 million for the

WiMAX deployment project and they have invested US$200

million in 4G Sitra WiMAX network.

� By November 2011, First media had 7,000 WiMAX

customers.

� Berca also launched its WiMAX services in 2010 under

brand “Wigo”. It earlier had around 200 BTS in July 2012

and planning to construct 900-1000 BTS by 2012 with

investment of $500 million over the next five years.

36

146

313

422

0

100

200

300

400

2009 2010 2011 2012 2013 2014 2015 2016

Mobile W

iMAX connections ('000)

Forecast

Indonesia – LTE

� Indonesian operators are converging towards LTE but the slow regulatory decisions forcing operators to delay roll out of

LTE services.

� The current allocated spectrum for 4G deployment is 2300MHz which was previously deployed for WiMAX services.

� Telkomsel has request the government to reframe 1,800 MHz frequency band to be set as technology neutral frequency

for implementing long term evolution (LTE) or 4G services while Indosat has already carried out LTE field trial on 1800MHz

band.

� Indonesian internet service provider “PT Internux” launched LTE services in Indonesia in November, 2013 with investment


of US$500 million.

� Other incumbent operators like Indosat and Telekomsel have already started LTE trials in various parts of country.

� PT Indosat is planning to invest close to USD460.3 million in its network modernization in 2014 to support the

implementation of Long Term Evolution (LTE) 4G technology and already conducted LTE trials in two cities: 15MHz

spectrum tests in Bandung, and 10MHz in Surabaya.

� Telekomsel recently upgraded its GSM and 3G HSPA+ network to provide 4G LTE services for the Asia-Pacific Economic

Cooperation (APEC) summit in Bali in October, 2013.

� XL Axiata acquired another Indonesian operator, Axis Telekom and planning to roll out LTE service in 1800MHz frequency

band.

Indonesia - LTE 1800 smooth migration

Current 1800 Band

Spectrum Rearrangement


� 1800 MHz band has to be re-arranged for :

- Contiguous band of each operator

- Proposed to be re-allocated for

effective usage

- Gradual reframe from 5 to 10 to 20 MHZ

- Total reframe 1800MHz band for LTE as

2G phase out

Japan


Japan Profile

General Information


� Urban – 92%





� DSL – 10.3%

� Cable – 12.9%

� FTTH – 53.8%

Japan Profile (1/2)

� As of June, 2013 there were approximately 24.3 million FTTH/FTTB subscribers in Japan.

� In March 2012, the broadband services were available for 00% households of Japan and ultra high speed broadband

services were available for the 97.3% Japanese households.

� DSL continues to decline. By the end of FY2012, the number of DSL service subscriptions declined by 19.1% to 5.42

million whereas the number of FTTH service subscriptions increased by 7.0% to 23.86 million and that of 3.9G (LTE)

mobile phone service subscriptions increased by about 8.9 times to 20.36 million compared to previous year.


� Japanese government released its “New Broadband Super Highway Plan” called “Hikari-no-Michi” that aims to have

broadband services adopted in every household of Japan by 2015 and focuses on:

� Improvement of broadband services availability rate from 95% to 100%.

� Improvement of service subscription rate/utilization rate of ultra high speed broadband from 43% to 100%.

� To achieve its objective of ‘New Broadband Super Highway’ Japan launched LTE services in December 2010 and by

September 2013, the total number of LTE subscriptions in Japan were more than 23 million.

Japan Profile (2/2)

� In September 2013, Allied Telesis Capital Corporation received a contract to install FTTH services with speeds up to 1Gbps

for residents of Misawa Air Base in Misawa City, Japan. The company started construction and planned to connect the

customers in October, 2013 with the contract validity till 2028.

� In April 2013, So-net Entertainment launched a fiber-based internet service under the brand name “The Nuro” which

provided services with a download speed of up to 2Gbps to homes and small businesses.

� Transitions in internet users and the population penetration rate, breakdown of Internet access terminals (at the end of 2012):


Figures indicate percentage shares for those who used respective terminals for accessing the Internet in 2012.(Source) MIC “2012 Communications Usage Trend Survey”

Japan - NTT profile (1/3)

� NTT East/West dominates FTTH/B market with 72% combined market share in Japanese market, as of September 2013.

� NTT East and NTT West had targeted to add 500,000 fiber broadband subscribers in the fiscal year 2014. NTT East aimed

for 10.25 million subscriptions while NTT West aimed for 8.11 million by March 2014.

� In January 2013, NTT and NTT Communications announced to offer an internet service with a speed of up to 100Gbps to its

business customers.

� As a measure to check the flow of customers migrating from fixed broadband services to mobile broadband platforms such

as LTE, NTT has provided Wi-Fi as an add-on to their subscriptions with subscribers paying an additional JPY295/month for


unlimited access to 9,000 hot-spots across the country, which adds an element of mobility to their subscribers.

� NTT has planned to increase the number of public Wi-Fi spots on its fiber network to 70,000 by 80% by end of March 2014.

� The profitability from fiber optics services for NTT East/West has increased by JPY18bn to JPY59.8bn y-o-y in September

2013.

� In July 2013, NTT Com announced the world’s first deployment of 100Gbps digital coherent technology on a transpacific

submarine cable system linking the US and Japan. This deployment facilitated the design capacity of the company’s PC-1

system by more than 2.5 times to 8.4 terabits per second.

� By the end of 2014, 21,000 km of 100Gbps optical transmission technology would be deployed in NTT Com’s Asia

Submarine-cable Express (ASE), which links major cities in Asia.


Profitability from FTTH services


� The number of FTTH subscribers were 17.02 million in September 2012 which reached to 17.67 million by end of

September 2013 with increase of 4% y-o-y.

� NTT’s profitability has increased by 43.41% from JPY41.7 billion in 2012/3 to JPY59.8 billion in 2013/3


Capex: 2009-14


Capex to sales has decreased as NTT .

Japan - KDDI profile

� KDDI offers triple-play services over its FTTH connections. KDDI’s FTTH market share was 12.6% as of June 2013.

� In September 2013, KDDI’s FTTH subscriber base reached 3.04 million compared to 2.56 million at the end of September

2012.

� KDDI generated JPY46.2 billion from FTTH contracts in 2Q 2013-14 (fiscal year ending March) and its operating revenues

rose 18% y-o-y to JPY2.05 trillion in the first half of FY2014.

� KDDI’s broadband expansion is centered around FTTH and convergence of fixed-line and mobile telecommunication. It is

moving in this direction through the launch of ‘au one’ portal for mobile and PCs, ‘au Collective Talk’ (fixed and mobile


converged services), and ‘au Collective Line’ (discounted calling between fixed and mobile lines) services.

� KDDI launched “au Smart Value” for families to expand sales of its FTTH services through 6 companies, namely

KDDI, Okinawa Cellular Telephone Company, Chubu Telecommunications Co. Inc., K-Opticom Corporation, STNet, Inc. &

Energia Communications, Inc.

� In June 2013, KDDI started optical submarine cable operations of the “South-East Asia Japan Cable” (SJC) which has

capacity to handle 28Tbps of broadband communication volume.

� By March 2014, KDDI expects to reach 99% population coverage ratio in the 800MHz LTE band with downlink speed of

75Mbps and more than 80% population coverage ratio for 2.1GHz LTE with a speed of 150Mbps. As on July 2013, total

3G and LTE subscription reached 38.6 million.

Japan – WiMAX Status

� First WiMAX trials in Japan was carried out by internet service provider ACCA Networks Co. in Yokahama city.

� UQ Communications launched its WiMAX services in July 2009 and was having 4.27 million WiMAX subscriber as of

September 2013.

� The data network of UQ Communications is available throughout Japan and the company provides unlimited 40Mbps

download speed on mobile environment.

� In July 2013, the Minister of Internal Affairs and Communications (MIC) approved and allocated additional 20MHz spectrum

to UQ for the deployment of its new service "WiMAX 2+" which supports110Mbps downlink speed and has a compatibility


to UQ for the deployment of its new service "WiMAX 2+" which supports110Mbps downlink speed and has a compatibility

with TD-LTE.

� Launched in October 2013,Wimax 2+ provides services in central Tokyo and the coverage is expected to expanded to

Tokyo, Osaka and Nagoya metropolitan areas by March 2014, and to all major cities in Japan by March 2015.

� UQ Communications announced that its WiMAX customer base reached 4.2 million subscriptions in June 2013, with total

population coverage of 93%.

� UQ has planned to provide the downlink speed of 1Gbps by 2017 thus, its adopting various technologies such as Carrier

Aggregation, 256QAM, 8x8MIMO for deployment .

Malaysia


Malaysia Profile

General Information


� Urban – 73%





� DSL – 25.4%

� FTTH – 10.5%

Malaysia - Telekom Malaysia profile

Fixed and broadband segment dependent on residential customers


Residential broadband customer base is

declining while UniFi residential and business

customer base is increasing.

Malaysia - High-speed Broadband (HSBB) Project (1/2)

� High Speed Broadband (HSBB) is a fiber network project of Telekom Malaysia (TM) that offers a network speed of 10Mbps and above.

� The normal Broadband to the General Population services delivers bandwidth through wired and wireless technologies at average network speed of 2Mbps.

� TM’s deployment plans are divided in 3 Zones: high economic impact areas, sub-urban areas and rural areas.


Malaysia - High-speed Broadband (HSBB) Project (2/2)

Investment Focus

� As of September 2013, TM’s HSBB network passed 1.462 million premises, offering UniFi services to over 607,000.

subscribers in Malaysia. During the nine months ended September 2013, TM spent RM752m towards HSBB project

compared to RM1,012m spent during the same period in 2012. Last year, the higher HSBB capex was due to extension

of EGNet project (GITN).


Malaysia - Telekom Malaysia – HSBB and partnerships

� In January 2013,TM launched 8Mbps Streamyx and five additional 8Mbps Business Broadband plans.

� In April 2013, Telekom Malaysia signed an agreement with Bertam properties to offer HSBB connectivity to ‘Bertam

Lakeside’ development project and in same month they signed an agreement with UEM Land to provide HSBB services to

more than 4,000 residences developed by UEM Land in Nusajaya.

� In May 2013, Pahang reached broadband penetration of 61.1% exceeding the 2015 broadband penetration target of 60%.

� In June 2013, Telekom launched business solution specifically catering hospitality industry under the brand name

“Hospitality Entertainment Solution”, comprising In-Building Broadband Solution (IBS), and TM’s IPTV services including

HyppTV and a Call Centre service.


HyppTV and a Call Centre service.

� In July 2013, Telekom Malaysia expanded HSBB services in Selangor by sealing an MoU with Temasya Development Co.

Sdn Bhd to offer HSBB connectivity in premium residential project.

� In October 2013, Malaysian government allocated MYR3.4billion for the 2nd phase of the HSBB project including

MYR1.8billion to expand coverage and speed up to 10 Mbps in urban areas; and MYR1.6billion for expanding network

and speed up to 4-10Mbps in suburban areas.

� In November 2013, Telekom Malaysia signed an agreement with Putrajaya Shangri-La Hotel for providing Hospitality

Entertainment Solution which comprises TM’s in-Building Broadband Solution (IBS) and TM’s IPTV service through HSBB.

The company also signed a HSBB service agreement with Formis Development Sdn Bhd for providing HSBB (Access)

and HSBB (Transmission) services as well as Wholesale Internet Access to Formis.

Malaysia - FTTH initiatives of other operators

� In May 2013, Maxis with Astro, introduced a broadband and entertainment bundle offering

10Mbps, 20Mbps, or 30Mbps broadband service bundled with Astro B.yond IPTV-Maxis

packages.

� In October 2013, Maxis Introduced affordable and complete solution combining fixed and

mobile connectivity with cloud-based marketing solutions for SMEs.


Instacom

� In August 2013, Instacom planned to build a 3,176.4km fibre optic cable network that will

link the entire Peninsular Malaysia by 2018. The planned cable network consisted of four

Phases deployment and phase 1 consisted of laying 705km of fibre cable in Johor and

188km in Kedah.

� In October 2012, TIME and Setia Haruman Technology Sdn Bhd collaborated to deploy

100% FTTH and FTTB services to more than 3,300 new homes and 1,400 offices with up to

100Mbps broadband speeds and Astro B.yond IPTV packages in Cyberjaya.

Malaysia – LTE/WiMAX Status

� In March 2013, Maxis refreshed existing home wireless internet offering with 21Mbps Wi-Fi modem and Dect phone. The

offering includes free device with 20GB, 28GB, and 48GB internet packages.

� In March 2013, YTL Communications planned to provide Wi-Fi services to express bus service operator Konsortium

Transnasional through mobile 4G Wi-Fi hotspots.

� In July 2013, Telekom Malaysia called for tenders for LTE rollout from equipment vendors including

Huawei, Ericsson, Samsung, and Alcatel-Lucent. The company stipulated its use of 800Mhz band to rollout commercial

services by February 2014. TM targets to reach 100,000 LTE subscribers by the end of 2014 and more than 1 million by

2017.


2017.

� In November 2013, Malaysian government planned to raise broadband speeds across Malaysia to 40Mbps-50Mbps by

2020.

� In December 2013, Malaysian Communications and Multimedia Commission (MCMC) declared to issue 700 MHz

spectrum by 2018 for telecommunications operators. Telecommunications operators will be allowed to use the spectrum

after spectrum refarming which is currently utilized by broadcasters.

� In December 2013, YTL Communications with Intel Malaysia planned to rollout 4G laptops and tablets for educational

sector. The program is planned to offer cloud-based virtual learning platform and high-speed internet connectivity to

10,000 schools nationwide.

New Zealand


New Zealand Profile

General Information


� Urban – 86%





� DSL – 73.7%

� Cable – 6.1%

� FTTH – 1.3%

New Zealand - Broadband

� The New Zealand Government started two initiatives in 2009 to improve broadband services in the country: Ultra-Fast

Broadband Initiative and Rural Broadband Initiative.

� Together, the new broadband programs aims to bring faster broadband to 97.8 % of New Zealand by 2019.

Broadband market share – Dec 2012 Broadband subscriber numbers


Telecom New

Zealand, 83.2%

Vodafone New

Zealand, 15.7%

Others, 1.1%

New Zealand - Ultra broadband initiative (1/7)

� The Ultra-Fast broadband program (UFB) focuses on expanding the fiber optic broadband services to

homes, schools, hospitals and businesses across the country.

� As per the plan, the Government aims to connect 75% of total population to ultra-fast broadband by 2020 with 90% of

schools, hospitals & businesses to be connected by 2015 while homes & remaining 10% of businesses to be connected by

2019.

� The Government is investing NZ$1.4bn with additional investment from the private sector.

� In October 2009, the state-owned Crown Fiber Holdings Limited (CFH) was established to manage the government’s

Government Initiatives


� In October 2009, the state-owned Crown Fiber Holdings Limited (CFH) was established to manage the government’s

investment in UFB program. CFH managed the tender processes for the selection of private investment partners. The fiber

footprint was divided into 33 areas with separate tenders.

� In May 2011, Telecom New Zealand (TNZ) won 24 of the 33 areas, while the remaining areas were won by three local

companies, Enable, Ultrafast, and Northpower, covering 182,000, 163,000, and 20,000 premises respectively.

� As a result of demerger of Chorus and TNZ, Chorus has taken up TNZ’s rights and responsibilities under the UFB program.

� In August 2012, the UFB network rollout surpassed the initial projection of 70,000 premises for its first year of deployment. It

passed the 76,000 premises mark, 6,000 more than the initial projection.

� The UFB project has made significant progress during its second year of deployment. At the end of June 2013, more than

229,600 premises had been passed, equating to roughly 20% of the total project and slightly higher than the 227,000 target &

Chorus accounted for 153,000 of these.


UFB progress as of June 2013



� UFB connections now available in 26 areas.

UFB progress as of September 2013

UFB end users able to connect


UFB end users able to connect UFB Progress at September Quarter 2013


� To support the UFB initiative, in May 2011, TNZ was awarded the contract to roll out approximately 70% of the planned UFB

network's coverage area between 2012–2015.

� As per the agreement, TNZ was required to split into two separate companies by spinning off Chorus, for independently

managing New Zealand’s UFB network and in December 2011, TNZ completed the demerger of its Chorus division.

� In March 2012, TNZ signed a wholesale services agreement with Enable to offer fiber-based services, including ultra-fast

broadband, in Christchurch.

� In April 2012, TNZ partnered with Ultrafast Fiber Ltd to deliver ultra-fast broadband in the central North Island region, including

Telecom New Zealand


� In April 2012, TNZ partnered with Ultrafast Fiber Ltd to deliver ultra-fast broadband in the central North Island region, including

the urban areas of Cambridge, Hamilton, Hawera, New Plymouth, Tauranga, Tokoroa, Te Awamutu and Wanganui.

� In June 2012, TNZ signed a wholesale services agreement with Northpower Fiber, to deliver ultra-fast broadband in the

country’s northernmost city of Whangarei. The agreement enabled TNZ and its subsidiary Gen-i to provide ultra-fast

broadband services to homes and businesses in the Northland region.

� In March 2013, TNZ launched ‘Ultra Fiber’, next generation broadband services to homes, small business and schools.

Initially, TNZ’s Ultra Fiber will be available to customers in the Chorus footprint.

� In July 2013, the company introduced Ultra VDSL packages starting at NZ$95 per month for a 80GB plan, with the largest

data plan – 500GB – costing customers NZ$129 per month.

� In December 2013, TNZ announced plans to launch Ultra Fiber services in Canterbury via UFB partner Enable in early 2014.


Chorus

� In May 2011, Chorus was selected as Crown’s partner to roll out UFB across 24 regions of the 33 areas nationwide.

� According to the agreement, Crown will invest NZ $929m into Chorus and will connect with 299 schools & 30 hospitals

during the first 12 months and further connect 736 schools & 7 hospitals by 2015.

� Chorus announced that its portion of the UFB network passed 57,000 premises as of June 30, 2012, claiming 100 customer

connections to its infrastructure. The company planned to pass 149,000 premises by July 2013.

� In November 2012, Chorus announced its plans to contribute NZ$20m in partnership with the government towards the cost

of connecting ‘non-standard’ homes to the UFB network.


of connecting ‘non-standard’ homes to the UFB network.

� In June 2013, the company announced fiber build plans for 190 more schools by the end of June 2014 and in July 2013, it

released the plans for the deployment of UFB in fourth & fifth year of its fiber build program.

� At the end of September 2013, the company’s fiber connections grew to 22,000 across Chorus’ UFB and non-UFB network.

This included about 9,200 fiber connections within Chorus’ completed UFB network footprint. Chorus completed work to build

the UFB network past about 171,500 premises, bringing 226,000 end users within reach of the network. This included

41,639 priority premises (schools, hospitals and businesses), representing 54% of priority premises.

� In October 2013, Chorus announced plans to offer next generation ultra-fast fiber broadband in Wanaka (not included in the

Government’s UFB Initiative) in 2014.


� In December 2013, the company has commenced work to deploy its ultra-fast broadband network in Greymouth, supported

by local lines company Westpower. About 3,500 premises will be passed by the UFB rollout in Greymouth and eight schools

connected directly to fiber.

� By the end of 2019, Chorus plans to extend the reach of its existing 29,000km fiber network to deploy UFB across more

than 830,000 urban homes, businesses, schools, hospitals and medical facilities throughout New Zealand.

� As per the July 2014 to June 2016 plan, the company will begin work in the last of its 24 candidate areas, Waiheke Island in

Auckland, as well as finishing work in nine other provincial towns and cities. These are Blenheim, Ashburton, Timaru and

Chorus


Auckland, as well as finishing work in nine other provincial towns and cities. These are Blenheim, Ashburton, Timaru and

Oamaru by the end of June 2015 and Waiuku, Rotorua, Taupo, Greymouth and Queenstown by the end of June 2016.

� This will result in the deployment of fiber to over 250,000 New Zealand homes, schools, medical centers and

businesses, thereby bringing the number of customers in Chorus areas who are able to connect to UFB to more than half a

million.


Other developments

� Ultrafast Fiber Ltd entered into a partnership agreement with Huawei in November 2011 to deploy its broadband network

using Huawei’s FTTH access network technology in the Waikato, Bay of Plenty, Taranaki and Wanganui regions.

� Northpower and Ericsson signed an agreement to supply GPON technology for the Northpower Broadband network in

Whangarei in December 2011. This Northpower fiber network is a part of commercial networks under the UFB Initiative.

� In February 2012, Enable Networks warded a contract to Huawei to supply fiber equipment for the UFB network being built in

the city of Christchurch, New Zealand. The contract involves the provision of all network equipment for the project, including

fiber ducting, fiber optic cables and open access layer two network solutions.


fiber ducting, fiber optic cables and open access layer two network solutions.

� In October 2012, Vodafone New Zealand purchased broadband operator TelstraClear (owned by Australia’s Telstra

Corporation) for NZ$840m ($668.7m), after gaining approval from the New Zealand regulator Commerce Commission.

� The merged entities aims to focus on future fiber expansion by reselling UFB services rather than expanding or upgrading

TelstraClear’s existing HFC cable networks, which are currently restricted to Wellington and Christchurch.

� In July 2013, Enable Networks announced plans to cover more 20,000 businesses, schools and homes by fiber broadband

as part of its UFB program by July 2014.

� In November 2013, ComCom finalized access determination for copper-based unbundled bitstream access (UBA)

services, cutting prices for basic UBA service by 23% from December 2014. This follows a decision in 2012 to cut ULLS

prices by 4% from December 2014.

New Zealand - Rural broadband initiative (1/3)

� The Rural Broadband Initiative (RBI) aims to offer affordable broadband service to 252,000 rural households as well as

connect 86% of rural homes and businesses across the country with broadband at peak speeds of at least 5Mbps by 2016

through fixed wireless and improved copper services.

� As per the plan, there will be 154 newly constructed cellphone towers and 387 upgraded cellphone towers while extending

the coverage to another 6,200 square kilometers around New Zealand to make a total of 125,700 square kilometers. The

RBI is designed to address the 25% of the market outside the footprint of the UFB program.

Government’s Initiatives

Rural Broadband Initiative roll out


Rural Broadband Initiative roll out

Year Education Health Public LibrariesNumber of new cell sites to receive RBI

fiber

Fiber to the node* 986 cabinets 5Mbps

coverage

1 71,300 pupils in 520 schools5 hospitals

5 health centers21

(+) 17,400 lines27%

2 48,000 pupils in 331 schools27 hospitals

5 health centers63 45

(+) 30,200 lines37%

3 23,900 pupils in 170 schools 11 hospitals 120 52(+) 25,000 lines

4 3,150 pupils in 70 schools 34

5 22 pupils in 1 school 2(+) 12,500 lines

57%

Total 146,350 pupils in 1092 schools43 hospitals

10 health centers183 libraries 154 cell sites

(+) 104,700 lines57%

Note: * Fiber to the node extends the reach of exchanges. Thousands of mini-exchanges or cabinets are installed in towns and suburbs, which are then linked to the local exchange with fiber optic cable.


� In February 2011, Chorus (TNZ) and Vodafone jointly won an RBI competitive tender to provide rural broadband services

with roll out of the RBI infrastructure expected to be completed by 2016.

� Vodafone New Zealand started expanding its broadband offerings in November 2011 to more than 20,000 rural

households & businesses across Canterbury, Rodney & Waikato regions.

� After the first year of RBI deployment, Vodafone upgraded 80 towers, installed 14 towers, and covered

approximately 52,923 households at the end of June 2012.

Vodafone and Chorus Initiatives


� At the end of September 2013, Vodafone upgraded 190 towers, installed 60 new towers and covered approximately

137, 210 households

� Chorus upgraded 198 cabinets and covered approximately 19,028 households during the same time.

� By the end of 2015, Chorus is targeting to deploy around 3,100 km of new fiber optic cable to connect 93% of rural

schools. It has also planned to install and upgrade 1,000 fiber-fed cabinets to enable 5Mbps or faster broadband to

about 57% of rural customers.

� Chorus plans to spend about NZ$742m over two years to roll out its rural broadband network in New Zealand.

� Chorus covered approximately 56,140 households at the end of September 2013.


Vodafone RBI progress – September 2013


Chorus RBI progress – September 2013

New Zealand – LTE Status

Telecom New Zealand (TNZ)

� In April 2013, TNZ announced that it will offer 4G LTE on a large part of its Smartphone Network in Auckland by October

2013. The company plans to extend 4G LTE coverage to Wellington and Christchurch by December 2013, and expects to

have 4G LTE live on close to half of its nationwide Smartphone Network during 2014.

� In November 2013, the company launched 4G across parts of Auckland, Wellington and Christchurch.

Vodafone New Zealand


� In February 2013, Vodafone New Zealand launched 4G LTE ultra-fast mobile broadband services in Auckland. The

company plans make LTE available in parts of Christchurch in May, and parts of Wellington in August/September 2013.

� The operator selected Nokia Siemens Networks to deploy its LTE network in the 1800 MHz spectrum band across the

country.

Pakistan


Pakistan Profile

General Information


� Urban – 37%





� DSL – 4.45%

� Cable – 0.12%

� FTTH – 0.05%

Pakistan – Broadband Status (1/3)

Broadband subscribers : FY2006-07 to FY2012-13 Broadband penetration: FY2006-07 to FY2012-13

� According to PTA's telecom indicators, as of August 2013, there were 11,702 FTTH subscribers and 568,293 WiMax subscribers.



Broadband Operator’s market share

� At the end of FY2012-13, Pakistan Telecommunication Company Limited (PTCL) recorded 1,930,591 broadband subscribers, representing 70.9% share of total broadband subscribers. It was followed by Wateen (10.3%), WiTribe (7.3%), WorldCall (6.6%), and the others accounted for the remaining.

� PTCL reported significant DSL growth during FY2012-13.



Broadband Technology Trends Broadband Technology Share

� Currently, a range of fixed and wireless technologies such as DSL, WiMAX, EvDO, HFC, FTTx, satellite links exist in themarket.

� DSL technology was leading the market at the end of FY2012-13 with 1,064,003 subscriber closely followed by EvDOwith 1,033,513 subscribers.


Pakistan – Universal Service Fund (USF) (1/2)

� In 2006, Universal Service Fund (USF) was established by the Government of Pakistan (Ministry of Information Technology)to promote the development of telecommunication services in un-served and under-served areas throughout the country.

� The main objectives of USF include:

• To bring the focus of telecom operators towards rural population and increase the level of telecom penetrationsignificantly in the rural areas through effective and fair utilization of the fund.

• To improve the broadband penetration in the country.

• To bring significant advances towards enhancement of e-services, both in rural as well as urban areas.

� Major programs of USF include:


• Rural telecom program

• Special projects

• Broadband program

• Optic fiber project

� Rural telecom program was launched to provide basic telephony and data services in several remote areas and under thisproject, more than 3,800 previously un-served villages have been provided telecom services as of December 2013.

� USF also launched various special projects like enabling persons with disabilities to use telecom services, telemedicinenetwork & services, universal tele-centers.

� Universal tele-centers (UTCs) program was established to introduce and promote e-services in the country especiallywhere availability of PCs and computer literacy are the main issues.

Pakistan – Universal Service Fund (USF) (2/2)

Telenor; 4.5%

Mobilink; 0.4% Others; 0.4%

% of total USF subsidy awarded by USF to different operators

� The telemedicine network (TM) project was set up by USF to use optic fiber and the broadband networks for providing health care facilities without any further addition in the telecommunications part.

� In broadband program, close to 474,000 USF-funded broadband connections have been provided to 260 previously un-served towns and more than 1,000 higher-secondary schools, libraries and colleges in different towns have been covered and around 300 community broadband center's have been established.

� USF has awarded contracts of different projects to various operators of approximately PKR27.8bn till December 11, 2013.


% includes rural telephony and e-services, broadband , optic fiber cable and special projects

PTCL; 52.5%

CMPak; 19.9%

Wateen; 17.4%

WorldCall; 4.6%

Telenor; 4.5%Warid; 0.3%

PTCL

CMPak

Wateen

WorldCall

Telenor

Mobilink

Others

Warid

Pakistan - USF - Optic Fiber Program (1/3)

� USF optic fiber project aims to extend the optic fiber connectivity to the un-served Tehsil HQs in Pakistan, for meeting the

growing requirements of voice, data and video in these areas.

� The main objectives to be achieved though optic fiber project include:

• Facilitating ICTs services like basic telephony (GSM, WLL, wired) especially for very remote areas.

• Create a network to carry high capacity ICT traffic.

• Improving the ICT services in rural areas.


• Improving the ICT services in rural areas.

• Provide optical fiber backbone to all commercial telecom operators and non commercial government organizations

which will help expand ICT services.

• Providing high quality backhaul services for rural broadband and up-coming next generation services such as 3G etc.

� Under this project, more than 4,983 Km of optic fiber cables have been already laid connecting 76 un-served tehsils and

towns.


No11 Packages of unserved Tehsils

Route in km

1 SIND 1,038

2 BALOCHISTAN – 1 884

3 BALOCHISTAN – 2 1,291



USF Optic fiber program status - December 2013



6 BALOCHISTAN – 5 800

7KHYBER-PAKHTUNKHWA– 1

309

8KHYBER-PAKHTUNKHWA– 2

428

9 FATA—1 420

10 FATA—2 430

11 FATA—3 450

Total ~ 8,740


• Sindh Pilot Phase:17 un-served tehsils in Sindh region now connected with 1,037 Km of fiber.

• Balochistan - Phase 1: 9 un-served tehsils in Balochistan region now connected with 917 Km of fiber.

• Balochistan-Punjab Phase 2 : 11 un-served tehsils in Balochistan & Punjab region now connected with 681 Km of fiber.

6 more towns will be connected by additional 697 Km of fiber.

• Balochistan - Phase 2: 19 out of the 21 un-served tehsils in Balochistan region now connected with 1260 Km of fiber.

Projects under optic fiber program


• Balochistan - Phase 3: 10 un-served tehsils in Balochistan region now connected with 365 Km of fiber and 993 km of

additional fiber will be laid to cover 10 more un-served towns.

• Balochistan-Punjab Phase 3 : 16 un-served tehsils in Balochistan & Punjab region now connected with 724 Km of fiber.

3 more towns will be connected by total 800 Km of fiber in this phase.

• Khyber Pakhtunkhwa Phase 6: This phase is under development and planning to connect un-served tehsils having

population of above 2 million with approximately 513 Km of optic fiber cable.

• Khyber Pakhtunkhwa Phase 7: This phase is under development and planning to connect the un-served 20 tehsil

headquarters and 6 towns by optic fiber cable.

Pakistan - PTCL Profile

� Pakistan Telecommunication Limited (PTCL) is one of the major players in the broadband services market. At the end of

September 2013, PTCL had over 1.1 million wire line broadband, representing 23% growth. The company also recorded

68% growth in wireless broadband with 0.67 million subscribers at the end of September 2013.

� The company offers its broadband services in over 2000 cities and towns across Pakistan.

� In addition, PTCL is also focusing on rolling out its “Ultra Net” VDSL2 network, which is capable of delivering speeds up to

50Mbps. It also offers high speed broadband services of up to 100Mbps on its FTTH network.

� PTCL has taken an initiative to deploy 200,000 fiber backhaul broadband lines with MSAGs nodes.


� In May, 2013 PTCL signed an MoU agreement with Bahria Town to deploy GPON based FTTH services in Bahria. Prior to

this, PTCL has deployed GPON based FTTH services in Karachi, Lahore, Islamabad and this is PTCL’s sixth deployment of

GPON.

� In December 2013, USF awarded contracts of Rawalpindi Telecom Region (RTR) and Northern Telecom Region (NTR-1) for

providing broadband services to PTCL .

� Through RTR Project, broadband services will be provided in five districts and 130 educational broadband centers (EBCs)

and 16 community broadband centers (CBCs) will be established.

� Through NTR-1 Broadband project, broadband services will be provided in 11 districts and 124 EBCs and 25 CBCs will be

established.

Pakistan – WiMAX Status

� The WiMAX market in Pakistan is slowing down and existing WiMAX operators are in the process of shifting their focus on

other broadband technologies.

� In Pakistan, WiMAX subscribers decreased from 589,887 subscribers in FY2011-12 to 568,293 subscribers at the end of

August 2013.

� Currently there are four WiMAX operators in Pakistan. Wateen Telecom, Wi-tribe, Qubee and Mobilink-Infinity that account

for around 28.1% of the total broadband market share as of March, 2013.

� Wateen Telecom is the biggest WiMAX operator in Pakistan. It was the first operator to launch nationwide WiMAX services

in 2007. As of 2012, Wateen recorded over 250,000 WiMAX subscribers in 25 cities with 960WiMAX sites nationwide.


in 2007. As of 2012, Wateen recorded over 250,000 WiMAX subscribers in 25 cities with 960WiMAX sites nationwide.

� Due to major losses by WiMAX business, Wateen Telecom has initiated discontinuation of WiMAX services in seven cities in

March, 2013 and shifting its customers to fiber GPON network to focus its efforts on more profitable cities.

� Wateen Telecom and Quebee announced plans to consolidate their respective wireless broadband businesses. With the

formation of a new business, both companies intend to re-energize the wireless broadband market with planned investments

of more than $25m for the improvement and expansion in coverage of the combined network of both companies.

� Wi-tribe, which launched its commercial WiMAX service in July 2009, reported 201,000 WiMAX subscribers as of

September 2013.

� In December 2013, Mobilink-Infinity planned to close its WiMAX operations. It had approximately 15,000 WiMAX

subscribers. The company plans to shift its entire focus to 3G data services.

Philippines


Philippines Profile

General Information

� Estimated Population: 105.7 million

� Urban – 49%





� DSL – 9.3%

� Cable – 0.3%

� FTTH – 0.1%

Philippines – Spending drivers

Driver Remarks

3G->4G

� The top three mobile service providers - Smart/PLDT, Globe & Digitel Mobile (Sun Cellular) offer 3G

services. Smart expanded its LTE footprint to over 1,200 sites in 2013 and had also completed the

trial for LTE-Advanced, which would provide speed up to 700Mbps, in August 2013, while Globe has

more than 7,000 4G sites as of November 2013.

� Both PLDT and Globe currently offer fiber-to-the-home (FTTH) services with speeds up to 100Mbps.

� PLDT is upgrading its core infrastructure and access and transmission networks to expand coverage


NGN

and enhance the quality of its broadband services. As of September 2013, it had deployed over

75,000 km of fiber network for FTTH and LTE services.

� Globe has been offering FTTH services in Makati since June 2009 and currently focused its

investment to expand FTTH coverage. It has allocated the investment of $700m for network

modernization involving the roll-out of about 12,000 km of optical fiber lines in Philippines.

Govt & regulatory

� No local loop unbundling; major competitors building own infrastructure.

� Low fixed-line density combined with challenging geography and demographics warrant diverse

approach to serving consumer market.

� Fragmented fixed-line market makes it hard to gain economies of scale.

Philippines – Digital Strategy 2011-2016

� In March 2012, ICT Office of Department of Science and Technology (DoST) announced the National Broadband Plan for

the Philippines (NBbP) for the next 5 years. This National Broadband Plan would ensure an implementable set of strategies

and actions, to achieve Universal Internet access to give everyone the chance to reap the advantages of high speed

Internet.

� In June 2011, the Commission on ICT finalized the Philippine Digital Strategy (PDS) for 2011-2016, a predecessor to the

Philippine Strategic Roadmap for the ICT Sector 2006 to 2010. The current strategy presents a renewed vision for ICT & its

use in transforming Philippine Society into a competitive force in the digital economy by the year 2016. As part of PDS

2011-2016, the government of Philippines planned to achieve the following basic broadband access and internet targets by


2016:

� 80% of barangays to have Internet access through the CeCs (Community e-Center or Similar) of at least 2 Mbps

and the remaining 20% would have access by 2020.

� 100% of high schools & 80% of elementary schools to have internet access.

� 80% of other public institutions & 100% of government offices have internet access.

� All central business districts to have available download speeds of 20 Mbps.

� 80% of households to have access to at least 2 Mbps of broadband connectivity.

� Average prices for basic broadband Internet to be reduced by at least 5% annually.

� Investment in infrastructure expansion to increase by at least 10% annually.

Philippines - PLDT Profile (1/5)

Scope

� PLDT is the leading telecommunications service provider in the Philippines. The company offers fixed line

telecommunications services primarily through PLDT; wireless telecommunications services through Smart

Communications, Inc. (Smart), and Pilipino Telephone Corporation (Piltel); and business process outsourcing services

through its subsidiaries.

� In August 2013, PLDT strengthened fiber brand and launched it together with PLDT Home to offer rich multimedia services

such as movie and TV content on its fiber-powered networks. The FTTH broadband connection enables PLDT to offer


such as movie and TV content on its fiber-powered networks. The FTTH broadband connection enables PLDT to offer

customers triple play services that provide not just access for voice and data but also allow seamless streaming of high

quality video.

� Through PLDT Home, a full-service multimedia company, PLDT enables its subscribers to watch HDTV though

Cignal, access broadband (Fiber), watch Hollywood movies on Clickplay , and play EA games on their Telpad.


Operational information

� Broadband:

� Total broadband subscriber base reached 3.3 million at the end of 3Q13.

� It recorded 950,000 fixed broadband subscribers, which represents 46% of total fixed line subscriber base.

� Broadband service revenues accounted for 16% of total group service revenues of PHP19.5 billion till 3Q13.

� PLDT’s recorded fixed broadband revenues of PHP9.1 billion at the end of 3Q13, an increase of 9% over the same

period in the prior year.


� As of November 2013, PLDT had 70% share in the local home broadband market.


Capex

� By September 2013, PLDT spent PHP14.9 billion out of total allocated PHP29 billion.

� The investment plans included:

� Wider 2G and 3G cellular coverage resulting from Smart/Sun network integration project.

� Expanded 4G coverage from over 10,000 active 4G-capable (HSPA+/WiMAX, LTE and LTE-A) base stations.

� PLDT group’s fiber roll out has expanded to about 75,000 km, including 7,200 km of submarine-international

fiber, over 4,000 km of submarine-domestic fiber, and 4,000 km in the company’s combined wireless access


network.

� PLDT has the widest LTE network in the Philippines with about 1,200 sites.

� Launched a Cloud-based contact center service (CCaas).

� LTE-Advanced tests which achieved speeds of up to 200Mbps.

� Deployment of the country’s first small-cell network to further boost indoor coverage.

� PLDT invested PHP1 billion in Bohol fiber network. In this project, the company would rollout inland and submarine

cable to 280 km. The project is expected to be completed by fourth quarter of 2014.

� PLDT planned to keep the same capex for 2014 as it was for 2013. The company further planned to invest 60-65% for

broadband business and 25% for fiber network rollout .


� In October 2012, Philippine's leading telecommunication operator, Philippine Long Distance Telephone Company (PLDT),

appointed Fujikura as the vendor for its Fiber to the Home (FTTH) project. PLDT aimed to provide much faster and media-

rich broadband services to its residential and commercial customers.

� In February 2013, PLDT boosted its international bandwidth capacity to Hong Kong with the completion of the fiber optic

cable extension project in the undersea Asia Submarine-cable Express (ASE) system which increased its capacity allowing

250Gbps of unified connection to Hong Kong,

� In March 2013, PLDT planned to provide fiber links through submarine cables that boosted the data connectivity of the

NGN update


� In March 2013, PLDT planned to provide fiber links through submarine cables that boosted the data connectivity of the

islands of Palawan, Bohol and Panay where the demand for resilient data services was rising due to the booming tourism

and business process outsourcing industries.

� PLDT partnered with Ciena Corporation in July 2013 for intelligent optical mesh network through which PLDT offered high-

availability, high-capacity SONET/SDH, OTN and Ethernet dedicated services to its customers.

� In July 2013, PLDT announced that it had completed its P1bn expansion program to strengthen its core internet protocol

(IP) backbone, and international and domestic networks to handle larger volume of data, voice, and video traffic for

enterprise customers.

� In September 2013, PLDT completed the rollout of 75,000 km fiber optic network as part of PHP2.5 billion expansion

project to support FTTH and LTE services.


NGN update

� PLDT entered into an agreement with Danao Telecom in September 2013, to offer telecommunications services in

Danao City, Cebu.

� By September 2013, Smart Communications has equipped over 1,200 base stations in Metro Manila and key urban

centers and towns with its high-speed LTE service which is supported by fiber networks of PLDT and Smart. Smart’s

LTE network offers mobile data services with speeds of up to 42Mbps.

� In October 2013, PLDT’s ultra-fast fiber service covered more than 800 high-end residential subdivisions across the

country. PLDT fiber provides subscribers with connection speed of up to 100Mbps.


country. PLDT fiber provides subscribers with connection speed of up to 100Mbps.

� With a capex guidance of PHP29 billion in 2013, PLDT further expanded its extensive fiber optic network to over

71,000 km, enabling the company to offer industry-leading high-speed broadband connectivity to homes and

powering mobile broadband services of Smart’s LTE network. Riding on these high-speed connections, PLDT has

begun to offer rich multimedia services such as movie and TV content on its fiber-powered networks.

� PLDT laid down fiber optic cables nationwide to step up its FTTH rollout and hit 2.2 million “homes passed.”

� In January 2014, the company lead Filipino homes to the multimedia future by enabling them to access HDTV

though Cignal, broadband via fiber service and to watch Hollywood movies on Clickplay besides playing EA games

on their Telpad.

Philippines - Globe Telecom Profile (1/3)

� At the end of 3Q13, Globe Telecom’s mobile subscribers reached 36.5 million, a 14% y-o-y increase.

� The wireless broadband subscribers reached 1.5 million at the end of 3Q13, representing a 14% y-o-y growth. Also, the

wired broadband subscribers increased by 17% y-o-y to reach 384,092.

� Capex of $700 million planned over next 5 years for network modernization which includes an aggressive roll-out of its

fiber optic transmission system.

Capex



� The total capex cash flow by the end of September 2013 was PHP22.7 billion. The capex breakdown till 3Q13 is as

follows:

*based on consolidated capex addition


Network Modernization and IT Transformation Updates



� As of December 2013, Globe’s HSPA+ network coverage reached 80% of its cellular network.

� In September 2013, Globe Telecom completed rolling out its 400 km submarine fiber optic backbone in Palawan, which

was a part of its network transformation project for the installation of 12,000 km of optical fiber lines nationwide.

� In June 2013, the Southeast Asia-Japan Cable (SJC) submarine cable system became fully operational, and strengthens

Globe Telecom' s connectivity with the region and the rest of the world.

� Globe Telecom is interconnected to SJC submarine cable system, East Asia Cable system, Asia Pacific Cable

Fiber Optic Cable System


Network, Tata Global Network–Intra Asia cable system, the City to City cable system and the Trans-Pacific Cable

system, which encompasses the Unity, Tata Global Network-Pacific, Japan-US Cable Network and the US Domestic

Access cable systems in order to enhance the customer experience in terms of high-speed internet surfing, seamless

video streaming and fast uploads.

� In April 2013, Globe Telecom planned to roll out additional fiber optic capacity to support their growing 4G LTE-HSPA+

service to address mobile data service. The pervasiveness of 3G/4G coverage has been increased with more than 7,000

4G sites and up to 42Mbps speed.

� By April 2013, the company has laid down over 6,000 km of in-land fiber in anticipation of higher traffic from mobile

browsing and data usage.

Philippines - Bayantel Profile (1/2)


� Bayan Telecommunications (BayanTel) , the operating arm of Bayan Telecommunications Holdings Corporation (BTHC), is

a regional telecom company which offers local exchange carrier (LEC); international gateway facility (IGF); leased line

service, domestic and international; public trunk radio service; and public calling office services.

� BayanTel‘s existing nationwide network is composed of satellite, terrestrial and land/submarine based cable facilities. The

network includes capacities in the National Digital Transmission Network (NDTN), a joint project of six Philippine

telecommunications carriers.

� BayanTel has 83% capacity interest in the NDTN project.


� BayanTel has 83% capacity interest in the NDTN project.

� Early mover to offer enterprise metro Ethernet service. Main product is EPL, 4-100Mbps.

� It has one of the biggest Internet backbone in Philippines with more than 1Gbps link to the Global Internet backbone.

� Globe Telecom and BayanTel filed a joint application in October 2013, for regulatory approval with the NTC for the change

in the controlling interest in Bayan. The first tranche of conversion was completed in October 2013, after Bayan issued

common shares equivalent to 39% of the company, to Globe and its senior creditors. Prior to that, Globe had bought up

98.26% of the Bayan’s loans.

Philippines - Bayantel Profile (2/2)

Broadband Update

� In FY2012, the company’s data service revenues grew to PHP3.6 billion, an increase of 11% over 2011, driven by the

increasing demand for data connectivity and internet connection. DSL revenues went up 13% to PHP1.7 billion in 2012 as

the DSL base rose by 12% to 132,000 subscribers. The company also ended 2012 with 184,000 voice subscribers and

voice revenues rose 4% y-o-y to PHP1.6 billion. The growth was due to product bundling, expansion in select areas, and

new voice products for the corporate market.

� BayanTel announced in May 2010 that it had set a capex target of PHP1.4 billion for fiscal year 2010 to develop its

broadband operation for the SME market. It is investing heavily in the National Digital Transmission Network, a fiber optic


broadband operation for the SME market. It is investing heavily in the National Digital Transmission Network, a fiber optic

network across the Philippines, owned by a consortium of BayanTel (65% ownership) and six other major telcos:

Smart, Globe, Express Telecom, Eastern Telecom, Philippine Telephone & Telegraph and Digital.

� In August 2010, the company announced that it is currently deploying a fiber network across Bonifacio Global City's E-

square district to serve businesses. The deployment was scheduled to be completed by mid-June 2011.

Philippines – WiMAX/LTE Status

� In June 2009, Globe launched the first WiMAX service in the country. The WiMAX network of Globe was the biggest with

2.5GHz WiMAX broadband network.

� WiMAX has not taken any significant step to improve or retain the WiMAX services in Philippines. As reported in May

2013, only Globe and Smart were the players to offer WiMAX services, however there were very few subscribers availing

these services.

� By the end 2013, Smart Communications Inc. has the widest 4G LTE network coverage along with HSPA+ and WiMAX.

Smart has over 10,000 sites, covering 85% of the country’s population.

� By December 2013, Globe has more than 900 operational LTE sites in key cities and holiday destinations across the


� By December 2013, Globe has more than 900 operational LTE sites in key cities and holiday destinations across the

Philippines. Also, Globe has reported that over 80% of its cellular network is now running on HSPA+ technology.

� In July 2010, Globe WiMAX services are available in 60 provinces and 365 cities and it continues to invest in increasing

coverage to expand its addressable market. It reported a WiMAX subscriber base of 100,000 in July 2010.

� Liberty Telecom launched its trial WiMAX services under the “Wi-tribe” brand in the Philippines in January 2010. It claimed

to have signed up over 1,000 users for the trial in Mandaluyong, San Juan, Makai and Quezon City.

� Wi-tribe commercially launched its services in April 2010. Its unlimited Starter Package costs PHP998 per month with

1Mbps actual speed (up to 3GB download volume per month, speed tapering at 256kbps in excess of 3GB).

� PLDT acquired Primeworld Digital Systems' (PDSI) in October 2009 and integrated its WiMAX network into its own.

Singapore


Singapore Profile

General Information


� Urban – 100%



� Fixed Broadband Connections – 1.4 million

� Fixed Broadband Penetration by Household – 115.1%

� DSL – 27.8%

� Cable – 46.2%

� FTTH – 41.1%

Singapore - Optical fiber broadband subscriptions

387,800

451,400

200,000

250,000

300,000

350,000

400,000

450,000

500,000


� Demand for fiber grew close to two fold compared to the previous year.

� OpenNet reached its target of covering 95% of households with fiber broadband by 2012.

� IDA approved acquisition of CityNet by OpenNet.

� Number of companies signing OpenNet’s interconnection offer increases to eight.

98,600 133,100

181,600

231,200

284,700

332,000

387,800

-

50,000

100,000

150,000

4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Singapore - FTTx status – Intelligent Nation 2015 (1/6)

� The IDA launched intelligent nation 2015 (iN2015) a ten year

program to develop the infocomm sector in the country.

� Under the iN2015 program the goal was to establish a Next

Generation Infrastructure comprising both wireless

(Wireless@SG) and wired network (Next Generation

Nationwide Broadband Network). Wireless@SG program

was launched 2006 in that offered free wireless broadband

connection to public places.


� Work commenced on the Next generation Nationwide

Broadband Network (Next Gen NBN) in 2008. Next Gen

NBN was planned to offer broadband speeds of up to 1Gbps

and above.

� The IDA decided on a structurally separated model for the

fixed network. It tendered separate funding for its active line

access network (OpCo) and passive line access network

(NetCo). As per the model, OpCo would deliver wholesale

bitstream products, DSLAMs & optical line terminals while

NetCo would provide for copper lines, optical fibers & ducts.

Singapore - FTTx status Intelligent Nation 2015 (2/6)

Next Gen NBN Ecosystem


Singapore - FTTx status Intelligent Nation 2015 (3/6)

� In June 2011, Nucleus Connect and Huawei planned to conduct joint study on 10G GPON Open Access Network for

Singapore’s Next Generation NBN.

� In June 2013, IDA approved Nucleus Connect’s request to extend the implementation deadline for three services

under the Approved ICO to 1 September 2013.

� Viewqwest, a facility based operator and managed services provider, announced an investment of S$8 million in the

country’s Next Generation Nationwide Broadband Network (Next Gen NBN). Further adding to the announcement

Nucleus Connect (OpCo)


� In October 2012, OpenNet increased installation capacity by approximately 15% from 3,100 to 3,550 connections per

week.

� OpenNet has covered 95% of Singaporean premises with fiber broadband. The remainder was to be completed by

January 2013.

� The number of subscribers to OpenNet’s fiber broadband services increased to 450,000 in October 2013 as

compared to 250,000 in November 2012.

OpenNet (NetCo)

made in November 2011, Viewqwest company also plans to invest an additional S$15 million over the next two years.

to offer ultra high speed connections to its enterprise customers.


•Launch of commercial services over the NextGeneration National Broadband Network (NexGen NBN)•Open net introduced wholesale dark f iberservices

•Viewqwest announced investment of S$8 millionin Nex Gen NBN with plans of adding additionalamount of S$15 million over next two years•NBN reached 75% nationwide coverage in August2011•IDA introduced Home Networking Clinics•Wireless@SG coverage improved to 7,500 Wi-Fihotspots

•Universal Service Obligation to takeeffect from January2013.


•Nucleus Connect started its commercialoperations for providing wholesale connectivity

services with speeds from 100 Mbps to 1Gbps


� IDA has launched the Next Gen Services Innovation Programme (NGSIP) to support the development of next generation

broadband services and applications, specifically with the following goals:

Next Gen Services Innovation Programme

Timelines Objectives

� Support commercial availability of next

generation broadband services to end-users

(residential, non-residential and government


(residential, non-residential and government

agencies).

� Encourage the commercial deployment of

innovative services over Next Gen NBN to

benefit end-users (residential, non-residential

and government agencies).

� Create new market opportunities for Retail

Service Providers (RSPs) and Application

Service Providers (ASPs).


� IDA launched the fourth Call-for-Proposal (CFP) for Smart Work Centers (SWCs) under Next Gen Services innovation

program (NGSIP) in May 2013. SWCs are general professional work environments that are outside the office, the primary

aim of Smart Work Centers within residential locations was to bring work closer to the residential areas of employees.

� The project was planned to be completed in two steps, namely, Track 1 and Track 2. In Track 1, operators would setup

SWC in at least one of the community space identified by IDA. In Track2, operators would propose location and set up

SWC in the proposed location.

NGSIP update – 4th CFP (Smart Work Center)


� The period of the project was initially decided to be 2 years and IDA announced to co-fund the initial investment necessary

to undertake the project. The below mentioned services would be provided in SWCs:

Singapore – WiFi status

� IDA’s wireless broadband program, Wireless@SG, was launched in December 2006 as part of its Next Generation National

Infocomm Infrastructure initiative. In 2009, it was enhanced with a focus on enhancing user experience and driving the

adoption of innovative services for both consumers and enterprises. In September 2009, the access speed was doubled to

1Mbps and the Seamless and Secure Access (SSA) was implemented in 2010. As of June 2013, more than 42% of

subscribers log-in to Wireless@SG via SSA.

� As of December 2012, there are 2.26 million subscribers with an average of 31 hours per user per month in 2012.

Wireless@SG Programme


� In August 2012, IDA invited operators and service providers to collaborate with IDA and other partners to provide and

operate public Wi-Fi deployment for the Next Phase of Wireless@SG programme from 1 April 2013 to 31 March 2017.

� Three wireless operators in the Next Phase, namely, M1, SingTel and StarHub were selected. In addition, Y5Zone

Singapore Pte Ltd, a Wi-Fi service provider will also be on board as a Wireless@SG operator. The core business of

Y5Zone International Group is operating public Wi-Fi networks.

Singapore – WiFi/LTE status

� The key developments in the Next phase are mentioned below:

� To enhanced registration and log-in process through interoperable SIM-based authentication mechanism by April

2014.

� To include new services including targeted advertising, and office communication suite and software.

� To provide free basic Wi-Fi services, with access speeds of up to 2Mbps for general public by March 2017.

� In June 2013, IDA announced provisional allocation of spectrum for 4G telecommunication systems and services to

Wireless@SG Programme


� In June 2013, IDA announced provisional allocation of spectrum for 4G telecommunication systems and services to

M1, SingTel and StarHub. M1 obtained 80 MHz of spectrum at a total price of USD104m, SingTel obtained 100 MHz of

spectrum at a total price of USD136 million and StarHub obtained 90 MHz of spectrum at a total price of USD120 million.

Singapore - Other updates

� In March 2013, StarHub launched StarHub TV on Fiber which is an IPTV pay-TV service initially launched for commercial

customers such as offices, restaurants and pubs.

� In August 2013, StarHub introduced a business fiber service for SME’s offering internet access, voice, and IPTV over the

Next Gen NBN. In September 2013, InterDigital in collaboration with StarHub announced the evaluation and trial of Wi-Fi

over dynamically managed unlicensed spectrum.

� In April 2013, IDA announced changes in the Code of Practice for Info-communication Facilities in Buildings (COPIF).

COPIF 2013 requires new homes to have an optical fiber termination point to be pre-installed in each new home. In

addition, each living room and bedroom within new homes will be provided with category 6 cabling capable of carrying data


addition, each living room and bedroom within new homes will be provided with category 6 cabling capable of carrying data

speeds of more than 1Gbps.

� In July 2013, M1 introduced MiBox, an IPTV service offering video-on-demand, games, e-books, and apps for M1 fiber

customers.

� In November 2013, IDA imposed a fine of SGD0.75m on OpenNet breaching Universal Service Obligation as well as

quality of service standards. OpenNet's Universal Service Obligation from January 2013, had required the company to

provide optical fiber services to any location in mainland Singapore or connected Singapore.

South Korea


South Korea Profile

General Information

� Estimated population – 49.0 million

� Urban – 83.0%






� DSL – 8.8%

� Cable – 25.2%

� FTTH – 64.0%

South Korea - FTTx Overview

� Korea was one of the first countries to begin FTTx deployments. FTTx is approaching 70% household penetration in South Korea and is expected to reach 73% eventually.

� KT remains the wireline broadband leader in FTTH, followed by SK Broadband and LG U+.

� Korea Telecom and LG U+ have been deploying EPON equipment. SK Broadband has been deploying GPON.

� KT has begun preparations for its 10G EPON deployment and has been running BMTs (benchmark tests).


� Major suppliers of EPON ONT/ONU CPE devices include:

� Dasan

� Ubiquoss

� Dongwon

� Mercury

� Tellion

� CNS

� Major suppliers of GPON ONT/ONU CPE devices include:

� Dionet

� Dasan

� Tellion

South Korea - Regulatory Targets

UBcN – Ultra Broadband Convergence Network:

� The Korean Regulator through the KCC stated its plan to have the nation’s UBcN completed by 2013.

� The KCC’s goals for the UBcN are to realize a ‘Next-generation convergence network’ in which:

� 70% of wired telephones will be IP-based.

� 15% of wireless telephones to be IP-based.

� 1 Gigabit-level fixed broadband services will be commercialized.

� 96% of households will have access to Digital Cable Broadcasting services.


South Korea – Broadband Success Factors


Source: Korea Broadband Policies and Recommendations for the Asian Information Super Highway, 25 Sep 2013.

South Korea - KT – fixed broadband

� KT has adopted a bundling strategy to improve ARPU and reduce churn.


South Korea – LTE and KT

� LTE deployments are well underway in South Korea.

� KT provided the following graphs with its 3Q13 investor relations slide deck:


South Korea – KT - LTE continued

� Korea Telecom LTE coverage:


South Korea – SK Telecom and LG U+ - LTE continued

� SK Telecom:

� At year-end 2013, SK Telecom had 13.5 million LTE subscribers, which accounted for around 50% of its total mobile subscriber base.

� SK Telecom will enhance its network quality by launching “20MHz + 10MHz” LTE-Advanced service in the second half of 2014, while accelerating the development and application of diverse next-generation network technologies including LTE-Advanced 3 Band Carrier Aggregation. Moreover, the company plans to expand its product/service offerings by launching over 20 products in five core service categories namely Communication Platform, Home Service, Media Service, Entertainment Service and Security Service.

� SK Telecom has launched ‘T Phone,’ an All-IP communications platform, and ‘B Box,’ a home hub device on January 23, 2014


January 23, 2014

� LG U+:

� LG U+ launched commercial LTE-advanced services in July 2013.

� It provides up to 150Mbps data services over its commercial LTE network.

Taiwan


Taiwan Profile

General Information


� Urban – 80%





� DSL – 21.7%

� Cable – 15.4%

� FTTH – 39.3%

Taiwan – National broadband strategy

I

� The adjacent figure illustrates the evolution of Taiwan's national broadband strategy, the National InfoCom Development

Plan (NIDP), from 2002 to 2013.


Taiwan – Government and regulatory initiatives

� Taiwanese government started “Broadband for Every Village” project in 2007 to offer Internet access services with a speed

of 2Mbps to every village in Taiwan to shorten the digital divide between urban and rural areas. The project was supported

by the telecommunication universal service fund (USF).

� In 2007, the National Communications Commission (NCC) appointed enterprises to construct broadband networks in 46

remote villages with an expense of $2.8m invested to build 145.8 kilometers of fiber-optic cables which had Internet speed of

over 2Mbps; broadband coverage for the villages reached 100%.

� The NCC's “Broadband for Every Village” project was completed in 2007, and the regulator has since been funding

broadband extension into remote areas with a new “Broadband for Tribes” project, which funds fiber links into remote areas


broadband extension into remote areas with a new “Broadband for Tribes” project, which funds fiber links into remote areas

inhabited by mountain tribes that had remained unconnected due to difficulty of setting up lines over such difficult terrains.

� In 2008, the NCC designated an additional 50 tribes and neighborhoods to be equipped with broadband services with $2.2m

investment to establish 122.1 kilometers of fiber-optic cables which had Internet speed of over 2Mbps and in 2009, the NCC

invested $2.4m in 51 tribes and neighborhoods to install 130.1 kilometers of fiber-optic cables.

� In February 2010, the NCC appointed Chunghwa Telecom and Taiwan Fixed Network to provide designated villages with

universal service for data communications access & in February 2011, it appointed Chunghwa Telecom and CNT CATV to

offer designated villages with universal service of data communications access in 2011.

� In February 2011 and February 2012 Chunghwa Telecom was appointed by the NCC to provide designated villages with

universal service for data communications access in 2012 and 2013 respectively.

Taiwan – Current Status of broadband market

Broadband Internet Accounts: 2010 -2012

Fixed broadband

Year ADSL FTTx Cable Modem Leased Line PWLAN Subtotal Mobile broadband Total

2010 2,360,485 1,957,840 927,637 19,064 46,573 5,311,599 16,485,522 21,797,121

2011 2,124,588 2,302,158 1,013,796 23,540 51,846 5,515,928 17,865,337 23,381,265

2012 1,820,462 2,633,495 1,081,623 26,131 887,108 6,448,819 17,821,355 24,270,174


� At the end of March 2013, FTTx connections accounted for the largest portion of the country’s high speed Internet accesses

reaching 2.7 million. ADSL, cable modem, WiMAX subscribers reached 1.7 million, 1.1 million, and 135,595, respectively.

� Chunghwa Telecom holds approximately 79.2% market share in the broadband market. It also leads its competitors, Taiwan

Fixed Network and New Century InfoComm Tech, in terms of FTTx development..

Taiwan - Chunghwa Telecom profile (1/7)

Operational details

� Taiwanese telecom market is approaching market saturation and is extremely competitive following regulatory

changes. Chunghwa Telecom, the leading operator in Taiwan, competes with two other major service providers -

Taiwan Mobile and FarEasTone Telecommunications.

� Chunghwa Telecom had a dominant market position in Taiwan as of August 2013.

Fixed line


� Fixed line

� Local subscribers - 94.8% market share

� DLD minutes - 76.4% share by minutes

� ILD minutes - 53.6% share by minutes

� Broadband access - 77.9% share by subscribers

� Mobile

� Mobile subscribers - 35.5% market share

� Mobile revenues - 35.1% market share

� Internet

� ISP (68.9% share by subscribers)


Revenue Details



� Chunghwa’s capital expenditure has been increasing year-on-year (yoy) and focus on core businesses is continuing.


RN1

RN1 Updated the chart and conent related to chartRavi Neelam, 08/01/2014



� Continuing to migrate customers from low speed to high speed fiber services.

� Applying data mining capability for precision marketing and network construction.

� Offering high-speed enterprise broadband services and explore enterprise IOT broadband demand.


� In November 2010, Chunghwa Telecom announced plans to invest NT$20bn ($666m) in 2011 to boost Internet-connection

speed on its optic-fiber network up to 100Mbps. The investment was part of the operator’s plan to invest NT$100bn

($3.3bn) over five years (2010-15) for improving its network.

� This is inline with government’s directive to connect up to 80% of country’s households with fiber optics at data at speed of

100Mbps by 2015.

� In January 2011, Chunghwa Telecom announced plans to launch the 50Mbps fiber-optic service to meet the needs of the

cloud computing industry. The company intends to reach 80% network coverage rate and 50% penetration rate for the 50

FTTx Update


cloud computing industry. The company intends to reach 80% network coverage rate and 50% penetration rate for the 50

Mbps service by 2015.

� In January 2012, the company decided to step-up its purchasing of FTTH over a five-year timeframe.

� In the same month, Chunghwa Telecom planned to initiate a trial G-generation program in 2012 and invest NT$100bn in

the construction of fiber-optic network in the next three years. In 2012, the company planned to focus on 50Mbps high-

speed fiber-optic network, whose coverage rate has topped 80% island-wide. In addition, it will construct a 100Mbps

network, boosting the number of 100Mbps Internet subscribers, planning to achieve over 80% coverage for 100Mbps fiber-

optic,


FTTx Update



� At the end of March 2013, Chunghwa Telecom ‘s FTTx subscribers reached 2.8 million, accounting for 61.2% of total

broadband users. Also, the number of subscribers signing up for 50Mbps and higher speed connections increased by

81.9%, reaching 964,000.

� In June 2013, Chunghwa Telecom planned to increase the footprint of its FTTx network from 70 to 85 percent of homes and

businesses by the end of 2013. The company planned to have 300,000 subscribers signed up for its 100 Mbps fiber-based

service. It also offers a 50 Mbps tier and has been conducting trials of a 1Gbps service in five of its key cities: Taipei, New

Taipei, Taichung, Tainan and Kaohsiung. Chunghwa Telecom targets to cover 97% of its population by FTTx by 2015.

FTTx plays a key role in the Access part of CHT’s NGN project.


Taiwan – WiMAX Status (1/2)

� The NCC auctioned WiMAX licenses in the 2.6GHz band in January 2007. The country was divided into two

regions, Northern and Southern Taiwan, and three licenses in each region were awarded.

� Licenses were awarded at auction to FarEasTone, Vastar Cable TV (now Vee Telecom), Tatung Telecom, VMAX

Telecom, First International Telecom (FITEL), and Global Mobile.

� Despite the fact that Chunghwa Telecom has no license in 2.5GHz to offer WiMAX services, the incumbent was involved in

the M-Taiwan initiative and has set up various trials with several vendors including Nortel, Alvarion, TAISEL & NSN.

� On the domestic WiMAX service front, there are still issues. The majority of the six regional WiMAX license winners

WiMAX rollout in Taiwan


� On the domestic WiMAX service front, there are still issues. The majority of the six regional WiMAX license winners

remained cautious about their respective WiMAX strategies, which resulted in several launch delays.

� Tatung Telecom was the first operator to launch WiMAX service in Penghu in April 2009.

� In January 2010, FarEasTone launched its commercial WiMAX service in Taichung and Global Mobile launched its mobile

WiMAX service

� In February 2010, Taiwan’s First International Telecom (FiTEL) awarded its second WiMAX equipment order to Motorola. In

March 2010, Tatung InfoComm commercially launched WiMAX services in Taiwan in Pingdong and Hualian.

� In April 2010, Vee Time launched a commercial mobile broadband service based on Motorola’s WiMAX technology. In May

2010, Vee also signed an MoU with Intel for operator interoperability testing (OIOT ) of WiMAX chipset solutions and

devices developed by Intel.

Taiwan – WiMAX Status (2/2)

� In December 2010, four out of the six licensed WiMAX operators - Tatung InfoComm, Vee Time, Global Mobile and First

International Telecom, announced their plans to jointly procure WiMAX base station equipment in the first half of 2011. The

tender is estimated to be worth NT$1bn ($32m).

� In December 2012, NCC approved Vee Time’s investment to buy around 72% stake in Vmax Telecom. The operator was

however fined NT$ 200,000 for not filing the details with the authoritative authority before carrying out the investment.

� WiMAX had limited success in Taiwan, and there were just 135,605 WiMAX accesses at the end of June 2012.

� In March 2013, the NCC said that 4G licenses for higher frequency bands that allow faster data speeds, such as the


2.6GHz band that is used by Taiwan's WiMAX operators, will not be issued until 2015 or 2016.

� In November 2013, Vee, VMAX announced plans to increase WiMAX coverage to 70% in respective service areas.

� Tatung InfoComm, another of the country’s WiMAX operators and wholly-owned subsidiary of Vee since March 2012, has

already achieved the 70% coverage level in the southern part of the country required by its concession.

� Combined, Vee, Tatung InfoComm and VMAX have reportedly constructed more than 2,000 WiMAX base stations across

Taiwan, with approximately 50% of those said to be upgradeable to WiMAX 2.1, which features harmonization with LTE-

Advanced and is compatible with Time Division LTE (TD-LTE) services, via a software upgrade.

� Once the target coverage levels have been reached Vee, VMAX and Tatung InfoComm will all apply to the NCC for

permission to upgrade to WiMAX 2.1, paving the way for a shift to TD-LTE.

Taiwan – LTE Status

� In October 2013, the NCC revealed that six companies acquired spectrum licenses following its auction of 4G frequencies.

� The winners include existing telecoms operators Chunghwa Telecom, Taiwan Mobile, FarEasTone and Asia Pacific Telecom;

local electronics contract manufacturing company Hon Hai Precision, which trades under the Foxconn banner; and a mobile

telecom company newly established by the Ting Hsin International Group.

� Earlier, the government planned to offer a total of 270MHz of spectrum in the 700MHz, 900MHz and 1800MHz bands in the

auction.

� In November 2013, Chunghwa Telecom announced plans to launch LTE services in the second half of 2014. The company


will spend up to NT$40bn on deploying more than 7,000 base stations to cover at least 96% of the population over the next

five years.

� In December 2013, Chunghwa Telecom planned to have around 300,000 4G subscribers by the end of 2014. The company

selected Nokia Solutions and Networks (NSN) as a supplier for its LTE network. As per the terms of the contract, NSN will

implement an LTE Radio Access Network with its Flexi Multiradio Base Stations. The company also selected Ericsson a

supplier for LTE deployment, including the Radio Access Network (RAN) and roll-out services.

� FarEasTone made an open call for tenders for the procurement of between 7,000 and 8,000 4G base transceiver stations

(BTS), with Ericsson, Huawei, and NSN all named as possible bidders in December 2013.

Thailand


Thailand Profile

General Information


� Urban – 34%





� DSL – 20.6%

� Cable – 0.01%

� FTTH – 0.11%

Thailand – Broadband (1/2)


Thailand - Broadband (2/2)

� Thailand Information and Communication Technology (ICT) Policy Framework (2010-2020) ICT2020 sets the strategies for

development of broadband in Thailand:

• Universal broadband access to all on equitable basis.

• Cover 80% of population with high-speed internet by 2015 and 95% by 2020.

• ICT to contribute at-least 18% of GDP.

• Enhance overall ICT readiness.


� Thai Telecom Master Plan (2012-16) and the National Broadband Policy:

• To cover 80% of Thai population with high-speed internet services (up to 2Mbps) by 2015.

• Connect at-least 50,000 households with high-speed internet in commercially profitable but underserved areas.

• Access to quality broadband services to schools at district level and sub district hospitals/health stations by 2015.

• Expand fiber to last mile to urban areas of each region.

Thailand – FTTx plans (1/2)

50,000

60,000

70,000

80,000

90,000 Consumer wholesale fiber broadband access lines (000's)

Consumer wholesale fiber broadband access revenues ($millions)


0

10,000

20,000

30,000

40,000

2010 2011 2012 2013 2014 2015 2016 2017

Thailand – FTTx plans (2/2)

� Wholesale broadband access using fiber remains at a nascent stage in Thailand.

� Strong growth expected in the demand for broadband access using fiber during 2013–17.

� Revenue from consumer wholesale broadband access using fiber expected to grow 1.5 folds during 2013–17.

� Government investment of $2.6bn in the country’s broadband infrastructure (fixed and mobile) through Smart Thailand

would impact the future developments:

� eGovernment: connecting all 76 provinces and 10,000+ local communities in 3-10 years.

� eHealthcare: connecting 15,000 hospitals and healthcare centers.


� eHealthcare: connecting 15,000 hospitals and healthcare centers.

� eEducation: connecting 30,000 schools.

� eAgriculture: connecting poor farmers.

� Private players continue to maintain their focus on developing country’s fixed infrastructure. For the fixed sector, capex

increased from $606 million in 2008 to $924 million in 2012.

� Expansion of cable operators into high-speed internet segment via fiber optic cable will have a positive impact on

adoption of fiber. CTH is expected to invest TBH 20bn for expansion of fiber optics.

Thailand - True Corp profile (1/2)

� True Corp is one of the leading operator in Thailand. It dominates operations in the Bangkok Metropolitan Area (BMA).

� True is one of the leading broadband players in Thailand with 1.74 million subscribers in 3Q13 (quarterly net addition of

68,000 ). Expansion of Pay-TV and broadband are key strategies of the company.

� True’s fiber network passed approximately 4 million home in 3Q13 within the BMA and plans to reach 4.2 million homes

passed by the end of the 2013. True achieved the year-end target in terms of broadband coverage of 61 provinces in

3Q13.


Thailand - True Corp profile (2/2)

� In November 2013, True in collaboration with SCB Asset Management launched the True Telecommunications Growth Infrastructure Fund (TRUEGIF).

� The fund would invest in telecom towers, a core fiber optic grid and related transmission equipment, and a broadband system located in provincial areas of Thailand.

Timelines of New Technology Integration


� In February 2013, True announced an investment of THB10 billion towards network expansion.

� The company planned to invest half of the investment in DOCSIS 3.0 cable internet service to cover 4 million homes passed in 61 provinces.

� The company targeted to add 330,000 additional subscribers by the end of 2013.

� TrueVision, the Pay-TV service owned by True Corp, reached 2.3M subs by the end of 3Q 2013.

Thailand - CAT Telecom profile

� CAT Telecom Public Ltd. is the corporate arm of the Communications Authority of Thailand.

� As of April 2013, CAT Telecom offered FTTH service using PON in Bangkok and other major cities in Thailand with

speeds of up to 32 Mbps. The company leased the fiber-optic network along with other equipment to provide FTTx

service to 11 regional areas.

� In March 2013, CAT launched over-the-top (OTT) entertainment streaming service over its 3G mobile and fixed line

networks in partnership with Oregan Networks.


� CAT launched free WI-FI services for McDonald customers to surf free high speed internet in the 134 McDonald

branches nationwide.

� CAT installed and utilized fiber optic and satellite network to compile televised signals from 52 matches of FIFA Futsal

World Cup 2012.

� Thailand did not participate in major pan‐East Asian submarine cable projects, but CAT invested in the proposed

Asia‐Pacific Gateway project, which would begin service in 2014.

Thailand – Public Free Wi-Fi Project (1/2)

Scope of public free Wi-Fi project


Thailand – Public Free Wi-Fi Project (2/2)

� Thailand’s Ministry of ICT had installed 100,000 free Wi-Fi service points countrywide in 2012 and had planned to

install 300,000 free Wi-Fi service points nationwide by June 2013. Thailand also planned to set up additional 250,000

Wi-Fi hotspots throughout the country between 2015-2020.

� In August 2013, MICT announced to reach 400,000 free Wi-Fi hotspots nationwide by 2014. Thailand installed

270,000 free hotspot in 2012 -13 and planned to install another 150,000 by the end of 2014.

� In August 2013, MICT and TOT Public Company Limited planned to install 150,000 free Wi-Fi spots around Thailand.


� In August 2013, MICT and TOT Public Company Limited planned to install 150,000 free Wi-Fi spots around Thailand.

The project would be partly funded by National Broadcasting and Telecommunications Commission (NBTC) and was

planned to start in 4Q13 and to be completed in 2014.

� MICT in collaboration with TrueMove H launched ‘ICT Free Wi-Fi by TRUE’ service allowing users to use free 2 Mbps

Wi-Fi for 30 minutes daily, accumulating to a maximum of 15 hours a month by registering for usernames and

passwords for immediate use.

Thailand – LTE status (1/2)

� In May 2013, True launched Thailand’s first LTE network by True Move H using FDD in the 2.1 GHz band. The company

launched an initial 500 base stations for LTE in densely populated urban areas, mainly in capital Bangkok and planned to

make 2,000 LTE base stations active by the end of 2013.

� TOT & AIS are expected to rollout LTE TDD service in the 2.3GHz band for mobile broadband customers by the end of

2013.

� In September 2013, NBTC rejected Dtac’s proposal to deploy a 4G network on the 1800-MHz spectrum. CAT Telecom

also planned to deploy LTE FDD in the 1800MHz band with no defined timeline for a commercial launch..


also planned to deploy LTE FDD in the 1800MHz band with no defined timeline for a commercial launch..

� In September 2013, NBTC considered repurposing spectrum to allow for LTE Advanced rollouts. NBTC is considering a

25MHz block in the 1.8GHz band and is also looking to repurpose 17.5MHz of 900MHz spectrum.

Thailand – LTE status (2/2)


Vietnam


Vietnam Profile

General Information

� Population – 92.5 million

� Urban – 32%





� DSL – 19.5%

� Cable – 0.6%

� FTTH – 1.2%

Vietnam - Broadband Overview (1/2)

Internet / broadband market growth 2007-2012

26.8

30.6 31.2

13.6% 13.4%

15.3% 14.0%

16.0%

18.0%

25.0

30.0

35.0

Number of Internet users (in million)

Total broadband subscribers (in million)

Broadband share as a % of Internet users


17.7

20.822.8

1.32.0

3.0 3.6 4.14.8

7.3%

9.8%

13.0%

13.6% 13.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0.0

5.0

10.0

15.0

20.0

25.0

2007 2008 2009 2010 2011 2012

Vietnam - Broadband Overview (2/2)

Broadband Subscribers

December -2013

� Broadband services in Vietnam has been increasing continuously, although much more of the growth was in mobile wireless

broadband rather than in fixed broadband.

� Over past five years broadband internet subscriptions increased by 74% from 2009 to 2013.

� As of December 2013 there were 8.5 million broadband subscribers in Vietnam.


December -2013

Total number of broadband internet subscribers 8,470,921

Total number of fixed broadband internet subscribers 5,152,576

Internet subscribers through xDSL 4,472,036

Internet subscriber through CATV221,966

Internet subscriber through FTTH 280,127

Internet subscriber through leased lines 178,447

Vietnam - Broadband internet market share – Dec 2013

SCTV, 1.7%

Others, 2.7%

� VNPT dominates the broadband internet market in Vietnam with 57.4% subscriber market share. It is followed by Viettel,

FPT, SCTV and others with 23.5%, 16.3%, 1.7% and 2.7% market share respectively.

� In case of FTTH subscribers VIETTEL is leading market followed by VNPT, FPT telecom and others.

CMC Telecom, 3.

3%SPT, 1.1%

Others, 0.9%

Broadband internet market share FTTH subscriber market share


VNPT, 55.8%

VIETTEL, 23.5%

FPT Telecom,16.3%

VNPT, 36.8%

VIETTEL, 46.1%

FPT Telecom, 11.8%

Vietnam - National Telecommunications 2020 plan

� In July, 2012, the government of Vietnam approved the development plan of “National Telecommunications in 2020”.

� Plan covers infrastructure construction and development of modern telecommunications, with secure high speed, wide

coverage to remote and island areas.

� Targets were set for 2015 and 2020 for broadband penetration in urban and rural areas with over VND132 trillion funding

by 2020.

� National program on broadband development includes 7 sub programs.

• Broadband to households


• Broadband to schools and research institutes

• Broadband to hospitals

• Broadband to state agencies

• Broadband to businesses

• Broadband to the public service providers

• Broadband to libraries

Vietnam - National telecommunications 2020 targets (1/3)

� Fixed broadband subscription rate from 6 to 8 subscribers per 100 people.

� Mobile broadband subscription rate from 20 to 25 subscribers per 100 people.

� Achieve internet users 40-45% of population with 15 to 25% of households with internet access.

� Provide mobile communication coverage to 90% of country’s population.

� Achieve telecom growth rate of 1.5-2 times the growth rate of GDP with telecom revenues of VND10 -12 billion accounting

for about 7%-8% of GDP.

Broadband targets – 2015


for about 7%-8% of GDP.

Broadband targets – 2020

� Fixed broadband subscription rate from 15 to 20 subscribers per 100 people.

� Mobile broadband subscription rate from 35 to 40 subscribers per 100 people.

� Achieve internet users 55-60% of population with 35 to 40% of households with internet access.

� Provide mobile communication coverage to 95% of country’s population.

� Achieve telecom growth rate of 1.2-1.5 times the growth rate of GDP with telecom revenues of VND15-17 billion

accounting for about 6%-7% of GDP.


Fixed broadband subscriber target Broadband internet access for households


Broadband internet access for villages Mobile broadband subscribers


� Core Network

• Policy to encourage telecoms enterprises buildingNGN network.

• Regulation to manage network sharing.

• Licensing policy to promote broadband coveragenationwide.

Broadband infrastructure developments

� Technology

� Technology selection in accordance with convergence trend.

� Regulation on broadband service quality to promote competition.

� Study to issue certificate on network/service


nationwide.

• Regulation to manage interconnection on IP based network and telecoms resource sharing.

� Telecoms resources

• Regulation on the telecoms resources distribution (conversion, indirect investment or right of use transfer).

• Study telecoms resources auction mechanism.

� Access Network

� Direction to provide FTTx to households

� Regulation for local loop unbundling.

� Plan for development of broadband wireless access

� Study to issue certificate on network/service. quality.

Vietnam – FTTx Status

� In Vietnam, ADSL has been the most popular technology for wireline broadband internet services.

� 2011 showed that FTTH services have potential in the country and will gradually replace the ADSL market.

� In Vietnam, FPT Telecom is considered a pioneer in the FTTx market when it made the first step to use the technology in

December 2006, followed by VNPT and Viettel with CMC later joining the market through its GigaNet brand.

� Prices of FTTx services have been declining as the telecom operators focused on attracting clients to use FTTx services.

� In addition to FTTH, service providers in the country are also deploying FTTC and FTTB.


� In addition to FTTH, service providers in the country are also deploying FTTC and FTTB.

� At the end of August 2013, FTTH subscribers in Vietnam reached 236,538 . Viettel had 43.6 % of the FTTH subscriber

base, followed by VNPT (36.6 %) and FPT (13.9 %).

� By the end of October 2013, Viettel’s market share of the country’s total FTTH subscriber base reached 45.4%.

Vietnam - VNPT – FTTx status

� VNPT, the telecom incumbent in Vietnam, offers ADSL services via its subsidiary Vietnam Datacommunication Company

(VDC). VNPT also manufactures and distributes network products such as fiber-optic cable, copper, and digital microwave

equipment.

� VNPT collaborated with NTT East in March 2010 to roll-out a fiber-optic network in the Nomura Hai Phong Industrial Park

in northern Vietnam.

� VNPT launched its Fiber Internet VNN service in May 2010. From 2007 to 2011, VNPT spent a total of US$5bn to expand

its fiber optic cable throughout the country.

� In September 2012, VNPT collaborated with China Mobile to deploy a fiber optic cable across the Vietnam-China border to


� In September 2012, VNPT collaborated with China Mobile to deploy a fiber optic cable across the Vietnam-China border to

expand its business into the international markets. As per the plan, in the first phase, optical cables deployed are based on

SDH technology with 10Gbps speed. The second phase is expected to upgrade to 40Gbps, using optical wavelength

multiplexing technology (DWDM).

� In April 2013, VNPT announced that it has increased its total international transmission capacity to 185Gbps. VNPT

accounts for 70% of Vietnam’s total international bandwidth capacity.

� VNPT increased its total capacity of the three new routes to 25Gbps; including 10Gbps through the Asia-America Gateway

(AAG) submarine cable system, a 10Gbps line to the US through the CSC system and 5Gbps to Hong Kong via

SeaMeWe-3.

� As of December 2013, VNPT holds 36.8% of the total 280,127 FTTH subscribers in Vietnam.

Vietnam - Other Players

Operator Details

� FPT Telecom is one of the four largest Internet providers in Vietnam and has been offering

FTTH services since 2006.

� FPT Telecom announced that it had officially connected to AAG fiber optical cable system in

December 2009.

� By the end of August 2013, FPT ranked third in the country’s FTTH market with 13.9%

subscriber share of the total 236,538 FTTH subscribers.


� In April 2010, CMC introduced Fiber To The Home Service (FTTH) for small and medium

enterprises.

� In 2011, CMC Telecom introduced new product, Ethernet Over Cable Service, in Da Nang.

Later, it has promoted Ethernet Over Cable Services in Hanoi and Ho Chi Minh City.

� As of June 2013, CMC Telecom recorded over 50,000 subscribers of FTTH and Ethernet Over

Cable. The company plans to make available its Ethernet Over Cable Service in 20 provinces

and cities by 2015.

subscriber share of the total 236,538 FTTH subscribers.

Vietnam - WiMAX and LTE status

� As of September 2013, trials of WiMAX using the 802.16e standard in the 2.3 ‐ 3.3 GHz band (compared to 800‐1800

MHz for 2G and 1900‐2100 MHz and 2200 MHz for 3G) are still on.

� These trials has been going on since 2006 and commercial implementation didn’t happen due to high costs involved.

� In August 2010, Vietnam telecom regulator the Ministry of Information and Communications (MIC) permitted five

companies to test WiMAX. These operators include Vietnam Data Communication , EVN Telecom, FPT

Telecom, Viettel, and VTC.

WiMAX


� In November 2012, the Ministry of Information and Communications (MIC) stated that Vietnam intends to go slow on 4G

roll out in order to ensure the investment efficiency of mobile network operators.

� The ministry said it would delay licensing mobile operators to provide 4G services at least until 2015, after service

providers carried out test runs and an assessment of market demand for the new technology.

� In all, five mobile operators had already been allowed to run basic 4G trials since 2010.

� In December 2010, Viettel announced plans to test 4G/LTE network in Hanoi. Also, CMC and VNPT signed an

infrastructure sharing agreement for 4G/LTE tests.

LTE

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