! 5/12/2006 "# $ " %& '%( ")**& ! "# " " A small / land lock country in South East Asia It is bordered by: China to N, Cambodia to S, Vietnam to E, Thailand and Myanmar to W Area : 236,800 sq. km ( 70% composed of mountains & high plateau ) Population : 5,7 Million (Lao Loum 68%, Lao Theung 22% and Lao Soung 10%) Vientiane is a capital city Lao Kip is local currency ( 10,100 Kips/ 1US$) GDP Growth : 7,2 % ( FY 2004 – 2005) GDP per capita : $ 491 5/12/2006 Tele-density : 17 Numbers/ 100 Inhabitant Lao telecommunications 2 PROMOTION POLICY ON INVESTMENT IN TELECOMMUNICATION SECTOR ( Telecommunications Act, article 4) The Government of Lao PDR encourages local & foreign investors to compete & cooperate in the investment for : Construction Development and Expansion of Telecommunications (ICT) Network and Service in LAO PDR 5/12/2006 Lao telecommunications 3 # $% &$ # ( $ + , - , '$ #$&$ ) % %. /)% ! $ !# 0 ")**%1 To widely & effectively use of ICT in every sectors as an essential factor for social-economic development, the national defense and security To create a favorable condition for the development of the telecommunications network nationwide, to support high speed data transmission and increase access to the Internet countrywide; Promote competition in ICT network and services broaden and enhance Int’l cooperation; and To develop human resource in the field of ICT as key factor for the successful implementation of ICT. 5/12/2006 Lao telecommunications 4 $ $% (% ( $ ) '$ ( % ) # * !# GOVERNMENT Private Co Private Co (SHINAWATRA) 100% 100% 5 1% GOLD SHARE 4 9% LTC 100% PRIVATE 22% ETL LAT MLL (JV) 30% GOLD SHARE 5/12/2006 Lao telecommunications Sky Telecom 5 History & Today 5/12/2006 Lao telecommunications 6 Organization of Lao Telecommunications Executive Board Chairman: Mr. Palami Phommathansy, Vice Chairman: Ms. Nongluck Phinainithisat Ph.D. Board members: Mr. Vanechay Kenvongdara, Mr. Houmphanh Intharath, Mrs. Somchit Leungvanxay, Mr. Atip Rittaporn, Mr. Thanadith Chareunchanh. Advisor to DG of LTC Mr. Atip Rittaporn Director General of LTC Mr. Houmphanh Intharath Dy. Director General Human Resources & Administration Mr. Vanpheng Xayakone Dy. Director General Accounting & Finance Mr. Subhash Bhargava Dy. Director General Telecom Technique Mr. Chanthavone Sosamphan Dy. Director General Telecom Projects & Marketing Mr. Chanyut Nonthasinh Adminstration Bounsaleumsay Khennavong Bounnalith Insixiengmay Souphol Chanthavixay Staff: 138 Accounting Thongsy Vilayvong Khamphan Phomsykhamla Switching Thansamay Samoontry Yao Chang Staff: 61 Human resources Khamtone Boulom Bouakeo Chanthalasy Bounly Amnouyphone Staff: 15 Finance Phoukhong Chithoublok Oubey Thammathimo Ms. Vansy Amnouyphone Sisomphone Manouphath Somvang Phengsavanh Staff: 121 Telecom Projects Vannaly Voravong Chitpasong Noukeokaysone Khwaunmeung Kreu-em Keovisouk Solaphom Staff: 38 Staff: 23 Installation, Maintenance & Outside Plant Kinkeo Vangkaneng Bounma Salivong Khampoun Vongphouthone Staff: 102 Mobile Prom Vichitnonthakan Bouakham Phimmasane Houmpheng Soulinhosack Staff: 53 Transmission Somchit Souvath Ounkeo Keobounthong (Advisor) Revision 5 / Date 19.04.05 Bounma Sinthapasert Phokham Lapleimseng Staff: 46 Customer Service & Sales Promotion Ms. Somchit Leungvanxay Bounma Phinmathat Corporate Audit Khamlek Setfai Somphone Phommahaxay Khanthavone Vongsay Staff: 9 LTC Provincial Branches (16 Branches) (Advisor) Ms. Niphaphone Nuansing Niyom Phounathene Staff: 127 Staff: 686 & 2 Vision Using economic social responsibility as principle for application of technology to develop sustainable development of telecommunications service quality. Mission To be an international standard telecommunication operator, providing comprehensive rang of telecommunication services and honoring obligation to Lao P.D.R. 5/12/2006 Lao telecommunications 8 % +! Whole sale/ Retail Carrier (IDD;VoIP) National / International Telecom Service PSTN (Telephone / Telefax) Public Phone; Rultel; Telex & Telegraph Mobile GSM 900/1800 ( Prepaid/Postpaid) CDMA ( Fixed wireless) Domestic Private Lease Service Internet / E-mail (Dial out/ Broadband) International Roaming (IR) Card Service (IntCard, PhoneCard, M-phone, We-fly, Onr4 Click) National / International SMS service VMS ( Voice Mail Service ), Etc., 5/12/2006 Lao telecommunications 9 5/12/2006 Lao telecommunications 10 5/12/2006 Lao telecommunications 11 PSTN Subscriber in Lao 90,000 T o tal : 45,079 80,000 69,701 70,000 60,000 81,331 80,793 68,938 80,187 68,320 LTC : 36,189 79,172 67,146 78,565 66,629 78,452 78,214 66,474 66,297 77,273 77,354 76,323 43,113 75,811 65,467 65,432 64,881 9,855 9,959 9,522 ET L SUB : 7,127 1,951 1,963 1,920 LA T SUB : 1,596 64,493 75,278 74,802 63,926 63,723 63,167 74,008 6 2 ,53 6 50,000 40,000 30,000 20,000 10,000 9,519 1,981 0 Jan-05 9,652 9,848 9,905 10,075 10,020 10,061 1,978 2,007 1,962 1,951 1,916 1,917 Feb-05 M ar-05 Apr-05 M ay-05 Jun-05 Jul-05 9,977 1,940 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 9,909 9,635 1,976 1,920 Jan-06 Feb-06 9,703 1,932 M ar-06 9,585 1,887 Apr-06 -10,000 5/12/2006 Lao telecommunications 12 , National International 5/12/2006 Lao telecommunications 13 Tariffs for PSTN Type of Service ! Tariff before Nov/03 Evarage ! ! !! ! Tariff after Nov/03 !! Ratio ! ! # Tariffs for Mobile " # ! ! $ ! ! " ! ! # " $ 5/12/2006 !! ! # Lao telecommunications 14 ) No Type of Service I Local I.1 Fixed Monthly fee 1 Monthly fee 2 Airtime Mobile #- LAO GSM Monthly fee 1 Air time Monthly fee 2 Air time Mobile # M-phone Air time Mobile # We-fly Air time Fixed-wireless ( CDMA) Air time I.2 I.3 I.4 I.5 II II.1 II.2 II.3 II.4 II.5 FY2000 FY2001 % FY2002 FY2003 FY2004 Peak / Off peak Peak / Offpeak Peak / Offpeak Peak / Off peak Peak / Offpeak FY2005 Peak / Of fpeak FY2006 Peak / Offpeak 5000 Kip 5000 Kip 10000 Kip 10000 Kip 45 Kip 45 Kip 5000 Kip 10000 Kip 105 Kip 1.5 $ 1.5 $ 0.02 $ 1.5 $ 1.5 $ 0.02 $ 1.5 $ 1.5 $ 0.02 $ 1.5 $ 1.5 $ 0.02 $ 15 $ 150 Kip 15 $ 150 Kip 15 $ 210 Kip 15 $ 0.03$ 10 $ 0.03$ 15 $ 0.03$ 10 $ 0.03$ 15 $ 0.03$ 10 $ 0.03$ 12 $ 0.03$ 700 Kip 700 Kip 700 Kip 700 Kip 770 Kip 720 Kip 800, 847 & 420 660; 720; 770 Kip800, 847 & 420 420 Kip 420 Kip Long distance Fixed Ait time 1 Air time 2 Air time 3 Air time 4 Mobile # LAO GSM Air time 1 Air time 2 Mobile # M-phone Air time Mobile # We-fly Air time Fixed-wireless ( CDMA) Air time 5/12/2006 150 200 250 300 Kip Kip Kip Kip 200 250 300 350 Kip Kip Kip Kip 260 310 360 410 Kip Kip Kip Kip 0.036 $ 0.036 $ 0.036 $ 0.036 $ 0.041 $ 0.041 $ 0.041 $ 0.041 $ 200 Kip 300 Kip 250 Kip 350 Kip 310 Kip 410 Kip 0.036 $ 0.041 $ 0.0396 $ 0.0451 $ 0.0396 $ 0.0451 $ 0.0396 $ 0.0451 $ 900 Kip 900 Kip 900 Kip 900 Kip 990 Kip 720 Kip 800, 847 & 420 660; 720; 770 Kip800, 847 & 420 420 Kip Lao telecommunications 420 Kip 15 ) % 2000 2001 2002 2003 2004 2005 2006 1.15 0.90 0.90 0.90 0.63 0.63 0.20 BELGIUM 3.00 3.00 3.00 3.00 2.10 2.10 0.20 CAMBODIA 2.30 1.80 1.80 1.80 1.26 1.26 0.20 CANADA 3.00 1.90 1.90 1.90 1.33 1.33 0.20 CHINA 3.00 1.90 1.90 1.90 1.33 1.33 0.20 FRANCE 2.65 1.90 1.90 1.90 1.33 1.33 0.20 GERMANY 3.00 1.90 1.90 1.90 1.33 1.33 0.20 INDIA 3.45 1.90 1.90 1.90 1.33 1.33 0.20 INDONESIA 2.65 1.90 1.90 1.90 1.33 1.33 0.20 JAPAN- 2.65 1.90 1.90 1.90 1.33 1.33 0.20 KOREA SOUTH 2.65 1.90 1.90 1.90 1.33 1.33 0.20 MALAYSIA 2.65 1.90 1.90 1.90 1.33 1.33 0.20 MYAMAR 2.65 2.65 2.65 2.65 1.86 1.86 0.20 NEW ZEALAND 2.30 2.30 2.30 2.30 1.61 1.61 0.20 NORWAY 3.00 3.00 3.00 3.00 2.10 2.10 0.20 PHILIPPINES 3.00 1.90 1.90 1.90 1.33 1.33 0.20 RUSSIA 2.30 2.30 2.30 2.30 1.61 1.61 0.20 SINGAPORE 3.00 1.90 1.90 1.90 1.33 1.33 0.20 TAIWAN 2.65 1.90 1.90 1.90 1.33 1.33 0.20 THAILAND U.K. 0.70 3.00 0.46 1.90 0.46 1.90 0.46 1.90 0.32 1.33 0.32 1.33 0.20 0.20 U.S.A. 3.45 1.90 1.90 1.90 1.33 1.33 0.20 VIETNAM 2.30 1.49 1.49 1.49 1.04 1.04 0.20 IDD ( $US ) AUSTRALIA The Rest 0.20 VoIP 133 VoIP 131 5/12/2006 30% of IDD Lao telecommunications 50 % of IDD 50 % of IDD 0.20 30% of IDD 30% of IDD 0.20 16 -... /-..0 # $ $ $ % & ' & ' & ! ! !! " " ' ! " ! " " ! !" " " ! " " " ! " " ' ( % "& $! # $ $ % & ' ! & ' ! ! & ' " ! ! ! " ! ! ! ! " " " $ ") & % !" " ! " ' ( % ** )! ) * # $ $ % & ' & ' & 5/12/2006 ' ' ( " ! " " " ! " " " " ! ! ! " " ! ! " "" Lao telecommunications & " & ! ) ) * * ! % % 17 # $$ % & ' & ' & ' ! " ! " " ! " " "! " " ! ! ! !" & "*! ** ! ' ( *%) $! )" # $$) % & ' & ' & ' " ! " " " !! ! " " ' ( 5/12/2006 ! " !! ! ! ) )! %" ) "! Lao telecommunications 18 ! 1 Prime Minister Office M.C.T.P.C. Minister Regulator Operators 5/12/2006 Lao telecommunications 19 ## & ! Today Status Tomorrow Trend 5/12/2006 Graph Show for IDD Inbound-Outbound ( 1998 - 2005) Traffic Gen Total IN OUT FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 20,332,604 23,773,928 26,677,064 29,028,124 33,927,219 19,998,535 21,068,205 3,683,469 12,340,679 15,555,832 18,229,922 21,672,044 26,142,537 12,776,653 12,172,962 3,486,304 7,991,925 8,218,096 8,447,142 7,356,080 7,784,682 7,221,882 8,895,243 197,165 35000000 30000000 25000000 20000000 15000000 10000000 5000000 0 FY 98 5/12/2006 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 2 Traffic Gen Inbound OUTbound + FY00 FY01 & & FY02 ! -... 3-..4 FY03 FY04 FY05 FY06 18,229,922 21,672,044 26,142,537 12,776,653 12,172,962 3,486,304 - 8,447,142 7,356,080 7,784,682 7,221,882 8,895,243 5,422,382 - 7,930,458 40,254,699 109,144,840 160,286,928 17,483,147 35,265,156 VoIP In VoIP Out 100% 90% 80% 70% 60% 50% 40% 30% 20% Inbound OUTbound VoIP In VoIP Out 10% 0% 5/12/2006 FY00 FY01 FY02 FY03 FY04 FY05 FY06 International Traffic IN/OUT Vs VoIP for 2000 - 2006 Traffic Gen Inbound FY00 FY01 FY02 FY03 FY04 FY05 FY06 18,229,922 21,672,044 26,142,537 12,776,653 12,172,962 3,486,304 - 8,447,142 7,356,080 7,784,682 7,221,882 8,895,243 5,422,382 - 7,930,458 40,254,699 109,144,840 160,286,928 17,483,147 35,265,156 OUTbound VoIP In VoIP Out 180,000,000 Inbound OUTbound VoIP In VoIP Out 160,000,000 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 FY00 5/12/2006 FY01 FY02 FY03 FY04 FY05 FY06 & ! 5 Inbound 18,000,000 + ( -..6 3-..4 Outbound 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct -04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sept - Oct -05 Nov-05 Dec-05 JAN-06 05 5/12/2006 7 ! "# " " The Government opens for marketing The tariff charges has been very competitive International revenue has changed accordingly The new technology is very fast changing The cost of network extension is lower that relate to the tariff charges to lower. 5/12/2006 Lao telecommunications 25 % The tariff has been admitted to the national economic and social affordability. Expansion network to access all level in social, and increase more market share. The tariff is high the usage time is less. The tariff is affordable the usage time increase. 5/12/2006 Lao telecommunications 26 5/12/2006 Lao telecommunications 27 5/12/2006 Lao telecommunications 28