A WAY FORWARD TO THE FUTURE BUILT ON

A WAY FORWARD TO THE FUTURE BUILT ON BROADBAND (TELBRU PERSPECTIVE) HJ UMAR ALI HJ ABDULLAH, ACTING CEO NOVEMBER 2011 TELEKOM BRUNEI BERHAD

Fixed Line Fixed Broadband Operator • The sole fixed-line telecommunication provider in Brunei Darussalam • The leading service provider for Internet and Fixed Broadband services • Also a leading service provider for leased lines and data services • Provides a comprehensive portfolio of services that include voice, data and internet services over fixed and wireless platforms • Owns 50% of B-mobile, the first third-generation or 3 G cellular phone operator in Brunei Darussalam.

OUR CORE BUSINESSES Full spectrum of Fixed line and IP-based Voice services ranging from prepaid to postpaid Varieties of Fixed Broadband, Internet & Multimedia services Wholesales with international and local carriers and overseas cable investment Various options of Data Services, such as IPLC, Local leased circuit, VPN, etc

BRUNEI MARKET OVERVIEW 5 § Consumer lifestyle changes is impacting fixed voice: § fixed not seen as interactive § mobile (privacy, SMS) used in preference to fixed § social media emerging as a communication mode that doesn’t require verbal conversation § fixed viewed as a “contingency” or “back-up” § Vo. IP seen as one of the key drivers for falling fixed voice. Data Broadband

BUT, DEMAND OF HIGH SPEED BROADBAND INCREASING… • Evolution of bandwidth hungry Internet applications and online contents changes the market landscape on how user uses Internet • Over-The-Top (OTT), P 2 P download and Gaming, Streaming, online interactivity & Transaction, Social Media, etc, are some of the few drivers of these demand • Such Paradigm shift results in surge demand for high bandwidth access, which inherently increase the cost in providing the service to cater for such demand Data Broadband

SERVICE EVOLUTIONS HOME OF THE FUTURE 100 mbps VDSL LTE 10 mbps ADSL 2+ 1. 0 mbps Unified Communications 3 D HD TV HDTV Interactive TV Digital TV Internet TV Interactive Shopping IPTV FTTH ADSL 3 G Mobile 0. 1 mbps Modem New services demand for higher bandwidth capacity

FTTH as THE WAY & STEP FORWARD - TO MONETISE BROADBAND & VOIP AND DRIVE TOWARDS CONVERGENCE Voice Data Internet & Multimedia 2006/7 2007/8 2008/9 2009/10 2010/11 TO PENETRATE INTO THE VERTICAL MARKET WITH CONVERGENCE SERVICES TO OFFER MORE VALUE TO THE MARKET WITH VALUE-ADDED BUNDLING AND PACKAGING INITIATIVES

WHAT IS FTTH? 1. Fibre-To-The-Home (FTTH) is the technology that uses fiber optic cable instead of copper cable to deliver telephone & broadband services 2. The benefits are: • File download and upload in second for quicker back-up or sharing and transferring of files with others • Faster internet browsing experience including streaming highdefinition video or contents • Improved business services such as high definition video conferencing • Able to support future OTT services that require high bandwidth • To cater for Full-blown cloud computing services • Support future National Data center

TELBRU NETWORK EVOLUTION FTTH & Wi. MAX/LTE Metro-E (IP Based) Ra. GAM 21 Nationwide SDH network 1999 NGN 2004 2006 2011

OUR BACKBONE Capacity 10 Gbps Metro-Ethernet 2. 5 Gbps 565 Mbps Self-healing Rings SDH Seamless Switchover Point-to-point PDH 1995 2000 2008

OUR ACCESS NETWORK ADSL 2+ Up to 24 Mbps ADSL Up to 8 Mbps Pre-ADSL 2 Mbps Dial-up 56. 6 kbps 1995 2002 2012 FTTH 75 Mbps 2006 LTE 30 Mbps 2000 Paradigm Shift in Internet application & usage behavior

FTTH NETWORK IN BRIEF Data Center Video Source Cloud Computing VOIP Gateway VAS server METRO-ETHERNET Internet FTTH Business Broadband FTTH ACCESS NETWORK Office Buildings Residential Areas High Technology/ Industrial Park FTTH Consumer Broadband Mobile Voice & Broadband

NATIONWIDE COVERAGE WITH MIXED TECHNOLOGY FOR A COST-EFFECTIVE REACHABILITY FTTC, VSAT, 4% 1% LTE, 25% FTTH, 70% 100%

CURRENT PHASE 1 - ROLL-OUT IN BRIEF Area Madang Homepass Capacity Gadong Area 14, 377 Homepass 14, 828 Capacity Area Homepass Capacity Central 9, 778 Sungai Liang 2, 565

PANAGA BEDB HOUSING • No. of Houses – 2, 000 (Occupancy as at Nov 2011 – 1, 800) • Trial period commencing 17 th October 2011 until 31 st January 2012 • Total no. of active users as of 18 th Nov 2011 is 251 out of 272 applications

FTTH – POTENTIAL PRODUCTS IPTV - To create product stickiness, increase ARPU, value-added proposition, interactivity, increase broadband penetration

FTTH – PRODUCTS Video Conferencing/Video calls – Fixed mobile convergence, Fixed & Mobile video calls targeting mass marketing, Value-added proposition & increase usage & ARPU E-Campus – Seamless internet access in a private wireless network. Targeting schools, institution, Universities and Enterprises with multiple branches

FTTH – PRODUCTS CLOUD COMPUTING – Low CAPEX and OPEX, Data access anywhere & anytime, fast to market. DATA CENTRE – Disaster Recovery for regional enterprises, content providers hosting, improve internet surfing experience with Internet exchange, Cloud computing platform, targeting global market

FTTH – POTENTIAL PRODUCTS INTERACTIVE TERMINALS – Optional terminals for video calls between mobile and fixed network. LCD screen terminal can be used for pushing advertising. Customer can have the option to receive ads with discounted month rental or free usages.

FTTH – POTENTIAL PRODUCTS E-HEALTH – Provide high bandwidth infrastructure to cater for high resolution graphic and online consultation E-EDUCATION – To provide remote classroom and live online education

VARIOUS BUSINESS MODELS Mobile Operators, Content & Multimedia RSP, Telco, OGN service Provider (e. Govt), etc Application developers Wholesale Revenue Sharing Outsourcing / VAS service Provider Reseller Partnership & Bundling with System Integrator, CCTV, IPVPN service provider TV & computer, Gadget and retailer shop.

PACKAGING & PRICING CONCEPTS (CROSS-BUNDLING) Family Fixed & Mobile Bundling • Value proposition • Loyalty Discounted rental for bill payment on time cheaper calling for buddies • Increase usage • Improve collections Group calling Incremental discount with no. of years of patron Video calls

PACKAGING & PRICING CONCEPTS (IPTV or OTT) Basic Package $x per month Ala-carte Premium Channels from $x per month VOD $x per title Valid for 48 hours View channels across all devices VOD Sharing with Social Network $x per title Valid for 48 hours

THANK YOU TELEKOM BRUNEI BERHAD NOVEMBER 2011