TSKL Briefing Report

Mr. Teannaki TongauaChief Executive Officer

Content

0Kiribati Geography0TSKL in Brief0Existing Services and Customers0Existing Services and Issues0 ICT Reform Project

Kiribati Geography0 100k people with 32 islands scattered

around

0 3 Groups of islands: Gilbert, Phoenix, Line

0 Main island of Tarawa about 50k

0 2nd largest island Kiritimati about10k

0 20 other inhabited islands with population range from 500 - 6k

0 Islands: Low lying islands

TSKL in Brief0 Established as Joint Venture Agreement between Telstra & Kiribati

Government – 1990 to 2001

0 2001 – Completely owned by Kiribati Government

0 Permanent Employees 10% decrease in staff number every year 2008 – 177 staff 2014 - 83 staff

0 TSKL Management Board consist of 5 Directors nominated by the Minister Senior Management Team ( CEO and 3 GM’s)

Existing services and CustomersService Customer Target customers Island Covered Year

PSTN 4753 All Main Island 1980s

2G mobiles 10456 All Main Island & 5 Outer Islands

2004

Wimax internet 851 All Main Island 2006

RICS 19 Outer Islands Local Gov’t Office, Churches, Schools,

etc

Outer Islands 2009

ADSL internet 141 Gov’t Ministries, Private Business, Churches,

Schools

Main Island 2010

3G mobile & internet

5840 All Main Island & Kiritimati

2013

LTE Nil Gov’t Ministries and Private Business in

Bairiki

Main Island 2013

3G Monthly revenue•Data revenue now higher than voice•SMS revenue only minor• average 10% revenue growth per month

Existing services & IssuesService Issues

PSTN End of Life (obsolete), copper cable over 30 years

2G mobiles End of Life, not supported, subscriber limited capacity - 20k, slow data access, link consume satellite bandwidth, expensive to upgrade and roll out

Wimax internet Limited support, equipment End of Life, expensive modems

RICS High cost of equipment, license cost annually

ADSL internet Capacity limited, copper cable issues

3G mobile & internet Commissioned 2013, initially handset compatibility and handover issues – required upgrade to resolve issues

LTE No customer at the moment

0 the new Communications Act passed in 2013; 0 the project to reform incumbent TSKL though sale to a strategic

investor now well under way;

0 capacity building in CCK and the Ministry progressing; 0 a company being sought to assist CCK with finding and licencing a

significant competitor to TSKL; and

0 World Bank agreement to now seek additional funding required for the Outer Island project. Construction could commence in the first half of 2015. - World Bank no longer interested

0 Government of Kiribati is now left to look for funding

ICT Reform Project – World Bank

Challenges0Satellite cost

0Obsolete GSM

0Old TDM Switch

0Solar Power for Outer Island system

0Coverage for 3G on remote islands

Way forward

0The New Owner of TSKL will comment on that.

Thank you