1. Taking mobile services to the much needed rural communities of Bhutan 1.Background 2.Bhutan Telecom…Current State 3.Extending mobile service to rural Bhutan Outline:

2. 1. Background  Bhutan Telecom is the incumbent telecom operator in Bhutan (100% government owned)  Provides 3 line of services: fixed, mobile and Internet  Fixed line subscribers: 25,000 plus  Mobile subscribers: 250,000 plus  Data subscribers:  Mobile Data users: 3G - 2,000, GPRS/EDGE- 48,000  DSL Broadband users – 8,000, leased line – 160  Potential customer base: 650,000

3. Current State…Network Infrastructure 2. Transmission Network (Domestic)  Fiber Optic Network  Very limited in place currently  Existing network is 100% on OPGW except for the last mile/approach to terminating stations  Installed capacity: STM1 – STM4  Microwave Radio Network  Microwave SDH Radio on the East-West backbone  Microwave PDH Radio mostly on the access/spur routes  Installed capacity: 2E1 to (2+1) STM1

4. Current State…Network Infrastructure 2. International connectivity  Fiber Optic – STM1 to LINX, London - STM1to HKIX, Hongkong  Satellite - 10 Mbps with British Telecom, UK

5. Current State…Fiber Network Tingtibi Yurmu Trongsa Wangdue Punakha Phuentsholing Pasakha Pugli Gedu Tshimasham Chumdo Khasa Simtokha Thimphu Khangkhu Paro Satsham Damphu Fiber with traffic Fiber not lit To/from India

7. Mobile Service to rural Bhutan 3. GSM mobile service to rural communities  Funding scheme : 50% Universal Service Fund (USF) and 50% Bhutan Telecom fund (USD 6 million)  Total GSM BTS deployed as part of this USF project : 23  Total PDH microwave hops deployed as backhaul for BTS: 25+

8. Innovating to suit rural conditions  Transportation of materials to rural sites

9. Innovating to suit rural conditions  Locally designed and fabricated BTS shelters

10. Innovating to suit rural conditions  Installation of Tower & Solar power

11. Innovating to suit rural conditions  Installation of outdoor GSM BTS

12. Innovating to suit rural conditions  Completed BTS site

13. Rural Customer Base  Typical Rural Community required to be provided mobile service

14. Challenges Difficulties faced:  Bhutan has mountainous terrain…very difficult to build backhaul radio links  Rural communities do not have electricity supply…therefore BTS stations and PDH microwave backhaul stations need to be solar powered (Capital intensive)  Rural communities do not have access motor roads… transportation of materials become very difficult. Subsequent maintenance of the network also becomes difficult  Return on capital deployed is minimal

15. Tashi Delek, Thank You.