Taking mobile services to the much needed rural communities of Bhutan

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

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

6. Future Plans…National/International Fiber Connectivity Satsham Punakha Tangmachu Thimphu Simtokha Trongsa Paro Wangdue Khasa K/khu Yurmu Chumdo Haa Kanglung Tshimasham Tingtibi Damphu Nangkhor Dagapela Gedu Pugli Gelephu Pasakha Nanglam Phuentsholing Panbang To/from India To/from India Fiber with traffic Fiber not lit Future Plans

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.