ksgm’s joint business operations with mpt

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KSGM’s Joint Business Operations with MPT March 14, 2018 Yoshiaki Benino COO, MPT KSGM Joint Operation KDDI Summit Global Myanmar Table of Contents 1. Joint Business Operations with MPT 2. Overview of KSGM 3. Outline of Joint Telecommunication Business with MPT 4. Q&A 2

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Page 1: KSGM’s Joint Business Operations with MPT

KSGM’s Joint Business Operations with MPTMarch 14, 2018

Yoshiaki Benino

COO, MPT KSGM Joint Operation

KDDI Summit Global Myanmar

Table of Contents

1. Joint Business Operations with MPT

2. Overview of KSGM

3. Outline of Joint Telecommunication Business with MPT

4. Q&A

2

Page 2: KSGM’s Joint Business Operations with MPT

1. Joint Business Operations with MPT

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Joint Operations

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Page 3: KSGM’s Joint Business Operations with MPT

Employees

MPT KSGMKSGM

Know-how

Employees

Funds

New equipmentExisting equipment

License

Customer base

MPT-JOJoint Operations

5

Background Behind Joint Business Operations

• 2012: Movement towards deregulations in telecommunications

• June 2013: Awarding of telecom licenses to foreign service providers

• December 2013: Bidding for partnership with MPT on joint business operations

• July 2014: Conclusion of agreement

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Page 4: KSGM’s Joint Business Operations with MPT

• September 2014: Renewal of brand

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“Most Loved Brand”

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WPP Brand Ranking Survey

2nd place: SAMSUNG3rd place: Telenor4th place: Huawei5th place: Max+ (beverage)

Page 5: KSGM’s Joint Business Operations with MPT

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Bright future of telecommunications in Myanmar

MPT’s corporate color

Shape of Myanmar

2. Overview of KSGM

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Page 6: KSGM’s Joint Business Operations with MPT

Company Overview of KSGM

Company name: KDDI Summit Global Myanmar

Establishment: June 2014

Line of business: Telecommunications(NFS-C license obtained in February 2015)

Representative: Toshitake Amamiya

Shareholders: KDDI Corporation, Sumitomo Corporation

Number of employees:

984 (as of January 1, 2018)

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Why enter the Myanmar market?

Population exceeding 50 million

Undeveloped compared with surrounding countries

Literacy rate is high and people are diligent and hardworking

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High growth can be expected

Page 7: KSGM’s Joint Business Operations with MPT

Why enter the Myanmar market?

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Would like to contribute to the growth of Myanmar

Only for obtaining profit?

What is necessary for the development of Myanmar?

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Legal systemsSocial infrastructure

Development of communications infrastructure

Page 8: KSGM’s Joint Business Operations with MPT

Specific roles of KSGM

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Transformation

KSGM’s Know-how

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KDDI’s technical capabilities

Marketing power

KDDI’s technical capabilities

Marketing power

Sumitomo Corporations’ expertise in

overseas businesses

Sumitomo Corporations’ expertise in

overseas businesses

Page 9: KSGM’s Joint Business Operations with MPT

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Carrier NW Carrier NWOptical cable

Mobile Communications

Base stations

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Challenging Environmental Conditions

Page 10: KSGM’s Joint Business Operations with MPT

System Design and Measures

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Organizational designHuman resourcesResolutions and

approvalPaymentAccountingPurchasing and

order placementsContractsInternal controlRenovation

Vision and MissionStrategiesBusiness planDecision makingMeeting bodiesPDCAIntroduction of TFT

Transformation

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Joint Operation System

Board of Directors

CEO

COO CFO CCO CTOOperation Finance Commercial Technical

InternalAuditor

Page 11: KSGM’s Joint Business Operations with MPT

3. Outline of Joint Telecommunication Business with MPT

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MPT’s Services

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• Mobile phones • Landline phones

• International calls • Internet

• Corporate networks

• IP-VPN (domestic/international)

• Private lines (domestic/international)

• ADSL• FTTH• Fiber Internet

Page 12: KSGM’s Joint Business Operations with MPT

Mobile Phone Services

•Broader

•Faster

•More usable

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Mobile Phone Services

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At the time of market entry

(September 2014)September 2017

Population coverage rate

49%

Population coverage rate

>90%Communication standards:2G/3G

Communication standards:2G/3G/4G

• Broader

Page 13: KSGM’s Joint Business Operations with MPT

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Mobile Phone Services

• Broader

10 MHz

10 MHz

20MHz+

New

Max 150 Mbps

Max 150 Mbps

+

Max

300 Mbps

Dec. 2017

82Townships

Dec. 2018

280Townships

• Faster

Speedtest Awards

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Received Speedtest Award from Ookla

Page 14: KSGM’s Joint Business Operations with MPT

Mobile Phone Services

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• More usable

MPT 4U

Mobile Phone Services

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• More usable

Page 15: KSGM’s Joint Business Operations with MPT

FTTH Services

• August 2017: Services commencedin Sule

• 2018: Service area is scheduled tobe expanded gradually

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Business Services

• IP-VPN• International IP-VPN: Commenced in 2017• Mobile Remote Access is also provided

• Fiber Internet• Multiple-route overseas connections• Google and Facebook cache

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Nationwide

Page 16: KSGM’s Joint Business Operations with MPT

Business Services

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Free calls/SMS within groups Reasonable data plans Data only SIM

Secure mobile access Package plans SMS and USSD

• Mobile Phone Services

Business Services• Toll Free Calls (reverse billing service)

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Page 17: KSGM’s Joint Business Operations with MPT

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MPT – KSGM JO

US$ 2 Bil

1.7 Trillion MMK

3 Bil MMK120,000 Jobs17,000 employees180 program

MNLVoice

Rakhine 31 BTS

Contribution to Myanmar

Myanmar Employer Awards

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• People's Choice Award • Gold for Most Effective Recruitment Strategy for Talent

Attraction

• Gold for Best Use of Technology in HR

• Bronze for Best Use of Rewards & Recognition

• Bronze for Best Career Advancement Program

Page 18: KSGM’s Joint Business Operations with MPT

Rakhine

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Rakhine

• Based on request from the Myanmar government

• Working on the improvement in radio wave situation

• Measures against Rohingya refugee problem

Target area

Rakhine

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Rakhine

Target area

Page 19: KSGM’s Joint Business Operations with MPT

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Blood donations

Water

Environmental conservationHealthcare

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IT education Mobile seminars

Education

Page 20: KSGM’s Joint Business Operations with MPT

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Business Incubation

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Regional revitalization

Development of the next generation

University

U 14

Grassroots

Page 21: KSGM’s Joint Business Operations with MPT

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