KSC The Only Major ISP with Profit from Day One Prof.Dr. Srisakdi Charmonman then click

Topics of Presentation 1. Introduction 2. History of KSC 3. KSC Philosophy 4. KSC Achievement 5. KSC Future Prospects

1. Introduction 1. Bill Gates “Profit from providing Internet connection can be effectively rounded to zero.” 2. For one single year of 1998: Average market caps of Internet-related companies increased seven folds in the USA. 3. None of those companies were profitable. 4. KSC is an exception, i.e. profits from day 1.

2. History of KSC Co-Founders: 1. Prof.Dr. Srisakdi Charmonman 2. Dr. Kanokwan Wongwatanasin Registration with Government 7 Jun 94 Internet KSC 21 Dec 94 KSC Commercial Jan 95 KSC started operation. 27 July 95 Jasmine purchased 25% of KSC.

19 Jan 95 HRH Princess Maha Chakri Sirindhorn Opened KSC International Internet Gateway to the USA.

KSC Group of Companies

3. KSC Basic Philosophy 3.1 No Borrowing Unless Completely Necessary. Usual: Money makes money. Must borrow money to invest. KSC: Use advanced payment from customers & shareholders’ money to invest. Had KSC borrowed from the USA, KSC would have been badly bruised. (from 26 Baht/$ to baht/$)

3.2 Assumption University as Incubator Started at AU rather at a business district. KSC could rely on students, staff and faculty of AU to serve part-time at KSC. KSC can mobilize any number of highly qualified manpower. Example: Asian Games required 120 homepages designed and implemented within 3 days and no other ISPs could do it except KSC.

3.3 Hardworking Internet technology and competitions are very dynamic. Working 8 hours a day is not enough. The co-founders have been working 16 hours a day, 7 days a week. Several contracts concluded and publicity achieved because of hardwork. The co-founders hold 75% of KSC and can make important decisions right away. Then report to the Board for ratification.

3.4 Win-Win Cooperation In politic and business, neither foe nor friend remains permanent. Your foe becomes your friend if you let him share your benefits. Your friend becomes your foe if you take benefit away from him. Therefore, KSC always negotiate to arrive at a win-win cooperation. KSC is highly flexible in negotiating with any potential business partners.

4. KSC Achievements 4.1 KSC has no debt. KSC has 100 million baht (about 2.7 million US$) cash on hand from advanced payments, sale of 3, 6, 9, 12 months of Internet cards (similar to phone card, and only about 30% usage).

4.2 Profits of Internet KSC Group 1998 profit of Internet KSC M Bht 1998 profit of KSC Commercial M Bht 1998 Total profit of KSC Group M Bht (About 1 million US$) Internet KSC owns 65% of KSC Commercial. Consolidated profit of Internet KSC = x = million Baht

First 4 Years Consolidated Profit of Internet KSC

Analysis of First 4 Years Sales and Profits Sales : Individual 40% Corporate 40% Other 20% Assumption : To obtain Indices for future projection, it is assumed that sales and profit are distributed equally for individual and corporate. Result of first 4 years : Avg.sales : 400 Bht./ind./yr 0.4 MBht./corp/yr Avg. profit: 40 Bht./ind./yr 0.04 MBht./corp./yr 10% 10%

4.3 KSC Customers in 1998 Individual LAN (educational) 195,000 Individual Dial-up 60,000 Total number of individuals 255,000 Corporate Web hosting 200 Corporate Leased line 180 Total number of corporate 380

Rough Estimate of Individual Internet Users in Million * Notes : 12 Million = 20 % of population of Thailand

Partial List of Corporate Customers of KSC American Embassy International Labor Organization Thai Shell Siam Cement Krung Thai Bank Dept. of Intellectual Property PacLink Etc. Bangkok Metro Admin. National Housing Authority Royal Forestry Dept. Office of National Education Mahidol University Ramkamhaeng University NTTI (Thailand) Etc.

4.4 KSC Bandwidth to USA - April 8, Mbps - In Mbps - Nov, Mbps - In Mbps To conserve KSC bandwidth to USA: 140 Gb Proxy Farm at KSC NOC. Proxy at every building and every LAN. Programmed downloading 1:00 - 5:00 am. webs to use next day. Large Leased Lines to local exchanges.

5. Future Prospects of KSC KSC is the first and largest ISP in Thailand. KSC will remain the largest ISP in Thailand. KSC will provide all kinds of Internet-related services. 5.1 KSC Branches in all 76 Provinces of Thailand by the year KSC House Call. Technician to provide installation and training at customer’s home and office.

5. Future Prospects of KSC (continued) 5.3 KSC to Become a Phone Company when Thailand telecommunications deregulated. 5.4 Complete Ecommerce Services. (KrungThai - KSC Ecommerce) 5.5 KSC Free for Million Users. 5.6 KSC Free Education-on-Demand.

5. Future Prospect of KSC (continued) 5.7 KSC Own Telecommunications Network. 5.8 KSC High-Speed Internet Connection. 5.9 Hard-to-Refuse Offer to Educational Institutions Grooming Kids to Become Customers.

KSC Projected Profits in 2006 Worst : 7 M US$ Best : 40 M US$

6. Concluding Remarks KSC is the first and largest ISP in Thailand. KSC will remain the largest ISP in Thailand.

6. Concluding Remarks With Proven Track Record of Profit from Day One, Capable Management, Dedicated Manpower Resource, Excellent Business Models, and Promising Prospects, KSC is now ready and willing to negotiate with potential strategic and/or financial investors for mutual benefits.