1. HJ UMAR ALI HJ ABDULLAH, ACTING CEO NOVEMBER 2011 TELEKOM BRUNEI BERHAD A WAY FORWARD TO THE FUTURE BUILT ON BROADBAND (TELBRU PERSPECTIVE)

2. The sole fixed-line telecommunication provider in Brunei Darussalam The leading service provider for Internet and Fixed Broadband services Also a leading service provider for leased lines and data services Owns 50% of B-mobile, the first third-generation or 3G cellular phone operator in Brunei Darussalam. Provides a comprehensive portfolio of services that include voice, data and internet services over fixed and wireless platforms Fixed Line Fixed Broadband Operator

3. OUR CORE BUSINESSES Full spectrum of Fixed line and IP-based Voice services ranging from prepaid to postpaid Wholesales with international and local carriers and overseas cable investment Varieties of Fixed Broadband, Internet & Multimedia services Various options of Data Services, such as IPLC, Local leased circuit, VPN, etc

4. 4 For the next 3 years, the large issues driving service providers to make investments or change their approach to market are :  New revenue  Execution speed  Efficiency/cost-savings  Customer experience  Serving customers profitably Global telecom market overview (ANALYSIS MASON)  Fixed operators will continue to face declining PSTN connection numbers in the face of mobile substitution and VoIP …  The fall in line numbers leads to rapid declines in traditional fixed voice revenues across the globe  Fixed operators are seeking to mitigate the risks of line substitution and call substitution through bundling, tying customers in and migrating to IP Substitution by mobile (price/convenience) Low cost national/international calling (e.g. Skype) Substitution by other communication channels (e.g. SMS, social networking) KEY CHALLENGES …

5. 5 Data Broadband  Consumer lifestyle changes is impacting fixed voice:  fixed not seen as interactive  mobile (privacy, SMS) used in preference to fixed  social media emerging as a communication mode that doesn’t require verbal conversation  fixed viewed as a “contingency” or “back-up”  VoIP seen as one of the key drivers for falling fixed voice. BRUNEI MARKET OVERVIEW

6. Evolution of bandwidth hungry Internet applications and online contents changes the market landscape on how user uses Internet Over-The-Top (OTT), P2P download and Gaming, Streaming, online interactivity & Transaction, Social Media, etc, are some of the few drivers of these demand Such Paradigm shift results in surge demand for high bandwidth access, which inherently increase the cost in providing the service to cater for such demand Broadband Data BUT, DEMAND OF HIGH SPEED BROADBAND INCREASING…

7. SERVICE EVOLUTIONS Modem 3G Mobile 3G Mobile VDSL LTE ADSL 2+ ADSL FTTH New services demand for higher bandwidth capacity 100mbps 1.0mbps 0.1mbps 10mbps HOME OF THE FUTURE Unified Communications 3D HD TV HDTV Interactive TV Digital TV Internet TV Interactive Shopping IPTV

8. FTTH as THE WAY & STEP FORWARD - TO MONETISE BROADBAND & VOIP AND DRIVE TOWARDS CONVERGENCE TO PENETRATE INTO THE VERTICAL MARKET WITH CONVERGENCE SERVICES TO OFFER MORE VALUE TO THE MARKET WITH VALUE-ADDED BUNDLING AND PACKAGING INITIATIVES

9. WHAT IS FTTH? 1.Fibre-To-The-Home (FTTH) is the technology that uses fiber optic cable instead of copper cable to deliver telephone & broadband services 2.The benefits are: File download and upload in second for quicker back-up or sharing and transferring of files with others Faster internet browsing experience including streaming high-definition video or contents Improved business services such as high definition video conferencing Able to support future OTT services that require high bandwidth To cater for Full-blown cloud computing services Support future National Data center

10. DIFFERENT TYPE OF FTT-X

11. TELBRU NETWORK EVOLUTION 1999 RaGAM21 Nationwide SDH network 2004 NGN 2006 Metro-E (IP Based) 2011 FTTH & WiMAX/LTE

12. OUR BACKBONE Point-to-pointPDH Self-healing Rings SDH Metro-EthernetCapacity199520002008 565Mbps 2.5Gbps 10Gbps Seamless Switchover

13. OUR ACCESS NETWORK 20002000 20022002 19951995 2006 20122012 ADSL Up to 8Mbps Pre-ADSL 2Mbps Dial-up 56.6kbps ADSL2+ Up to 24Mbps FTTH 75Mbps LTE 30Mbps Paradigm Shift in Internet application & usage behavior

14. High Technology/ Industrial Park Video Source Mobile Voice & Broadband Office Buildings Internet VAS server FTTH NETWORK IN BRIEF VOIP Gateway Data Center Cloud Computing FTTH Business Broadband FTTH Consumer Broadband Residential Areas FTTH ACCESS NETWORK METRO-ETHERNET

15. 100% NATIONWIDE COVERAGE WITH MIXED TECHNOLOGY FOR A COST-EFFECTIVE REACHABILITY

16. CURRENT PHASE 1 - ROLL-OUT IN BRIEF AreaMadang Homepass Capacity 14,828 AreaGadong Homepass Capacity 14,377 AreaCentral Homepass Capacity 9,778 Area Sungai Liang Homepass Capacity 2,565

17. PANAGA BEDB HOUSING No. of Houses – 2,000 (Occupancy as at Nov 2011 – 1,800) Trial period commencing 17 th October 2011 until 31 st January 2012 Total no. of active users as of 18 th Nov 2011 is 251 out of 272 applications

18. IPTV - To create product stickiness, increase ARPU, value-added proposition, interactivity, increase broadband penetration FTTH – POTENTIAL PRODUCTS

19. Video Conferencing/Video calls – Fixed mobile convergence, Fixed & Mobile video calls targeting mass marketing, Value-added proposition & increase usage & ARPU E-Campus – Seamless internet access in a private wireless network. Targeting schools, institution, Universities and Enterprises with multiple branches FTTH – PRODUCTS

20. CLOUD COMPUTING – Low CAPEX and OPEX, Data access anywhere & anytime, fast to market. DATA CENTRE – Disaster Recovery for regional enterprises, content providers hosting, improve internet surfing experience with Internet exchange, Cloud computing platform, targeting global market FTTH – PRODUCTS

21. INTERACTIVE TERMINALS – Optional terminals for video calls between mobile and fixed network. LCD screen terminal can be used for pushing advertising. Customer can have the option to receive ads with discounted month rental or free usages. FTTH – POTENTIAL PRODUCTS

22. E-HEALTH – Provide high bandwidth infrastructure to cater for high resolution graphic and online consultation E-EDUCATION – To provide remote classroom and live online education

23. Wholesale Revenue Sharing Reseller Outsourcing / VAS service Provider VARIOUS BUSINESS MODELS Partnership & Bundling with System Integrator, CCTV, IPVPN service provider TV & computer, Gadget and retailer shop. Content & Multimedia service Provider Application developers Mobile Operators, RSP, Telco, OGN (eGovt), etc

24. Family Fixed & Mobile Bundling cheaper calling for buddies Group calling PACKAGING & PRICING CONCEPTS (CROSS-BUNDLING) Value proposition Value proposition Loyalty Loyalty Increase usage Increase usage Improve collections Improve collections Discounted rental for bill payment on time Incremental discount with no. of years of patron Video calls

25. Basic Package $x per month VOD $x per title Valid for 48 hours Ala-carte Premium Channels from $x per month VOD Sharing with Social Network $x per title Valid for 48 hours PACKAGING & PRICING CONCEPTS (IPTV or OTT) View channels across all devices

26. THANK YOU TELEKOM BRUNEI BERHAD NOVEMBER 2011