1. TSKL Briefing Report Mr. Teannaki Tongaua Chief Executive Officer

2. Content 0 Kiribati Geography 0 TSKL in Brief 0 Existing Services and Customers 0 Existing Services and Issues 0 ICT Reform Project

3. Kiribati Geography 0 100k people with 32 islands scattered around 0 3 Groups of islands: Gilbert, Phoenix, Line 0 Main island of Tarawa about 50k 0 2 nd largest island Kiritimati about10k 0 20 other inhabited islands with population range from 500 - 6k 0 Islands: Low lying islands

4. TSKL in Brief 0 Established as Joint Venture Agreement between Telstra & Kiribati Government – 1990 to 2001 0 2001 – Completely owned by Kiribati Government 0 Permanent Employees 10% decrease in staff number every year 2008 – 177 staff 2014 - 83 staff 0 TSKL Management Board consist of 5 Directors nominated by the Minister Senior Management Team ( CEO and 3 GM’s)

5. Existing services and Customers ServiceCustomerTarget customersIsland CoveredYear PSTN4753AllMain Island1980s 2G mobiles10456AllMain Island & 5 Outer Islands 2004 Wimax internet851AllMain Island2006 RICS19Outer Islands Local Gov’t Office, Churches, Schools, etc Outer Islands2009 ADSL internet141Gov’t Ministries, Private Business, Churches, Schools Main Island2010 3G mobile & internet 5840AllMain Island & Kiritimati 2013 LTENilGov’t Ministries and Private Business in Bairiki Main Island2013

6. 3G Monthly revenue Data revenue now higher than voice SMS revenue only minor average 10% revenue growth per month

7. Existing services & Issues ServiceIssues PSTNEnd of Life (obsolete), copper cable over 30 years 2G mobilesEnd of Life, not supported, subscriber limited capacity - 20k, slow data access, link consume satellite bandwidth, expensive to upgrade and roll out Wimax internetLimited support, equipment End of Life, expensive modems RICSHigh cost of equipment, license cost annually ADSL internetCapacity limited, copper cable issues 3G mobile & internetCommissioned 2013, initially handset compatibility and handover issues – required upgrade to resolve issues LTENo customer at the moment

8. 0 the new Communications Act passed in 2013; 0 the project to reform incumbent TSKL though sale to a strategic investor now well under way; 0 capacity building in CCK and the Ministry progressing; 0 a company being sought to assist CCK with finding and licencing a significant competitor to TSKL; and 0 World Bank agreement to now seek additional funding required for the Outer Island project. Construction could commence in the first half of 2015. - World Bank no longer interested 0 Government of Kiribati is now left to look for funding ICT Reform Project – World Bank

9. Challenges 0 Satellite cost 0 Obsolete GSM 0 Old TDM Switch 0 Solar Power for Outer Island system 0 Coverage for 3G on remote islands

10. Way forward 0 The New Owner of TSKL will comment on that.