March 2011

ContentsContents

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• KT OverviewIntroduction

Global Business

• Case StudyRwanda / Indonesia / Nepal

Lessons Learned

• Closing Remarks

KT OverviewKT OverviewKorea and ICTKorea and ICT

•Mobile Data Usage (2010)

- ATPU**: 271MB (3.2 times global avg.)

•Smartphone Subscribers

- 1mil (Jan.’10) 10mil (Mar. ‘11)

•World Class IPTV Services

•Fast Growing Markets

- Broadband: 7.8mil (’01) 17.2mil (’10)

- Mobile: 3.2mil (’01) 50.7mil (’10)

*As of Dec. 20103

•e-Government (UN) index (No. 1)

•Broadband Penetration (Fiber)*- 17.9 subscribers per 100 (No.1)

•Mobile Penetration (post pay)- 57% (’01) 104% (’10)

Bolstered by policy to promote the ICT industry, Korea became the Broadband Wonderland

Republic of Korea 0.8785 1

** ATPU: Average Traffic Per User

IntroductionIntroduction

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Dec. 1981 KT Corporation established

Aug. 2002 Completely privatized

Apr. 2006 World’s first WiMAX service

Nov. 2008 Real-Time IPTV

Jun. 2009 Merged with KTF (mobile subsidiary)

Jan. 2010 3W (WCDMA, WiFi, WiMAX) services

Revenue (2010)Revenue (2010) Telephone Telephone SubscribersSubscribers

Broadband Broadband SubscribersSubscribers

Mobile Mobile SubscribersSubscribers

# of Employees# of Employees

(As of Dec. 2010)

As Korea’s leading telco, KT has been leading the Korean telecom industry, including the latest Smart Revolution

KT OverviewKT Overview

USD 17B 19.4M 7.4M 16M31,000

New BusinessesNew Businesses

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Fixed-Mobile convergence services, smart solutions, and cloud computing are recent additions to KT’s services

KT OverviewKT Overview

•Cloud Computing (uCloud)

•WAC* Participation

•Smartphone Promotion and Data Explosion

•“Smart Work” Solutions

•IPTV

•Fixed-Mobile Convergence

•Cloud Computing

•Mobile Applications

•Social Communication and

Collaboration

•Video Contents

•Context-Aware Computing

Source: Gartner (2010) *Wholesale Application Community

Global BusinessGlobal Business

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KT OverviewKT Overview

Global Investment

Explore investment opportunities mainly in mobile sector in regions of lower penetration rates

•Russia NTC (Mobile)•Uzbekistan (WiMAX)•Mongolia Telecom

Global IT Business

Build telecom networks, provide solutions and managed services

•Rwanda National Backbone

•Bangladesh Internet & PSTN Network

Data & Wholesale

Deliver wholesale and global data services based on KT´s global network and partnerships

•Voice retail & wholesale•Global data services•Global and regional satellite services

KT has been expanding its business into the global arena, with its experience and expertise in telecom development

Rwanda IT HubRwanda IT Hub Case StudyCase Study

Agriculture-Based

Economy

Knowledge-Based

Economy

*NICI: National Information and Communications Infrastructure

Rwanda aims to be the IT hub for Central Africa by transforming itself into a knowledge society

NICI 1(’01~’05)

NICI 3(’11~’15)

NICI 4(’16~’20)

NICI 2 (’06~’10)

•Strengthen economic environment and promote growth towards predominantly information and knowledge based economy (PIKE)

•Develop economic base and support accelerated growth

•Facilitate process to sustain economic development and growth towards PIKE

•Consolidate process towards achieving PIKE and middle income status

WiBro and FOC

Network

National Backbone Network

National Fiber Optic Cable

KTProjects

2007 2008 2009

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• More than 220 institutions connected: district offices, universities, hospitals...

• Sectors: e-gov’t, e-Agriculture, e-Health, e-education

Rwanda IT HubRwanda IT Hub

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•Economic Indicators

Case StudyCase Study

Implementation of the NICI plan helped Rwanda to achieve economical growth and ICT sector development

EducationEducation

Human Resource DevelopmentHuman Resource Development

Infrastructure, Equipment and ContentInfrastructure, Equipment and Content

Economic DevelopmentEconomic Development

Social DevelopmentSocial Development

E-Government and E-GovernanceE-Government and E-Governance

Private Sector DevelopmentPrivate Sector Development

Rural and Community AccessRural and Community Access

Legal&Regulatory provisions and standardsLegal&Regulatory provisions and standards

National Security Law and orderNational Security Law and order

1.73B

5.06B

2000 2008

GDP (US$ billion)

1.0B

3.1B

2000 2008

Telco Revenue (% of GDP)

•ICT Indicators

CAGR

15.2%

CAGR

14.4%

Subscribers(per 100)

2000 2008

Mobile 0.5 13.6

Internet 0.0 0.1

2000 2008

GNI per capita(US$) 250 440

School enrolment(%) 48 55

Indonesia ICT Training CenterIndonesia ICT Training Center

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Case StudyCase Study

• Training 10,000 ICT personnel per year expected

• National ICT curriculum standards established (network and system administrators, programmers, etc.)∟ Recognized and licensed as official ICT

educational institution

• Positioned as the central ICT hub for learning and information exchange

• Visited and benchmarked by other countries∟ Smaller ICT centers promoted in

Southeast Asia but none comparable to Indonesia in size

Indonesia pursues to develop skilled ICT specialists, and is promoting economic growth through public and private partnerships

•Area/Capacity: 100,000ft2, / 425 people

•Enhance ICT skills and competitiveness of public servants

•Expedite e-Government through HR development

Nepal GIDCNepal GIDC

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Nepal established the first Government IDC (GIDC) to promote e-Government

Case StudyCase Study

• Top priority project in the Nepal’s e-Government Master Plan (ADB, ‘07)

− Next priority projects: (2) NID, (3) Land Registration, (4) Vehicle Registration

• ICT operational know-how transferred

− 20 ICT operators trained

• Investment minimized through consolidated GIDC common facilities

•Project Period: 2007~2009•Area: 1,317m2(2 floors)•System set-up: Backbone switch (Gigabit) 4EA, Security equipment 3EA, Server 11EA

•Bandwidth: Backbone 1Gbit, Internet Connection 2M*2(with ISP providers)

•ICT Training Center

* Of 26 government ministries, 6 ministries are using the facilities

* No private IDC in Nepal

Lessons LearnedLessons Learned

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Case StudyCase Study

•Projects based on longer-

term master plan

•Continuous ancillary

supports for projects and

the roadmap

•Larger funding

requirements

(USD 12B for Korean e-

Government projects)

•Relatively

limited/fragmented

funding

•ICT based services in

developing countries

promotes overall economic

growth (OECD, 2009)

− 10% increase in BB

penetration increases

1.38% of GDP

Top-down holistic approach, large funds and focusing on ICT for development are key points in ODA projects

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Closing Closing RemarksRemarks

RecipientCountriesRecipientCountries

MDBMDBICT

CompaniesICT

Companies

• Technologies/Expertise

• Commercial efficiency

ICT enabled infrastructure is the key to successful economic and social development. Governments, MDB, and participating ICT companies need to strategically collaborate

• Clear visions and strategies

• Accountability and transparency

• Strategic development partnership

• Increased private participation

www.kt.comwww.kt.com