Fourth Meeting of the Subregional Telecommunications Forum (STCF-4)

25-26 November 1999

Vientiane, Lao PDR
Introduction
The Fourth Meeting of the Subregional Telecommunications Forum (the Meeting) was held in
Vientiane, Lao People's Democratic Republic (Lao PDR) from 25 to 26 November 1999. The
Meeting was hosted by the Government of Lao PDR, with the assistance of the Asian
Development Bank (ADB). The countries of the Greater Mekong Subregion (GMS) and the ADB
expressed their appreciation to the Government of Lao PDR, in particular, the Ministry of
Communications, Transport, Posts, and Construction (MCTPC) for the hospitality, organization,
and assistance provided to the Meeting.
The objectives of the Meeting were as follows: (i) to maintain the momentum of cooperation in
the telecommunications sector in the GMS; (ii) to advance specific subregional initiatives in the
telecommunications sector; and (iii) to reinforce as well as focus the subregional consultative
process. The Meeting Agenda, which is attached as Appendix 1, included the following: (i)
country presentations on ongoing telecommunications development activities; (ii) status of
implementation of the STCF Work Plan; (iii) proposed new approach to the development of the
GMS telecommunications sector; (iv) panel discussion by private sector representatives; and (v)
discussion of work program and next steps.
The participants of the Meeting included delegations from the Kingdom of Cambodia, the
People's Republic of China (PRC), Lao PDR, Union of Myanmar, Kingdom of Thailand, and
Socialist Republic of Viet Nam. Representatives from the Government of Australia and ADB
also attended. The list of participants is attached as Appendix 2.
The Meeting was chaired by Mr. Math Sounmala, Director General of Cabinet, MCTPC. Mr.
Preben Nielsen, Deputy Director, Infrastructure, Energy, and Financial Sectors Department
(West) (IWD) of ADB co-chaired the Meeting.

Opening Session
Mr. Math Sounmala welcomed the participants of the Meeting and expressed his appreciation to
the representatives of the GMS countries, ADB, international organizations, and private sector.
He emphasized the importance of telecommunications, particularly in services sector. He
expressed confidence that the STCF would enhance cooperation among the GMS countries
and accelerate the process of economic development in the GMS. He reiterated the importance
of private sector participation in telecommunications development. Lao PDR has always
recognized the importance of private sector participation in investment, the promotion of
competition, and provision of high-quality service to consumers at fair rates. On behalf of the
GMS countries, he expressed appreciation to ADB for its contribution to fostering cooperation in
the Greater Mekong Subregion.
In his Opening Statement, Mr. Preben Nielsen noted the progress made by the STCF so far,
and emphasized the importance of the Meeting as a good opportunity to discuss the STCF
Work Plan with a view to maximizing the development impact expected from the
telecommunications sector. Taking into account the changing role of telecommunications sector

as an "enabler" of economic growth, it is high time to reconsider the strategy of telecoms sector
development in the whole context of subregional economic development. He stressed the
importance of a transparent regulations regime as a precondition for inducing private sector
investments in the telecommunications sector, and noted the World Trade Organization (WTO)
basic telecommunications agreement which commits 72 WTO member countries to a program
of progressive opening of their basic telecommunication markets to competitive entry and
increased foreign investment. He proposed a reformulation of the STCF work plan based on the
recommendations of the feasibility study of the East Loop Project. The basic idea is to combine
the four loops earlier identified into a two-phased project that would expedite the construction of
backbone transmission lines in the GMS and enable the six countries to rely on a connected
transmission network for promoting economic growth and fostering poverty reduction. ADB will
consider financing the construction of backbone transmission lines, with the hope that ADB's
involvement would catalyze the necessary private sector investments.
Mr. Toru Tatara, Head, GMS Unit, ADB, provided an overview of the GMS Program and its
strategic thrusts. Through the active participation and strong commitment of the GMS countries,
significant progress has been made in the areas of project implementation, establishment and
strengthening of institutional arrangements, and mobilization of financial and technical
resources from the donor community and the private sector. In the light of the Asian financial
crisis which has also affected the GMS countries, the GMS Program has focused its efforts in
making subregional cooperation a catalyst to the process of economic recovery. A medium-term
strategy has been endorsed by the GMS Governments that is aimed at consolidating the gains
from past achievements, sustaining the momentum of cooperation, and preparing the
groundwork for recovery. A key component of this medium-term strategy is the strengthening of
national capacities for regional planning and implementation to enhance ownership of the six
countries of the GMS Program. The medium-term strategy of the GMS Program is consistent
with ADB's strategic thrust in meeting its goals of sustainable economic growth, improved living
standards, and poverty reduction. He expressed ADB's willingness to continue playing a
catalytic role in the GMS Program.

Country Presentations on Ongoing Telecommunications Development Activities

The GMS delegations presented their respective country reports that provided: (i) status of
telecommunications sector development; (ii) development of cross-border link projects; (iii)
regulatory issues affecting telecommunications development; and (iv) future plans for the
development of the telecommunications sector. The Meeting noted that there remains a need to
integrate national telecommunications network into a subregional transmission network.
The Meeting was informed of key recent developments in the telecommunications sector in the
GMS countries according to the outlined mentioned above.
The following is summary of telecommunications development in Cambodia as presented by
H.E. Koy Kim Sea, Under Secretary of State, Ministry of Posts and Telecommunications: (i)
provincial cities cable network is provided by Camintel, a joint venture between the Ministry of
Posts and Telecommunications (MPTC); (ii) wireless local loop service is being provided by
Shinawatra Computer and Communications Company of Thailand which was licensed to
provide the service nationwide; (iii) five cellular mobile operators are operating with about
85,000 subscribers in Phnom Penh and some provinces; (iv) a national terrestrial fiber optic
backbone network linking northwestern part of the country bordering Thailand to the
southeastern part of the country bordering Viet Nam (Project TC2) is now operational; (v) grant

aid from Germany has been confirmed for the development of a fiber optic bearer linking Phnom
Penh and Sihanoukville; (vi) there are currently two internet service providers; (vii) there is an
ongoing restructuring of MPTC, wherein the operation side will be handled by Cambodia
Telecom, a state enterprise with a joint venture partner, while policy and regulatory matters will
be under MPTC; (viii) two international gateway operations are expected to be operational by
October 2000; and (ix) collection and accounting rates are expected to be rationalized such that
the charges would be based on cost plus reasonable profits.
The following is a summary of telecommunications developments in the PRC as presented by
Mr. Hong Yuzhong, Deputy Director of the Planning and Construction Division, Yunnan
Provincial Postal Telecommunications Administrative Bureau: (i) total length of optic fiber cable
is 830 thousand km, including 200 thousand km of trunk; (ii) mobile network covers cities at
county and township levels; (iii) advanced digital mobile technology, such as B-ISDN and
broadband ATM, is widely applied; and (iv) telephone penetration rate is 10.6 percent, with new
services, such as electronic mail, video conferencing, and information service, becoming
popular.
The following is a summary of telecommunications developments in Lao PDR as presented by
Mr. Padapphet Sayakhoth, Deputy Director, Lao Telecom Company: (i) Lao Telecom Company,
a joint venture between the Government of Lao PDR and the Shinawatra Computer and
Communication Company of Thailand, is the sole provider of telecommunications services in
Lao PDR; (ii) capacity of public switching telephone network as of October 1999 stood at 45,000
line units with 17 telephone exchanges; (iii) capacity of mobile telephone GSM 900 expanded
from 5,000 lines in 1994 to 10,000 lines in 1999; (iv) a license is about to be granted by the
Government of Lao PDR to a second mobile telecommunications service provider; (v) current
backbone network of 2 GHz and 7 GHz microwave system with a capacity of 34 Mbps 1+1 is
fully utilized for telephone service; (vi) international transmission network is via Satellite Earth
Station (standard A) and microwave system with capacity of 34 Mbps 1+1 is linked to Thailand;
(vii) fiber optic link project (Project TC1) financed by a $9.7 million loan from KfW of Germany is
expected to be completed in December 1999; (viii) for year 2000, development plan includes
installation of new telephone exchange with a capacity of 15,000 line units, expansion of mobile
phone lines to 15,000, expansion of microwave backbone to 34 Mbps 2+1 and extension of spur
route 65 hops for five provinces and some districts, and upgrade of internet gateway; and (ix) a
regulatory framework is being formulated with the assistance of KfW of Germany aimed at
encouraging further foreign aid and investment in the telecommunications sector of Lao PDR.
The following is a summary of telecommunications development in Myanmar as presented by U
San Tin, Head of Office, Ministry of Communications, Posts, and Telegraphs: (i) there are 531
telephone exchanges, wireless local loop system, radio coverage, and domestic satellite serving
the telecommunications needs of the country; (ii) AMPS digital mobile cellular system is
available in Yangon and Mandalay; (iii) introduction of GSM cellular mobile telephone system
and CDMA mobile telephone system are being planned to be installed in Yangon and
Mandalay; (iv) international transmission network is via Satellite Earth Station (standard A); (v)
participation in SEA-ME-WE3 international fiber optic submarine cable project is being pursued,
with cable landing station and international gateway switch in Yangon to be linked with
terrestrial fiber optic transmission system; and (vi) about $62 million of investment is needed for
Myanmar section of the West Loop.
The following is a summary of telecommunications development in Thailand as presented by
Mr. Sutham Malila, Senior Executive Vice President, Telephone Organization of Thailand (TOT):
(i) fixed line capacity and number of subscribers as of September 1999 stood at 7.6 million and

5.2 million, respectively; (ii) mobile telephone capacity (470 MHz) of TOT is 142 thousand lines
with 28.4 thousand subscribers, while cellular mobile telephone subscribers of mobile
concessionaires is 1.1 million lines; (iii) 19 routes of 5,719 km of fiber optic cable, three
microwave links, one exchange for international gateway switching, and two stations of
INTELSAT were installed between 1998 and 1999; (iv) the portion in Thailand of the China
Southeast Asia Cable (CSC) Project will be ready for provisional acceptance by December
1999; (v) the section from the United Kingdom to Thailand and Malaysia of the SEA-ME-WE 3
Project has been in operation since 30 August 1999; (vi) construction of the fiber optic link
between the border of Thailand and Cambodia (Project TC3) that forms part of the East Loop
has been completed; (vii) the Thai portions of priority subregional telecommunications projects
TC1, TC3, TC4, TC7, TC9, and TC10 are in varying stages of implementation; (viii) in
accordance with the Master Plan for Telecommunications Development, an independent
regulatory body will be established to regulate the telecommunications business and ensure that
the promotion of competition will be on a free and fair basis; (ix) planned liberalization of the
telecommunications sector includes decline in accounting rate, rate rebalancing, and
interconnection charge for usage of TOT network; and (x) establishment of a National
Telecommunications Commission and National Broadcasting Commission, and privatization of
Communications Authority of Thailand and TOT by the year 2000.
The following is a summary of telecommunications development in Viet Nam as presented by
Mr. Nguyen Thanh Phuc, Senior Expert, Department of Science, Technology, and International
Relations, General Department of Post and Telecommunications: (i) the North-South backbone
link has been modernized together with the fiber optic link along the 500 kV power line; (ii) with
eight INTELSAT and INTERSPUTNIK earth stations, international telecommunications network
has been developed and extended; (iii) the SEA-ME-WE 3 cable landing station in Da Nang with
the speed of 10 Gbit/s was inaugurated on 20 July 1999; (iv) the main link of the Vietnamese
portion of the CSC project will be commissioned by the end of November 1999; (v) fiber optic
transmission link between Ho Chi Minh City and Phnom Penh of 2.5 Gbit/s will be
commissioned by the end of 1999; (vi) all districts have been equipped with digital exchanges
and transmission systems and 80 percent of villages has telephone links; (vii) mobile
communications services has expanded to cover 61 cities and provinces, while national paging
system has been put into operation with 46,000 subscribers as of November 1999; (viii) packet
switching network has been developed with major nodes in Hanoi, Ho Chi Minh City, Da Nang,
Vung Tau, and Haiphong; (ix) policies are being put in place to accede to World Trade
Organization commitments; (x) gradual opening up of the telecommunications market initially on
value-added services and then on basic services; (xi) planned developments include equipping
inter-provincial links with microwave and fiber optic system; implementing signaling system
number 7, ISDN and ATM exchanges, CDMA, W-CDMA and GMCPS mobile communications
systems; and drafting of Telecommunications Law based on reform of ownership mechanism,
reorganization of the market to ensure free and fair competition among players, and protection
of customers' interest.

Status of Implementation of STCF Work Plan

Mr. Dong-Soo Pyo, Financial Analyst, Transport and Communications Division, IWD, ADB,
summarized the developments in subregional cooperation in the telecommunications sector
since the Third GMS Ministerial Conference held in Hanoi in April 1994, including the major
outcomes of the first three meetings of the STCF. He concluded by presenting the decision
made by the Eighth GMS Ministerial Conference concerning the East Loop Project, feasibility
study of which was completed in March 1999. Due largely to the Asian financial crisis, the

recommendation to establish a special purpose private company to finance, own, and operate
the East Loop was considered not viable.
Mr. Horst Ahlfanger and Mr. Friedrich Kraemer, ADB Consultants, presented the findings of the
feasibility study of the East Loop Project. Mr. Ahlfanger outlined the key conclusions of the study
which include: to install the East Loop as soon and as fast as possible and to put it in operation,
even on the technically lowest level and despite any technical problems still to be resolved. The
reason for this recommendation is that the economic growth and development of the countries
of the region depend to a great extent on the availability and possibility of a free and fast
interchange of data and information. The study also showed that the financial internal rate of
return of the project is estimated at 18.4 percent. This would be mainly generated by revenues
accruing from incremental transit revenues attributable to the project. Under the high traffic
demand forecast the FIRR is estimated at 33.1 percent. It was also calculated that operating
income after income tax, as a percentage of revenues, is 38.6 percent after the first seven
years. An annual return on assets would be in excess of 30 percent. He also presented possible
financing options and the consultants' recommendation of a special purpose vehicle to operate
the project.
The importance of institutional strengthening was emphasized by Mr. Ahlfanger and in the
presentation by Mr. Friedrich Kraemer. The latter paper was based on the assumption that
resources in the region are inadequate to finance the telecommunications infrastructure that the
region needs. Therefore the need is to provide the basic conditions on which private investment
can take place. The key requirement is a secure and stable policy environment. Mr. Kraemer
had undertaken a policy review in each of the GMS countries and outlined the objectives of
each of the proposed policy and institutional measures and the principles on which they were
based. In particular he emphasized the importance of each country determining a clear policy to
give signals to the private sector that the government wants to give. Mr. Kraemer had depicted,
graphically, the relationship between the attraction of private investment and the extent of
institutional reform. A more detailed graph suggested steps in reform and a time-frame of about
18 months was suggested. He stressed that once a policy has been laid down all steps can be
measured against the policy. Finally it is necessary to enshrine the policy in a law so that the
authorities have legal authorities and principles on which to base administrative decisions.
The Meeting questioned Mr Kraemer very closely on his presentation and sought to relate the
principles outlined to the needs in each of their countries.

Proposed New Approach to the Development of the GMS Telecommunications

Sector
Mr. Dong-Soo Pyo, ADB, outlined a proposed revision to the STCF work plan. He noted that the
Feasibility Study had identified only one missing link in the Sector Study, that between Vientiane
and the Vietnamese border, and had suggested some extensions to the East Loop Project to
maximize the benefits of cross border traffic. These extensions made it necessary to revise the
basic approach of the project, which had been based on four distinctive loops. He demonstrated
a possible regrouping of the original loop-based projects into two phases. Phase One would be
substantially based on the original East Loop Project and Phase Two would be based on the
West and North Loop Projects and include six projects aimed at improving connectivity. Phase
One is aimed for completion in the period 2000-2003 and Phase Two during 2002 and 2005.
Mr Pyo also noted that private sector investment, in the region's telecommunications, have not

been satisfactory in the recent past and the ADB is willing to strengthen its catalytic role to
induce private sector investments. This will include some financing and arranging co-financing.
However, he noted that this financing could only be justified if the opaque regulatory regimes in
the region are replaced with regulatory systems developed in line with the principles of World
Trade Organization Basic Telecommunications Agreement. This agreement required regulatory
frameworks to be based on principles which: (i) prevent anti-competitive practices, (ii) provide
non-discriminatory and cost-orientated interconnection, (iii) apply universal service obligations in
a competitively neutral manner, (iv) make licensing criteria publicly available, (v) establish a
separate regulatory body, and (vi) allocate scarce resources in an objective timely transparent
and non-discriminatory manner. With such regimes in place the GMS countries should be able
to mobilize a huge amount of private sector investments in a gearing ratio of 10:1.
Hon. Mr. David Butcher, ADB Consultant, asked delegates to focus again on the objectives of
the Sector Study: that the quality and price of telecom services should be uniform across the
Subregion and in accordance with international standards. He pointed out that the region is in a
very competitive market for investment. That foreign investment is an essential ingredient to
increasing wealth and improving telecommunication services. He elaborated on the proposed
new approach as it applied to regulatory frameworks and pointed out that the 1997 Asian crisis
has shown again that there is a competitive market for investment. To attract necessary
investment from high quality investors it is necessary to make domestic market conditions
comfortable for potential investors, including a secure transparent, fair, institutional, structure
rather than tax breaks or inducements. High quality voice and data telecommunications is also a
precondition to the investment needed in other sectors to create jobs and wealth. He also dealt
with the WTO Basic Services Agreement in more detail and focused on the impact of each of
these in the region. In particular, he noted the impact of each of the WTO principles on the
willingness of investors to enter the sector. He pointed out the fundamental experience that
when regulation is separated from the enterprise, the Government can focus on its proper role
of promoting the national benefit. It ceases to focus on the needs of the enterprise it owns. Even
a realistic threat of competition forces all businesses to reassess their competitive advantages.
Former telephone monopolies have only one competitive advantage: their coverage, i.e., their
network. The inevitable result of competition is for networks to expand. He concluded by
drawing attention to the significance of the PRC-US WTO deal which substantially liberalized
the PRC market for telecommunications,
The Meeting expressed interest in the possibility that ADB take a more proactive role in
promoting regulatory reform in the GMS, and that this may allow one Phase, or parts or a Phase
qualifying for ADB lending. Mr Pyo was asked to elaborate on the proactive role envisaged and
replied that in accordance with past practices, this could be with a mixture of technical
assistance grants or loans for major projects. It was further noted that in Thailand, in particular,
it has been accepted that there must be competition between the government owned entities
and new entrants. With competition between the incumbent and competitor service providers,
the interests of the consumers of each country will be promoted.
The Meeting agreed to endorse the proposed new approach to the Ninth Ministerial Conference
to be held in Manila in January 2000, subject to revisions to be made in the project components
of Phases One and Two in the light of information provided by the GMS delegations at the
Meeting, and subsequent consultations with the GMS countries before mid-January. The
revised composition of priority telecommunications projects for Phases One and Two is
attached as Appendix 3.
Mr. Preben Nielsen emphasized that the intention is to come up with concrete proposals of

projects for Phases One and Two and to be presented for approval by the Ninth Ministerial
Conference. Once Ministerial endorsement is obtained, ADB will explore the possibility of
financing some of the projects which are not considered commercially viable by the private
sector.

Panel Discussion by Private Sector Representatives

Private sector representatives made presentations on the general theme of facilitating private
sector investment in telecommunications in the GMS. Mr. Tobias Hoschka, Investment Officer,
Private Sector Group, ADB outlined the circumstances in which his group can become involved
in projects. These included projects funded by the private sector and projects where there is
majority control in the private sector. The group will also become involved on the basis of
absorbing some of the "country risk" of projects, which, otherwise, would be borne by the private
sector. He outlined, by way of example, his Group's involvement in putting together the very
successful "Grammenphones" project in Bangladesh. Using the Bangladesh Railway fiber optic
network, mobile phones and the small scale loans from Grammen Bank to rural women, a
mobile phone service is now available to hundreds of rural areas for the first time. This Bank
has a very high repayment rate, in excess of 95 percent.
Mr. Sirat Chum, Country Senior Officer for Alcatel, in Lao PDR and Cambodia, spoke about the
successful completion of the fibre optic trunk network in Cambodia in 15 months between
February 1998 and May 1999. This project was complicated by the need to ensure that the
route was clear of mines and other unexploded ordinance, the need to cross the Mekong River,
overcome bad road conditions and the need to train and involve the staff of the MPTC. The
result of the project, funded by KfW of Germany has been to provide Cambodia with a trunk
telephone service using state of the art technology in accordance with MPTC's masterplan.
Mr. Wayne Bannon, GMS Director of Motorola-South Asia Pte. Ltd spoke about a number of
matters that had been raised by other speakers and which had come up in discussion. He
emphasized the need to address the legitimate needs of investors in GMS countries. While
international companies are prepared to invest in infrastructure in the region they had to answer
to their shareholders. He particularly stressed the fact that from the view of reputable
international countries investments need to be a win-win situation. A company with an
international reputation to defend is much more likely to be interested in looking after the
interests of both parties.
Hon. Mr. David Butcher, ADB Consultant, pointed out that all the previous speakers in their own
ways had underlined the importance of ensuring the investment climate is one that is friendly to
business. This does not mean expensive inducements to invest, but it does mean efficiency in
the conduct of basic business needs and one where legitimate interests are safeguarded.
The Meeting offered the following comments to the presentations. Mr Hoschka was asked to
provide more detail on how countries can take advantage of the Private Sector Group's
Services. Sirat Chum and Wayne Bannon were asked about the future of mobile vis--vis fixed
line phones. Both agreed that in several ways technologies are converging and that ultimately it
will be the service that is important not the means of delivery. Concern was expressed at the
unequal bargaining strength of developing countries and powerful international companies. It
was suggested that the key to resolving this problem is to ensure that the international
companies are in a competitive situation. This maximizes the choice available to the GMS
countries.

Work Program and Next Steps

Based on the above-mentioned proposed new phased approach to the development of the
subregional telecommunications sector, the Meeting agreed that ADB will continue to provide
assistance as a catalyst for private investments. ADB will also facilitate technical assistance
from its grant funds to help the six GMS countries in telecommunications policy formulation and
establishing/enhancing regulatory frameworks, principally on an individual country basis, but
also with due regard to harmonizing rules and regulations for cross-border connections and to
make it attractive for private sector investments.
The Meeting agreed that the venue and timing of the Fifth Meeting of the STCF will be
determined following further consultation with the GMS Governments.

Acknowledgements
The GMS countries and the ADB expressed their sincere thanks and appreciation to the
Government of Lao PDR, in particular, the Ministry of Communications, Transport, Posts, and
Construction, for the wonderful hospitality, excellent arrangements, and tremendous assistance
provided to the Fourth Meeting of the Subregional Telecommunications Forum.

9
Appendix 1
Program and Agenda
Chairperson of the Meeting:
Mr. Math Sounmala Director-General of Cabinet Ministry of
Communications, Transport, Posts, and Construction Lao
People's Democratic Republic
Co-Chairperson of the Meeting:
Mr. Preben Nielsen Deputy Director Infrastructure, Energy, and
Financial Sectors Department (West) Asian Development Bank
Day 1: 25 November 1999, Thursday
0830-0900

Registration

0900-0930

Session I: Opening
Welcome Remarks:
Mr. Math Sounmala Director-General of Cabinet Ministry of
Communications, Transport, Posts, and Construction Lao People's
Democratic Republic
Opening Statement:
Mr. Preben Nielsen Deputy Director Infrastructure, Energy, and
Financial Sectors Department (West) Asian Development Bank
GMS Program Overview and Strategic Thrusts:
Mr. Toru Tatara Head, GMS Unit Programs Department (West),
Division III Asian Development Bank

0930-1100

Session II: Country Presentation on Ongoing Telecommunications

Development Activities

Cambodia
People's Republic of China
Lao PDR
Myanmar
Thailand
Viet Nam

1100-1130

Coffee Break

1130-1230

Session III: Status of Implementation of STCF Workplan

10
Presentation: Mr. Dong-Soo Poo Financial Analyst Transport and
Communications Department Infrastructure, Energy, and
Financial Sectors Department (West) Asian Development
Bank
Presentation: Summary of the Results of the Feasibility Study of the East Loop
Project Mr. Horst Ahlfanger and Mr. Friedrich W. Kraemer Consultants, ADB
1230-1400

Working Lunch

1400-1530

Session IV: Proposed New Approach to the Development of the GMS

Telecommunications Sector
Presentation: Mr. Dong-Soo Pyo Asian Development Bank
Discussion

1530-1545

Coffee Break

1545-1730

Session V: Panel Discussion by Private Sector Representatives

Presentations:
Mr. Tobias Hoshka Investment Officer Private Sector Group Asian
Development Bank
Mr. Sirat Chum Senior Country Officer for Lao PDR and Cambodia Alcatel
Mr. Wayne Bannon GMS Director Motorola South Asia, Pte, Ltd. Viet Nam
Hon. Mr. David Butcher ADB Consultant

Day 2: 26 November 1999, Friday

0900-1030

Session VI: Discussion of Work Program and Next Steps

1030-1100

Coffee Break

1100-1200

Session VII: Statements from Observers

1200-1330

Lunch

1330-1430

Session VIII: Discussion and Adoption of the Summary of Proceedings

1430-1500

Session IX: Closing

Closing Statements: Mr. Preben Nielsen Asian Development Bank
Mr. Math Sounmala Lao PDR

11
Appendix 2

List of Participants
GMS Countries
Cambodia
H.E. Koy Kim Sea, Under Secretary of State, Ministry of Posts and Telecommunications Mr.
Nuth Chansokha, Director of International Relations Department and National Coordinator,
Ministry of Planning
People's Republic of China
Mr. Hong Yuzhong, Deputy Director of the Planning and Construction Division, Yunnan
Provincial Postal Telecommunications Administrative Bureau
Ms. Sun Xia, Yunnan Provincial Postal Telecommunications Administrative Bureau
Lao People's Democratic Republic
Mr. Math Sounmala, Director General of Cabinet, Ministry of Communications, Transport, Posts,
and Construction (MCTPC)
Mr. Somlith Phouthonesy, Deputy Director General, Ministry of Communications, Transport,
Posts, and Construction (MCTPC)
Mr. Chansy Nouemaly, Ministry of Communications, Transport, Posts, and Construction
(MCTPC)
Mr. Vanthong Sosamphanh, Manager of Planning & Data Collection Section,
Telecommunications Development Projects
Mr. Mecham Silykhoune
Mr. Pradapheth Sayakhot
Myanmar
U San Tin, Head of Office, Ministry of Communications, Posts and Telegraphs
U Hla, Assistant General Manager, Myanmar Posts and Telecommunications, Ministry of
Communications, Posts and Telegraphs
Thailand
Mr. Sutham Malila, Senior Executive Vice-President, Telephone Organization of Thailand
Mr. Danai Bhutipunthu, Vice-President, International Telecommunications Department,
Telephone Organization of Thailand
Mr. Noppanat Hutacharoen, Senior Director, International Telecommunications Department,
Telephone Organization of Thailand
Mrs. Duangjai Thummachotigo, Director, International Telecommunications Department,
Telephone Organization of Thailand
Ms. Angkana Pacharapha, Manager, Technical Cooperation Section, Telephone Organization of
Thailand
Mr. Chirute Visalachitra, International Affairs Division, Office of the Permanent Secretary,

12

Ministry of Transport and Communications

Ms. Hataitip Chairojkanjana, Post and Telegraph Department, Ministry of Transport and
Communications
Mr. Pichai Srirattanagool, Senior Director, International Telephone Department
Mr. Charoon Thongma, Director, Telecommunications Planning Department
Viet Nam
Mr. Nguyen Thanh Phuc, Senior Expert of Department for Science, Technology and
International Relations, General Department of Post and Telecommunications
Mr. Vo Thuc Dien, Senior Expert of Ministry of Planning and Investment
Observer
Ms. Lynda Worthaisong, First Secretary, Australian Embassy in Vientaine
ADB
Mr. Preben Nielsen, Deputy Director, Infrastructure, Energy and Financial Sectors Department
(West) Mr. Toru Tatara, Head, GMS Unit, Programs Department (West), Division III Mr. Dong
Soo Pyo, Financial Analyst, Infrastructure, Energy and Financial Sectors Department, Transport
and Communications Division West, (IWTC) Mr. Tobias Hoschka, Investment Officer, Private
Sector Group (PSG)
Resource Persons/Secretariat
Hon. Mr. David Butcher, Consultant, IWTC Mr. Horst Ahlfanger, Consultant, IWTC Mr. Friedrich
Kraemer, Consultant, IWTC Mr. Ronald Antonio Q. Butiong, Consultant, GMS Unit Ms. Yvonne
N. Razote, Project Secretariat, GMS Unit
Resource Persons from the Private Sector
Mr. Wayne Bannon, GMS Director, Motorola South Asia Pte. Ltd. Mr. Sirat Chum, Country
Senior Officer, Laos & Cambodia, Alcatel Mr. Bertrand Baudet, Business Development
Manager, Consultancy and Engineering, Sofrecom

13
Appendix 3

Revised Composition of Priority Telecommunications Projects for

Phases One and Two
Summary of Two-Phased Projects
Phase I
New Transmission
Length (km)
Cost ($m)
Upgrade and Improvements ($m)
TAs ($m)
Project Total
Length (km)
Cost ($m)
Project Period

Phase II

Total

1,855
34.8
8.5
12.1

4,128
97.4
5.8
4.4

5,983
132.2
14.4
16.5

1,855
55.5
2000-2003

4,128
107.6
2002-2005

5,983
163.1
2000-2005

*Costs are indicative and expressed in 1998 prices

Phase I Project (2000-2003)

Code
Transmission Network
New Transmission

Total
Upgrade &
Improvements

Total
Total Transmission
Network
Technical Assistance
Implementation Issues

Inst'l. Strengthening

TC10
TC9
TC8
TC13
New

Project
Myanmar (Tachilek)-Thailand border
Lao PDR (Luang Namtha)-Yunnan (Mengla)
Thonnami (LAO)-Phnom Penh (CAM)
Vientiane-Luang Prabang-Luang Namtha
Phnom Penh-Kampong Chaam-Siem Reap

Total
Length
(kms)
15
120
920
420
380
1,855

Poipet-Phnom Penh-Phum Bavet (CAM)

0.4
3.0
16.3
9.6
5.6
34.8
0.8

Hanoi-Da Nang-HCM City (VIE)

Hanoi-Vinh, additional cable2
Lao PDR
Cambodia

0.2
6.5
0.5
0.6
8.5
43.4

Tariff Options Study

United Numbering Plan and Imp. Study
Total
Telecommunications Sector Policy Study
Capacity Building (Human Resources)
Accounting & Billing Training Needs Study
Call Event Recording Study
Total

1.0
2.0
3.0
5.0
1.0
1.1
2.0
9.1
12.1
55.5

Total TA
Total Project Cost
1

Cost
($m)1

The costs are indicative and expressed in 1998 prices. 2If the capacity of existing lines is not sufficient.

14

Phase II Project (2002-2005)

Code
Transmission Network
New Transmission

TC4
TC5
TC9
TC6
TC7
TC10
TC11
TC12

Project

MYA, Yangon-Moulmein-THA border

MYA, Yangon-Meiktila-Keng Tung-THA
border
LAO (Luang Namtha)-THA border
LAO (Pakse)-VIE (Da Nang)
LAO (Savannakhet)-VIE (Dong Ha)
MYA, Keng Tung-Yunnan, Jinghong
VIE (Hanoi)-Yunnan (Hekou)
MYA, Meiktila-Yunnan, Ruili

Total
Upgrade &
Improvements
Total Transmission
Network
Technical Assistance
Implementation Issues

Total
Length
(kms)

Cost
($m)1

390
1,320

8.2
30.3

203
450
329
386
360
690

5.1
11.4
7.2
10.9
6.3
17.9

4,128

97.4
5.8
103.2

Telecommunications
Management
Network Study
Subregional Network Synchronization
and Implementation Study
CCS No. 7 Signalling System and
Implementation

Total TA
Total Project Cost
1
Costs are indicative and expressed in 1998 prices.

1.3
1.2
2.0
4.4
107.6

15

Two-Phased Projects by Country

Phase I:
New Transmission Lines
Distance (km)
Amount ($m)
Upgrade & Improvement
Technical Assistance
Total ($m)
Phase II:
New Transmission Lines
Distance (km)
Amount ($m)
Upgrade & Improvement
Technical Assistance
Total ($m)

Cambodia

Lao
PDR

Viet
Nam

Yunnan
PRC

Thailand

930
15.2
1.4

850
17.8
0.5

6.6

60
1.4
-

15
0.4
-

16.6

18.3

6.6

1.4

0.4

698
16.4
1.0

634
13.3
0.8

178
5.2
0.3

2,618
62.4
3.7

17.4

14.1

5.5

66.1

4,128
97.4
5.8
4.4
107.6

634

238

2,633

5,983

13.3
7.4

6.7
0.3

62.8
3.7

20.7

7.0

66.5

132.2
14.4
16.5
163.1

Myanmar

Total

1,855
34.8
8.5
12.1
55.5

Total
New Transmission Lines
Distance (km)
Amount ($m)
Upgrade & Improvement
Technical Assistance
Total ($m)

15.2
1.4

1,54
8
34.3
1.5

16.6

35.8

930

*Costs are indicative and expressed in 1998 prices.

16

Regrouping of Original Loop-based Projects (km)

Code

East Loop

TC1
TC2
TC3

West Loop

TC4
TC5

North Loop

TC9
TC11

Improved Connectivity

TC6
TC7
TC8
TC10
TC12
TC13

New Transmission
Total

515
240
628
1,383
630
1,380
2,010
460
348
808
490
569
1,150
401
690
420
3,720

515
240
628
1,383
220
60
280
147

280

Financin
g
Required
(3)=(1)(2)
410
1,320
1,730
313
348
661
450
329
920
401
690
420
3,210

7,921

2,090

5,601

Sector
Study
(1)

Financing
Secured
(2)

147
40
240

Phase I
(4)

Phase II
(5)=(3)-(4)

420
1,355

390
1,320
1,710
203
360
563
450
329
386
690
1,855

1,855

4,128

120
120

920
15