Page 34 - 56-1 One Report 2022 EN

Part 1 Business Operation and Operating Performance

Telecommunications systems in the Lao PDR have kept abreast of international developments and LTC has been
at the forefront of many of these developments. LTC was the first mobile operator to provide 3G and 4G cellular
phone service in Lao PDR, and the second company in South East Asia to launch 4.5G services for its customers.
The Company also became the first operator in Laos to test 5G services in 2019, and officially launched limited 5G
services at several locations throughout Vientiane Capital in late 2020. LTC’s cellular network coverage is continuing
to expand, and despite the difficult geographical conditions and low population density in many areas, more than
80% of the country is covered by LTC’s network.

Mobile broadband services underwent significant system improvement to meet the rapid increase in demand for
data capacity as customers migrated to the 4G and 4.5G networks. In 2021, LTC continued to expand service
coverage and capacity across the country, while also optimizing existing systems to ensure consistent and
high-quality services.
For fixed wireless service, currently marketed as WinPhone, the technology and system were developed to be used
on the same network as the Company’s 3G and 4G. The fixed wireless voice tariffs are lower than the postpaid and
prepaid mobile service tariffs. Combined with affordable handset prices, this service was readily adopted by
customers needing to use only voice services, particularly in rural areas.

The Ministry of Technology and Communication (MTC) issued tariff control regulations for telecom services in 2011.
The regulations do not allow operators to give away free airtime to customers and control the levels of promotions
offered by operators. However, over the past three years, the regulations were not monitored as stringently as
previously, resulting in a renewed price war in late 2018 which has continued into 2022. Although government
oversight in 2020 brought stricter control over pricing, the prices have remained low. With the arrival of the COVID-
19 pandemic prices did not recover, and some low-price packages were developed specifically aimed at helping
people during the pandemic period. In 2022, prices have remained low although, near the end of the year,
regulatory efforts toward stabilization of prices as well as cost reductions are being made by the MTC.
The Government of Lao PDR through the Ministry of Technology and Communication (MTC) has initiated a
registration drive for all telephone numbers within the country. All operators are to register all their customers
through an application called LaoKYC under the 3Grab project. Launched in 2020, the drive has been extended
several times, with the latest deadline having been set for the year 2023.
(2) Maketing

As competition grew stronger in the market, LTC placed greater emphasis on network expansion to ensure
nationwide coverage with both 4G and 4.5G expansion and network optimization. The Company continued working
closely with its partners to ensure efficient distribution channel management while customer-focused activities
included the expansion of customer service centers and the provision of digital solutions through applications and
other digital channels. LTC is increasingly improving its marketing optimization with more narrowly targeted
marketing activities aimed at specific customer segments while promoting a single brand, LTC. Localized marketing
campaigns offer service packages tailor-made to customer lifestyles; other activities are aimed at new target
groups, such as teenagers, entrepreneurs, and organizations. LTC has also focused on increasing data
consumption by offering access to a variety of value-added content services. Furthermore, the Company has
continued to develop customer convenience services and applications such as the M-Services mobile application
that allows customers to access services and make payments or top-ups to their usage plans. Since 2018 the
Company has also offered M-Top-Up services through partner banks in an effort to create more convenience for
customers but also to initiate the reduction of dependence on refill cards and a move toward greater e-commerce

Part 1 page 21
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