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SPECIAL FEATURE 2: Developing the "Global Strategy"
Entry into the Telecommunications Business in Myanmar

August 2015

Developing the "Global Strategy"
Entry into the Telecommunications Business in Myanmar

As one aspect of our "global strategy," we entered the telecommunications business in Myanmar. By leveraging the experience and sophisticated technologies we have accumulated as a comprehensive telecommunications carrier, we aim to contribute toward the development of Myanmar's economy and industry, as well as to the lives of the country's citizens. At the same time, we will focus on this business as a pillar of our growth strategy.

Developing the Telecommunications Business in Myanmar

In June 2014, KDDI and Sumitomo Corporation jointly established KDDI Summit Global Myanmar Co., Ltd. (KSGM), as a Yangon-based consolidated KDDI subsidiary to develop the telecommunications business in Myanmar.

At the end of 2013, the mobile phone penetration rate among Myanmar's population of more than 50 million was only 10%, much lower than its ASEAN neighbors, and optical fiber networks and facilities were weak. Recognizing that economic growth and open markets would require development of the telecommunications and ICT industries, the government of Myanmar set a target to achieve a smartphone penetration rate of 80% by the end of 2016.

Anticipating substantial future subscriber growth in Myanmar's telecommunications market, KSGM and Myanma Posts & Telecommunications (MPT) are jointly providing telecommunications services that should contribute to economic and industrial growth in Myanmar, as well as to the lives of the country's citizens.

Entry into the Telecommunications Business in Myanmar: KDDI's Role

Entry into the Telecommunications Business in Myanmar: Mobile Phone Penetration Target Provided by the Government of Myanmar

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    According to an announcement by the Ministry of Immigration and Population of Myanmar

Achieving Competitiveness through Joint Operations

KSGM and MPT have entered into a business cooperation contract (BCC) to leverage each other's resources. By taking advantage of KDDI's experience and sophisticated technological expertise as a comprehensive telecommunications carrier, Sumitomo's long-standing business experience in Myanmar, and MPT's nationwide networks and customer base, we expect to enjoy a major competitive advantage.

Working with MPT, KSGM aims to provide "Japanese-quality" communications services across all domains, including mobile, fixed-line, and Internet. As a result, the company intends to become an optimal communications operator in Myanmar, which is slated for major growth.

Enjoying Success in the Initial Year of Joint Operations

Since the start of joint operations in September 2014, communications service quality has improved in Myanmar's principal cities, the service area has expanded, and we have augmented local call centers. In addition to reinforcing these communications infrastructures, on the sales front we have enhanced sales channels at directly operated and specialized shops, as well as run various subscriber promotion campaigns. To build our brand, we have announced a joint business operating structure and a new brand logo.

Through these initiatives, in the seven months since joint business began cumulative SIM card sales exceeded 8 million.

Through ongoing improvements in communications quality and steady sales channel enhancements, we aim to become the telecommunications service provider of choice for customers in Myanmar.

New Brand Unveiled in September 2014

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