Infrastructure LEASING PGCB’S OPTIC FIBER NETWORK …

1 Infrastructure Investment LEASING PGCB'S OPTIC FIBER NETWORK . Facilitation ( dhaka to chittagong link , 245 km). Center Background and Objective PGCB'S Countrywide OFC NETWORK Power Grid Company of Bangladesh Ltd. (PGCB) was created by the Government in 1996 under the Companies Act 1994 for managing high voltage power transmission NETWORK throughout Bangladesh. The company is now installing overhead OPTIC FIBER Cable (OFC) NETWORK commonly known as Optical Ground Wire (OPGW) for telecommunication purposes, along its high voltage transmission lines throughout the country in phases: Phase I: In Phase I, the installation of dhaka - chittagong link , 245 km, has already been completed. Phase II: The NETWORK in the rest of the country is being installed as shown in the picture on the right.

2 Installation of chittagong - Cox's Bazar link , 145 km, has already been completed. PGCB leased out one dark pair of OFC between dhaka and chittagong through open tender. Infrastructure Investment Facilitation Center (IIFC) was engaged by PGCB to assist in the LEASING process in August 2004. Award of the lease PGCB invited open tender for the lease in 2005. Four companies participated in the tender. After evaluation of the tenders, the lease was awarded to GrameenPhone (GP) as the highest ranking tenderer. dhaka - chittagong OFC NETWORK One Pair was offered for lease, 245 km Feni Hathazari, Rampura, Haripur Meghnaghat Comilla chittagong dhaka . 6 pairs 6 pairs 4 pairs 4 pairs 6 pairs 6 km 22 km 12 km 58 km 76 km 78 km OPGW (6 Pairs).

3 Pylon 213. OPGW (4 Pairs). Key Benefits Less installation and maintenance cost Transmission connectivity between dhaka - chittagong link Increased bandwidth capacity Higher NETWORK security and reliability Use of the NETWORK by the Lessee The NETWORK is leased to GP: - for GP's own use to transmit the traffic generated from its own mobile subscribers, and - for sub-lease to others PSTN or cellular operators, ISPs or corporate users, for transmission connectivity on commercial basis as a Transmission NETWORK Service Provider'. A diagram showing the commercial framework (business around the lessee) is shown in the opposite page. January 2007. Infrastructure Investment Facilitation Center Business around Lessee Lessor Lessee Sub-Lessee Lessee's revenue from sublease PGCB leases the OFC.

4 To Lessee PSTN Operators PGCB Lessee Cellular Operators Lease Agreement ISPs Corporate Users Lease rental to PGCB. Lessee's The Lessee Lessee revenue subleases the Legends: keeps from own bandwidth Contractual Flow bandwidth for customers own use Payment Flow Own Use Delineation of Responsibilities Between PGCB And the Lessee NETWORK Constituents: Optical FIBER Cable- 3, 6. Lease Assets- 1, 2. (1) OPGW (1) OPGW Common Use Equipment 3, 4, 5. (2) CTB - (2) CTB - Lessee's Equipment 6, 7, 8. OPGW. OPGW. (3) OFC- (3) OFC- Multiple Multiple (7) (8) (7). Pairs Pairs GRID AREA. (6) OFC- O O. Single Pair L MUX L. T T. (4). CTB- (5) (5). (4). CTB- E E. ODF ODF. OFC OFC. CARRIER ROOM. PGCB STATION LESSEE'S PREMISES.

5 LEGENDs Delineation of Responsibilities OPGW : Optical Ground Wire ODF: Optical Distribution Frame Lessee's Build and Transfer Obligation 3, 4, 5. CUE: Common Use Equipment TNSP: Telecom NETWORK Service Provider PGCB's O&M Responsibility- 1, 2, 3, 4, 5. Lessee's O&M Responsibility- 6, 7, 8. OFC: Optical FIBER Cable OLTE: Optical Line Terminal Equipment CTB: Cable Terminal Box MUX: Multiplexing Equipment Infrastructure Investment Facilitation Center IDB Bhaban, 6th Floor, Agargaon, Sher-e-Bangla Nagar, dhaka 1207, Bangladesh Tel No: 812 4270, 913 3588, 913 3455, 913 3577; Fax: 88 02 812 4266; Email: Website.