CIRCULAR

ALL CEOs & Staff of Kumul Telikom Holdings Limited and Subsidiaries

Christmas Message

The season of goodwill and peace to all men and women, is upon us. We take the opportunity to
reflect on our year past and look forward to implementing plans for the year ahead. We remind
ourselves of the issues and development needs, what worked and what didn’t, our purpose, our
objectives, our duties and responsibilities.

There can be no doubt that the last 12 months have been some of the challenging we have ever
faced. We commenced this year with plans to implement a progressive restructure program, to build
on the strengths of our business. However, as you are all aware, in March, the world was hit by a
devastating pandemic, Covid19 and restrictions impacted all of our lives. I am very proud of the
response of our employees, to protect the health and welfare of each other and our families, as we
adjusted our work programs to compensate for the necessary changes. I am proud of your efforts to
collaborate with various government agencies in the establishment of the Covid19 response centre-
the call centre and communications network. The social and economic impact of the pandemic were
felt across the country and the region. This affected our investment plans, our capital expenditure
and ultimately the restructure program.

Despite the pandemic, I was immensely proud of the achievements of our group. We continued to
commission landing stations for our Kumul Domestic Submarine infrastructure. This investment
substantially boosts our domestic communications capability, improving services levels for our core
customer base. We received approval for our mobile network integration project, which is about to
launch as I write. This combines the strengths of our 2G/3G and 4G/LTE networks, bringing our
mobile customers together under one SIM. This greatly improves our competitive ability, network
accessibility and service quality. The integration prompts further investment in our mobile product
offering, and our customer engagement as we build our subscriber base, providing customers with
greater choice, more value and more services.

2020 also marked the completion of a major international communication program - a joint bilateral
collaboration between the governments of Australia, Solomon Islands and PNG to implement a
submarine communications cable between Sydney, Honiara and Port Moresby. This has increased
our international broadband capacity by over 2000 times and signifies one of the country’s largest
bilateral communications initiatives, with Australia, in recent years. We remain eternally thankful for
the commitment and support of the people of Australia, and we look forward to continuing to
realise the benefits from this new capacity.

We have built on our service and product offerings including our IPTV and we are proud of how we
have all worked together to build the popularity of this entertainment format. We are seeing a
remarkable change in our customer behaviours, increasing consumption of our broadband products.
I am proud of our efforts to promote wired and wireless broadband services - we still have a very
competent ADSL product, with a growing terrestrial fibre network. Fibre to the home and work place
will soon become integral to everything we do, as our customers look to increase consumption in
productivity and entertainment.

Subsidiaries

Telikom Rumana, Kumul Avenue, Waigani, PO Box 1349, BOROKO, NCD, Papua Ne
Our annual operating plans for 2020 indicated our desire to focus on our strengths and repurpose
our non-core businesses, to better position our core business for growth and development.
Notwithstanding the Covid19 restrictions, we need to become more efficient in the delivery of
services, to promote sustainability, to improve our ability to reinvest in services and infrastructure.
To be successful in communications in PNG, we must become equally competitive in price,
accessibility and quality. It is redundant to have the cheapest prices for data, if our services are not
available, or aren’t competently delivered. The Board and Management will continue to explore
strategies that build on our core strengths. KTH is fundamentally about communication services and
I will ensure that both the Board and Management focus on that.

Looking forward to 2021 and the year ahead, we will build on the government’s state-owned
enterprise reform program, to merge and restructure our retail businesses, encouraging increased
use of our mobile and fixed line infrastructure, increasing our use of our wholesale capacity,
providing better customer engagement, increased value and increased service offering. We will not
become complacent - we are very aware of the possibility of another foreign owned mobile operator
entering our PNG market, and we will do what is necessary to not only protect our market share but
protect our plans to grow that market position in PNG.

In completing the mobile network technical integration, we will fast-track investment in mobile
subscriber acquisition with a range of subscriber engagements. We will approve the necessary
expenditure to grow our market offering, to take advantage of the merger of our mobile network.
We will enhance sales and distribution, points of presence and ‘feet on the street’.

PNG has tremendous ICT potential. We have a growing fraternity of ICT entrepreneurs who are
celebrated on a local and regional level. In 2021, I will ensure that our Board and Management
proactively engage with these small and medium scale ICT operators and developers, to investigate
ways that we may collaborate for the betterment of the industry, our citizens and country.

Training and skills development must become our primary focus in 2021. We must encourage and
promote our capacity from within. I would like to see an increase in our ability to grow our people
and our skills. We must future proof our business through appropriate succession programs. Ours is
an industry that is constantly developing and adapting. We must remain current, remain dynamic
and relevant. And I will encourage those skills and experience to emerge, for the benefit of the
greater business, our employees and customers.

I would also like 2021 to be a year of greater certainty. I would like to improve the level of internal
communications from the top down and from the bottom up. I want us to be all fully invested in our
plans and our future, to have the opportunity to raise concerns, to engage with everyone and
anyone. I will be approving a series of initiatives from enhanced corporate intranets to scheduled
town hall meetings that will encourage a more inclusive culture at KTH.

The KTH communications group has a proud and substantial history. We are owned, operated and
enjoyed by the people of PNG. We owe it to our shareholders, our employees and our subscribers to
deliver the best value, most reliable and best range of communications services available. I will
commit our Board of Directors and our Management teams, to ensure that this principal is not only
upheld, but becomes the core driver of everything we do.

Subsidiaries

Telikom Rumana, Kumul Avenue, Waigani, PO Box 1349, BOROKO, NCD, Papua Ne
On behalf of the members of the Board of Directors of the Kumul Telikom Holdings group, I would
like to take this opportunity to wish you and your families a very peaceful, safe and joyous Christmas
Holiday and we look forward to a Happy New Year.

Merry Christmas!

Reuben Kautu
Chairman
Kumul Telikom Holdings Limited

Subsidiaries

Telikom Rumana, Kumul Avenue, Waigani, PO Box 1349, BOROKO, NCD, Papua Ne