KSC The Only Major ISP with Profit from Day One

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KSCThe Only Major ISPwith Profitfrom Day One

• Prof.Dr. Srisakdi Charmonman
• charm_at_ksc.net.th
• ltwww.srisakdi.th.comgt then click ltInternet KSCgt

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Topics of Presentation

• 1. Introduction
• 2. History of KSC
• 3. KSC Philosophy
• 4. KSC Achievement
• 5. KSC Future Prospects

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1. Introduction

• 1. Bill Gates Profit from providing
• Internet connection can be effectively
• rounded to zero.
• 2. For one single year of 1998 Average
• market caps of Internet-related companies
  
• increased seven folds in the USA.
• 3. None of those companies were profitable.
• 4. KSC is an exception, i.e. profits from day 1.

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2. History of KSC

• Co-Founders
• 1. Prof.Dr. Srisakdi Charmonman
• 2. Dr. Kanokwan Wongwatanasin
• Registration with Government
• 7 Jun 94 Internet KSC
• 21 Dec 94 KSC Commercial
• Jan 95 KSC started operation.
• 27 July 95 Jasmine purchased 25 of KSC.

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19 Jan 95 HRH Princess Maha Chakri Sirindhorn
Opened KSC International Internet Gateway to
the USA.
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KSC Group of Companies
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3. KSC Basic Philosophy

• 3.1 No Borrowing Unless Completely
• Necessary.
• Usual Money makes money.
• Must borrow money to invest.
• KSC Use advanced payment from customers
• shareholders money to invest.
• Had KSC borrowed from the USA,
• KSC would have been badly bruised.
• (from 26 Baht/ to 37-52 baht/)

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3.2 Assumption University as Incubator

• Started at AU rather at a business district.
• KSC could rely on students, staff and faculty of
  AU to serve part-time at KSC.
• KSC can mobilize any number of highly qualified
  manpower.
• Example Asian Games required 120 homepages
  designed and implemented within 3 days and no
  other ISPs could do it except KSC.

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3.3 Hardworking

• Internet technology and competitions are very
  dynamic.
• Working 8 hours a day is not enough.
• The co-founders have been working 16 hours a day,
  7 days a week.
• Several contracts concluded and publicity
  achieved because of hardwork.
• The co-founders hold 75 of KSC and can make
  important decisions right away. Then report to
  the Board for ratification.

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3.4 Win-Win Cooperation

• In politic and business, neither foe nor friend
  remains permanent.
• Your foe becomes your friend if you let him share
  your benefits.
• Your friend becomes your foe if you take benefit
  away from him.
• Therefore, KSC always negotiate to arrive at a
  win-win cooperation.
• KSC is highly flexible in negotiating with any
  potential business partners.

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4. KSC Achievements

• 4.1 KSC has no debt.
• KSC has 100 million baht
• (about 2.7 million US) cash on hand
• from advanced payments,
• sale of 3, 6, 9, 12 months
• of Internet cards
• (similar to phone card,
• and only about 30 usage).

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4.2 Profits of Internet KSC Group

• 1998 profit of Internet KSC 19.43 M
  Bht
• 1998 profit of KSC Commercial 17.72 M Bht
• 1998 Total profit of KSC Group 37.15 M Bht
• (About 1 million US)
• Internet KSC owns 65 of KSC Commercial.
• Consolidated profit of Internet KSC
• 19.43 0.65 x
  17.72
• 30.95 million Baht

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First 4 Years Consolidated Profit of Internet KSC
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Analysis of First 4 Years Sales and Profits

• Sales Individual 40 Corporate 40
• Other 20
• Assumption To obtain Indices for future
  projection, it is assumed that sales and profit
  are distributed equally for individual and
  corporate.
• Result of first 4 years
• Avg.sales 400 Bht./ind./yr 0.4
  MBht./corp/yr
• Avg. profit 40 Bht./ind./yr 0.04
  MBht./corp./yr
• 10 10

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4.3 KSC Customers in 1998

• Individual LAN (educational) 195,000
• Individual Dial-up
  60,000
• Total number of individuals 255,000
• Corporate Web hosting 200
• Corporate Leased line
  180
• Total number of corporate 380

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Rough Estimate of Individual Internet Users in
Million
Notes 12 Million 20 of population of
Thailand
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Partial List of Corporate Customers of KSC

• Bangkok Metro Admin.
• National Housing Authority
• Royal Forestry Dept.
• Office of National Education
• Mahidol University
• Ramkamhaeng University
• NTTI (Thailand)
• Etc.

• American Embassy
• International Labor Organization
• Thai Shell
• Siam Cement
• Krung Thai Bank
• Dept. of Intellectual Property
• PacLink
• Etc.

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4.4 KSC Bandwidth to USA

• - April 8, 1999 12 Mbps - In 2000 45
  Mbps
• - Nov, 1999 16 Mbps - In 2006 180
  Mbps
• To conserve KSC bandwidth to USA
• 140 Gb Proxy Farm at KSC NOC.
• Proxy at every building and every LAN.
• Programmed downloading 100 - 500 am.
  
• webs to use next day.
• Large Leased Lines to local exchanges.

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5. Future Prospects of KSC

• KSC is the first and largest ISP in Thailand.
• KSC will remain the largest ISP in Thailand.
• KSC will provide all kinds of
• Internet-related services.
• 5.1 KSC Branches in all 76 Provinces of
• Thailand by the year 2000.
• 5.2 KSC House Call. Technician to provide
• installation and training at customers
• home and office.

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5. Future Prospects of KSC (continued)

• 5.3 KSC to Become a Phone Company
• when Thailand telecommunications
• deregulated.
• 5.4 Complete Ecommerce Services.
• (KrungThai - KSC Ecommerce)
• 5.5 KSC Free Email for Million Users.
• 5.6 KSC Free Education-on-Demand.

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5. Future Prospect of KSC(continued)

• 5.7 KSC Own Telecommunications Network.
• 5.8 KSC High-Speed Internet Connection.
• 5.9 Hard-to-Refuse Offer to Educational
• Institutions.
• 5.10 Grooming Kids to Become Customers.

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KSC Projected Profits in 2006Worst 7 M US
Best 40 M US
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6. Concluding Remarks

• KSC is the first
• and largest ISP in Thailand.
• KSC will remain the
• largest ISP in Thailand.

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6. Concluding Remarks

• With
• Proven Track Record of Profit from Day One,
• Capable Management,
• Dedicated Manpower Resource,
• Excellent Business Models, and
• Promising Prospects,
• KSC is now ready and willing to negotiate with
  potential strategic and/or financial investors
  for mutual benefits.

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