PeoplesTel

Bangladesh Telecommunications Ltd subscribed for 26.5% of the equity in Peoples Telecom and Information Services Ltd ("PeoplesTel"). The £2.6 million investment was approved by the Bangladesh Board of Investment ("BOI") in February 2007. GCM Resources invested a further £2 million in cash in February 2008, increasing the total equity position to 37%.

PeoplesTel is an exciting investment opportunity which also brings significant benefits to the development of the Phulbari Coal Project ("the Project") by ensuring that modern and extensive telecommunication networks and infrastructure are in place across all areas (mine site, transport corridor, port operations etc.) of the Project.

PeoplesTel has a licence to operate fixed, wireless local loop along with voice data, image and all forms of telecommunication services in Bangladesh. PeoplesTel has been in operation since 1989 as rural operator and converted to a national operator since 2005. PeoplesTel has a huge network covering Bangladesh and employs over 280 people. PeoplesTel has over 6000 KM of Microwave links covering all the major cities of Bangladesh. At the time of the MOU, PeoplesTel has already installed four gateway switches, 120 local switches, 3 BSC, 34 BTS with the latest CDMA 2001X 450 MHZ dual carrier state of the art wireless local loop services.

PeoplesTel is currently undertaking a rapid expansion plan. Their expansion plan for the next 5 years is to provide world class voice and data services across Bangladesh, targeting 1 million new subscribers and focusing on the developing rural regions.

It owns the largest range of wireless spectrum of any operator in Bangladesh, including the valuable 3G compliant 450MHz spectrum, and has recently secured a VoIP License.

PeoplesTel, having recently completed a 17km fibre optic ring around Dhaka City, has full interconnect agreements in place with the major cellular operators and fixed line operators, including the government owned BTTB. These companies collectively access approximately 15 million subscribers. PeoplesTel has leased an additional 208km fibre optic backbone to connect to the densely populated (approximately 7 million people), and high GDP generating, region of Chittagong.

For further information about PeoplesTel, visit www.ptelco.net