Thanousone Phonamat

September 2018· Asia·

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Laos: ALO! Technologies

Interview of BizNews with ALO! Technology Group: Thanousone Phonamat

Biznews (BN): You studied in Germany. How did your experience there contribute to the creation and growth of your company?

TP: I was indeed in Germany for six years. Apart from the lectures, the most important aspect I learnt in Germany was culture – the leadership and working style are different. The three most important things I learnt and brought back is that the Germans are hard working, they are very disciplined and they try to perfect everything. These three things are very important when you run a business. I took those habits and culture, and brought it to Laos. Lao people are very different, they are relaxed and laid back – kind of the opposite to Germans. I managed to find a balance between the two, relaxed yet hard working. Bringing that knowledge of leadership and way of doing business in Germany gives me a competitive edge for this market. It is an important aspect: once you bring in those three components, you can create a high-quality product and service. Since I have been back, the focus is on offering good-quality products and services.

BN: Thanks to ALO! Technology Group, Laos has its own technology brand. You also have a partnership with Microsoft. What is your goal for the next five years and how has the partnership with Microsoft added to the success of your company?

TP: First some history, to clarify where we stand as a company today.

My ambition is to introduce the latest technologies to Lao PDR. When I came back from Germany, there was no internet available here. I therefore started to communicate with the ministries and educate the ministers on the importance of internet for the development of our country. It took us four years to convince our government, but we received our licence in the year 2000, which was only the start. We were and still are competing with the big telco players. Therefore, we always try to be one step ahead. When they introduced internet, we introduced wifi which is faster. When they started with ADSL, we launched the mobile WiMAX 4G. I see my company as an influencer, pushing the telecommunications sector to introduce new technology.

Currently ,the penetration of the telecom industry in Lao PDR is good: mobile penetration is 80% and 3G coverage is around 50%, so the connectivity is covered. Our next step is creating content, because currently, when people connect, there is nothing to do. They only use Facebook and other entertainment. We are ready to create applications and fill up the gaps.

My main goal of content creation is aimed at helping my country and helping the less advantaged. ALO! Technology Group has been working with the Ministry of Education and also invited Microsoft to join the talks with the ministry. For the past five years, the ministry has been trying to introduce ICT into the classroom, but they weren’t able to do it because they didn’t have the equipment, the up-to-date curriculum and the trainers. We thought that Microsoft would be a good match, since Microsoft provides the basics of programmes that graduates will work with once they come out of school. Every student should know how to use it.

Therefore, Microsoft came to Lao PDR and created the “Microsoft IT academy”. This teaches ICT skills to children and also makes it possible for children to learn from home through e-learning. The content alone was not enough, that is why ALO! came into play and provided the devices to the students. It has always been my goal to create opportunities for the young people of my country and give them access to the latest information. The independence of children and teachers is important, so they can also educate themselves without the teacher and avoid the burden of a bad teacher by giving them the tools.

BN: Lao PDR is a focus for Germany in terms of development aid. How can ALO! Technology Group partner with German donors and development agencies to make sure Lao PDR reaches its development goals of 2020?

TP: We are very engaged in the education sector. Before this technology project, we were working with the ministry on updating the curriculum and the quality of the education system, which was funded by the World Bank and Asia Development Bank. We haven’t have the opportunity to work with German companies yet, but we are definitely open to working with them and moving forward together. We can be the technology partner of their development programmes in the rural communities. Part of the group does consultancy in ICT, so there would be a good overlap between what German companies are doing here and our aim to use ICT to develop the country.

We are very open to a technology development partner. It doesn’t stop with education. There are many possibilities for other sectors as well, like health care and transport, for instance. As an example, we are working on introducing e-government solutions, since that would make the government more efficient. In meetings with private sector and government, we talk about corruption, slow processes and how to make sure this can be solved by introducing technology. If we automate government processes, it will help to overcome many of the current day challenges that exist. It will be more transparent, smooth business and create more incentives for investors to come here. We truly hope for the development of ‘smart government’. We are already participating in a variety of different spheres of government, including education. However, our ambition is to offer services on a much larger and wider scale.

BN: The government needs to attract more foreign direct investment (FDI). However, at the base of healthy FDI is transparency, better business practices and smarter governance. As a final question, you have been able to create a very successful and strong IT company. For you personally, what makes you the proudest about being from Laos?

TP: I am very proud of the fact that I can be part of the development of Laos. We, truly, wish to develop faster and we believe that our company, with its infrastructure and business streams, can help in this regard. What I, personally, want to show to the Lao people, is that I want to create an example of how we can build a healthy marketplace. We wish to continue to grow Lao’s ICT industry and we believe that our company has assisted a lot in doing that so far.

If Laotian businesses are looking to upgrade their technologies and streamline their services, we are the perfect partner for it. We want to show to the world how Lao companies can compete with other international companies.

We are confident that the opportunity is there and that Lao products can, successfully, enter the Association of Southeast Asian Nations (ASEAN) market. We want to be the leading Lao technological brand within the next five years and, within ten years, the leading ASEAN technological brand. In 2018, we will start entering our neighbouring markets on a small scale – Thailand, Vietnam and Cambodia. This is dependant on finding good partners who have strong financial backing. We need partners who know and understand the international marketplace and who can help us successfully infiltrate the ASEAN market.

BN: With our very unique platform at Die Welt – having 17 million unique online monthly visitors and 760,000 daily readers – could you perhaps share with our readers, briefly, more about Laos and your technology, and why they should choose you as their partner of choice?

Laos has an exceptional geographical location and can be a ‘landing country’ for your business in the region. We believe that Laos has the potential to be a trading hub and our government is greatly advancing these ambitions, offering fantastic support for FDI. We are a country of great potential and we hope that foreign investors start viewing Laos as a wonderful hub for business.