tads plenary celcom suresh sidhu
DESCRIPTION
Suresh Sidhu COO Celcom opening keynote at TADS 21-22 Nov 2013 Bangkok "Operators Need New Telecom Applications and Services to Survive!"TRANSCRIPT
Day 1 Opening Address
Operators Need New Telecom
Applications and Services to
Survive
Suresh Sidhu
Chief Corporate amp Operations Officer
Celcom Axiata Berhad
Presentation at Telecom Application Developer Summit
21st November 2013
Mobility has been Nothing Short of a Revolution For the World
BDPM Company Confidential Slide 1
No longer an accessory for a select few but an everyday devicehellip
leading to increased mobile penetration across developed and developing nations
Source ITU World Telecommunication ICT Indicators database
Mobile-cellular subscriptions 2001- 2011 world and by level of development High end devices significantly multiply traffic
2013 1989 2000
Source Cisco VNI Mobile Forecast 2013
BDPM 2
But A Second Revolution Is In Play
User Behaviours Shifting From lsquoWalk amp Talkrsquo To lsquoSit amp Playrsquo
hellip with a wide variety of freemium OTT type
content and social networking apps
Traditional voice hellip
hellip and SMS usage are shifting
Shifting towards an
ldquoALWAYS-ONrdquo culturehellip
Ubiquitous wireless access increased smartphone adoption amp freemium OTTrsquos driving behavioural changes
hellip via range of smartphones across various
price points
hellipto lsquosit and playrsquo
Voice and SMS Intensive
Mobile phone usage behavior shifts
from lsquowalk and talkrsquo hellip
Data and Smartphone
Adoption
Ubiquitous Data
Connectivity
BDPM 3
Malaysia Mobile Connections Market Profile
Ma
laysi
a M
ob
ile c
on
ne
ctio
ns
(in
mill
ion
)
266 261 263 264 263 261 257
80 100 126 149 171 194 217
2011 2012 2013F 2014F 2015F 2016F 2017F
23
Legend Non-smartphone Smartphone
28 32 36 39 43 46
Selected study
Source Informa IC Intelligence Celcom Analysis
Source Based on 2012 statistics from Malaysia Communications and Multimedia Commission
At 140 mobile penetration but a mere 30 smartphone penetration
small screen data consumption is yet to be fully exploited
Smartphone penetration (forecasted)
High mobile penetration and effective phone bundling fuelling the rise of mobile internet adoption
Increasing Data Consumption Over Small Screen Devices
4195
3954
3800
3850
3900
3950
4000
4050
4100
4150
4200
4250
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
1
4
50
40
30
20
10
0
Years launched
46
37
40
30
28
16
6 8
1
4
23
11
17 22
Source BCG analysis Sofrecom Analysis Note Figures based on number of registered users
40
of Skypersquos 300m
unique monthly
users connect
on mobiles
71
of Facebookrsquos 115b
monthly active users
connect on mobiles
Voice and SMS Revenue Trend in Malaysia
RM mil
Source Quarterly Reports Celcom Internal Analysis
51
Increasing adoption of OTT voice amp messaging appshellip
hellip continues to impact traditional voice amp SMS revenues
o
f G
lob
al I
nte
rne
t u
sers
With increasing adoption via mobile devices
2 1 9 3 4 5 6 7 8
Increasing OTT Adoption Impacting Traditional Revenue
Streams As We Know Ithellip
Loss of voice and SMS revenues as mode of communication shifting awayhellip
hellip increasing time spent on mobile but declining traditional voice communications as we know it
BDPM 5
Hours spent communicating weekly1
40
30
20
10
0
2010 2005 2000 1995 1990
1 Based on 15-25 year olds mobile customers in the UK Source Ovum Analysys Mason BCG analysis
Landline voice
Mobile voice
SMS
Social networking
Minutes spent per day
50
40
30
20
10
0
Voice
Messaging
Audio
Browsing
Video Gaming
Reading
2016
44
10
(23)
12
(27)
2011
20
7
(33)
7
(33)
The Challenge Is To Sustain amp Increase Mobile Voice amp
Messaging Revenues While Embracing An All IP World
6
1
2
4
3
Lean Product
Lifecycle
Management
Dated
business models Gap in apps
developer
skill-sets
Lack of in-house
innovation and rely upon
external elements such
as vendors and partners
for out of the box
solutions
C
Challenges
Operators
Face Today
Lack of
innovation
from within
Application amp Content
development requires a
different set of skill sets
which operators need to
embrace and nurture
Requires new business
models and innovative
pricing mechanisms in
order to cater for new
services amp apps
Need to embrace a
culture of shorter
product lifecycles and
turn-around times a
culture of trial and
error with shared risks
with partners
and pricing mechanisms
Operators Need To Stay Relevant In The Marketplace
BDPM 7
Customer Network Service Provider OTT Players
bull Multiple Access medium
bull Falling Profit Margins
bull Large Hardware
CAPEXOPEX Outlay
bull Want to monetize Apps amp
Content
bull Ride on any access
medium (LTE3GWiFi)
bull Increasing Global Adoption
bull Primarily software driven ndash
ldquomade once download
many times ldquo
bull Available across mobiles
desktops tablets
bull OTTrsquos seek unfettered access net neutrality and
direct customer relationships ndash Network Operators
are relegated to ldquodumb pipesrdquo
SITUATION
TODAY
An Adversarial Situation Today Network Service Providers and OTT players at odds
7
Needs To Be Turned Into A Win-win Revolution will peter out without a common economic union
WHAT OPERATORS BRING WHAT DEVELOPERSOTTs BRING
Multi Access
Networks
Financial Strength
Regulatory
Management
Distribution amp Retail
Presence
Localization
Billing amp Software
Development Kit
Innovation
Faster Time to Market
Global Selection
Preferred Content
Lower Risk to Operators
8
BDPM 9
TELCO
OPERATOR OTT BRANDS
DEVELOPERS
bull Billing bull Local Information bull Distribution bull QoSQoE
bull Single System Convenience bull Wide user base of adoption bull Social network integration
bull Speed to Market bull Low Risk bull Always Fresh bull Relevant Local Apps
bull CONVENIENCE
bull RELEVANCE bull GREATER SELECTION
What Is Needed A Balanced Tri Party Ecosystem Telco operators OTT players and Developers play a role to support an ecosystem beneficial to all - including the consumer
The New Realityhellip
BDPM 10
TELCO
OPERATOR
OTT BRANDS
DEVELOPERS
STILL NECESSARY BUT VIEW POINT NEEDS TO SHIFT
NEED TO FIND WIN-WIN
NEED TO BE AGILE AND WORK WITH BOTH PARTIES
bull From charging per minute to share of minute-based model
bull From walled garden to partnerships
bull Focus shift from utility to experience
bull Operator partnerships are necessary to ensure customers get
advantage of the latest technology
bull The shift to an all data world will not happen without large amounts of
CAPEX spent by operators
bull Solid distribution partnerships will also ensure sustainable future and
better monetization
bull Operators are probably best partners for local or unique cultural
needs
bull OTT brands are the best fit for global marketplaces
bull CONVENIENCE bull RELEVANCE
bull GREATER SELECTION
BDPM 11
Adopt and build own brand
services - Eg Escape Buzzaar
Build OTT-like elements into
core elements
(In discussions)
Groom and provide
opportunities for App
Developers
Build Alternatives with Partners
Eg Kolony
Initiatives moving to create a Tri-Party Ecosystem
The Celcom Approachhellip
Embrace OTT via charging and
partnerships
NEXT
STEPS
TIGHTER GO-TO-MARKET WITH CONTENT AND APP DEVELOPERS
THANK YOU
Mobility has been Nothing Short of a Revolution For the World
BDPM Company Confidential Slide 1
No longer an accessory for a select few but an everyday devicehellip
leading to increased mobile penetration across developed and developing nations
Source ITU World Telecommunication ICT Indicators database
Mobile-cellular subscriptions 2001- 2011 world and by level of development High end devices significantly multiply traffic
2013 1989 2000
Source Cisco VNI Mobile Forecast 2013
BDPM 2
But A Second Revolution Is In Play
User Behaviours Shifting From lsquoWalk amp Talkrsquo To lsquoSit amp Playrsquo
hellip with a wide variety of freemium OTT type
content and social networking apps
Traditional voice hellip
hellip and SMS usage are shifting
Shifting towards an
ldquoALWAYS-ONrdquo culturehellip
Ubiquitous wireless access increased smartphone adoption amp freemium OTTrsquos driving behavioural changes
hellip via range of smartphones across various
price points
hellipto lsquosit and playrsquo
Voice and SMS Intensive
Mobile phone usage behavior shifts
from lsquowalk and talkrsquo hellip
Data and Smartphone
Adoption
Ubiquitous Data
Connectivity
BDPM 3
Malaysia Mobile Connections Market Profile
Ma
laysi
a M
ob
ile c
on
ne
ctio
ns
(in
mill
ion
)
266 261 263 264 263 261 257
80 100 126 149 171 194 217
2011 2012 2013F 2014F 2015F 2016F 2017F
23
Legend Non-smartphone Smartphone
28 32 36 39 43 46
Selected study
Source Informa IC Intelligence Celcom Analysis
Source Based on 2012 statistics from Malaysia Communications and Multimedia Commission
At 140 mobile penetration but a mere 30 smartphone penetration
small screen data consumption is yet to be fully exploited
Smartphone penetration (forecasted)
High mobile penetration and effective phone bundling fuelling the rise of mobile internet adoption
Increasing Data Consumption Over Small Screen Devices
4195
3954
3800
3850
3900
3950
4000
4050
4100
4150
4200
4250
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
1
4
50
40
30
20
10
0
Years launched
46
37
40
30
28
16
6 8
1
4
23
11
17 22
Source BCG analysis Sofrecom Analysis Note Figures based on number of registered users
40
of Skypersquos 300m
unique monthly
users connect
on mobiles
71
of Facebookrsquos 115b
monthly active users
connect on mobiles
Voice and SMS Revenue Trend in Malaysia
RM mil
Source Quarterly Reports Celcom Internal Analysis
51
Increasing adoption of OTT voice amp messaging appshellip
hellip continues to impact traditional voice amp SMS revenues
o
f G
lob
al I
nte
rne
t u
sers
With increasing adoption via mobile devices
2 1 9 3 4 5 6 7 8
Increasing OTT Adoption Impacting Traditional Revenue
Streams As We Know Ithellip
Loss of voice and SMS revenues as mode of communication shifting awayhellip
hellip increasing time spent on mobile but declining traditional voice communications as we know it
BDPM 5
Hours spent communicating weekly1
40
30
20
10
0
2010 2005 2000 1995 1990
1 Based on 15-25 year olds mobile customers in the UK Source Ovum Analysys Mason BCG analysis
Landline voice
Mobile voice
SMS
Social networking
Minutes spent per day
50
40
30
20
10
0
Voice
Messaging
Audio
Browsing
Video Gaming
Reading
2016
44
10
(23)
12
(27)
2011
20
7
(33)
7
(33)
The Challenge Is To Sustain amp Increase Mobile Voice amp
Messaging Revenues While Embracing An All IP World
6
1
2
4
3
Lean Product
Lifecycle
Management
Dated
business models Gap in apps
developer
skill-sets
Lack of in-house
innovation and rely upon
external elements such
as vendors and partners
for out of the box
solutions
C
Challenges
Operators
Face Today
Lack of
innovation
from within
Application amp Content
development requires a
different set of skill sets
which operators need to
embrace and nurture
Requires new business
models and innovative
pricing mechanisms in
order to cater for new
services amp apps
Need to embrace a
culture of shorter
product lifecycles and
turn-around times a
culture of trial and
error with shared risks
with partners
and pricing mechanisms
Operators Need To Stay Relevant In The Marketplace
BDPM 7
Customer Network Service Provider OTT Players
bull Multiple Access medium
bull Falling Profit Margins
bull Large Hardware
CAPEXOPEX Outlay
bull Want to monetize Apps amp
Content
bull Ride on any access
medium (LTE3GWiFi)
bull Increasing Global Adoption
bull Primarily software driven ndash
ldquomade once download
many times ldquo
bull Available across mobiles
desktops tablets
bull OTTrsquos seek unfettered access net neutrality and
direct customer relationships ndash Network Operators
are relegated to ldquodumb pipesrdquo
SITUATION
TODAY
An Adversarial Situation Today Network Service Providers and OTT players at odds
7
Needs To Be Turned Into A Win-win Revolution will peter out without a common economic union
WHAT OPERATORS BRING WHAT DEVELOPERSOTTs BRING
Multi Access
Networks
Financial Strength
Regulatory
Management
Distribution amp Retail
Presence
Localization
Billing amp Software
Development Kit
Innovation
Faster Time to Market
Global Selection
Preferred Content
Lower Risk to Operators
8
BDPM 9
TELCO
OPERATOR OTT BRANDS
DEVELOPERS
bull Billing bull Local Information bull Distribution bull QoSQoE
bull Single System Convenience bull Wide user base of adoption bull Social network integration
bull Speed to Market bull Low Risk bull Always Fresh bull Relevant Local Apps
bull CONVENIENCE
bull RELEVANCE bull GREATER SELECTION
What Is Needed A Balanced Tri Party Ecosystem Telco operators OTT players and Developers play a role to support an ecosystem beneficial to all - including the consumer
The New Realityhellip
BDPM 10
TELCO
OPERATOR
OTT BRANDS
DEVELOPERS
STILL NECESSARY BUT VIEW POINT NEEDS TO SHIFT
NEED TO FIND WIN-WIN
NEED TO BE AGILE AND WORK WITH BOTH PARTIES
bull From charging per minute to share of minute-based model
bull From walled garden to partnerships
bull Focus shift from utility to experience
bull Operator partnerships are necessary to ensure customers get
advantage of the latest technology
bull The shift to an all data world will not happen without large amounts of
CAPEX spent by operators
bull Solid distribution partnerships will also ensure sustainable future and
better monetization
bull Operators are probably best partners for local or unique cultural
needs
bull OTT brands are the best fit for global marketplaces
bull CONVENIENCE bull RELEVANCE
bull GREATER SELECTION
BDPM 11
Adopt and build own brand
services - Eg Escape Buzzaar
Build OTT-like elements into
core elements
(In discussions)
Groom and provide
opportunities for App
Developers
Build Alternatives with Partners
Eg Kolony
Initiatives moving to create a Tri-Party Ecosystem
The Celcom Approachhellip
Embrace OTT via charging and
partnerships
NEXT
STEPS
TIGHTER GO-TO-MARKET WITH CONTENT AND APP DEVELOPERS
THANK YOU
BDPM 2
But A Second Revolution Is In Play
User Behaviours Shifting From lsquoWalk amp Talkrsquo To lsquoSit amp Playrsquo
hellip with a wide variety of freemium OTT type
content and social networking apps
Traditional voice hellip
hellip and SMS usage are shifting
Shifting towards an
ldquoALWAYS-ONrdquo culturehellip
Ubiquitous wireless access increased smartphone adoption amp freemium OTTrsquos driving behavioural changes
hellip via range of smartphones across various
price points
hellipto lsquosit and playrsquo
Voice and SMS Intensive
Mobile phone usage behavior shifts
from lsquowalk and talkrsquo hellip
Data and Smartphone
Adoption
Ubiquitous Data
Connectivity
BDPM 3
Malaysia Mobile Connections Market Profile
Ma
laysi
a M
ob
ile c
on
ne
ctio
ns
(in
mill
ion
)
266 261 263 264 263 261 257
80 100 126 149 171 194 217
2011 2012 2013F 2014F 2015F 2016F 2017F
23
Legend Non-smartphone Smartphone
28 32 36 39 43 46
Selected study
Source Informa IC Intelligence Celcom Analysis
Source Based on 2012 statistics from Malaysia Communications and Multimedia Commission
At 140 mobile penetration but a mere 30 smartphone penetration
small screen data consumption is yet to be fully exploited
Smartphone penetration (forecasted)
High mobile penetration and effective phone bundling fuelling the rise of mobile internet adoption
Increasing Data Consumption Over Small Screen Devices
4195
3954
3800
3850
3900
3950
4000
4050
4100
4150
4200
4250
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
1
4
50
40
30
20
10
0
Years launched
46
37
40
30
28
16
6 8
1
4
23
11
17 22
Source BCG analysis Sofrecom Analysis Note Figures based on number of registered users
40
of Skypersquos 300m
unique monthly
users connect
on mobiles
71
of Facebookrsquos 115b
monthly active users
connect on mobiles
Voice and SMS Revenue Trend in Malaysia
RM mil
Source Quarterly Reports Celcom Internal Analysis
51
Increasing adoption of OTT voice amp messaging appshellip
hellip continues to impact traditional voice amp SMS revenues
o
f G
lob
al I
nte
rne
t u
sers
With increasing adoption via mobile devices
2 1 9 3 4 5 6 7 8
Increasing OTT Adoption Impacting Traditional Revenue
Streams As We Know Ithellip
Loss of voice and SMS revenues as mode of communication shifting awayhellip
hellip increasing time spent on mobile but declining traditional voice communications as we know it
BDPM 5
Hours spent communicating weekly1
40
30
20
10
0
2010 2005 2000 1995 1990
1 Based on 15-25 year olds mobile customers in the UK Source Ovum Analysys Mason BCG analysis
Landline voice
Mobile voice
SMS
Social networking
Minutes spent per day
50
40
30
20
10
0
Voice
Messaging
Audio
Browsing
Video Gaming
Reading
2016
44
10
(23)
12
(27)
2011
20
7
(33)
7
(33)
The Challenge Is To Sustain amp Increase Mobile Voice amp
Messaging Revenues While Embracing An All IP World
6
1
2
4
3
Lean Product
Lifecycle
Management
Dated
business models Gap in apps
developer
skill-sets
Lack of in-house
innovation and rely upon
external elements such
as vendors and partners
for out of the box
solutions
C
Challenges
Operators
Face Today
Lack of
innovation
from within
Application amp Content
development requires a
different set of skill sets
which operators need to
embrace and nurture
Requires new business
models and innovative
pricing mechanisms in
order to cater for new
services amp apps
Need to embrace a
culture of shorter
product lifecycles and
turn-around times a
culture of trial and
error with shared risks
with partners
and pricing mechanisms
Operators Need To Stay Relevant In The Marketplace
BDPM 7
Customer Network Service Provider OTT Players
bull Multiple Access medium
bull Falling Profit Margins
bull Large Hardware
CAPEXOPEX Outlay
bull Want to monetize Apps amp
Content
bull Ride on any access
medium (LTE3GWiFi)
bull Increasing Global Adoption
bull Primarily software driven ndash
ldquomade once download
many times ldquo
bull Available across mobiles
desktops tablets
bull OTTrsquos seek unfettered access net neutrality and
direct customer relationships ndash Network Operators
are relegated to ldquodumb pipesrdquo
SITUATION
TODAY
An Adversarial Situation Today Network Service Providers and OTT players at odds
7
Needs To Be Turned Into A Win-win Revolution will peter out without a common economic union
WHAT OPERATORS BRING WHAT DEVELOPERSOTTs BRING
Multi Access
Networks
Financial Strength
Regulatory
Management
Distribution amp Retail
Presence
Localization
Billing amp Software
Development Kit
Innovation
Faster Time to Market
Global Selection
Preferred Content
Lower Risk to Operators
8
BDPM 9
TELCO
OPERATOR OTT BRANDS
DEVELOPERS
bull Billing bull Local Information bull Distribution bull QoSQoE
bull Single System Convenience bull Wide user base of adoption bull Social network integration
bull Speed to Market bull Low Risk bull Always Fresh bull Relevant Local Apps
bull CONVENIENCE
bull RELEVANCE bull GREATER SELECTION
What Is Needed A Balanced Tri Party Ecosystem Telco operators OTT players and Developers play a role to support an ecosystem beneficial to all - including the consumer
The New Realityhellip
BDPM 10
TELCO
OPERATOR
OTT BRANDS
DEVELOPERS
STILL NECESSARY BUT VIEW POINT NEEDS TO SHIFT
NEED TO FIND WIN-WIN
NEED TO BE AGILE AND WORK WITH BOTH PARTIES
bull From charging per minute to share of minute-based model
bull From walled garden to partnerships
bull Focus shift from utility to experience
bull Operator partnerships are necessary to ensure customers get
advantage of the latest technology
bull The shift to an all data world will not happen without large amounts of
CAPEX spent by operators
bull Solid distribution partnerships will also ensure sustainable future and
better monetization
bull Operators are probably best partners for local or unique cultural
needs
bull OTT brands are the best fit for global marketplaces
bull CONVENIENCE bull RELEVANCE
bull GREATER SELECTION
BDPM 11
Adopt and build own brand
services - Eg Escape Buzzaar
Build OTT-like elements into
core elements
(In discussions)
Groom and provide
opportunities for App
Developers
Build Alternatives with Partners
Eg Kolony
Initiatives moving to create a Tri-Party Ecosystem
The Celcom Approachhellip
Embrace OTT via charging and
partnerships
NEXT
STEPS
TIGHTER GO-TO-MARKET WITH CONTENT AND APP DEVELOPERS
THANK YOU
BDPM 3
Malaysia Mobile Connections Market Profile
Ma
laysi
a M
ob
ile c
on
ne
ctio
ns
(in
mill
ion
)
266 261 263 264 263 261 257
80 100 126 149 171 194 217
2011 2012 2013F 2014F 2015F 2016F 2017F
23
Legend Non-smartphone Smartphone
28 32 36 39 43 46
Selected study
Source Informa IC Intelligence Celcom Analysis
Source Based on 2012 statistics from Malaysia Communications and Multimedia Commission
At 140 mobile penetration but a mere 30 smartphone penetration
small screen data consumption is yet to be fully exploited
Smartphone penetration (forecasted)
High mobile penetration and effective phone bundling fuelling the rise of mobile internet adoption
Increasing Data Consumption Over Small Screen Devices
4195
3954
3800
3850
3900
3950
4000
4050
4100
4150
4200
4250
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
1
4
50
40
30
20
10
0
Years launched
46
37
40
30
28
16
6 8
1
4
23
11
17 22
Source BCG analysis Sofrecom Analysis Note Figures based on number of registered users
40
of Skypersquos 300m
unique monthly
users connect
on mobiles
71
of Facebookrsquos 115b
monthly active users
connect on mobiles
Voice and SMS Revenue Trend in Malaysia
RM mil
Source Quarterly Reports Celcom Internal Analysis
51
Increasing adoption of OTT voice amp messaging appshellip
hellip continues to impact traditional voice amp SMS revenues
o
f G
lob
al I
nte
rne
t u
sers
With increasing adoption via mobile devices
2 1 9 3 4 5 6 7 8
Increasing OTT Adoption Impacting Traditional Revenue
Streams As We Know Ithellip
Loss of voice and SMS revenues as mode of communication shifting awayhellip
hellip increasing time spent on mobile but declining traditional voice communications as we know it
BDPM 5
Hours spent communicating weekly1
40
30
20
10
0
2010 2005 2000 1995 1990
1 Based on 15-25 year olds mobile customers in the UK Source Ovum Analysys Mason BCG analysis
Landline voice
Mobile voice
SMS
Social networking
Minutes spent per day
50
40
30
20
10
0
Voice
Messaging
Audio
Browsing
Video Gaming
Reading
2016
44
10
(23)
12
(27)
2011
20
7
(33)
7
(33)
The Challenge Is To Sustain amp Increase Mobile Voice amp
Messaging Revenues While Embracing An All IP World
6
1
2
4
3
Lean Product
Lifecycle
Management
Dated
business models Gap in apps
developer
skill-sets
Lack of in-house
innovation and rely upon
external elements such
as vendors and partners
for out of the box
solutions
C
Challenges
Operators
Face Today
Lack of
innovation
from within
Application amp Content
development requires a
different set of skill sets
which operators need to
embrace and nurture
Requires new business
models and innovative
pricing mechanisms in
order to cater for new
services amp apps
Need to embrace a
culture of shorter
product lifecycles and
turn-around times a
culture of trial and
error with shared risks
with partners
and pricing mechanisms
Operators Need To Stay Relevant In The Marketplace
BDPM 7
Customer Network Service Provider OTT Players
bull Multiple Access medium
bull Falling Profit Margins
bull Large Hardware
CAPEXOPEX Outlay
bull Want to monetize Apps amp
Content
bull Ride on any access
medium (LTE3GWiFi)
bull Increasing Global Adoption
bull Primarily software driven ndash
ldquomade once download
many times ldquo
bull Available across mobiles
desktops tablets
bull OTTrsquos seek unfettered access net neutrality and
direct customer relationships ndash Network Operators
are relegated to ldquodumb pipesrdquo
SITUATION
TODAY
An Adversarial Situation Today Network Service Providers and OTT players at odds
7
Needs To Be Turned Into A Win-win Revolution will peter out without a common economic union
WHAT OPERATORS BRING WHAT DEVELOPERSOTTs BRING
Multi Access
Networks
Financial Strength
Regulatory
Management
Distribution amp Retail
Presence
Localization
Billing amp Software
Development Kit
Innovation
Faster Time to Market
Global Selection
Preferred Content
Lower Risk to Operators
8
BDPM 9
TELCO
OPERATOR OTT BRANDS
DEVELOPERS
bull Billing bull Local Information bull Distribution bull QoSQoE
bull Single System Convenience bull Wide user base of adoption bull Social network integration
bull Speed to Market bull Low Risk bull Always Fresh bull Relevant Local Apps
bull CONVENIENCE
bull RELEVANCE bull GREATER SELECTION
What Is Needed A Balanced Tri Party Ecosystem Telco operators OTT players and Developers play a role to support an ecosystem beneficial to all - including the consumer
The New Realityhellip
BDPM 10
TELCO
OPERATOR
OTT BRANDS
DEVELOPERS
STILL NECESSARY BUT VIEW POINT NEEDS TO SHIFT
NEED TO FIND WIN-WIN
NEED TO BE AGILE AND WORK WITH BOTH PARTIES
bull From charging per minute to share of minute-based model
bull From walled garden to partnerships
bull Focus shift from utility to experience
bull Operator partnerships are necessary to ensure customers get
advantage of the latest technology
bull The shift to an all data world will not happen without large amounts of
CAPEX spent by operators
bull Solid distribution partnerships will also ensure sustainable future and
better monetization
bull Operators are probably best partners for local or unique cultural
needs
bull OTT brands are the best fit for global marketplaces
bull CONVENIENCE bull RELEVANCE
bull GREATER SELECTION
BDPM 11
Adopt and build own brand
services - Eg Escape Buzzaar
Build OTT-like elements into
core elements
(In discussions)
Groom and provide
opportunities for App
Developers
Build Alternatives with Partners
Eg Kolony
Initiatives moving to create a Tri-Party Ecosystem
The Celcom Approachhellip
Embrace OTT via charging and
partnerships
NEXT
STEPS
TIGHTER GO-TO-MARKET WITH CONTENT AND APP DEVELOPERS
THANK YOU
4195
3954
3800
3850
3900
3950
4000
4050
4100
4150
4200
4250
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
1
4
50
40
30
20
10
0
Years launched
46
37
40
30
28
16
6 8
1
4
23
11
17 22
Source BCG analysis Sofrecom Analysis Note Figures based on number of registered users
40
of Skypersquos 300m
unique monthly
users connect
on mobiles
71
of Facebookrsquos 115b
monthly active users
connect on mobiles
Voice and SMS Revenue Trend in Malaysia
RM mil
Source Quarterly Reports Celcom Internal Analysis
51
Increasing adoption of OTT voice amp messaging appshellip
hellip continues to impact traditional voice amp SMS revenues
o
f G
lob
al I
nte
rne
t u
sers
With increasing adoption via mobile devices
2 1 9 3 4 5 6 7 8
Increasing OTT Adoption Impacting Traditional Revenue
Streams As We Know Ithellip
Loss of voice and SMS revenues as mode of communication shifting awayhellip
hellip increasing time spent on mobile but declining traditional voice communications as we know it
BDPM 5
Hours spent communicating weekly1
40
30
20
10
0
2010 2005 2000 1995 1990
1 Based on 15-25 year olds mobile customers in the UK Source Ovum Analysys Mason BCG analysis
Landline voice
Mobile voice
SMS
Social networking
Minutes spent per day
50
40
30
20
10
0
Voice
Messaging
Audio
Browsing
Video Gaming
Reading
2016
44
10
(23)
12
(27)
2011
20
7
(33)
7
(33)
The Challenge Is To Sustain amp Increase Mobile Voice amp
Messaging Revenues While Embracing An All IP World
6
1
2
4
3
Lean Product
Lifecycle
Management
Dated
business models Gap in apps
developer
skill-sets
Lack of in-house
innovation and rely upon
external elements such
as vendors and partners
for out of the box
solutions
C
Challenges
Operators
Face Today
Lack of
innovation
from within
Application amp Content
development requires a
different set of skill sets
which operators need to
embrace and nurture
Requires new business
models and innovative
pricing mechanisms in
order to cater for new
services amp apps
Need to embrace a
culture of shorter
product lifecycles and
turn-around times a
culture of trial and
error with shared risks
with partners
and pricing mechanisms
Operators Need To Stay Relevant In The Marketplace
BDPM 7
Customer Network Service Provider OTT Players
bull Multiple Access medium
bull Falling Profit Margins
bull Large Hardware
CAPEXOPEX Outlay
bull Want to monetize Apps amp
Content
bull Ride on any access
medium (LTE3GWiFi)
bull Increasing Global Adoption
bull Primarily software driven ndash
ldquomade once download
many times ldquo
bull Available across mobiles
desktops tablets
bull OTTrsquos seek unfettered access net neutrality and
direct customer relationships ndash Network Operators
are relegated to ldquodumb pipesrdquo
SITUATION
TODAY
An Adversarial Situation Today Network Service Providers and OTT players at odds
7
Needs To Be Turned Into A Win-win Revolution will peter out without a common economic union
WHAT OPERATORS BRING WHAT DEVELOPERSOTTs BRING
Multi Access
Networks
Financial Strength
Regulatory
Management
Distribution amp Retail
Presence
Localization
Billing amp Software
Development Kit
Innovation
Faster Time to Market
Global Selection
Preferred Content
Lower Risk to Operators
8
BDPM 9
TELCO
OPERATOR OTT BRANDS
DEVELOPERS
bull Billing bull Local Information bull Distribution bull QoSQoE
bull Single System Convenience bull Wide user base of adoption bull Social network integration
bull Speed to Market bull Low Risk bull Always Fresh bull Relevant Local Apps
bull CONVENIENCE
bull RELEVANCE bull GREATER SELECTION
What Is Needed A Balanced Tri Party Ecosystem Telco operators OTT players and Developers play a role to support an ecosystem beneficial to all - including the consumer
The New Realityhellip
BDPM 10
TELCO
OPERATOR
OTT BRANDS
DEVELOPERS
STILL NECESSARY BUT VIEW POINT NEEDS TO SHIFT
NEED TO FIND WIN-WIN
NEED TO BE AGILE AND WORK WITH BOTH PARTIES
bull From charging per minute to share of minute-based model
bull From walled garden to partnerships
bull Focus shift from utility to experience
bull Operator partnerships are necessary to ensure customers get
advantage of the latest technology
bull The shift to an all data world will not happen without large amounts of
CAPEX spent by operators
bull Solid distribution partnerships will also ensure sustainable future and
better monetization
bull Operators are probably best partners for local or unique cultural
needs
bull OTT brands are the best fit for global marketplaces
bull CONVENIENCE bull RELEVANCE
bull GREATER SELECTION
BDPM 11
Adopt and build own brand
services - Eg Escape Buzzaar
Build OTT-like elements into
core elements
(In discussions)
Groom and provide
opportunities for App
Developers
Build Alternatives with Partners
Eg Kolony
Initiatives moving to create a Tri-Party Ecosystem
The Celcom Approachhellip
Embrace OTT via charging and
partnerships
NEXT
STEPS
TIGHTER GO-TO-MARKET WITH CONTENT AND APP DEVELOPERS
THANK YOU
Loss of voice and SMS revenues as mode of communication shifting awayhellip
hellip increasing time spent on mobile but declining traditional voice communications as we know it
BDPM 5
Hours spent communicating weekly1
40
30
20
10
0
2010 2005 2000 1995 1990
1 Based on 15-25 year olds mobile customers in the UK Source Ovum Analysys Mason BCG analysis
Landline voice
Mobile voice
SMS
Social networking
Minutes spent per day
50
40
30
20
10
0
Voice
Messaging
Audio
Browsing
Video Gaming
Reading
2016
44
10
(23)
12
(27)
2011
20
7
(33)
7
(33)
The Challenge Is To Sustain amp Increase Mobile Voice amp
Messaging Revenues While Embracing An All IP World
6
1
2
4
3
Lean Product
Lifecycle
Management
Dated
business models Gap in apps
developer
skill-sets
Lack of in-house
innovation and rely upon
external elements such
as vendors and partners
for out of the box
solutions
C
Challenges
Operators
Face Today
Lack of
innovation
from within
Application amp Content
development requires a
different set of skill sets
which operators need to
embrace and nurture
Requires new business
models and innovative
pricing mechanisms in
order to cater for new
services amp apps
Need to embrace a
culture of shorter
product lifecycles and
turn-around times a
culture of trial and
error with shared risks
with partners
and pricing mechanisms
Operators Need To Stay Relevant In The Marketplace
BDPM 7
Customer Network Service Provider OTT Players
bull Multiple Access medium
bull Falling Profit Margins
bull Large Hardware
CAPEXOPEX Outlay
bull Want to monetize Apps amp
Content
bull Ride on any access
medium (LTE3GWiFi)
bull Increasing Global Adoption
bull Primarily software driven ndash
ldquomade once download
many times ldquo
bull Available across mobiles
desktops tablets
bull OTTrsquos seek unfettered access net neutrality and
direct customer relationships ndash Network Operators
are relegated to ldquodumb pipesrdquo
SITUATION
TODAY
An Adversarial Situation Today Network Service Providers and OTT players at odds
7
Needs To Be Turned Into A Win-win Revolution will peter out without a common economic union
WHAT OPERATORS BRING WHAT DEVELOPERSOTTs BRING
Multi Access
Networks
Financial Strength
Regulatory
Management
Distribution amp Retail
Presence
Localization
Billing amp Software
Development Kit
Innovation
Faster Time to Market
Global Selection
Preferred Content
Lower Risk to Operators
8
BDPM 9
TELCO
OPERATOR OTT BRANDS
DEVELOPERS
bull Billing bull Local Information bull Distribution bull QoSQoE
bull Single System Convenience bull Wide user base of adoption bull Social network integration
bull Speed to Market bull Low Risk bull Always Fresh bull Relevant Local Apps
bull CONVENIENCE
bull RELEVANCE bull GREATER SELECTION
What Is Needed A Balanced Tri Party Ecosystem Telco operators OTT players and Developers play a role to support an ecosystem beneficial to all - including the consumer
The New Realityhellip
BDPM 10
TELCO
OPERATOR
OTT BRANDS
DEVELOPERS
STILL NECESSARY BUT VIEW POINT NEEDS TO SHIFT
NEED TO FIND WIN-WIN
NEED TO BE AGILE AND WORK WITH BOTH PARTIES
bull From charging per minute to share of minute-based model
bull From walled garden to partnerships
bull Focus shift from utility to experience
bull Operator partnerships are necessary to ensure customers get
advantage of the latest technology
bull The shift to an all data world will not happen without large amounts of
CAPEX spent by operators
bull Solid distribution partnerships will also ensure sustainable future and
better monetization
bull Operators are probably best partners for local or unique cultural
needs
bull OTT brands are the best fit for global marketplaces
bull CONVENIENCE bull RELEVANCE
bull GREATER SELECTION
BDPM 11
Adopt and build own brand
services - Eg Escape Buzzaar
Build OTT-like elements into
core elements
(In discussions)
Groom and provide
opportunities for App
Developers
Build Alternatives with Partners
Eg Kolony
Initiatives moving to create a Tri-Party Ecosystem
The Celcom Approachhellip
Embrace OTT via charging and
partnerships
NEXT
STEPS
TIGHTER GO-TO-MARKET WITH CONTENT AND APP DEVELOPERS
THANK YOU
6
1
2
4
3
Lean Product
Lifecycle
Management
Dated
business models Gap in apps
developer
skill-sets
Lack of in-house
innovation and rely upon
external elements such
as vendors and partners
for out of the box
solutions
C
Challenges
Operators
Face Today
Lack of
innovation
from within
Application amp Content
development requires a
different set of skill sets
which operators need to
embrace and nurture
Requires new business
models and innovative
pricing mechanisms in
order to cater for new
services amp apps
Need to embrace a
culture of shorter
product lifecycles and
turn-around times a
culture of trial and
error with shared risks
with partners
and pricing mechanisms
Operators Need To Stay Relevant In The Marketplace
BDPM 7
Customer Network Service Provider OTT Players
bull Multiple Access medium
bull Falling Profit Margins
bull Large Hardware
CAPEXOPEX Outlay
bull Want to monetize Apps amp
Content
bull Ride on any access
medium (LTE3GWiFi)
bull Increasing Global Adoption
bull Primarily software driven ndash
ldquomade once download
many times ldquo
bull Available across mobiles
desktops tablets
bull OTTrsquos seek unfettered access net neutrality and
direct customer relationships ndash Network Operators
are relegated to ldquodumb pipesrdquo
SITUATION
TODAY
An Adversarial Situation Today Network Service Providers and OTT players at odds
7
Needs To Be Turned Into A Win-win Revolution will peter out without a common economic union
WHAT OPERATORS BRING WHAT DEVELOPERSOTTs BRING
Multi Access
Networks
Financial Strength
Regulatory
Management
Distribution amp Retail
Presence
Localization
Billing amp Software
Development Kit
Innovation
Faster Time to Market
Global Selection
Preferred Content
Lower Risk to Operators
8
BDPM 9
TELCO
OPERATOR OTT BRANDS
DEVELOPERS
bull Billing bull Local Information bull Distribution bull QoSQoE
bull Single System Convenience bull Wide user base of adoption bull Social network integration
bull Speed to Market bull Low Risk bull Always Fresh bull Relevant Local Apps
bull CONVENIENCE
bull RELEVANCE bull GREATER SELECTION
What Is Needed A Balanced Tri Party Ecosystem Telco operators OTT players and Developers play a role to support an ecosystem beneficial to all - including the consumer
The New Realityhellip
BDPM 10
TELCO
OPERATOR
OTT BRANDS
DEVELOPERS
STILL NECESSARY BUT VIEW POINT NEEDS TO SHIFT
NEED TO FIND WIN-WIN
NEED TO BE AGILE AND WORK WITH BOTH PARTIES
bull From charging per minute to share of minute-based model
bull From walled garden to partnerships
bull Focus shift from utility to experience
bull Operator partnerships are necessary to ensure customers get
advantage of the latest technology
bull The shift to an all data world will not happen without large amounts of
CAPEX spent by operators
bull Solid distribution partnerships will also ensure sustainable future and
better monetization
bull Operators are probably best partners for local or unique cultural
needs
bull OTT brands are the best fit for global marketplaces
bull CONVENIENCE bull RELEVANCE
bull GREATER SELECTION
BDPM 11
Adopt and build own brand
services - Eg Escape Buzzaar
Build OTT-like elements into
core elements
(In discussions)
Groom and provide
opportunities for App
Developers
Build Alternatives with Partners
Eg Kolony
Initiatives moving to create a Tri-Party Ecosystem
The Celcom Approachhellip
Embrace OTT via charging and
partnerships
NEXT
STEPS
TIGHTER GO-TO-MARKET WITH CONTENT AND APP DEVELOPERS
THANK YOU
BDPM 7
Customer Network Service Provider OTT Players
bull Multiple Access medium
bull Falling Profit Margins
bull Large Hardware
CAPEXOPEX Outlay
bull Want to monetize Apps amp
Content
bull Ride on any access
medium (LTE3GWiFi)
bull Increasing Global Adoption
bull Primarily software driven ndash
ldquomade once download
many times ldquo
bull Available across mobiles
desktops tablets
bull OTTrsquos seek unfettered access net neutrality and
direct customer relationships ndash Network Operators
are relegated to ldquodumb pipesrdquo
SITUATION
TODAY
An Adversarial Situation Today Network Service Providers and OTT players at odds
7
Needs To Be Turned Into A Win-win Revolution will peter out without a common economic union
WHAT OPERATORS BRING WHAT DEVELOPERSOTTs BRING
Multi Access
Networks
Financial Strength
Regulatory
Management
Distribution amp Retail
Presence
Localization
Billing amp Software
Development Kit
Innovation
Faster Time to Market
Global Selection
Preferred Content
Lower Risk to Operators
8
BDPM 9
TELCO
OPERATOR OTT BRANDS
DEVELOPERS
bull Billing bull Local Information bull Distribution bull QoSQoE
bull Single System Convenience bull Wide user base of adoption bull Social network integration
bull Speed to Market bull Low Risk bull Always Fresh bull Relevant Local Apps
bull CONVENIENCE
bull RELEVANCE bull GREATER SELECTION
What Is Needed A Balanced Tri Party Ecosystem Telco operators OTT players and Developers play a role to support an ecosystem beneficial to all - including the consumer
The New Realityhellip
BDPM 10
TELCO
OPERATOR
OTT BRANDS
DEVELOPERS
STILL NECESSARY BUT VIEW POINT NEEDS TO SHIFT
NEED TO FIND WIN-WIN
NEED TO BE AGILE AND WORK WITH BOTH PARTIES
bull From charging per minute to share of minute-based model
bull From walled garden to partnerships
bull Focus shift from utility to experience
bull Operator partnerships are necessary to ensure customers get
advantage of the latest technology
bull The shift to an all data world will not happen without large amounts of
CAPEX spent by operators
bull Solid distribution partnerships will also ensure sustainable future and
better monetization
bull Operators are probably best partners for local or unique cultural
needs
bull OTT brands are the best fit for global marketplaces
bull CONVENIENCE bull RELEVANCE
bull GREATER SELECTION
BDPM 11
Adopt and build own brand
services - Eg Escape Buzzaar
Build OTT-like elements into
core elements
(In discussions)
Groom and provide
opportunities for App
Developers
Build Alternatives with Partners
Eg Kolony
Initiatives moving to create a Tri-Party Ecosystem
The Celcom Approachhellip
Embrace OTT via charging and
partnerships
NEXT
STEPS
TIGHTER GO-TO-MARKET WITH CONTENT AND APP DEVELOPERS
THANK YOU
7
Needs To Be Turned Into A Win-win Revolution will peter out without a common economic union
WHAT OPERATORS BRING WHAT DEVELOPERSOTTs BRING
Multi Access
Networks
Financial Strength
Regulatory
Management
Distribution amp Retail
Presence
Localization
Billing amp Software
Development Kit
Innovation
Faster Time to Market
Global Selection
Preferred Content
Lower Risk to Operators
8
BDPM 9
TELCO
OPERATOR OTT BRANDS
DEVELOPERS
bull Billing bull Local Information bull Distribution bull QoSQoE
bull Single System Convenience bull Wide user base of adoption bull Social network integration
bull Speed to Market bull Low Risk bull Always Fresh bull Relevant Local Apps
bull CONVENIENCE
bull RELEVANCE bull GREATER SELECTION
What Is Needed A Balanced Tri Party Ecosystem Telco operators OTT players and Developers play a role to support an ecosystem beneficial to all - including the consumer
The New Realityhellip
BDPM 10
TELCO
OPERATOR
OTT BRANDS
DEVELOPERS
STILL NECESSARY BUT VIEW POINT NEEDS TO SHIFT
NEED TO FIND WIN-WIN
NEED TO BE AGILE AND WORK WITH BOTH PARTIES
bull From charging per minute to share of minute-based model
bull From walled garden to partnerships
bull Focus shift from utility to experience
bull Operator partnerships are necessary to ensure customers get
advantage of the latest technology
bull The shift to an all data world will not happen without large amounts of
CAPEX spent by operators
bull Solid distribution partnerships will also ensure sustainable future and
better monetization
bull Operators are probably best partners for local or unique cultural
needs
bull OTT brands are the best fit for global marketplaces
bull CONVENIENCE bull RELEVANCE
bull GREATER SELECTION
BDPM 11
Adopt and build own brand
services - Eg Escape Buzzaar
Build OTT-like elements into
core elements
(In discussions)
Groom and provide
opportunities for App
Developers
Build Alternatives with Partners
Eg Kolony
Initiatives moving to create a Tri-Party Ecosystem
The Celcom Approachhellip
Embrace OTT via charging and
partnerships
NEXT
STEPS
TIGHTER GO-TO-MARKET WITH CONTENT AND APP DEVELOPERS
THANK YOU
BDPM 9
TELCO
OPERATOR OTT BRANDS
DEVELOPERS
bull Billing bull Local Information bull Distribution bull QoSQoE
bull Single System Convenience bull Wide user base of adoption bull Social network integration
bull Speed to Market bull Low Risk bull Always Fresh bull Relevant Local Apps
bull CONVENIENCE
bull RELEVANCE bull GREATER SELECTION
What Is Needed A Balanced Tri Party Ecosystem Telco operators OTT players and Developers play a role to support an ecosystem beneficial to all - including the consumer
The New Realityhellip
BDPM 10
TELCO
OPERATOR
OTT BRANDS
DEVELOPERS
STILL NECESSARY BUT VIEW POINT NEEDS TO SHIFT
NEED TO FIND WIN-WIN
NEED TO BE AGILE AND WORK WITH BOTH PARTIES
bull From charging per minute to share of minute-based model
bull From walled garden to partnerships
bull Focus shift from utility to experience
bull Operator partnerships are necessary to ensure customers get
advantage of the latest technology
bull The shift to an all data world will not happen without large amounts of
CAPEX spent by operators
bull Solid distribution partnerships will also ensure sustainable future and
better monetization
bull Operators are probably best partners for local or unique cultural
needs
bull OTT brands are the best fit for global marketplaces
bull CONVENIENCE bull RELEVANCE
bull GREATER SELECTION
BDPM 11
Adopt and build own brand
services - Eg Escape Buzzaar
Build OTT-like elements into
core elements
(In discussions)
Groom and provide
opportunities for App
Developers
Build Alternatives with Partners
Eg Kolony
Initiatives moving to create a Tri-Party Ecosystem
The Celcom Approachhellip
Embrace OTT via charging and
partnerships
NEXT
STEPS
TIGHTER GO-TO-MARKET WITH CONTENT AND APP DEVELOPERS
THANK YOU
The New Realityhellip
BDPM 10
TELCO
OPERATOR
OTT BRANDS
DEVELOPERS
STILL NECESSARY BUT VIEW POINT NEEDS TO SHIFT
NEED TO FIND WIN-WIN
NEED TO BE AGILE AND WORK WITH BOTH PARTIES
bull From charging per minute to share of minute-based model
bull From walled garden to partnerships
bull Focus shift from utility to experience
bull Operator partnerships are necessary to ensure customers get
advantage of the latest technology
bull The shift to an all data world will not happen without large amounts of
CAPEX spent by operators
bull Solid distribution partnerships will also ensure sustainable future and
better monetization
bull Operators are probably best partners for local or unique cultural
needs
bull OTT brands are the best fit for global marketplaces
bull CONVENIENCE bull RELEVANCE
bull GREATER SELECTION
BDPM 11
Adopt and build own brand
services - Eg Escape Buzzaar
Build OTT-like elements into
core elements
(In discussions)
Groom and provide
opportunities for App
Developers
Build Alternatives with Partners
Eg Kolony
Initiatives moving to create a Tri-Party Ecosystem
The Celcom Approachhellip
Embrace OTT via charging and
partnerships
NEXT
STEPS
TIGHTER GO-TO-MARKET WITH CONTENT AND APP DEVELOPERS
THANK YOU
BDPM 11
Adopt and build own brand
services - Eg Escape Buzzaar
Build OTT-like elements into
core elements
(In discussions)
Groom and provide
opportunities for App
Developers
Build Alternatives with Partners
Eg Kolony
Initiatives moving to create a Tri-Party Ecosystem
The Celcom Approachhellip
Embrace OTT via charging and
partnerships
NEXT
STEPS
TIGHTER GO-TO-MARKET WITH CONTENT AND APP DEVELOPERS
THANK YOU
THANK YOU