Challenges & Opportunities

2015 - onwards

1 S.G.Bleivik/CEO jun14

What may be Operator’s future

Selling services or products?

Are OTTs an opportunity or a threat?

Is the broadband business model broken?

MNOs to vertically integrate or disintegrate?

How to capture reasonable revenue share from bandwidth demanding entertainment contents?

2

Mobile Network Operators What will be the challenges and opportunities MNOs

will face in 2015 and beyond?

How to meet the increasing bandwidth demand in access/core from internet related services?

Some issues are not in the hands of the MNO, but still will influence their business. Regulation of internet?

How to influence Regulator to be proactive towards upcoming obstacles for the business?

Multiple challenges requires creativity & initiatives!

3

Identifying Potentials External partnerships required to develop MNO’s

business and increase revenue. Flexibility and tailoring of services need to cater for partners business models

Internal efficiency, prioritizing, improved processes, ensured reliability and quality, customer orientated

Revenue & margin protection, in the context of competition and rapid declining ARPU

Creation of a new stricking and trendsetting service (sms copy-cat)

4

Fulfill Market Expectations

Clean/green power supply in off-grid areas

Energy Efficiency & off-peak Power-Save

Infrastructure and O&M resource sharing

Upgrade & Intro of latest technology

ISO certified Recycling of obsolete assets

Avail-/Reliability of access & services

Willingness to subsidize expensive devices

5

Authority Dependencies Regulator License frameworks, changing the «game»

o Availability of Spectrum

o Policy on POIs, IGW

o Numbering Plan cap/structure

o Licensee Policies, old & new

o Infra/power sharing

o Environmental issues

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Supplier Dependencies Vendor offering deliveries

o HW technology

o SW releases

o User Services

o Network functionality

o Upgrades

o Time to market

o Price model/strategy

7

Operators Generic Challenge Telecommunications companies everywhere, the

future has "catch-22" written all over it.

With technology evolving in every direction and business models under threat, network operators are obviously at a critical juncture.

Upcoming new technology providing seamless roaming to WiFi will offload 4G traffic and revenue

Keep Top20 customers, value subs and reduce churn

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Infrastructure Challenges • Global mobile data traffic nearly twelve times

greater than total global Internet traffic in 2000

• 4G connection generated ~20 times more traffic on average than a non-4G connection in 2013

• Smartphones represents >20% of total global handsets in use, but <90% of total global traffic

• 2/3 of global mobile data traffic - video by 2017

How to cater for peaked traffic and still earn revenue 9

Focus Backhaul Capacity/Efficiency

Backhaul planning is needed for long-term strategic investment opportunity to enhance customers Experience of Quality

Enabling network capabilities is required to meet demand through smart/flexible solutions for backhaul. Introducing SDN

10

Technology Challenges New Technologies

o LTE, NFV, SDN, SmallCells, MultiAccesTech

The Big SwitchOff

o Legacy mobile & fixed infra, copper networks

Asset Recovery

o Re-use/-sale/-furbish/-cycling

Spares Management

11

Reliability Challenges Data Security

o Hacking, Virus, data Tsunami

Network

o Availability, Failure-ratio, Interrupts, Downtime

Operational

o Fire, Terror, Revolution, Nature catastrophy

12

Environmental Challenges Energy-consumption, smoothen & minimizing

Utilize green & clean renewable energy

CO2 emissions, carbon footprint

Air Pollution, decrease radiation

Site selections rural, local impact

Antenna & tower placements

Indoor coverage urban

13

Traffical Challenges Design and optimize network configuration

Tools to model and test network caps

Maximize utilization of NE’s & infrastructure

Predict future traffic growth well in advance

Smoothen traffic peaks (use of tariffs etc)

Max throughput by flexibility & efficiency

Establish infrastructure & NE redundancy

Strengthen ability to handle catastrophy events

14

Optimizing Technology shifts Pre-RFQ planning of Roll-In part of swaps

Maximize ROI, profit from obsolete products

Scalability in replicating technology/models

Minimize hands-on of Roll-In process

Ensure high quality on Inventory base

Reduce interim storage of Roll-In products

Decommissioning according to equipment category; salable or scrap

Meet Environmental Goals and KPIs

15 Check out partner DTC-Telecom’s capabilities at www.dtc-telecom.co.uk

Add Revenue, Deduct Opex Appoint Reverse Logistic responsible to achieve

Excess Assets Control in swap projects

Last minute Roll-Out with re-use products

Roll-In and Reverse Logistic efficient process

Early determination of re-sale/scrap products

Ensure 1-touch strategy, avoid own stocking

Revenue from product and raw material sales

Reduce opex by admin & logistic efficiency

16 Check out partner DTC-Telecom’s capabilities at www.dtc-telecom.co.uk

New Services Opportunities M2M alarm & tracking services, Streetlight control

Canibalism services, mobile-IP, VoLTE

Holographic conference calls (TeleHuman & Bodipod with 3D graphics) & Video (LTE-based) calls

Big data as business intelligence (again)

Mobile Web to overtake PC Web

Mobile commerce is finally becoming a thing

Service enabler Low cost smartphones, at $100+

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Operator’s Opportunities Identify/Develop/Deploy new services leveraging network

infrastructures, customer relationships & billing/servicing capabilities

Develop new skill sets bringing innovative services to the marketplace - in partnership with disruptive innovators

Position as the infrastructure and go-to-market partner for young, innovative companies, e.g., Whats App

Embracing an "open platform" for delivering Next-Gen information services to customers will depend upon the ability of MNOs to engage, on a sustainable basis, with startup companies

18

Potential New Service Provisions through established Satellite Corps:

Finance, Banking, Insurance, Advertising

Health (remote consultancy/surgery)

Education (remote school/university)

SMB concepts for Global business

M2M mobile computer based services

Mobile Web-design

Cloud services

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Potential Success Factors Environmentalfriendly operation

Market based Services

Competetive tariffs

Bandwidth/speed

Availability & Reliability

Comunity & Business orientated

Optimized utilization of infrastructure Assets

Explore new&alternative revenue generators

Cost control & efficiency, minimize op-/capex

20

New Mega Trend Who will be able to introduce the next traffic and

revenue generating service ?

«Chat/Video group-conferencing» F2F to celebrities, pop/film-stars, sports-atleets, politicians ?

Look outside of your organization

Find potentials within innovative business environments and start relationships for cooperation

21

GOOD LUCK in 2015 & ∞

THINK OUTSIDE OF THE BOX

INCLUDE NON PROFESSIONALS

DISCUSS OUTSIDE THE «FAMILY»

INTRODUCE EXTERNALS

22

ONE-STEP-AHEAD

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www.tarec-in.com