Mobile Data in The Name of Transformation

Mobile Industry Evolution Roadmap

OTT

PC Internet

MobileInternet

TELCO

WAP

Digitalizatio

n

of Traditional

Industries

Handset

iOS/Android

O2O

M2M

AIBig

data

Isolated Industry SystemBreaking Through Industry

Boundary

Internet of Everything as a Service

Mobile internet is a historic stage of the evolution of Internet

Cloud

A Thrive New World Enabled by Connection…

A Converged World Between Digital and Physical

Customer Centric

Information as Linkage

Service Based Economy

Convergence Creates Value

Characterized by Four Rules

…While Operators Losing Relevance and Profit

1 2 3

Volume Scaling Up

Value Slipping Away

Voice

→DataRetail

→ Wholesale

Business

→ Public Utility

Network Externality

CustomerInterface

AssertControl

Communication

→ Connection

M2M

Operators create value by connecting while LOSING their relevance in

connection and FAILING to capture value in connected ecosystems.

Transformation: 3-Wave Growth Strategy

Now

Capex 2G 3G/4G New style infrastructure, app, etc.

Penetration

Revenue

Voice Mobiledata

Digitalservice

Mobile Data, Never as Easy as Voice to Handle

Consumpt

ion

Model

Ecosyste

m

Model

Business

Model

Operation

Model

Infrastructure

Organization

Marketing

Toolkit

Voice Mobile Data

• Use as a comm. service

• Usage predictable

• Use as a method of OTT

• Usage unpredictable

• Standardized service and billing

• Resource consuming lightly

• Personalized service and billing

• Resource heavily consumed and

precise control is a MUST

• Source generated by users

• User and operator

• Source generated by content

• User, operator ,content , etc.

• Dumb pipe operation

• Front- Back end loose coupling

• Smart pipe operation

• Front- Back end tight coupling

Infrastructure

Dumb Pipe Smart Pipe

Network Infrastructure Info-infrastructure

Digital World Infrastructure

Physical WorldInfrastructure

E2E Integrated NEW Infrastructure

Resource Management

Network Computingand Storage

PhysicalFacilities

InformationmanagementService

Execution

Customer& CommerceManagement

Service

Management

INTERGRATED ARCHITECTURE

Collaboration

Enterprise Managem

ent

Organization

Functional

Market product …

IT Network

Operation Data analysis

Operation policy making

Sales Operation Center

Branch office

CC

Implementation

…

Operational

Flatter ,more concentrated, more coordinated between front and back

KPI

Operation Company Organization

Functional

Market product …

IT Network CC …

Functional

KPI

Subsidiary

Subsidiary

……

Subsidiary

Subsidiary

Branch office

Branch office

Branch office

Marketing Toolkit

customer

BIT COINBIT COIN

ONE ACCOUNT

Consuming

OTT1 OTT2 Bank Aircraft

Exchange

Consuming

。。。 Chain

Context-aware Marketing

General Loyalty Plan Customer Service APP

If One Day … Mobile Data Turns to Be the Only Stake of Operator, Will It Be Enough to Win Back the Game Just By Following Above Advices?

Afraid NOT !

OTT

Voice

Infrastructure

Internalizeexternalities

SNS/IM/EC...

Infrastructure

Operator Operator

Outletexternalities

Marginal Utility

Average Cost

Volume

Volume

MBB

OTT services

MBB

Valu

e S

hif

t

OTT services

Let Mobile Data Bridge to Future Transformation

Mobile Data Big Data

Customer Paid

OTT Sponsored Digital Service

Voice

Change the Way to Capture Value

Change the Way to Create Value

Sponsored Data

As a product• B2B product V.S. B2C product

• New media service V.S. Communication service

• Enterprise marketing budget V.S. Consumer wallet

• A competitive media solution for reasons

• Both enterprises and consumers benefit

• Pay for effect & precise advertising

Cannibalization is overanxious The nature of sponsored data

As a platform• Contacting with both customers and OTTs

• Enabling specific interaction between the two

sides

• Killer app of the platformised infrastructure

Benefits• Additional revenue source from marketing budget

• Additional value from customer base and channel

• Net additional data usage stimulated by free

Risks• Uplift revenue peak while shortening growth cycle

• Sacrifice network and customer value in the pretext

of innovation

Notes• Impossible substitution to mobile data plan

• Market size limited by mobile economy scale

• Periodical projects instead of subscription

Operated as Digital Media Solution

Price/ MTarget Service

Promotion Service

Generalized Data

Specified Data

Specified Data+Context Awareness

DigitalChannels

Digital+PhysicalChannels

X1.1

X1.2

X1.5

Customer Base

Sponsored Data

X2.0

Pipe Value

Ch

an

nel V

alu

e

illustrated

Platformize Mobile DataSponsored Data

Tool Raw Material Objective

Take lessons from how apple reinvented mobile phone

Platformize Mobile OperatorSponsored Data

Infrastructure

Business

Organization

Infrastructure

Business

Organization

• Business innovation scatters and lacks endorsement from infrastructure

• Infrastructure platformisation staggers and lacks backup from business scenarios

Platform

Strategy

Dilemma of Operator Platformasition Sponsored Data as A Mover

•Renders killer app for Infrastructure platformisation

• Organization to support the deployment and operation of platformised infrastructure and business is always a problem. So it is of sponsored data.

Touchstone of transferring mindset and system from 2nd wave to 3rd wave

•Cultivates golden clients (enterprise) base for business platformisation

Big Data

Big data

Pure / incumbentOTT

Operator-bandedOTT

Traditional verticalsOTT

Mobile data

Smartpipe

Customer

• Bit

• Transporting

• CT domain

• Information

• Storage/ computing

• IT domain

Analysis

Analysis

Vertical Platforms Based on Big Data SharingBig Data

Enterprise apps

Consumer apps

Big data

Internet Traffic /Data Flow

Finance Transport Healthcare

Rich media

B B B B

C C C C

Create vertical ecosystems placing big data as the bearing point

Big Data Based Business Will Prevail WidelyBig Data

Open Your Capacity Connected DevicesEyeballs

Appreciation

• Windos/iOS

• Network

platform

• M2M platform

• Cloud platform

• …

• Wearables

• Machines

• Home facilities

• City facilities

• …

• Advertisement

• Commission

• …

Open Your Data Shared Data Data Appreciation

Reduce information asymmetric

Accelerate information liquidity

Extract information value

Disintermediation trend dominated by customers is sweeping across many industries built on information asymmetric

Enterprises hug digitalization wave roundly to speed up information liquidity and acquire deepen insight

Who will Be Big Data Public Platform Operator

Big Data

Data Bank

Finance

Healthcare

EDU

Media

Utilities

Commerce

BDPPO will play as gatekeeper between physical and digital world

• Experience Delivery

• Cross-industry Convergence

• C2B Enablement

BDPPO

Drive Relation between Operator and OTT Evolving

Mobile Data Cooperation

NO OTT, NO MBB revenue. V.V.

Voice Substitution

VoIP as a disrupter

Big Data Fight

Information operator as common vision

Low end

Medium end

High-end

Experience

Time

VoIP

VoLTE

Product

Marketing

MVNO

• Coordination between network and app for user experience optimization

• Bundling pricing• Co-band marketing• Sponsored data

• OTT as wholesale customer

Deal with OTT relation more flexibly and constructively

End in Some Sayings from…

As a platform, we provide the fundamental technology

infrastructure and marketing reach to help businesses

leverage the power of the Internet to ...

Given the scale we have been able to achieve, an ecosystem has developed around our platform that consists of buyers, sellers, third-party service providers, strategic alliance partners, and investee companies.

Our platform and the role we play in connecting buyers and sellers and making it possible for them to do business anytime and

anywhere is at the nexus of this ecosystem.

Our ecosystem has strong self-reinforcing network effects that benefit our marketplace participants, who are invested in our ecosystem’s growth and success.

Through this ecosystem, we have transformed how commerce is

conducted in China and built a reputation as a trusted partner for the participants in our ecosystem.

Thanks !