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From Infrastructure to Ecosystem Customers are holding our hands Osman Sultan Chief Executive Officer Abu-Dhabi TELECOMS CEO Summit MECOM Dubai 16 th May 2011

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The world did not stop changing in few short decades The world did not stop changing in few short decades Industrial revolution - Land - Labor - Capital - Manufacturing from to Information society - - Brainpower/creativity - Digitized Information - Globalization

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3 Innovation in the Context of the Arab world The Arab World led intellectual and Scientific pursuits in the ancient world The Industrial Revolution passed us by The knowledge society is the opportunity for all countries in the world Will we sit back and let this go?...

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But it has been the same simple story (perhaps as old as civilization) Transport Experience & Lifestyle Content Transport Experience &Lifestyle Content

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Video Music News Events Movies Dynamic Production & Packaging ComponentContent Players Publishing, Music, Cinema, Press Broadcasting & Distribution Channels Telecom operators TV and Cable networks Broadband networks Benefit & Value Users Individuals SOHO Companies Students Design & Interface Appliances Computers Home Appliances PDAs, Mobile Phones Digital cameras, Gaming devices Interaction Innovation through transformation of borders

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Convergence: holy grail or pandoras box? Video Images Voice Data Music Phone Mobile TV Computer Camera Gaming Device Work Home University Leisure On the Move IT Mobile Networks Telecom Broadcasting Fixed Networks Media Publishers Hardware & Software one same Buzzword used for a multi level equation at the level of Content at the level of Technology at the level of Customer Environments at the level of Devices at the level of Industry Players

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Customers Devices Operators Infrastructure Web WAP IPTV Email SMS The world of Content Applications New Virtual Space Gates The world of Operators To User Generated Content From Content Creation..through Content Aggregation Applications

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Communication is enabling huge opportunities of creativity / Historical Changes everyone can design a page as a window to the world everyone can create and share images or movies everyone can become publisher or broadcaster

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Our learning universe is in constant transformation - A transforming telecommunication world, an exploding media world. - new environments, new behaviors, new cultures -fast technology, more capabilities, more speed, more capacity

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Change = Evolution Rapid Change = Disturbance Disruptive Change = Crisis New Technologies New Capabilities Behaviors New New Business Models New Competition New Flows New Civilization Models??

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Applications will be a high-growth area contributing to mobile data revenues. With operators gaining little or no revenue share from vendor-operated application stores, Do-Nothing is not an option Note 1: Captured numbers are industry numbers and not just for operators. Note 2: All the numbers indicate content revenues, and do not include access (data) revenues Source: Capgemini TME Strategy Lab analysis; Informa, Global Mobile Network Traffic 2007-2012; Informa, Global Messaging End User Forecasts, Nov. 2008; Morgan Stanley, Mobile Internet, Dec 2009; Nielsen, Mobile Media Europe: State of the EU5 Union, Mar 2009; ComScore, The Next Big Things: Mobile Internet & Applications - Gaining Momentum, 2009 Compound Annual Growth Rate of Mobile Services, Worldwide, % (2009-2013) Applications are potentially a huge market with high growth possibility Under-developed Mature High-growth Bubble size correlates to forecasted 2013 data revenues Consumer Penetration Estimates, %, 2013 CAGR, Revenue and Consumer Penetration of Various Mobile Data Services, Worldwide, 2009-2013

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key assets available to the operator in the app market Locally relevant & operator specific content Control of network and experience quality Control over Payments Tools & Monetization An In-depth Customer Base Insight Example: Data packages based on tiers or partnerships with 3 rd parties to guarantee (for a premium) network quality for data-intensive apps. Examples: Creation of custom Apps, Apps utilizing operator- specific or local content such as news, events, location information, consumption tracking. Example: Monetization engine for 3 rd party services through simple m-payment systems. Example: Geographical location, usage patterns, content purchases, Demographics, relationships.

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Direct App Sales In-app advertising Promo apps Subscriptio n Apps Usage based apps Possibility of future revenues as a result of application upgrades Operators StakeDevelopers Perspective Quick monetization method Additional revenues through sale of virtual goods Quick monetization method Additional revenues through sale of virtual goods Instead of managing individual developers, operators deal with a few large ad-serving players Cross selling of paid applications through the free ad-supported ones Popularity based revenue share arrangement with operators Cross selling of paid applications through the free ad-supported ones Popularity based revenue share arrangement with operators Upfront payment to operators or payment based on number of downloads Large business houses can create applications that promote their products Improves quality of applications on store Mostly useful applications which can sustain usage over time go for subscription model Improves quality of applications on store Mostly useful applications which can sustain usage over time go for subscription model Source of continuous revenue High price premium content can be sold as moderately priced subscription application Source of continuous revenue High price premium content can be sold as moderately priced subscription application Operators charge based on usage of applications, which are hosted on the cloud Quick provision of application upgrades to all users helping improve user stickiness Enablers Return facility within a time period, simpler payment modes Better analytics for intelligent targeting Improved browser traversing Lite test application or a free cancellation facility Reliable Networks Source: Capgemini Strategy Lab analysis; Hopkinson Report, Which iPhone App revenue model has the most profit potential?, July 2009; Boxuk.com, Monetizing your Web App: Business Model Options, Feb 2009 Approach operators can adopt multiple monetization models from the sale of apps

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An Integrated Ecosystem With Multiple Components Impact

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Setting the new players as agents of change in evolving societies facing a restructuring model ensuring the adequate supply and development of knowledge workers demystifying and humanising technology to promote usage, growth and development establishing the corporation as a social citizen But more essentially: Ensuring a fair and ethical practices in driving development.

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Enabling in our organisations the creation of new Structures, Systems, and Spirit. Building a culture of continuous change Transforming the traditional and hierarchical model to a processoriented and customerfocused model Building the ability for learning and knowledge management And more than everThink Globally, Act Locally If not addressed, this is often the biggest threat to success

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17 Addressing the opportunity of 21 st Century Digital Arabia The New Digital Age. No Arabic destinations of note The broadband story is unfolding almost everywhere A Young and increasingly savvy audience Diversity of people, but common threads This creates significant business opportunities for regional players

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18 21 st Century Digital Arabia Systematically addressing the 3 screensin 3 languages

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20 and looking to the future 6 th sense ubiquitous networked reality

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The promise of a brave new world? An Act of Faith: Communication and Digital Life are accelerating the transformation in this region. Generation Digital Arabia is out there.

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Thank you