Securing a Place in the Platform Economy

Mick Higgins, VP Mobility & IoT Services

6.3bnsmartphones

28bnconnected

devices

70%mobile data

will be video

52exabytes/

month

Leading to new

opportunities…

Operational efficiency1

Source: GSMA Intelligence Report June 2016: CONSUMER BARRIERS TO MOBILE INTERNET ADOPTION IN ASIA; Smartphone Connections

By 2021…

Customer experience2

New value networks3

OPPORTUNITIES IN A DIGITAL ECONOMY

DIGITAL ECONOMY CREATING A PARADIGM SHIFT IN NEW SERVICES

1.0 = Operational

BUSINESSMODEL

TECHNOLOGYFOCUS

OPERATIONSMETRICS

INVESTMENTFOCUS

EBITDA driven

CONVERGE network

SERVICE/NETWORK KQIs

TCO - CAPEX & OPEX

2.0 = Customer

End-customer driven

VIRTUALIZE network

CUSTOMER experience

STRATEGIC objectives

Network Agility & Virtualization

Time to Market

Agile Billing

Alternative Business Models

Content & Social Micro-segmented

services

Digital Commerce

& Money services

IOT based

MVNO services

DIGITAL SERVICE FRAGMENTATION DEMANDS NEW SERVICE DELIVERY MODELS

hosted search API

messaging API

social network API

location control API deep linking API

communication APICommunication API

webRTC API

mobile ad API

IDC expects Voice and SMS CPaaS

market to be worth ~$8.2Bn USD by

2021 (from $867M in 2016)

Worldwide Voice and Text Messaging Communications

Platform-as-a-Service Forecast, 2017–2021

COMMUNICATION PLATFORM AS-A-SERVICE (API, API, API…)ENHANCING END USER EXPERIENCE, CHANGING SERVICE DELIVERY

TOMORROWPROGRAMMABLE ADVANCED MOBILE SERVICES

TOMORROWPROGRAMMABLE ADVANCED MOBILE SERVICES

CONTROL BILLING QOS ANALYTICS

EVOLUTION TO COMMUNICATION PLATFORM AS A SERVICE (CPAAS)

TODAYPROGRAMMABLE BASIC MOBILE SERVICES

OTTs and

App providers

Communication

Platform-as-a-Service

Basic mobile

network services

Internet

Multiple

access providers

Who will be the Network-as-a-Service provider of the future?

VOICE MESSAGING DATA

THE SHIFT IS HAPPENING IN MOBILE PLATFORMS

LTE Roaming

Agile billing RCS/WebRTC

VoLTE/ViLTE

VoWiFi

UC&C

CHANGING THE GAME – MVNO PLATFORM EMBRACING CPAAS MODELS

Source: GSMA Intelligence Report 2015

• Companies such as Sierra Wireless, Kore,

FreedomPop, Teltek, DataXoom, MetTel,

etc., are already providing connectivity

solutions for Enterprise IoT requirements

• “New age MVNOs” emerging with vast

numbers of potential connected devices:

26.0%

4.0%

8.0%

12.0%11.0%

8.0%

21.0%

10.0%

Discount M2M Media Migrant Retail Roaming Telecom Enterprise

Global MVNO – by type

Total MVNOs: 1,250+

NEW DIGITAL MVNOS ARE EMERGING GLOBALLY

EVOLUTION OF MVNO ENVIRONMENT & DYNAMICS

2000 2005 2010 2015 2020

TRADITIONAL MVNO

MVNO 1.0DIGITAL MVNO

MVNO 2.0MVNO Business

Models

Examples Examples Examples

Source: Wireless Intelligence, Delta Partners , other blogs and articles

MVNO Market

Environment

MVNO

Competitive

Advantage

Initially Voice & SMS centric, subsequent growth in data

MVNO successful in markets with relatively higher ARPUs

Leverage Existing Assets e.g. distribution, brand ..

Lean cost structure and lean operations

MVNO 1.0 Asset still important like channel, costs, brand

True differentiation comes from service innovation

which goes beyond connectivity

Emerging in Saturated markets w/mobile penetration 110-

150%

Data is still a growth driver; slow down in developed mkts

REGIONAL MVNO MARKET DYNAMICSNORTH AMERICA

EUROPE

ASIA PACIFIC

Crowded and have low-margins but expected to grow to reach USD30 bn by 2022 on the back of favorable regulation, data driven demands & emerging technologies such as IoT, Cloud etc

Witnessing innovative pricing and differentiating plans from smaller players and new entrants: e.g. FreedomPoP offers 500 megabytes of data, 500 text messages, and 200 voice minutes every month for free; and provides unlimited talk and text for USD10 a month

Led the global revenue in 2015 and will continue driven by government initiatives and digital wave

Data-only connectivity, ethnic markets, and retailer-owned MVNO market offer significant growth prospects.

European Commission (EC) are beginning applying conditions on MVNO access before approving mergers between MNOs (e.g. O2/3 merger in Ireland, E-Plus takeover by Telefonica)

Anticipated to witness significant growth at over 11% CAGR in 2015-2022 due to strong demand from the Japan, China and Korea MVNO market

China MVNO market is predicted to witness attractive growth due to the increasing acquisitions of MVNO licenses by the companies such as handset vendors Xiaomi, Lenovo and Foxconn and internet players including Alibaba and Baidu.

Source: Global Market Insights, GSMA, Deloitte, other blogs and articles

Unified

Comms &

Collaboration

App

Geo-Location

Exchange

File Transfer

& Content

Sharing

LTE Roaming

Audio &

Video Calling

Wi-Fi

2-Way &

Group IM

Skype for

Business

Social

Presence

‘Free’

Packet Voice

HOW ARE DIGITAL MVNO PLATFORMS ENABLING SERVICE DIFFERENTIATION VS OTT

TATA COMMUNICATIONS ENTERPRISE MOBILITY & IOT STRATEGY

Cross-border and

domestic mobility

solutions for

enterprises and IoT

Partner for service

creation and

go-to-market

Be a global

leader in cloud

enablement

Make the Mobile

Internet

fit and secure

for business

World-class customer service

Empowering people

Delivering new services

Innovating

MVNE for MNO

MNO

LAUNCH SUB-BRANDS

& AFFILIATES

MVNE for IOT

IOT / M2M

GLOBAL IOT

CONNECTIVITY

AND VAS

MVNE for MVNO

MVNO

FOR BRANDS

& SEGMENTS

MOBILE NETWORK ENABLEMENT

800+MNO RELATIONSHIPS

TRUSTED, NEUTRAL, GLOBAL MOBILITY

ECOSYSTEM ENABLER

TATA COMMUNICATIONS MOVE™

MOBILE SERVICES GLOBAL

SERVICE

PROGAMMBLE

APIs

ENTERPRISE

ENTERPRISE

PORTAL

TATA COMMUNICATIONS MOVE™FIRST TRULY GLOBAL PROGRAMMATIC MOBILE SERVICES FOR ENTERPRISES & IOT

THANK YOU