Telecom industry

in focus
Jolita Bernotiene I Sales Director

www.exacaster.com
 Technology is driving connectivity demand and increasing
volumes of information

• Ever since smartphones arrived the appetite for

connectivity has been growing exponentially
Global mobile data traffic1 701

• The arrival of 5G promises a dramatic reduction in

the cost of 1 megabyte and aims to create a super
516
network that replaces wifi, traditional mobile, and
specialized networks such as those used for sensors.
366
• AI and Big Data technologies have matured and are
ready to hit the mainstream, promising new capabilities 242
to track, process and utilize information collected.
144
73
How to pay back the 5G investment 43
is a hot topic in the industry
2015 2016 2017 2018e 2019e 2020e 2021e
‘000 petabytes (1 petabyte = 1m gigabytes)
 Despite traffic growth Share of economic growth2

the telecoms has not

increased its economic
weight due to faster TELECOMS

expansion of digital 49% 37%

players
Sha 21%
4%
The major competitors to telecoms
are global digital players:

• Messaging - Facebook (Whatsapp, 47% 42%

REST OF
Messenger), weChat INDUSTRY
• International calling - Skype
• Video on demand - Netflix
2005 - 2010 2011 - 2016
• Internet of things - Amazon Alexa
Sources: 1. Vodafone-full-annual-report-2018.
2. https://live.ft.com/Events/2018/FT-ETNO-Summit-2018?=&v=5850414205001
 Telecoms are facing pricing pressures
and overall slowdown
Telecommunications market size,
billion USD

395 435 443

329 292 207 CAGR
186 199 2008
138 126 101 129 116 85
2015

+1% -4% -4% +4% -4% +7% +1%

North Latin Western Middle East, Central, Eastern Emerging Developed

America America Europe Africa Europe Asia-Pacific Asia-Pacific

Note: M2< revenue excluded

Source: Analysis Mason; McKinsey analysis
Seismic changes
have shaken up
consumption trends
• Mobiles are the most popular device
today
• Time spent on digital services is
constantly growing. More than 2
hours per day is dedicated to social
media alone
• Customer expectations have been
completely reshaped by the digital
players
 What customers
expect from telecoms?

Constant A variety of emotionally

connectivity appealing services

Seamless Excellent e-care

experiences through with a choice of
multiple services support channels

Transparent pricing Effortless

and low cost purchase
 In response to these changes the telecoms market
is undergoing a long term digital transformation
Telecoms will face tough choices in the next 5-10 years
and will need to start their path to one of the five destinations:1

Service centric

Integrated
Digital Services Provider
global scale and brand power
Infrastructure centric
SDP
Outmoded Player Smart Digital Pipe
expensive and partnerships as key leverage
non-competitive
IDSP
OP
Services Player
Dumb Pipe
no physical infrastructure,
wholesaler SP
pure OTT
DP
Over 1 trillion USD of potential lies outside the core services portfolio,
but only those telecoms who change will be able to claim it

DP OP SDP IDSP SP

Dumb Outmoded Smart Digital Integrated Digital Services

Pipe Player Pipe Services Provider Player

Native and partner product 10 native 10 native 100’s of 1000’s of digital

portfolio products products cross-sell products OTT products

Yes, multifold number Yes, flood of

Consumer ownership No Yes
of touchpoints touchpoints

Network infrastructure Yes Yes Yes Yes No

Business scale Local Local Local Global Global

Potential of business Up to 1280 bn USD value for the industry

Decreasing or stable revenue
impact during 2016-20251

Source: 1. World Economic Forum 2017 Telecom Whitepaper: http://reports.weforum.org/digital-transformation/wp-

content/blogs.dir/94/mp/files/pages/files/white-paper-dti-2017-telecommunications.pdf
 Telecoms will have to carry out 10 major transformations

Transformation to execute Data Pipe Outmoded Smart Digital Integrated Digital Services Player
O
O - Optional
Player Pipe Services Provider
1. Autonomous virtual infrastructure M M M M R - Recommended

2. Security centric R R M M R M
M - Mandatory

3. Data centric R R M M M
4. Open platform API architecture M R R
5. Digital organization and culture M R R M M
6. Multiple business models O O R M M
7. 360°omni channel customer
O R R M M
experience management
8. Multiple channels to market O R R M M
9. Diverse portfolio of services R M M
10. Open ecosystem of partners O O M M M

Cost cutting focus Digital transformation focus

Source: 1. Transforming the Telco.
Martin Creaner. 2018. P159.
4 transformations
that impact customer
experience Data centricity 360°omni channel
CEM
management
promise 750-840
billion USD of new
value creation1, 2 Diverse Open
portfolio ecosystem
of sevices of partners

Source: 1. Transforming the Telco. Martin Creaner. 2018. P55. 2. http://reports.weforum.org/digital-

transformation/wp-content/blogs.dir/94/mp/files/pages/files/dti-executive-summary-20180510.pdf, P46.
Data centricity creates the foundation for customer centricity

How to How to How to

understand the automate use data to
real needs of and optimize enable excellent
customers? recurring experience and
How to decisions? How to integrate e-care?
detect the data regarding
opportunities products and
in a customer services
base? of digital
partners?
 A single 360° customer view
enables omnichannel excellence Tasks to be done:
Satisfaction

Location
Social Media • Unify customer data • Identify the customer
collected from different across multiple
siloed systems business lines
Quality of OTT
service usage

• Match customers in • React to changes in a

Interests (content,
the same household by customer’s profile in
Device
music, etc.) uncovering their real-time
relationships
• Speed up and
Traditional Customer
service usage care data • Leverage AI and increase the volume of
automation to build experimentation
hyper-personalized
Digital Digital channels & offerings
service usage interactions
Purchase & billing
Data and customer centric organizations can gain significantly
even within the scope of traditional services

Drive customer value by personalizing increase in revenue

1 outreach and cross-selling 15-30 % from cross-selling1

Drive customer value by reducing absolute churn

2 churn and growing advocacy 15-40 % reduction1

Optimize spend by reducing less marketing

3 marketing costs 5-10 % budget2

Sources: 1.https://www.mckinsey.com/industries/telecommunications/our-insights/a-new-path-for-telco-customer-engagement
2.https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/achieving-business-impact-with-data
 While preparing to unlock revenue
potential from an ecosystem of partners

TV and
How to respond to video Infotainment New challenges:
services
customer needs across service
• Partner network
hundreds of new management
touchpoints? Enterprise Mobile
Advertising, financial
cloud
e-commerce services • Partner data
integration

• Sales & marketing of

Enterprise Smart Smart Unified
communication partner services, while
mobility home city
widening of number of
use cases, adding new
customer types and
Security Health Digital pricing models
identity
services services
services

Note: partners list is based on EY Global

telecommunications study: navigating
the road to 2020
We help telecoms accelerate
digital transformation
by enabling

Data centricity
360° omnichannel customer view
Diverse native and partner services
portfolio
Let‘s get in touch. We talk telco language!

Our Headquarters
B NORDIC 26 Business Factory
Basanaviciaus st. 26
Vilnius, Lithuania, EU

Jolita Bernotiene
Sales Director www.exacaster.com
+370 636 06360
jolita@exacaster.com