LEO SATELLITES TO OFFER HIGH-SPEED INTERNET ACCESS IN UNDERSERVED AREAS
THREE WAYS TELCO OPERATORS COULD MONETISE 5G
TELCOS SHOULD OFFER MORE THAN JUST CONNECTIVITY TO INCREASE REVENUE
HOW TELCOS CAN KEEP THEIR CUSTOMER BASE AMIDST A HIGH CHURNING RATE
THREE KEY LEVERS FOR IMPROVING TELCO B2C MARGINS
The home of Asia’s Telecom and Communication news asiantelecom.com
Ernest Cu, CEO, Globe Telecom p. 6
MOBILE OPERATORS UNABLE TO JUSTIFY PRICE INCREASES TELCOS FALL SHORT AMIDST SHIFTING TELECOM LANDSCAPE
E. Kurniawan, VP, Telkom Indonesia p. 16
For more information, please visit www.cloud4c.com/sap/ Write to us at measales@cloud4c.com
ADVERTISING CONTACT
Reiniela Hernandez reiniela@charltonmediamail.com
FROM THE EDITOR
Well here we are back at CommunicAsia, Asia’s longest running and best attended industry show. My history with CommuncAsia goes back over 20 years when we published a niche telecoms title called Asian Mobile News, which has now outgrown its mobile base to become Asian Telecom. With the pandemic now thankfully behind us, we can now meet and greet without masks and go about enjoying the show and meeting in Singapore.
Of course, the great triumph of telecoms technology is the way it enabled office workers to stay and keep working from home, ensuring that things continued more or less the same as far as the economy was concerned, and undoubtedly saving millions of lives of people who could wait it out safely ensconced in their living rooms tapping away from their laptops without having to work in the office.
The investment in upgrading telecoms equipment and speed during the pandemic to cater to this work from home demand is also paying dividends today, with faster networks capable of supporting the video conferencing and collaboration we now take for normal even when back in the office.
Accounts Department accounts@charltonmediamail.com advertising@charltonmediamail.com editor@asiantelecom.com
SINGAPORE
Charlton Media Group 101 Cecil St. #17-09 Tong Eng Building Singapore 069533 +65 3158 1386
HONG KONG Room 1006, 10th Floor, 299QRC, 287-299 Queen’s Road Central, Sheung Wan, Hong Kong
MIDDLE EAST
Charlton Media Group
FDRK4467,Compass Building,Al Shohada Road, AL Hamra Industrial Zone-FZ,Ras Al Khaimah, United Arab Emirates www.charltonmedia.com
This special issue of Asian Telecom delves into many of the issues facing the industry, as well as what I would call optimistic challenges such as low earth orbit satellites, pioneered by Elon Musk’s Tesla during the pandemic. As a company, we even have one of these installed on the roof of our Philippines remote office setup.
On a final note, sitting in the halls next to Satellite Asia is the Broadcast Asia show, and I am also delighted to announce that we took over the reins of Asia-Pacific Broadcasting+, the leading title for the industry for over 40 years. So together with our new sister publication, we aim to bring you news and analysis you can use.
Also, congratualtions to all winners in the Asian Telecom Awards, full details of which can be found on our website www.asiantelecom.com
Enjoy the read, enjoy the show, and do say hello.
All the Best
Tim Charlton
Can we help?
Editorial Enquiries: If you have a story idea or press release, please email our news editor at editor@asiantelecom.com. To send a personal message to the editor, include the word “Tim” in the subject line.
Media Partnerships: Please email editor@asiantelecom.com with “partnership” in the subject line.
Subscriptions: Please email subscriptions@charltonmedia.com.
Asian Telecom is published by Charlton Media Group. All editorials are copyrighted and may not be reproduced without consent. Contributions are invited but copies of all work should be kept as Asian Telecom can accept no responsibility for loss. We will, however, take the gains.
*If you’re reading the small print you may be missing the big picture
Asian Telecom is a proud media partner and host of the following events and expos:
ASIAN TELECOM 1
ADMINISTRATION
ADVERTISING EDITORIAL
Tessa
PUBLISHER &
EDITOR-IN-CHIEF
Tim
Charlton PRINT PRODUCTION EDITOR COPY EDITOR PRODUCTION TEAM Jeline Acabo
Distor Vann Villegas Noreen Jazul Ibnu Prabowo COMMERCIAL TEAM GRAPHIC ARTIST Janine Ballesteros Jenelle Samantila Simon Engracial
SUSTAINABILITY INVESTMENTS TO DRIVE DATA CENTRE GROWTH
As demand for data centres surges, investors could support the growth of the sector by exploring investment opportunities in sustainable energy, cooling and energy consumption, data centre operations, and power and connectivity services.
According to McKinsey’s analysis, demand for data centres in the United States is expected to reach 35 gigawatts by 2030, up from 17GW in 2022. This has led to increased investor interest in the sector, with over $48b worth of deals in 2021 and 87 deals worth $24b in the first half of 2022. Data centres are typically owned and operated by large companies or co-location companies, with the latter leasing out space and providing network capacity, power, and cooling equipment. Investors are attracted to the steady, utility-like cash flows and risk-adjusted yields of data centres.
However, there are potential limitations to this trend, such as higher interest rates, competition for potential acquisition targets, and pressure on operating margins from cloud vendors.
Despite these limitations, data centres still present opportunities for investors in sustainable energy. Data centres are big energy consumers, and investors can help them secure carbon-free energy supplies by signing power purchase agreements with suppliers of renewable energy or by investing in renewable-energy plants.
Efficient cooling is also crucial for a data centre’s profitability, as it accounts for 40% of its energy consumption. Companies are developing technologies such as immersion cooling and artificial intelligence and machine learning to address these challenges, and investors can explore investment opportunities in this area.
Investors can also consider investing in data centre operations, such as hosting and infrastructure as a service (IaaS), and power and connectivity services. McKinsey added that the demand for new data centres also opens investment opportunities in the fragmented prefabrication and modular sector and edge computing.
Telcos fall short amidst shifting telecom landscape
An analysis of total shareholder return (TSR) from 2019 to 2022 showed that telcos delivered a middling performance with an average annual return of 9%, Boston Consulting Group (BCG) reported.
This is a point lower than the overall equities market, the BCG report also noted.
The telecommunications sector played a central role in global technology trends and was the essential thread connecting people, businesses, and whole societies during the COVID-19 pandemic.
Despite this, the sector has been unable to achieve returns similar to those seen in other sectors. The rise of Web3, the emergence of Gen Z, intensifying competition from “hyperscalers,” 5G-enabled B2B applications, and the potential in structural separation are set to transform telecommunications, representing an enormous opportunity if navigated correctly.
Lean and digitised operations with excess costs rooted out, a coherent portfolio of products and services, strong customer support built upon aggressively priced products and services, and network investments in 5G, fixed wireless, fiber optics, and other upgrades are some of the traditional strategies that successful telcos have in common. However, these will not be sufficient to drive outsized results in the future given five trends that are set to upend business as usual.
BCG’s analysis reveals that these
returns are boosted by pure-play telecom infrastructure companies, whose median annual TSR topped the market by 6 percentage points. However, the other three telco archetypes examined, which include global, large-scale providers, regional, large-scale providers, and smallscale providers, underperformed the market, although a handful of companies within each archetype did better than the average.
Out-creating tech companies
Five trends stand out as having the most potential impact—good or bad—on future revenue and operating income of telcos. The widespread emergence of Web3 will transform consumer and business activities beyond what 5G is offering now. Telcos must begin to anticipate which parts of their markets are threatened by Web3 rivals, the value of these customer segments and how they can invest proactively in new applications that provide innovative and feature-rich Web3 uses and enhanced revenue streams.
The rise of Gen Z, represents a radical opportunity for telcos, that target Gen Z preferences whilst simultaneously being a risk that technology startups and innovators will squeeze telcos out before they make inroads with these new customers. The big tech companies are stretching beyond their original markets and telcos. Telcos have no choice but to out-create the tech companies and develop applications more attractive to consumers and businesses. This will require significant investment in innovation or forging partnerships with other companies that have a foothold in these new markets.
Although 5G networks are already making limited inroads among consumers, particularly for gaming, video, and early-stage virtual reality devices, they may leave a much bigger footprint among business customers. The telecom industry must innovate and anticipate the upcoming changes to compete with its rivals.
If navigated correctly, these five trends represent an enormous opportunity that could significantly change the trajectory for telcos, producing years of solid, above-market returns.
“We believe that whilst short-term performance for some of the more traditional telecommunications companies might be volatile, there are still opportunities for growth and abovemarket returns over the long-term. By leveraging these trends, companies can build a portfolio that delivers innovative and superior customer experiences, provides targeted, high-quality content and applications, and generates substantial revenue streams,” Joerg Staeglich, a BCG principal and report coauthor said.
2 ASIAN TELECOM
TELCOS
The widespread emergence of Web3 will transform consumer and business activities beyond what 5G is offering now
DATA CENTRES
FIRST
Telcos have no choice but to out-create the tech companies
Joerg Staeglich
CAPs and ISPs must collaborate to support internet growth
The past few years have highlighted the need for internet infrastructure that is resilient and scalable in order to cope with spikes in demand. This has led to a resurgence of the idea that internet content and application providers (CAPs) should pay for the privilege of delivering traffic on internet service providers (ISPs’) networks.
In South Korea, interconnection and traffic delivery are left to commercial negotiations between ISPs and CAPs, but in most other places in the world, everyone pays their own costs based on their individual incentives.
This has led to CAPs constructing their own networks from a combination of owned and rented infrastructure in order to be able to deliver traffic in major cities around the world.
It is estimated that CAPs worldwide invested a total of $883b in infrastructure between 2011 and 2021. About half of this investment occurred between 2018 and 2021, with investments averaging $120b each year during this period. These investments have enabled ISPs to save over $5b per year, based on an analysis conducted by Analysys Mason with Netflix in early 2022. The organisation of traffic delivery on the internet has worked well and has supported growth in the scale and scope of online services. The COVID-19 pandemic illustrated the importance of the internet for working, studying and staying connected, as well as the need for internet infrastructure that is resilient and scalable. The synergies between connectivity and content drive the demand for better connectivity. The results of Analysys
Mason’s consumer survey show that users of more advanced online services, including streaming and gaming, already subscribe to faster broadband packages than those that do not use such services and are more likely to upgrade their connections to faster speeds when available. ISPs should focus on making networks work for the next wave of services, such as metavirtual reality (VR) and augmented reality (AR), which will require more bandwidth and lower latencies than the current generation of services. This will enable them to maintain their revenue and support the growth of the next wave of services. CAPs, on the other hand, should focus on investing in their networks and infrastructure in order to support the growth of the internet. They should also consider collaborating with ISPs in order to ensure that the internet can continue to support the growth of online services. This will require a shift in the way that CAPs and ISPs think about their relationships, but it will ultimately be beneficial for both parties and for end users.
Internet exchange points
One way that CAPs and ISPs can collaborate is by participating in internet exchange points, which are physical locations where networks can interconnect and exchange traffic. These exchange points can help to reduce the cost and improve the quality of traffic delivery, benefiting both parties and their common users. Another way that CAPs and ISPs can collaborate is by making use of commercial content delivery networks (CDNs) and public cloud services. CDNs can help to distribute content and applications more efficiently, whilst public cloud services can provide the infrastructure and networking capabilities needed to support the growth of the internet.
MOBILE OPERATORS MAY STRUGGLE TO JUSTIFY HIGHER PRICES FOR BUSINESS MOBILE SERVICES
Mobileoperators are looking for ways to increase the Average Revenue Per User (ARPU) of their business mobile services, but they may face difficulty justifying higher prices to customers who already have large or unlimited data allowances. To address this problem, some operators are creating a significant pricing gap between their cheapest basic plans and their most expensive premium plans, and offering differentiating features to justify the higher price. Orange (France), A1 (Austria), TIM (Italy), and Swisscom (Switzerland) are amongst the operators that have created the largest pricing gaps between their basic and premium plans, with Orange’s premium plans costing between EUR40 per month for 150GB of data and EUR133 per month for 300GB of data. These operators are differentiating their premium plans with features such as unlimited data, 5G access, faster download/upload speeds, better voice/SMS roaming coverage, service discounts, and value-added services, Analysys
Mason reported. These premium features are helping operators justify the higher cost of their premium offerings and capture high-value SME customers who demand enterprise-like care from their providers.
According to a recent study of 14 operators, 5G network access is one of the most commonly used tools to differentiate between premium plans and basic plans. However, small and medium-sized enterprises (SMEs) have indicated that 5G services are less of a priority than other features, but over a third of SMEs will prioritise 5G when making mobile plan choices nonetheless.
Operators can increase ARPU by extending their portfolios of mobile business plans to include higher-priced packages with a number of upgraded features such as larger data allowances, faster speeds, broader geographical coverage, and valueadded services. Ensuring that basic plans differ significantly from premiums will help operators capture high-value SMEs.
Source: AnalysysMason
ASIAN TELECOM 3
INTERNET
FIRST
The synergies between connectivity and content drive the demand for better connectivity
Working together and investing in infrastructure can support the growth of the internet
Ratio of premium plan price to basic plan price
Three ways telco operators could monetise 5G
These include offering connectivity speed in line with a customer’s need.
Telcos may not be getting their return on investment from 4G because the technology limits the providers in offering plans specifically aligned to their customer’s demands. But with 5G, they can differentiate offerings through various ways backed by network slicing, or the ability to charge customers more for parts of a network that will offer premium performance.
In a report, McKinsey said 5G allows telcos to drop the traditional onesize-fits-all model and create different offerings that will use the same physical infrastructure. Network slicing will enable telcos to launch “sophisticated ‘speed tiering’” and support the three innovative models to monetise 5G. Doing so, could increase their average revenue per user (ARPU) between 16% and 20%.
“We believe that the shift to 5G core is inevitable and that early movers will benefit. They will be able to skim the market to attract early-adopting customers. It is unclear whether the robust wholesale market that arose for 4G networks will also exist for 5G networks,” the report read.
“If early movers choose not to wholesale parts of their 5G networks, lest they erode
the value, late movers seeking wholesale agreements could find themselves shut out of the market,” it added.
‘Business class’ plans
First way telcos can monetise 5G is by leveraging impulse purchases and “business class” plans by tapping into yield-management strategies. According to McKinsey, operators can move from standard monthly subscriptions to flexible plans allowing customers to upgrade their network performance when needed.
If they want stronger connectivity for streaming, gaming, or making important calls, they can pay $1 or $2 to avail of better performance temporarily. “This payper-use 5G will be especially valuable to customers when networks are congested, allowing telcos to reasonably monetise the temporarily scarce resource of premium connectivity,” it said, adding that an option for this is to buy Wi-Fi on an aeroplane.
McKinsey said telcos can gain from this as 7% of the consumers surveyed are willing to pay for 5G boosters and would avail them an average of seven times a month at $1 per boost. Impulse purchases can raise the APRU by 1% to 2%.
Several Hong Kong telcos have
increased ARPU amongst the highestpaying customers by 20% to 30% with the adoption of this strategy, resulting in expected revenue growth of 5% in the next three years.
Meanwhile, 5G “business class plans” will ensure users of unlimited premium network performance in terms of speed, latency, stability, and network access. This may bring a 2% to 4% increase in ARPU, as 15% to 20% of customers are willing to pay between 7.5% to 15% more.
5G-enabled experience
Second, telcos can sell 5G-enabled experiences instead of selling connectivity only for additional revenue streams.
Customers are willing to pay for some 5G-enabled experiential use cases such as low-latency multiplayer gaming which feature an alternative reality and high degrees of interaction. Other areas customers are willing to pay extra for were immersive entertainment, smart stadiums, fixed wireless access hybrid plan, and real-time translation. These markets could potentially raise the ARPU by 8% to 9.5%, McKinsey said.
“To adopt this model, operators will need to develop an ecosystem of partners that provide an expansive, enticing catalogue of user experiences. These partners will provide coveted, high-quality experiences, whilst telcos will provide connectivity and customer access,” it said, adding that, the challenge would be in explaining to customers why they are paying for premium connectivity.
Strong brand partnerships
Lastly, telcos could enter partnerships to deliver 5G-enabled experiences, as more consumers are open to paying content providers directly for better network performance.
McKinsey said that 74% of customers indicated that they would prefer buying a 5G connection directly from the game app instead from the mobile provider, adding that content providers have “strong brands and relationships” with customers.
It added that bundling a 5G charge along with the fees for the partner could be more efficient than charging separately for the connectivity.
“To create a seamless experience for customers, telcos might consider embedding 5G connectivity directly into partners’ apps or devices. By acting as a wholesale provider of connectivity in this way, operators can greatly expand the potential customer base for these 5G use cases,” it said.
For more on this story, go to https:// asiantelecom.com/
4 ASIAN TELECOM REPORT: 5G MONETISATION
“This pay-per-use 5G will be valuable to customers when networks are congested (Photo by Shiwa ID from Unsplash)
ASIA PACIFIC
We believe that the shift to 5G core is inevitable and that early movers will benefit
Telco operators should offer more than just connectivity to increase revenue
Operators should offer a range of hardware and services like endpoint security, cloud storage, and streaming.
Telecom operators’ consumer divisions need to take a page out of their business divisions’ books to stabilise and grow their revenue. According to a recent report by Analysys Mason, telecom operators’ short-term strategy of upgrading customers to unlimited mobile data plans or faster-fixed speeds has limited potential as many operators already have 80% of their mobile customers on unlimited plans and a third of their fixed customers on 1Gbit/s speeds.
To increase revenue further, operators will need to offer more than just connectivity in their plans. Telecom operators’ business divisions have been successful in stabilising revenue for years, and consumer divisions can learn from their strategies.
Business spending with telecom operators has held up better than consumer spending, which has been in decline for much of the past 10 years. Spending in Western Europe declined by EUR20b between 2012 and 2022.
“Business divisions have become aggregators of IT services from multiple providers. Consumer divisions will need to implement a similar strategy if they are to grow their revenue,” the report read.
Operators should offer a wide range of hardware and services for consumers, including Wi-Fi mesh hardware, endpoint security, cloud storage, pay TV and streaming services, games, and other products. The products and services offered do not have to be developed or created by the operator.
Consumer spend on telecoms services in real terms, Western Europe, 2012–2021
Business divisions have a low threshold for success and do not try to sell all of their products to all of their customers. These products are low-risk because the operator has not invested in their development.
Operators that broaden their portfolio of services need to be willing to experiment and be flexible. They will need to add and remove products, test different pricing strategies and so on.
The report added that operators should be more concerned about the total value of the account rather than the margin per product. Offering a wider range of services provides more scope for differentiation.
Consumer divisions can also make use of the investments made by the business division. The same basic products for
mobile endpoint security can be sold to a multinational as to an individual on a prepaid contract. Operators’ traditional approach was to differentiate their consumer connectivity product with a relatively small number of additional features. Today, operators need to do more and offer a wider range of hardware and services to distinguish their services. This report suggests that operators need to consider a more complex product portfolio if they want to increase revenue and stabilise their business. Consumer divisions should take a cue from their business counterparts and offer a wide range of services to their customers. By doing so, they can not only differentiate their services but also increase the total value of each account.
ASIAN TELECOM 5
Operators need to consider a more complex product portfolio if they want to increase revenue and stabilise their business
REPORT: REVENUE
Operators that broaden their portfolio of services need to be willing to experiment and be flexible
Source: AnalysisMason
ASIA PACIFIC
Globe Telecom shifts gears, transforming into a full-fledged tech enterprise
The Philippines-based telecom giant moves to solve human problems by helping build a truly digital nation.
Globe Telecom is transforming itself from a traditional telco to a full-fledged tech enterprise, a development anchored on the company’s desire to help Filipinos build a digital nation. According to the company’s President and CEO Ernest L. Cu, this move means a complete transformation for Globe, given that the telco industry is maturing, and opportunities for growth are becoming limited.
The company has built a significant set of assets, including a large customer base of over 80 million, data about customers, distribution capabilities, human capital, and strong partnerships. Globe Telecom has also been a very profitable company with good cash flow. However, transformation is necessary to enable the company’s capabilities to build new businesses that solve human problems and create value for shareholders, said Cu.
One of the innovations that Globe has launched is GCash, which was born inside the company and satisfies the criteria of solving a real problem for Filipinos, specifically, the problem of financial inclusion. GCash has oversight of more than 76 million people who actively use it.
“And that was really to help the country improve, help the lives of our customers improve, you know, and truly build an admired nation that’s quite digital in nature,” Cu said.
He added that the transformation is not a reaction to a decline in the traditional telco business, but rather an anticipation of the industry’s maturation. He also mentioned that the telco industry has seen one disruption after another, which means that it is necessary to anticipate and prepare for changes.
The pandemic has also accelerated the adoption of digital technology, which has resulted in a shift in the industry. Cu said that the industry is now headed towards solving more human problems, such as healthcare, education, and media. It has moved from voice to data and has become a lifestyle industry that is more than just connectivity.
Cu’s leadership
With Globe Telecom as one of the leading telecommunications companies in the Philippines, Cu’s leadership and vision have been critical in guiding the company’s growth and transformation journey. By recognising industry trends, leveraging existing assets, and developing innovative solutions, Cu has positioned the company to thrive in the evolving tech landscape and contribute to building a digital nation for the benefit of all Filipinos.
Cu has been instrumental in leading the company’s transformation from a traditional telecommunications provider to a full-fledged tech enterprise. Recognising the maturation of the telecom industry and the need for growth opportunities, Cu has spearheaded this strategic shift.
Under Cu’s leadership, Globe Telecom has leveraged its significant assets to facilitate its transformation. The company boasts a large customer base of over 80 million, providing a strong foundation for its digital initiatives. In addition, Globe has accumulated valuable data about its customers, enabling them to better understand consumer behavior and tailor their services accordingly. The company’s distribution capabilities, human capital, and strong partnerships have also played pivotal roles in facilitating its evolution.
Cu firmly believes that transformation is necessary to unlock the company’s potential in creating new businesses that address real-world problems and generate value for its shareholders.
With a strong background in finance and business
management, Cu has played a pivotal role in transforming Globe Telecom into a full-fledged tech enterprise, focusing on digital innovations and addressing real-world problems faced by millions of Filipinos.
Cu’s tenure as CEO has been marked by strategic vision and adaptability in response to industry changes. Under his leadership, Globe Telecom has undergone a significant transformation, diversifying its services and embracing digital technologies to cater to evolving customer needs. Cu has been instrumental in spearheading initiatives such as GCash, a mobile wallet platform that promotes financial inclusion and has gained widespread popularity among Filipinos.
Known for his forward-thinking approach, Cu has emphasised the importance of anticipating industry trends and preparing for disruptive changes. He recognises the profound impact of digital technology and has positioned Globe Telecom to explore opportunities in areas beyond traditional telecommunications, such as healthcare, education, and media. With his extensive experience and visionary leadership, Cu continues to drive Globe Telecom’s growth and position the company as a key player in building a digital nation in the Philippines.
6 ASIAN TELECOM
[Transformation] is to help the country improve, help the lives of our customers improve, and truly build an admired nation that’s quite digital in nature
INTERVIEW PHILIPPINES
Transformation is not a reaction to a decline in the traditional telco business, but rather an anticipation of the industry’s maturation (Photo: Ernest L. Cu, President and CEO, Globe Telecom)
How Monty Mobile prevents revenue leakages caused by cyberthreats
It helps retain revenue in A2P SMS by blocking threats such as spam messages and flash calls.
Monetising international application-to-person (A2P) short message service (SMS) contributes to the earning streams of mobile network operators, but threats like fraud and spam messages should be blocked to avoid revenue leakages in earnings.
Razan Itani, product manager at Monty Mobile, said that to monetise A2P SMS, it is crucial to bring a “solid network” or a firewall into the network that will secure them from such threats.
Monty Mobile’s Smartwall monetises SMS traffic and shields networks from fraud including sim farms and grey routes. It also filters spam messages and blocks unwanted texts in realtime. This leads to preventing revenue leakage as it protects and monetises SMS traffic.
“Our system is capable of protecting against all in addition to our experience and how to customise the rules, protect any network from any types of threats,” Itani told Asian Telecom
“We are always putting in new technologies in our system, we are always adapting to protect the network from any type of threats. We are introducing machine learning, and artificial intelligence techniques, in order to ensure the full production of any mobile operating network,” she added.
Preventing flash calls
Another type of threat network operators face is flash calls, which are automated missed calls used to verify the users when they download an application and enter their mobile operator by default. Applications and over-the-top services used this method with the last few digits of the number to bypass the typical SMS verification code. Flash calls not only pose security risks but also lead to revenue loss and non-monetised channels for international A2P verification traffic as there are no charges made through the calls.
“[Our solution] is based on smart criteria. It is based on an advanced criteria protocol to protect, against any flash calling threats, to maintain the monetisation of international A2P SMS and to maintain the revenues that the mobile operators are conducting from the International A2P SMS,” Itani said.
Retaining clients
Sarah Barakat, deputy operator and partnership director, said the Asia Pacific region plays an important role in their operations as they have deals with mobile network operators in Indonesia and Sri Lanka to monetise their A2P SMS.
Despite innovating its services, Monty Mobile is facing a challenge in retaining its client, Barakat said.
She explained that it is vital to be always on top of technology development of solutions that are required to maintain network stability and security.
“We retain our clients by ensuring that they are always getting the best maximised possible revenues. We also retain them by maintaining the security of the network by developing any new solution needed to keep them protected,” she said.
Monty Mobile is a global telecommunications company that specializes in providing innovative solutions and services to mobile network operators (MNOs), service providers, and enterprises worldwide. With its headquarters in Beirut, Lebanon, Monty Mobile has established itself as a leading player in the mobile industry since its inception in 2009. Monty Mobile prides itself on its customer-centric approach, striving to deliver innovative and reliable solutions that meet the unique requirements of its diverse clientele. Through its robust infrastructure, extensive partnerships,
and technological expertise, Monty Mobile continues to play a significant role in driving the growth and evolution of the global telecommunications industry.
Monty Mobile offers a wide range of products and services that cater to the evolving needs of the telecommunications sector. The telco facilitates the global exchange of voice traffic, enabling MNOs and service providers to connect and exchange voice calls efficiently. They provide high-quality voice termination services and interconnect agreements to enhance voice communication capabilities.
Monty Mobile’s SMS hubbing services allow MNOs and enterprises to transmit and receive SMS messages across multiple networks globally. They provide reliable and scalable messaging solutions, ensuring seamless communication for their customers. The company’s roaming services enable MNOs to extend their network coverage and provide seamless connectivity to their subscribers whilst they are traveling abroad. They offer cost-effective roaming solutions, including signaling, data, and financial clearing services.
Monty Mobile offers signaling services that facilitate the exchange of signaling messages between different networks and protocols. They ensure secure and reliable signaling connectivity, enabling efficient communication and interworking between operators. The telco also provides a range of value-added services that enable MNOs to enhance their service offerings and generate additional revenue streams. These services include SMS-based services, content delivery platforms, mobile advertising solutions, and more.
Monty Mobile also offers comprehensive fraud protection and revenue assurance solutions to help MNOs detect and prevent fraudulent activities. They employ advanced algorithms and real-time monitoring to identify and mitigate potential risks, safeguarding the revenue and reputation of their clients.
ASIAN TELECOM 7
[Our solution] is based on smart criteria
INTERVIEW
Our system is capable of protecting any network from any types of threats (Photo: Razan Itani, Product Manager, Monty Mobile)
ASIA PACIFIC
Sarah Barakat
Telkom Indonesia revolutionises health information exchange for better services
The telco giant’s first step was its One Data System for COVID-19 vaccination.
Indonesia’s ambitious plan to achieve herd immunity by the end of 2021 initially appeared unattainable, as it required administering one million injections daily. However, Telkom Indonesia’s Satu Data Vaksinasi COVID-19 (SDVC) played a crucial role in realising this objective. SDVC, also known as the One Data System for COVID-19 vaccination, facilitated the integration, validation, and filtering of vaccination data from various institutions involved in the rollout.
Telkom Indonesia’s Head of Health Ecosystem for Digital Business and Technology, Joddy Hernady, revealed that the company plans to improve the platform to become the central database of Indonesians’ healthcare information.
“We want it to be used as a place where all the health stakeholders in Indonesia can exchange health information,” Hernady told Asian Telecom in an exclusive interview.
As of writing, the data being recorded by SDVC are just COVID-19 vaccination information. As per Telkom, the platform has over 600 million COVID-19 vaccination data.
In the future, Hernady said Telkom Indonesia hopes to add other health-related data such as an individual’s general vaccination record and insurance.
“In the future, the Ministry of Health can leverage SDVC to become a national health information exchange and health information services so that we can provide better health services in Indonesia,” Hernady said.
A superapp for healthcare
Apart from SDVC, Telkom Indonesia also plans to upgrade its contact tracing app, PeduliLindungi, which also played an important role in Indonesia’s COVID fight. PeduliLindungi is an application commonly used by Indonesians during the COVID-19 pandemic to access certificates and information about vaccines, as well as to check in at public places.
According to Hernady, the company wants to turn PeduliLindungi into a super app which can offer preventative and curative healthcare solutions to its users.
Amongst preventive solutions that Telkom Indonesia will add to its app are related to wellness programmes.
“We can integrate the feature with a wellness app called Fita which was developed by Telkomsel, or other similar apps,” Hernady said.
Fita is a health application that focuses on changing people’s behavior by implementing good habits that promote the #SehatMakinNikmat Movement and present local content about health, nutrition and various sports programmes that have been curated by a Certified Coach.
At the moment, the app has proactive solutions with more than 10 telemedicine providers on board. Hernady said the company will also add other proactive solutions such as e-prescription, and medicine delivery to PeduliLindungi.
“PeduliLindungi can also be connected with health insurance providers and third-party administrators to offer more benefits to insurance members who are also now PeduliLindungi users,” Hernady added.
For better centralisation of data, Telkom Indonesia will integrate PeduliLindungi with SDVC and the Indonesia Health Services (IHS) Platform owned by the Ministry of Health of the Republic of Indonesia for the app to have information on its users’ personal health records and other related health data, “PeduliLindungi, in the end, will provide an end-toend patient journey,” said Hernady. “We will transform
PeduliLindungi into a super app that provides promotive, preventive, corrective, and rehabilitative solutions. We will do this by collaborating with players in those areas, and leveraging their offers,” he added.
PeduliLindungi has more than 93 million registered users and around 52 million monthly active users. The PeduliLindungi app and SDVC were recognised in the inaugural Asian Telecom Awards as Indonesia’s Mobile App of the Year and Digital Initiative of the Year. The Asian Telecom Awards started in 2003. The awards programme will recognise the remarkable achievements and initiatives of Asia’s leading telecom companies.
“Winning these two categories from the Asian Telecom Awards is an important achievement for us. This shows that we are on the right track and we need to continue with what we have done so far in digital transformation,” Hernady said.
“These two awards will also emphasise Telkom’s position as the leading digital telco in Indonesia, and also one of the leading digital telcos in the Asia Pacific,” he added.
8 ASIAN TELECOM
We want it to be used as a place where all the health stakeholders in Indonesia can exchange health information
INDONESIA
Telkom Indonesia also wants to upgrade PeduliLindungi into a super app (Photo: Joddy Hernady, Head of Health Ecosystem for Digital Business and Technology, Telkom Indonesia)
INTERVIEW
CONNECT YOUR LIFE CCSC Contimovative* Communication Synergy Cooperation *ContinuousImprovementinaninnovativeway OUR VALUE http://www.ccsc-interconnect.com CCSC Technology Group Limited 承 創 科 技 集 團 有 限 公 司 01 Turn-key service of manufacturing complex cable assemblies & wire harness 02 Design for Manufacturing (DFM) & Tooling of customized connector for industrial application 03 Vertical integration with inhouse SMT production line 04 Logistics & service hub well established in Europe, US and SE Asia
LEO satellites to offer high-speed internet access in underserved areas
Deloitte Global predicts need for 5,000 LEO satellites by the end of 2023 to serve nearly a million subscribers.
The satellite industry is poised to grow and supply more than 200 terabytes (TB) of bandwidth capacity to the global telecom grid, according to a report released in December 2022 by Euroconsult, a space and satellite intelligence company.
To bridge the existing digital divide between rich and poor countries, urban and rural populations, Deloitte Global has also predicted that more than 5,000 LEO (Low Earth Orbit) broadband satellites will be needed by the end of 2023, making up more working constellations to offer high-speed Internet to nearly a million subscribers around the globe, no matter how remote they are located.
Dimitri Buchs, Managing Consultant at Euroconsult, told APB+, “Satellite provides service to some geographies that remain unserved by terrestrial networks, including suburban, rural and isolated areas.”
As satellite technology continues to evolve, can we expect the constellations of LEO satellites to bridge the digital divide in underserved regions by offering easy accessibility at affordable price points?
Connecting underserved communities in Asia-Pacific Conventionally, broadband networks require the laying of underground cables, which could be deployed in urbanised communities. However, underground cabling in remote areas lacking infrastructure is not as straightforward, leading to lower connectivity.
Orina Zhao, Senior Analyst at Ampere Analysis, observed that the overall fixed line broadband penetration remains low in many South-east Asian and South Asian markets. Ampere Analysis data found that just about half of all households across the region have a fixed line broadband connection but when excluding Taiwan and Singapore, that average access rate drops to 36%.
To bridge the digital divide, a robust digital infrastructure supported by satellite networks can be the cornerstone of connectivity. Orbiting 2,000km above earth’s surface, LEO satellites are closer to the earth’s surface than geostationary satellites, which are approximately 36,000km above earth’s
surface. With multiple satellites working on a revolving network, satellite connections enable networks to be delivered to many places, including aircraft in mid-air and ships in the middle of an ocean. And satellitebased networks, such as LEOs, can provide greater accessibility to remote areas of the earth. Zhao illustrated, “A large number of households still rely on mobile broadband to connect to the Internet, especially in remote or rural areas where fixed line infrastructure is difficult to construct, such as in the Indonesian archipelago, which saw mobile broadband data usage rising from 0.68 gigabytes per sim card in 2017 to 29.7GB per sim card in 2022, the largest consecutive growth across the APAC region.
“In such a context, the introduction and commercial deployment of LEO satellite dishes, including Starlink, OneWeb and many others planned, will significantly improve broadband connectivity.”
Zhao emphasised that the key benefit of LEO satellites is enabling broadband access to over 500 million households across the Asia-Pacific region, including the vast Pacific
10 ASIAN TELECOM
ANALYSIS:
Satellite provides service to some geographies that remain unserved by terrestrial networks
SATELLITE
Dimitri Buchs
Orina Zhao
ASIA
Rajeev Suri
PACIFIC
islands and areas prone to natural disasters or with fewer habitants.
Making satellite connectivity affordable for all
It must be noted that the satellite broadband market is very price sensitive. Eurpconsult’s Buchs explained, “Affordability continues to be a critical issue for the adoption of satellite services too, particularly in emerging countries, as entry-level consumer broadband packages often cost more than US$50 per month.”
He added that maintaining a satellite network is expensive, due to high recurring operational cost incurred from equipment leasing, which represents the vast majority (up to 80%) of total operational costs.
To create downward pressure on pricing, Buchs suggested that the satellite industry has a tendency towards deploying flexible payload architectures that help maximise “usable” supply and the need to secure a large geographically distributed client base.
He explained: “Manufacturers have generally been able to offer higher volumes of capacity per satellite over time with asymmetrically lower increases in cost to operators, effectively translating into a structural driver of downwards pressure on capacity pricing.”
Integration of satellite and mobile networks
To provide a ubiquitous network, satellite operators are not only relying on LEO satellites, but also geosynchronous orbit (GEO) satellites to increase and offer higher bandwidth per satellite.
For instance, Inmarsat is testing new concepts and system configurations for
its proposed Orchestra LEO constellation, which will integrate with GEO and HEO (Highly Elliptical Orbit) satellites, and a terrestrial 5G network, to deliver a powerful global communications solution for mobility and government customers.
Rajeev Suri, CEO of Inmarsat, said, “Orchestra ensures Inmarsat is well positioned to deliver long-term, profitable growth by delivering new services to existing customers, targeting near-adjacent market segments, and maintaining a strong competitive position.”
He added that whilst Inmarsat was focused initially on delivering the Orchestra terrestrial network, it has been preparing for more LEO satellites in the sky. “This is a highly cost-effective approach that leverages Inmarsat’s leading GEO satellite networks as part of its Orchestra’s unique multi-layer architecture,” he pointed out.
Zhao affirmed that a competitive satellite broadband service market will help to bring prices down. She said, “Currently, ARPU (Average Revenue per Subscriber) of fixed line broadband in South-east Asia and South Asia is less than $10.
“To ensure competitiveness with existing services, as well as ensure affordability among lower income households, satellite broadband pricing will need to provide broadband priced at this rate or lower.”
If this is so, even by coming together to collaborate and leverage economies of scale, providers of satellite-enabled broadband will still find it difficult to reduce the cost of deploying satellite networks and offer accessibility at affordable prices for the rural poor … so bridging the digital divide will remain a bridge too far.
ANALYSIS: SATELLITE
Satellite remains vital for distribution in Asia-Pacific region
Satellite will remain vital for video distribution in the Asia-Pacific region, and is geared for further growth, the recently concluded Satellite Industry Forum highlighted.
Hosted by the Asia Video Industry Association (AVIA), this year’s in-person edition returned after a two-year hiatus, and brought together over 120 delegates and stakeholders globally from the satellite industry.
Delivering the keynote speech was Steve Collar, CEO of SES, who spoke about growth opportunities in the satellite space and shared his views on the demand and supply in the market. He highlighted how SES, besides having both Medium Earth Orbit (MEO) and Geosynchronous Equatorial Orbit (GEO) satellites, is committed to building a multi-orbit fleet that provides a global network for customers to move from one to the other to maximise the benefits of both. Collar also forecasted a positive outlook on demand, and the new applications and services that could be run on satellite. Specifically, he identified high throughput and high connectivity services, which represents a “significant market” for SES.
With the pandemic bringing about the resurgence of linear broadcast as more people stayed at home, Collar also reiterated SES’ commitment to the long-term aspects of the video business, particularly in Asia.
Sharing the same sentiment was Terry Bleakley, Regional Vice-President, Asia-Pacific, Intelsat, who highlighted the importance of satellite to video and how long-term agreements are still being signed with satellite operators. For instance, broadcast and linear TV is forecast to generate US$43.5b of advertising in Asia-Pacific by 2024. In contrast, over-the-top (OTT) is expected to account for between $30b to $33b.
Patrick French, Executive Vice-President, Global Business Development and Strategy, ABS, added that video still had a “long lifetime” ahead, and will be driven by Asia in the longer term. Software-defined satellites are also going to be addressing all market segments and de-risk the business case going forward, he concluded.
ASIAN TELECOM 11
To provide a ubiquitous network, satellite operators also rely on GEO satellites to increase and offer higher bandwidth
Three key levers for improving telco B2C margins and increasing valuation
Telecom operators have created enormous value with new applications and services, but have underperformed shareholders’ expectations. Some operators are separating their network operations (NetCo) from customer-facing operations (ServCo) to expose the value of their network assets or attract external investment to fund expansion. Telco leaders have not fully embraced the necessary scale of transformation to succeed in a hypercompetitive environment. Integrated telcos can accelerate transformation by adopting the mindset of a ServCo.
Adopting the ServCo mindset can help operators focus on existing customers and reduce negative market price dynamics. Telcos can quadruple the valuation of their business-to-consumer (B2C) operations by improving margins and implementing multiple re-ratings.
Three key levers
Three key levers can help telcos improve margins: driving value from core connectivity, using data to create new products and services, and enhancing customer experience.
By adopting the mindset of a ServCo, B2C leaders of integrated telcos can accelerate their transformation and
Pursuing these levers will require significant transformation and a willingness to embrace bold changes
compete more effectively in the hypercompetitive telecom industry. The ServCo mindset can help operators shift from legacy practices that focus on short-term revenue to strategies that generate longer-term customer value and satisfaction. This can also make new revenue streams more attractive by reducing margin dilution.
Additionally, lower margins will force operators to focus on existing customers and reduce the negative market price dynamics caused by acquiring new customers with deep discounts.
To fully embrace the ServCo mindset, telcos will need to define a clear vision for how they will compete without the benefit of network differentiation which will involve pursuing the three key levers. Each lever will require bold moves and fundamental shifts, but the potential rewards are significant. By implementing these levers, telcos can improve their B2C margins and raise their valuations.
To drive value from core connectivity, telcos can optimise their existing connectivity business by increasing average revenue per user (ARPU) through customer value management and cost reductions. This can be achieved by offering personalised packages and bundles, implementing data-driven pricing,
and reducing operational costs through automation and standardisation.
The second lever involves using data to create new products and services. Telcos can leverage their unique data assets, such as usage data, location data, and customer profile data, to develop personalised offers and services that meet the needs of their customers. This can include offering data-driven services such as location-based advertising and personalised health services.
The third lever is enhancing customer experience. Telcos can improve customer satisfaction and loyalty by providing seamless and convenient experiences across all customer touchpoints, such as online, offline, and social media. This can be achieved by implementing customer-centric design, leveraging customer feedback, and providing personalised support through chatbots and other digital channels.
By pursuing these three levers, telcos can improve their B2C margins and increase their valuations. This will require a significant transformation and a willingness to embrace bold changes, but the potential rewards make it a worthwhile pursuit.
Implementing legal separation
In addition to pursuing these three levers, telcos can also consider implementing structural or legal separation to fully capture the value of their network assets and support their growth. This can involve creating a separate NetCo and ServCo, with the NetCo responsible for network operations and the ServCo focused on customer-facing operations. This separation can allow NetCo to attract external investment to fund network expansion, whilst ServCo can focus on driving growth and maximising value.
However, implementing structural or legal separation is not a decision to be made lightly. It requires careful planning and consideration, as it can be a complex and costly process. Telcos should carefully weigh the potential benefits and drawbacks of separation before making a decision.
Overall, adopting the mindset of a ServCo and pursuing the three valuecreating levers can help telcos accelerate their transformation and compete more effectively in the hypercompetitive telecom industry. By improving their B2C margins and increasing their valuations, telcos can reignite growth and reimagine their capabilities to better meet the needs of their customers.
Without the shield provided by network margins, B2C telco leaders face a dramatically different economic reality. Suddenly, margins drop to between 5% and 15%, from 30% to 40%, casting cost cuts and
12 ASIAN TELECOM
Telco leaders have not fully embraced the necessary scale of transformation to succeed in a hypercompetitive environment
REPORT:
B2C VALUATIONS
ASIA PACIFIC
A new report from McKinsey & Company argues telco operators need to think like ServCos to raise profits.
revenue growth as stark imperatives.
Depending on how many levers an operator chooses and how they execute these choices, it’s possible to raise B2C margins, including a true accounting of network costs, to between 15% and 25%, up from 5% to 15%.
Successful telecom operators
Examples already exist of integrated telecom operators that have succeeded in driving cost reduction and revenue growth through a customer lifetime value-based approach, beating out organisations that have moved more slowly and might benefit from the accelerant that a ServCo lens provides.
PT Telekomunikasi Selular (Telkomsel) transformed its core connectivity with new offers for underserved customers, seamless digital channels, a separate digital native brand, and a data analytics platform incorporating 9,000-plus data points per customer.
The MyTelkomsel app now gives customers tailored offers, real-time views of data usage, and easy payment options. It has close to 30 million monthly active users, a tenfold increase over the previous app. Veronika, Telkomsel’s chatbot, handles 97% of customer inquiries made through the app, as well as driving incremental revenues from phone credits and data packages.
To appeal to digital natives, Telkomsel launched by.U, a fully digital brand. In record time, its cross-functional team created and refined a platform that allows users to select a prepaid SIM card that arrives at their doorstep, activate their numbers remotely, manage top-ups and quotas, and make payments. To ensure that innovation continues after launch, by.U adopted an agile organisational structure. The brand reached its one-year customer acquisition goal in nine months. Within 15 months, it had nearly two million subscribers and a market-leading customer satisfaction score.
Around 56% of European customers say they would buy a service other than connectivity from their telco provider. Customers express the highest willingness
REPORT: B2C VALUATIONS
number of AI-related patent submissions in Japan. It has inspired cross-product engagement through its d POINT CLUB rewards programme, in which customers earn points by purchasing products and services from ecosystem players. Strategic investments and partnerships have been critical as NTT DOCOMO has ventured into new verticals. It has built out healthcare and telemedicine solutions through partnerships with Genova Diagnostics, Medley, and OMRON Healthcare. It partnered with ORIX to launch a ridesharing service and with THEO to offer an AI-driven investment advisory. It integrates video services from several partners, including DAZN, Disney+, and Hikari TV.
to purchase phone insurance and products related to cybersecurity and home security, followed by products related to energy, healthcare, and financial services.
Norway’s Telenor has unlocked growth by expanding into mobile phone insurance and security and privacy offerings. A prime example is its SAFE product, which provides protection against identity fraud and personal data theft. Since SAFE was released in 2020, it has attracted some 300,000 users who are willing to pay nearly $13 a month extra for the service.
SAFE has met customers’ desire for greater security protections and was directly integrated into the My Telenor app to facilitate the easiest access and payment. Telenor credits SAFE with reducing churn, increasing customer loyalty, and further driving top-line growth. Overall, adjacencies are responsible for two-thirds of Telenor Norway’s ARPU increase between 2017 and 2020.
In Spain, Telefónica acquired 50% of the alarm business of leading home-security player Prosegur rather than trying to build a new proposition in-house, combining its own distribution channels and customer base with Prosegur’s highly regarded product and brand. The resulting business, the country’s first to offer 24/7 intervention services in response to a triggered alarm, was critical to Telefónica’s success in growing its home-security customer base to 406,000 customers since launch, including roughly 60% year-on-year growth in the first half of 2022. However, telecom operators have historically struggled to scale adjacency plays. Roughly 75% of these new businesses have yet to reach $100m in revenues, and around half are achieving less than 10% profitability.
NTT DOCOMO has built a robust ecosystem offering digital content, healthcare expertise, financial services, and a B2C marketplace. The ecosystem was responsible for 23% of the operator’s revenue in the fiscal year 2021. The telco has relentlessly pursued innovation in customer experience whilst building its ecosystem; in 2021, it had the highest
The European telco landscape is highly fragmented, with 87 customer-facing entities catering to more than one million subscribers each. In the United States, by contrast, there are only 16.
If the European market were served by a total of 16 B2C telecom platforms, the same number as in the United States, and operators were able to reduce their B2C IT-related operating expenses and capital expenditures by half, this would save more than $5 billion a year.
Octopus Energy, a renewable-energy retailer, has scaled internationally by licensing the Kraken technology platform that it built for UK B2C operations to partners in nine countries. The Kraken platform hosts the entire customer service operation, manages disaggregated energy sources, communicates with industry bodies, and uses tools such as machine learning to offer dynamic tariffs. Revenues from these licensing arrangements grew by 584% in 2021. Companies that have made the switch have saved more than $100m in 2021. In 2022 alone, Origin Energy is expected to save as much as $80m.
ASIAN TELECOM 13
Without the shield provided by network margins, B2C telco leaders face a dramatically different economic reality
When
the shield provided by network margins is removed, B2C telcos face a dramatically different economic reality.
Key challenges faced by telcos in new business, % of respondents selecting category as a challenge
Source: McKinsey & Company
Source: McKinsey & Company
How telcos can keep their customer base amidst a high churning rate
Improving customer experience and bundling new services is key to retaining customers.
Telecommunication companies may have seen the demand and the importance of their services increase in the last two years, but this momentum declined post-pandemic as customers are now less inclined to subscribe, with churn rates remaining high. To keep their customer base, telcos should increase their attractiveness by developing innovative new services based on customer relevance and market potential, amongst other ways.
In the Global Telecommunications Study 2022, Simon-Kucher & Partners found that 58% of customers now perceive telco offerings as expensive, up from 51% before the pandemic.
“Customers actually have indicated lower willingness to pay for telco services as the price value perception of telco services has actually deteriorated over the last two years as well,” Winnie Ong, TMT Partner in Asia-Pacific at Simon-Kucher, told Asian Telecom, adding that consumers seem to be more price sensitive.
On top of this, Ong also said that the customers’ propensity to churn has stabilised on pre-pandemic levels, but the rates were still “relatively high.”
The report found that around 22% to 24% indicated that they are likely to leave their service provider at the end of the contract period or in the next few months if their contracts have no obligations. It added that attractive offers from competitors, especially in mobile, are the main driver for leaving their service providers.
Customer retention
In addressing this hurdle for growth, telcos should work around customer retention by implementing better and more attractive offers, Ong said.
“It’s a lot more effective for telcos to optimise and retain their base rather than trying to acquire many more customers at the same time,” she said.
Even if customers appeared to be more price sensitive, price is only the second reason for their purchase as consumers prioritise network speed, according to the report.
If a customer experienced poor service – a potential trigger for churning – telcos should make the right move to compensate for the negative experience, Ong said. This could be done by offering them another service they can avail of at the right time, supported by a sustainable and holistic customer base management approach. “All these elements can help to elevate the overall customer experience, which can then eventually also improve customer loyalty,” she said.
“Keeping the customer satisfied with network quality, and general service quality is actually super important in order to be able to retain their base,” Ong added.
Bundle
Telcos could keep their attractiveness by bundling new types of services “beyond the core connectivity services.”
Bundles offered before were heavily focused on SMS and data consumption. Ong said that in the Singapore landscape, the data offered in the tariffs exceed what the consumers typically consume. In other markets, unlimited data is being offered.
However, she noted that the ability to use core connectivity services to differentiate the tariffs offered has “eroded over time.”
“What we’ve seen in other markets will be using things like network speeds as a differentiator, or being able to bundle in additional value-added services such as bundling video streaming
services and cybersecurity services as elements that can drive differentiation because these have better relevance in serving the customer need as well,” she said.
The report found that the up-selling element the respondents were interested in included entertainment, with 50% saying they would buy it if offered, connectivity-related services, value-added services, and sustainability.
5G adoption is also showing a “strong growth trajectory” due to higher speeds and 5G-enabled handsets, with 27% of the respondents have already availed of 5G and another 24% planning to buy one within the next 12 months.
Remaining competitive
Amidst the current macroeconomic environment, Ong said telcos should operate in line with the “customer needs perspective” and take a “customer-centric approach” in optimising the profit pools that can help them craft the most attractive value proposition structure and manage the customer base. “One of the key changes now is to also take a conscious approach to rationalise our strategies based on the data that is available and relevant. Supplement this also with external insights from the consumers to better understand how we can serve them,” Ong said. “This will be the path to sustainable and profitable growth,” she added.
14 ASIAN TELECOM
It’s a lot more effective for telcos to optimise their base rather than trying to acquire many more customers
INTERVIEW ASIA PACIFIC
Telcos could keep their attractiveness by bundling new types of services beyond the core connectivity services (Photo: Winnie Ong, TMT Partner in Asia-Pacific, Simon-Kucher)
mgames Studio
REDEFINING BRAND EXPERIENCES THROUGH GAMES
your marketing efforts to the next level with gamified marketing solutions, tailored to your
Try mgames for yourself: Scan QR code to try our games Learn more at: https://mgames.solutions/
mgames Solutions Take
specific needs
Bring your games to bigger communities, with equal opportunities for both creators and users alike
More to come! Achieve your business goals while providing users with added value through mgames’ digital arcade experience
mgames Partnership
Telkom transcends internet service providing
It tries to build a digital content ecosystem through its IndiHome business line.
When the number of internet users in Indonesia grew to 210 million in June 2022, the competition amongst providers was taken to a higher level. Internet providers had to step up and offer something new. For Telkom Indonesia’s IndiHome, their efforts led to collaborations with over-the-top (OTT) platforms like Netflix and HBOGO to build a complete digital content ecosystem.
Referring to Kantar’s research conducted by The Trade Desk in June 2021, Indonesians stream nearly three billion hours of OTT content per month, which makes Indonesia the country that watches the most OTT in Southeast Asia.
“Considering that, this collaboration step is clearly a very profitable collaboration, both for IndiHome and the OTT platforms,” said E. Kurniawan, Vice President of Marketing Management of PT Telkom Indonesia.
Aside from Netflix and HBOGO, Telkom Indonesia’s partners include Disney+, Vision+, Catchplay, WeTV, Iflix, Vidio, Mola, Lionsgate Play, and VIU. “In addition, IndiHome is also collaborating with WeTV and Vidio to meet the needs of customers who like local content or series,” Kurniawan said.
“It is impossible for us to do everything ourselves, from the people side to technology. We must find partners who can provide the best value. The challenge is how to get collaboration that is utually beneficial. This means, not only providing the best benefits for us, as a corporation, but also for customers,” he added.
Windows of entertainment
This collaboration activity will certainly be evaluated periodically, whilst still prioritising customer satisfaction. In addition, Kurniawan said, Indihome will continue to strive to improve a number of innovations.
“From time to time, we continue to evaluate who we can collaborate with. With the vision of making windows of entertainment, all of our collaborating OTT services will be displayed on the IndiHome TV screen for easy enjoyment,” Kurniawan said.
Each OTT presented at IndiHome adapts to different customer needs. “With the window of entertainment concept, IndiHome is the only ISP that is able to provide a variety of interesting content that can be enjoyed by the people of Indonesia on just one screen,” said Kurniawan.
The impact of this collaboration in terms of business is the creation of the IndiHome brand enhancement. Kurniawan revealed that customer loyalty has increased because IndiHome is able to offer a comprehensive selection of digital content. Next, strengthen brand awareness from OTT to IndiHome’s customer base in various regions.
Meanwhile, the social impact that also needs to be highlighted from this collaboration is the embodiment of inclusiveness in internet services and digital content in Indonesia. “Because with this collaboration, exclusive, interesting, and educational content can be enjoyed by all people throughout Indonesia with the IndiHome network,” Kurniawan said.
The emergence of IndiHome TV
Kurniawan added, it has become IndiHome’s commitment to provide the best service and attractive benefits for customers. Telkom even rebranded Usee TV GO to IndiHome TV which further strengthens IndiHome’s positioning as a window of entertainment with OTT services and the most complete channels in Indonesia.
“With the window of entertainment concept presented
by IndiHome, we will continue to strive to improve the best service and provide attractive benefits that can be enjoyed by all customers in Indonesia,” explained Kurniawan.
Interestingly, with the IndiHome TV application, customers can easily experience exciting experiences through interesting features from their favorite shows or content on IndiHome TV.
IndiHome TV is a video content application service in the form of an extension of the experience watching IndiHome TV on a glass screen, which can now be enjoyed anywhere and anytime through various media. These include mobile phones, tablets and laptops. IndiHome TV provides a variety of entertainment, information and lifestyle in the form of digital streaming content, such as videos, movies, live TV and TV on Demand (TVOD). TV application is equipped with a variety of content with interesting genres. Starting from dramas, actions, Hollywood blockbusters, local content, children’s content, celestial dramas, sports broadcasts, comedies, to Bollywood shows.
Within the IndiHome TV application, subscribers can also access various kinds of premium content such as live broadcasts of League 1 Football matches, various basketball competitions and championships such as IBL and FIBA, BWF and MotoGP, and others. Payment is also very easy because you can use a variety of digital payment options and other banking services.
16 ASIAN TELECOM
IndiHome is the only ISP that can provide a variety of interesting content that can be enjoyed on just one screen
INDONESIA
It is impossible for us to do everything ourselves, from the people side to technology. We must find partners who can provide the best value (Photo: E. Kurniawan, VP of Marketing Management, Telkom Indonesia)
INTERVIEW
Data Center Automa�on
Increase the speed and Agility of Business Services by Automating your data centers networks.
Intent Based Networking automation and orchestration providing all you need to deploy, maintain, and manage your Data Centers networking to act and achieve results faster.