Achieve a more digital and human Chile, connecting the lives of the people
CESAR VALDES M VP MOVISTAR CHILE 1 The 30 years of the mobile technology
2 30 years of mobile telephony are celebrated in Chile 1989 2019
Main companies
Relevant mobile device
Voice, SMS, Only Voice Mobile services internet, video
4.886 Number of 24.000.000 0,04 lines per each subscribers 129,7 lines per each 100 inhabitants 100 inhabitants 3 Exponential boom in mobile internet consumption
Use of mobile data per subscriber, 2018 (GB/month) Numbers from Mobidia/App Annie x 3,5 Volumen de crecimiento en 3 años
2,0 3,7 3,8 4,6 6,4 9,3
Germany UK Chile Spain USA South Korea
4 Development of mobile world in Movistar
• Prioritization of the • Mobile sites connected to 4G Fiber Optics
14% Yearly Growth in 80% postpaid Increase of data traffic in Chile from 2017 to 2018
5 Wireline world as a basis for the mobile connectivity
Download speed / Mbps x 2,5 Growth volime Fuente: Speedtest in 3 years
23 25 36 51 52 54 102 104
Argentina
Brazil
Chile USA
Uruguay Finland Spain UK
6 With the fiber we are enablers of the digital world
• Up to • Technology • Low 600 MEGA STABLE LATENCY
We are LEADERS IN FIBER OPTIC in Chile
+40.000 48% 1minute Equivalent of a new Kilometers of fiber Of the total fiber marketshare in Chile home connected to cable from Movistar the fiber optioc
7 100% fiber optic in Chile in 2018
Tocopilla 104 MIL Vallenar Homes, SMB and Ovalle schools with Access x2 to fiber in 2018 Linares New cities 100% fiber in 2019 Our installed 6 base
In 2019 we are planning to have Of our installed base x14 connected to fiber Homes that changed +60% from Copper to Fiber Routers ISO Punta Arenas SEGUROS 14001
8 100% digital Habits
9 A global trend that reached Chile strongly
Services of Global National Platforms Movistar solutions Companies
Digital Content
Artificial Intelligence Google Assistant Cortana Siri Aura
eCommerce and corporate services
10 A digitalization that is powered with innovation 350 With 11 years of history, Million Movistar is the first to support Chilean Of customers technology startups. worldwide
We have today a portfolio of 21 startups, and 70% works with Movistar
11 Moreover, we’ve taken our technology to Education and Corporations
Big data solutions for 45% companies +30% 2.500 200 thousand Participation Growth in teachers in the M2M fiber optics students in Chile (IoT) market links trained
Empresas
Quotas sold out in 72 hours TOP 3 provider of digital services in Chile, by having in a single company all the products 19 mil courses needed for a digital digital skills transformationgracias a tener, en una sola empresa todos los productos en transformación digital. Against the Cyberbullying, and promoting a safer Digital Life 12 In the meantime we keep developing our technologies
Artificial Intelligence App & web We strengthen our AI, through robots and Movistar cognitive ability of Aura, our virtual 11 robots assistant.
Movistar Applications Click y Tool Box Both in branches, as with our field technicians, today they develop using online ToolBox platforms. More than 30 For Movistar thousand sales in technicians 2018
13 Releases in 2019
App Smart Wifi Movistar 2.0
• Intelligent control of home connectivity, which by the end of 2019 will allow remote management
• Lets you know who is connected, block intruder devices, create networks for guests, customize passwords
potenciar la seguridad 14 Releases 2019
eSIM, first in Movistar Chile
• Movistar Chile becomes the first telco in the country, and a pioneer in Latin America, to support and offer this technology
• It is a digital SIM card, which is currently available on the latest iPhone and will be increasingly massive
15 The new way of consuming videos
16 The relevance of the video and mobile content
Projected income US$ 280 of OTT products in millon Chile for 2023 60% of the internet consumption is videos 2020
Year where more than 50% of the TV consumption Will be mobile
17 The Evolution of Movistar Play
Available for TV and Broadband customers Diferential: Incorporated 15 Diferential: TV channels Free for TV 52 channels of pay-TV and Customers “Replay TV” functionality Projection: Projection: 20 thousand 300 thousand subscribers subscribers
2014 2015 2016 2017
18 2018, the year of content for Movistar Play x8 aumento de suscriptores a Netflix en boleta Movistar Play Light: Movistar para 2019 Movistar eSports: first 8 live channels for non TV 1. Netflix in the invoice: streaming channel with the subscribers (mobile and Movistar customers can pay for best gaming tournments wireline) the service on their invoices Diferential: 75 live channels for pay TV customers
Movistar Series: first 2. Setup box 4K with channel with original content Netflix: and 100% in spanish “Replay TV”, “Live Pause” y “Play from Potentialize the IPTV with Beginning” fiber optics to deliver TV to the home
2018 2019
19 We will continue with our investiment in content
2018 2019
20 Releases 2019 Exclusive Alliance of Movistar with Amazon
One of the most popular streaming services in the world, with which Movistar Chile will have an alliance content-centric
Those who are Movistar can subscribe to this service through the invoice, and Amazon will also add a direct access button via Movistar Play
21 Releases 2019 800.000 Customers today have Movistar Play Full access to Movistar Play
The best VOD content, El mejor contenido VOD, where Movistar Series stands out
For $ 9,990 / month, and without the need to have credit cards, everyone who is Movistar will be able to access to the VOD and live content of Movistar Play 46 live channels to watch from any device During 2019, it will also be available for non Movistar customers, revolutionizing the way of watching TV and delivering direct access to Netflix and Amazon
22 The future of Digital Chile
23 High competition and low profitability are stressing the sector
ROIC 2017 – Sector Telco Bloomberg
14,0%
10,0% 10,0%
CHILE N° 7,0% 7,0% 5,0%*
Competitivity in Telco Internet & Telephone Industry Competition Index
Asia USA EMEA Europe Latin A. Chile
* Consider only the two listed companies
The profitability of our industry is one of the lowest in the world
24 Impacting investments and development in telecommunications
Chile / total investment in millons of US$ -40% 2.462 We must increase the 2.080 attractiveness of the sector 1.860
1.473 in Chile to attract greater 1.428 1.566 investments
2012 2013 2014 2015 2016 2017
Source: Subtel
25 Therefore, we present 3 keys to reach the Digital Chile
Have facilities in the 3 of 4 fiber optic 1° High speed deployment mobile sites are Key powered by fiber optic Facilitate infrastructure deployments that support the challenges of digitalization Eliminate the 70% x3,6 cost overruns and bureaucracy More expensive than times longer than in Europe site rental Europe to get permits costs of works
26 2° Key Have equal conditions and certainty to develop 5G
27 Desafío 53% 85% 3° Hogares con banda Key Hogares con banda ancha fija y fibra ancha fija Recover the appeal to óptica encourage investments and increase access to the digital world 80% 90% De cobertura De cobertura poblacional poblacional con redes con redes móviles de móviles alta velocidad
28 ONLY SO WE WILL ACHIEVE THE SO WANTED DIGITAL CHILE
29 Achieve a more digital and human Chile, connecting the lives of the people
CESAR VALDES M. VP MOVISTAR CHILE 30