PRESENTATION TO THE ASIA-PACIFIC INFORMATION SUPERHIGHWAY
Rabah GHEZALI Group Director Public Policy November 2017 ©VEON Ltd 2016 VEON: AN EMERGING MARKETS GLOBAL COMPANY
UZBEKISTAN 235+ MLN RUSSIA KYRGYZSTAN CUSTOMERS AMSTERDAM $8,9BLN LONDON REVENUES
GEORGIA 13 TAJIKISTAN
PAKISTAN MARKETS, HQ IN ALGERIA BANGLADESH KAZAKHSTAN AMSTERDAM LAOS (+DIGITAL HUB IN LONDON) ITALY 65% ARMENIA UKRAINE 3G COVERAGE | 2G: 94% | 4G*: 20% * excl. Italy 2 VEON: TELCO, TECH & DIGITAL
Local Global
+
3 VEON IN BANGLADESH
Internet Usage Smartphone Unbanked Adults Customers Employees penetration (in millions)
BANGLADESH 18% 30% 69% 30,4 2.200
VEON 38,1% 45% 58,0% 235+ 51.300
WORLD 43,9% 52% 38,5%
Source: ITU, 2017; World Bank, 2016 4 CONNECTIVITY AND ECONOMIC GROWTH
9%
Uzbekistan 8% Laos “A 10% INCREASE IN 7% Tajikistan BROADBAND COULD 6% Bangladesh Kazakhstan Georgia RAISE ECONOMIC 5% GROWTH BY BETWEEN Armenia 4% Kyrgyzstan 0.25% - 1.4%” Pakistan Algeria 3% (ITU, 2016)
Russia GDP growth (5y average) (5y growth GDP 2%
1% Ukraine 0% 0% 10% 20% 30% 40% 50% 60% Italy -1% ICT Development Index growth (2010 – 2015)
5 PRIVATE SECTOR INVESTMENTS KEY FOR DEVELOPMENT
NET FLOWS OF DAC COUNTRIES (in bln USD)
$4,6
$32,2
Private flows at market terms
$137,2 Official development assistance Net grants by NGOs
$402,9 Other official flows
Source: OECD, 2015 6 VEON PERSONAL INTERNET PLATFORM AS NEW MEANS OF CONNECTIVITY
V E O N 2 . x V E O N 3 . x
MESSAGING M Y V E O N CONTENT & OFFERS MARKETPLACE EMPHASIS ON LOCAL PARTNERS
Local 80%
Global 20%
8 EMPOWERING VERTICAL INDUSTRIES
mAGRI mGOV
mHEALTH mTRANSP
mRETAIL mEDUC
9 DIGITAL FINANCE
Access to the global digital economy Ability to transact, save, borrow, insure ▪ $2,1 trillion of loans to individuals Secure electronic and businesses could be made account sustainably
▪ $110 billion could be gained by governments each year by reducing leakage in public spending and tax collection
▪ 95 million jobs could be created in emerging economies within a decade as a result of inclusive growth
Source: McKinsey, 2016 10 OUR DIGITAL FINANCIAL SERVICES
VEON CARD USERS REMITTANCE AIR TIME DCB OFFLINE PAYMENTS CASH OUT + CREDIT
+48mln
Utilities, Games, Sim 2 Any Sim Card | ATM | Post Appstore | PlayStore mPOS | QR A CARD YOU Transport… CANNOT MISS
11 CONNECTIVITY & GOVERNMENT: BANGLADESHI EXAMPLE
Banglalink has enabled free access for its subscriber to 25000+ government sites to allow digital citizen services from various government sites.
Banglalink is committed to achieve the digital agenda and trying to bridge the gap of digital divide and access to information for mass population.
Banglalink subscribers can apply online for different government & citizen services and download different forms and publications including text books for free.
12 CONNECTIVITY & SMES: ALGERIAN EXAMPLE
Djezzy provides (subsidized) the mPOS technology + connectivity to SMEs
BADR Bank will process SMEs payments (acquiring bank)
The Ministry of Industry provides VEON and Djezzy aim to widen electronic payment political support for the project acceptance in the SME sector in Algeria, which is currently very low with 98% of transactions in cash. GIZ will provide training to SMEs on The regulatory environment for MNOs to provide these how to use ICT in their operations services is very restrictive. Hence the approach to start a project together with international stakeholders and backing of the Ministry of Industry to showcase the VEON orchestrates the partnership and impact MNOs can have on SME innovation and economic engages international stakeholders development and force a diaolgue on restrictive policies. 13 CONNECTIVITY & RURAL COMMUNITIES (1/3)
• Krishi jigyasha 7676 in Bangladesh and Bakhabar Kisaan service in Pakistan are a one stop service on a Mobile Phone for all the farmers. Mobile network medium provides effortless penetration • These platforms support the farmers in every step of the process of agriculture, from land preparation till post harvesting and sale. • The service provides farmers with knowledge of modern farming, makes the agriculture specialist available for the farmers over the helpline, pro actively provides the farmer with weather updates and climate behavior, makes the latest machinery available and provides access to special loans for the farmers.
14 CONNECTIVITY & RURAL COMMUNITIES (2/3)
We have developed the following bouquet of services for the farmers: ▪SMS Service (for farmers who can read and write – for legacy phone users) ▪IVR Service (for farmers who cannot read and write – for legacy phone users) ▪Smartphone App (for digitally literate users)
SMS IVR Smartphone App
• SMS related to Weather, Crop, diseases, • IVR/Automated OBD related to Weather, • Data related to Weather, Crop, diseases, fertilizers, Farming techniques … so on Crop, diseases, fertilizers, Farming fertilizers, Farming techniques would be would be proactively sent to the farmers techniques … so on would be proactively available over the application mobile sent to the farmers mobile • Live and offline training videos will be • Advice would be given based on the • Decision would be taken based on the available over the smart phone location of the farmers (Long./Latt.) location of the farmers (Long./Latt.) application.
• Farmers would not have to reach us, we • Farmers would not have to reach us, we would reach farmers proactively, would reach farmers proactively; however offline information would also however offline information would also be available and farmers can pull the be available. required information CONNECTIVITY & RURAL COMMUNITIES (2/3) Bakhabar Kisaan Service – Smartphone App ▪ Tickers for Weather forecast ▪ Tickers for Market rates ▪ Agriculture News (PARC vetted) ▪ Product related to Farmers availability ▪ Modern Farming Techniques ▪ Discussion forums/techniques ▪ Agriculture Products & Equipment ▪ Crops Yield Maximization Information ▪ Livestock Information ▪ Informative videos ▪ Bidding on-line (D) ▪ Free browsing on app ▪ Details of 275k existing farmers ready to be serviced ▪ Roadshows at town level for training on app ▪ Photo analysis of soil and plant diseases (D) ▪ Discounts offered from our vendor partners ▪ MFS: Agricultural Credit Services, Crop Insurance & Live Stock Insurance payments, Payment/Rent of Agriculture equipment & machinery EMPOWERING DIGITAL DEVELOPMENT
Algeria Bangladesh
Eurasia Pakistan
17 18
Policy/Regulatory Environment
agri - e
Data
e health -
education - e eID Connectivity
Digital Platforms Digital gov - e
commerce - e ICT empowered individuals & communities individuals ICT empowered DFS/MFS AN ECOSYSTEM APPROACH TO CONNECTIVITY & ICT4D & CONNECTIVITY TO APPROACH ECOSYSTEM AN POLICY CHALLENGES
INVESTMENT CLIMATE REGULATIONS DIGITAL DIVIDE DATA PROTECTION
19 RABAH GHEZALI Group Director Public Policy rabah.ghezali@veon.com THANK YOU!
CLAUDE DEBUSSYLAAN 88 1082 MD AMSTERDAM THE NETHERLANDS Tel +31 (0)20 79 77 200 TWITTER.COM/VEON Tax +31 (0)20 79 77 201 FACEBOOK.COM/VEON ©VEON Ltd 2016