The Rise of OTT Players – What is the appropriate response? 17.12.2014 Detecon Contact Dr. Werner Knoben Senior Partner Detecon Asia-Pacific Limited Phone: +66 2 634 9013 Mobile: +66 89 900 2661 Fax: +66 2 634 9095 E-Mail: [email protected] www.detecon-asia-pacific.com www.detecon.com –2– © Detecon Content 1. Detecon – Who we are? 2. OTT – The Telco Challenge 3. Regulatory Take Away –3– © Detecon Detecon – Who we are Partner and Head of Delivery Detecon Asia Pacific: Dr. Werner Knoben Area of studies PhD in Mathematics: RWTH Aachen University, Aachen Professional Experience T-Com / Deutsche Telecom / Detecon – Partner: Bidding and Auction Strategies; War gaming; Regulatory strategies; Due Diligence; Scenario Analysis Key Qualifications Regulatory and wholesale strategy, market liberalization, competition law, regulatory costing and accounting separation Auction Design, Auction Strategies, Game Theory, War gaming, Communication Strategy, Bid Strategy Consumer and B2B strategy, Business Cases, Scenario Analysis Selected Project Experience TRA Oman: Setup of a 4G spectrum auction NCC Nigeria: Setup of SMS and Data Interconnection Regulation NBTC Thailand: Development of an Accounting Separation Framework SingTel, Singapore: Auction and bid strategy and 4G license valuation Dr. Werner Knoben TMMK/MKT, Macedonia: Regulatory Costing Partner Advisor for Deutsche Telekom subsidiaries in Croatia, Hungary and Slovakia for regulatory strategies –4– © Detecon Detecon – Who We Are We are part of Deutsche Telekom Group, the number one ICT provider in Europe. Our goal is to leverage the strengths of the group in international markets. Key Facts Deutsche Telekom Group USD 75 billion net revenue 239,000 FTE employees 1,500 headcount in group innovation and partnerships 50.5 million fixed network lines 123 million mobile customers Number one ICT provider in Europe Number one cloud provider outside US Strong international footprint Group vision: The customers’ first choice for connected life and work Telekom subsidiaries T-Mobile offers mobile T-Systems delivers ICT Detecon is the provide integrated solutions and is the key solutions for corporate management consulting products and services for co-brand for OTT customers and public unit of DT Group, serving business and residential partnerships sector organizations to the group and other customers customers –5– Detecon – Detecon International GmbH Detecon’s global presence ensures that clients get access to the knowledge and know- how of telecommunications experts worldwide. Key Facts Detecon International GmbH Worldwide Presence Foundation: 1954 – Diebold 1977 – DETECON Restructuring: 2002 – Detecon International GmbH Shareholder: T-Systems International GmbH Employees: More than 1,000 worldwide Turnover 2012: EUR 168 million Locations Germany: Cologne (head office), Dresden, Eschborn, Munich International Locations: Abu Dhabi, Almaty, Ankara, Bangkok, Beijing, Jakarta, Johannesburg, Moscow, Riyadh, San Francisco, Vienna, Zurich Webpage: www.detecon.com/en/ –6– © Detecon Detecon – Detecon Asia-Pacific Ltd. Detecon Asia-Pacific Ltd. is focusing on wider South East Asian markets. We can build on successful client relationships that have developed over 25 years. Key Facts Detecon Asia-Pacific Ltd. Presence in Asia Business Activities in Asia: Since 1985 Detecon Asia-Pacific Ltd. Foundation of Detecon Asia-Pacific Detecon China Ltd.: Regional Head Office 2005 Branch Office Major Shareholder: Detecon International GmbH (99%) Employees: 45 Turnover 2012: EUR 7 million Regional Headquarters: Bangkok Regional Branch Offices: Jakarta, Kathmandu Webpage: www.detecon-asia-pacific.com –7– © Detecon Detecon – What we do? We combine a rich service portfolio with a unique approach to consulting and in-depth knowledge of the industry. Strategy and Marketing Technology Management Organization and Processes Startup and Launch Support Network Rollout / Launch Support Business Process Management Marketing and Sales Strategies Technology Strategy (Business Process Audits, Business Process Engineering Wholesale Strategy and Outsourcing, Managed Services Implementation including eTOM and ITIL), Process Vendor Selection Optimization Regulatory Advisory (Regulation Network Performance TOGAF Training and Certification Frameworks, Licensing, Lobbying) Management Enterprise Transformation Corporate Strategy Network Operations Efficiency Management Corporate Finance Tool Based Network Planning, Reorganization and Merger Cost Optimization Design and Rollout Integration Business Planning ICT Strategy Organization Human Resources Management Business Development Technology Innovation Procurement and Supply Chain Innovation Management Management Management Green Technologies Big Data Strategy Financial, Risk and Compliance Due Diligence and Investment ICT Transformation Management Management Appraisal Next Generation Data Centre Corporate Social Responsibility Enterprise Architecture Strategy and Management Enterprise Service Management Program Management, Project Management, Interim Management –8– © Detecon Detecon – What we do? We support regulatory authorities and operators since 1977 with our deep regulatory and sector reform knowledge and experience worldwide. Sector Reform and Legislation Regulatory Policies / Procedures New Regulatory Challenges Sector Reform Strategy Regulatory market definition and Fix-mobile convergence regulation Review of given market situation analysis (e.g. pricing of mobile termination, national and international roaming, Analysis and benchmarking of Competition policy, SMP liberalization experience in other designation and remedies MNP, SMP evaluation, digital dividend, spectrum trading, re- countries Licensing and Authorization farming, auctioning, …) Examination of political, legal and Universal service policy Legal framework for eCommerce, economic implications Tariff policy and tariff regulation eHealth and eGovernment Elaboration of guidelines and Interconnection and Access Media, IT, telecom convergence policies for sector reform Regulation regulation (e.g. for content and Numbering applications, IPTV, PPV, …) Communication and Competition Dispute resolution Technical and economic regulation Legislation Market Monitoring and in an NGN environment, e.g. Analysis of existing legal situation enforcement regulation VoIP regulation, Primary and secondary legislation Consumer, Data and Privacy Net neutrality and QoS, Regulations and calculation Protection NGA industrial policies, models (price squeeze, margin Frequency spectrum allocation and Next Generation Data Centre, squeeze, predatory pricing) management Anti-competitive conduct (ex-ante Network Resilience and QoS, Standardization and type approval and ex-post) OTT Regulatory Strategy and Telecommunication / Broadcast / Spectrum Master Plans –9– © Detecon Detecon – Clients Detecon Asia-Pacific Ltd. Our Asian client base includes donor institutions, regulatory bodies, industry suppliers and telecommunications carriers across the whole region. ADB .org MCMC UOB Sri Lanka DGPT Telecom (SLT) –10– Detecon – Selected Project Experience A country view on completed projects proves that we are industry experts capable of dealing with strategic challenges as well as detailed implementation tasks. Cambodia / Laos Thailand Malaysia Launch of CDMA Network Rural Telecommunications WiFi Network and Business Audit Fiber Network Due Diligence Company Valuation Tendering Support Accounting Separation Framework Spectrum Planning and Pricing Business Process Review Network Evolution Strategy 3G Licensing Support GSM Network Due Diligence Service Costing Network Optimization Support Tender Support for UMTS / LTE Carrier Launch Pricing LTE Spectrum Valuation Data Center Strategy Review Shaping Enterprise Data Services Network Outsourcing Support Bangladesh Brunei Broadcasting Competition Policy WiMAX Bid Book and Tendering Sector Reform and Liberalization Mobile Strategy Development Restructuring of Incumbent Costing and Pricing Models Interconnection Cost Modeling CRM Rollout Advisory on Tower Services BWA License Bid Support Spectrum Utilization Concept Interims Management –11– Detecon – Selected Project Experience A country view on completed projects proves that we are industry experts capable of dealing with strategic challenges as well as detailed implementation tasks. Philippines Myanmar IndonesiaMalaysia Frequency Management Business Planning Strategic Market Entry Feasibility Network Planning Review Interim Management Buildup Support for Carrier Unit License Bid Support Radio Network Planning Rollout Management Tendering for Managed Services Singapore Wholesale Business Strategy Bid Management for Broadband Tower Growth Due Diligence Network Resilience Review Frequency Lobbying Roaming Study Bid Management for Suppliers WACC Determination Transmission Planning Vietnam MNC Strategy / Implementation Core Network Swap APEC Broadband Study NGN Migration Strategy Mobile Market Entry Strategy Billing Outsourcing Support Internet Traffic Analysis Billing System Tendering Rural Telecommunications –12– Content 1. Detecon – Who we are? 2. OTT – The Telco Challenge 3. Regulatory Take Away –13– © Detecon The Telco Challenge Core Telco markets are shrinking. As a result the pure access and transport business case becomes negative – and broadband goals might fail to achieve the targets. The Telco Challenge What does it mean for national Telco markets?