1. Telco Trends & Challenges “Monetize & Digitalize” By: Yulianus Division Head MIDI Pricing

2. AGENDA 1 Trends & Challenges in telecommunication industry in global market 2 Trends & Opportunites in Indonesia market 3 Indosat : Adapting to the changes

3. 1 Trends & Challenges in telecommunication industry in global market

4. Telecommunication Evolution Past, Present & Future

5. Computing Evolution Past, present & future

6. Telco Now : Entering the digital era Technology is changing rapidly, changing lifestyes, and growing the mobile devices adoption with broadband-enable that has made access to the digital world Development of mobile application generate the traffic of data service Impact of digitalization continues to drive telecommunications operator try to monetize their infrastructure investments and exploding data traffic

7. Over The Top Players are growing & expanding The “over-the-top” (OTT) players such as Akamai, Facebook, Youtube and Google generate the revenue by riding on telecom network infrastructure. Facebook launched internet.org Google launched 180 satellites More are coming….

8. 2 Trend & Opportunity in Indonesia market

9. Trend in Indonesia Market The beginning of Digital Business E-commerce is now taking off : Tokopedia, bukalapak, mataharimall, olx, lazada, etc. E-money : Dompetku, T-Cash, XL Tunai, Doku, Finnet, Mynt, etc Direct Carrier billing payment (fir digital goods) : Indosat, Tsel, XL.

10. Opportunities for Indonesia Telco Operators Digitalize over 250 million mobile customer Digitalize over 56 Million of UKM Telco become non banking finance institution (64% of population are still unbankable ), e-money, carrier billing payment, etc. Monetize LTE with proper data plan

11. – Telco Products & Service : Machine can act (M2M) Internet of everything Solution based on vertical Over The Top (OTT) Smart city / nation Big data Cloud computing – Telco Infrastructure : Fixed Broadband / FTTx Long Term Evolution (LTE) Evolved Packet Core (EPC) Service Defined Network (SDN) / Network Function’s Virtualization (NFV) IP Multimedia Subsystem (IMS) Telco’s Products & Infrastructure

12. What is the challenge? Infrastructure : Telco providers need to shift from legacy voice-centric strategies to data-driven plans. Data Centric Network Differentiated Service Access agnostic service Agility in Process  less adaptive to customer experience journey People skills set  Lack of competency Regulation to support industry growth  Lack behind. Strategy to compete with OTT Player (Google, Facebook, Youtube, Twitter, etc) Effective way to control the cost

13. Infrastructure : Telco providers need to shift from legacy voice-centric strategies to data-driven plans. Data Centric Network Differentiated Service Access agnostic service Telco provider should look at expanding their data-carrying capacity to provide superior service Challenge – Infrastructure Readiness

14. Less adaptive to customer experience journey Building awareness to understand customer behavior & Navigation Support and communication to address the transformation Challenge – Agility in Process

15. Lack of competency Skill set transformation move to ip centric (Digital) Build Knowledge in virtualization, Apps, and Operating System Build Knowledge in Digitalization Challenge – People skills set

16. Challenge – Regulation to support industry growth Spectrum Managers in countries around the globe today face strong pressure to free up more spectrum for broadband wireless network access, Regulators are scrambling to find more spectrum for wider channels and greater throughput available with advanced wireless technologies such as Long-Term Evolution (LTE) Regulation in finance intuition (e-money)

17. Challenge – Strategy to compete with OTT Player The “over-the-top” (OTT) players — video, audio, and other services such as Facebook and Youtube that piggyback free on telecom systems — are gaining in number and popularity, making the traditional operators’ task that much more difficult Telco operator should have strategy plan to compete and grab the revenue

18. Challenge – Effective way to control the cost With all the new service rollouts happening and changes taking place, operators must be sure to control the costs of the current solutions so they can invest in what’s coming next. Developing scalable services now can help manage future costs, since operators will be able to react rapidly to market changes.

19. 3 Indosat : Adapting to the changes

20. Enter the digital business (IWIC, IdeaBox, Dompetku, IMX, Direct Carrier Billing, etc) Deploy and monetize 4G LTE (Super 4G-LTE) Develop new stream M2M, Smart City / Nation, Cloud based B2B & Enterprise focus to industry vertical solution : Know the customer need. Indosat Product Portfolio

21. Development of Machine-to-machine (M2M) BASIC CONNECTIVITY Indosat Infrastructure M2M Applications Service Capabilities Client Application M2M Area Network M2M Devices Gateway Direct Connection M2M ENABLING PLATFORM & SERVICE DELIVERY M2M SERVICE MANAGEMENT M2M SERVICE PROVIDER

22. Source : http://www.strategyand.pwc.com/perspectives/2 015-telecommunications-trends Trends in Telecommunication Reform 2015: Getting ready for the digital economy 2015 http://www.itu.int/pub/D-PREF-TTR.16-2015 http://www.itu.int/pub/D-PREF-TTR.16-2015 http://www.telco- ott.com/opinions/2013/06/five-major- challenges-for-telecommunications-providers/ http://www.telco- ott.com/opinions/2013/06/five-major- challenges-for-telecommunications-providers/

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