International Telecom Industry’sChallenges & Opportunities

2017 - Onwards1

S.G.Bleivik/CEO Dec16 www.tarec-in.com

What may be the CSP's future

Selling services or products?

Are OTTs an opportunity or a threat?

Is the broadband business model broken?

CSPs to vertically integrate or disintegrate?

Migration towards becoming an internet player?

How to capture reasonable revenue share from bandwidth demanding data stream contents?

Partnerships with OTT players are being initiated

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Challenges & Opportunities

How to meet the increasing bandwidth demand in access/core from internet related services. WiFi/LTE ?

LPWA-type networks may prove a strong competitive force to cellular networks, due to M2M/IOT demands

Some issues are not in the hands of the CSP, but still will influence their business. Regulation of internet?

How to influence Regulator to be proactive towards upcoming obstacles for the business (Spectrum etc)?

Multiple challenges requires creativity & initiatives!

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Identifying Potentials

External flexibel partnerships required to developCSP's business and increase revenue. Tailoring of services need to cater for partners business models

Internal efficiency, priorities, improved processes, ensured reliability and quality, customer orientated

Revenue & margin protection, in the context of competition and rapid declining ARPU. How to attract new revenue generating services?

Creation of new stricking and trendsetting service(s) (sms copy-cat), capture market advantage by intro of Artificial Intelligence based services?

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Fulfill Market Expectations

Clean/green power supply in off-grid areas

Energy Efficiency & off-peak Power-Save

Infrastructure and O&M resource sharing

Upgrade & Intro of latest technologies/services

ISO certified Recycling of obsolete assets

Avail-/Reliability of access & services

Willingness to subsidize expensive devices

Provide swiftly user’s desired new services

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CSPs transforming into an openPlatform Service Company

Transition from HW-centric, closed dedicated network equipment to SW-centric, open, scalable and programmable network functions will allow easy commissioning and modification, which will enable efficient operation and swift service creation for demanding users.

NFV technology as Radio/Core/Transport Network Functions and Operation Supporting Functions permit users to modify, reconfigure and redesign freely all conventional telecom networks and services.

SDN architecture will introduce four planes; the Radio/User/Control and Data Management Plane. The new Telco function composition.

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Check Partner’s capabilities athttp://www.alepo.com/

Modernizing Production Platform

BSS Transformation

LTE evolution & WiFi offload

SDN & NFV network transformation

Prepaid & Roaming Data Monetization

(PCRF) Policy & Charging Rules Function

Quick enabling of user requirements & ROI

Technology Agnostic Solutions to meet customer demand ofeverywhere coverage max speed/quality/reliabilty/security

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Check Partner’s capabilities athttp://www.alepo.com/

Authority Dependencies

Regulator License framework, changing the «game»:

Intro of EU General Data Protection Regulation (GDPR)

Availability of Spectrum, also 5/6GHz for 5G

Policy on Net Neutrality, POIs, IGW

Numbering Plan cap/structure

Licensee Policies, old & new

Infra/power sharing

Environmental issues

Geopolitical moves into protectionism?

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Supplier Dependencies

Decreasing # of OEMs = Competition & Price impact

HW technology & SW releases

SDN & NFV Technologies

OpenStack Open Source cloud computing SW

Network functionality & User Services

Upgrades/Migrations

Time to market

Price model/strategy

Technology/Vendor Agnostic Strategy?

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CSP’s Generic Challenges

CSPs everywhere, the future has "catch-22" written all over it.

With technology evolving in every direction, business models under threat and increasing security issues, network operators are obviously at a critical juncture. Need to Redesign internet?

Upcoming new technology providing seamless roaming to WiFi will offload 4G traffic and revenue

Services realized on Obsolete gear must shift to Cloud based -as for all new services, to enable quick time2market and RoI

Keep Top20 customers, value subs and reduce churn

Will balloon/drone based SkyNet appear offering broadband services any/every-where, energized by RFCS & solar-power?

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How to cater for peaked traffic (and still earn revenue )

Global mobile data traffic nearly twelve times greater than total global Internet traffic in 2000

4G connection generated ~20 times more traffic on average than a non-4G connection in 2013

Smartphones represents >20% of total global handsets in use, but <90% of total global traffic

2/3 of global mobile data traffic - video by 2017

Avg usage/month; 7GB mobile data per user 2016

WiFi networks (e.g. hyMesh) may offload RAN as VoWiFi may counteract declining revenue from users on OTT networks

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Check Partner’s capabilities athttp://www.inovatian.com/hymesh/

Infrastructure Challenges

G.fast tech to deliver C(cloud)-RAN, 150-200 mbps over Cu

Serving quality broadband services in dense populated areas

Utilize latest WiFi tech (hyMesh) as complementary to LTE

Implementation of Interoperability for VoLTE & VoWiFi

OPNFV technology introduction and deployment

LTE signaling traffic predictions and Next-Gen DSC intro

Network Slicing accommodation by Next-Gen Mobile Core

RFCS (FuelCell) tech complementing clean power supplies

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Check Partner’s capabilities athttp://www.inovatian.com/hymesh/

Focus Backhaul Capacity/Efficiency

Backhaul planning is needed for long-term strategic investment opportunity to enhance customers Experience of Quality in a future-proof LTE backhaul net

Enabling network capabilities is required to meet demand through smart/flexible solutions for backhaul, Introducing hyMesh Multi-channel and SDN

Shared Backhaul the future of transmission?

LTE-Evolution Carrier Grade Aggregation

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Check Partner’s capabilities athttp://www.inovatian.com/hymesh/

Technology Challenges

New Technologies

LTE, NFV, SDN, SmallCells, MultiAccesTech

The Big SwitchOff

Legacy mobile & fixed infra, copper networks

Asset Recovery & Spares Mgm

Re-use/-sale/-furbish/-cycling

Migration path(s)

2/3-4/5G ? Skip technology transition steps?

WiFi off-load serving interim and long term co-exist?

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Reliability Challenges

Cyberspace

Opportunity for terrorists and criminals

Data Security

Encryption, Hacking, Virus, data Tsunami

Network

GDPR, Availability, Failure-ratio, Interrupts, Downtime

Operational

Fire, Terror, Revolution, War, Nature catastrophy

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Environmental Challenges

Energy-consumption, smoothen & minimizing

Utilize green & clean renewable energy

CO2 emissions, carbon footprint

Air Pollution, decrease radiation

Site selections rural, local impact

Antenna & tower placements

Indoor coverage urban

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Traffical Challenges

Design and optimize network configuration

Tools to model and test network routing & caps

Maximize utilization of NE’s & infrastructure

Predict future traffic growth well in advance

Smoothen traffic peaks (use of tariffs etc)

Max throughput by flexibility & efficiency

Establish infrastructure & NE redundancy

Strengthen ability to handle catastrophy events

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Check Partner’s capabilities athttp://kloudspun.com/

Optimizing Technology shifts

Pre-RFQ planning of Roll-In part of swaps

Maximize ROI, profit from obsolete products

Scalability in replicating technology/models

Minimize hands-on of Roll-In process

Ensure high quality on Inventory base

Minimize interim storage of Roll-In products

Decom process according to salable or scrap equipment

Meet Environmental Goals and KPIs, introduce SON

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Check Partner’s capabilities atwww.dtc-telecom.co.uk

Add Revenue, Deduct Opex

Appoint Reverse Logistic responsible to achieve Excess Assets Control in swap projects

Last minute Roll-Out with re-use products

Roll-In and Reverse Logistic efficient process

Early determination of re-sale/scrap products

Ensure 1-touch strategy, avoid own stocking

Revenue from product and raw material sales

Reduce opex by admin & logistic efficiency

Follow TAREC-IN Roll-In «ARS Guidelines»

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Check Partner’s capabilities atwww.dtc-telecom.co.uk

New Services Opportunities

Smart Cars/Homes/Factories/Cities – parking and streetlight control, M2M alarm & tracking services, transport, public safety/medical, exploding IoT devices

Canibalism services, mobile-IP, VoLTE, VoWiFi

Holographic conference calls (TeleHuman & Bodipodwith 3D graphics) & Video (LTE-based) calls

Big data as business intelligence (again)

Mobile Web overtakes PC Web – Lowcost Smartphone

Mobile commerce & banking is finally becoming a thing20

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CSP's Opportunities

Identify/Develop/Deploy new services leveraging network infrastructures, customer relationships & billing/servicing capabilities. Utilize the NFV predicted breakthrough.

Develop new skill sets bringing innovative services to the marketplace - in partnership with disruptive innovators

Position as the infrastructure and go-to-market partner for young, innovative companies, e.g., Whats App

Embracing an "open platform" for delivering Next-Gen information services to customers will depend upon the ability of CSPs to engage, on a sustainable basis, with startups 21

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Provisions through established Satellite Corps:

Finance, Banking, Insurance, Advertising

Health (remote consultancy/surgery)

Education (remote school/university)

SMB concepts for Global business

M2M mobile computer based services

Mobile Web-design

Voice search

Cloud services22

Potential New Services

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Potential Success Factors

Environmental friendly operation

Market based Services & Competetive tariffs

Innovative New Services & Minimized Time2Market

Bandwidth/speed with Availability & Reliability

Comunity & Business oriented services

Optimized utilization of infrastructure Assets

Explore new & alternative revenue generators

Cost control & efficiency, minimize op-/capex

Cross Market Mergers, Partnering w/Media&Content23

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What’s the New Mega Trend

Who will be able to introduce the next traffic and revenue generating service - voice/video/data based?

• «Chat/Video group-conferencing» F2F to celebrities, pop/film-stars, sports-atleets, politicians ?

• Data services, M2M, ConnectedCars, Transport, Surveillance, location-based, m-payments, etc?

Look outside of your organization to follow up on the coming paradigm shift in services

Find potentials within innovative business environments and start relationships for cooperation

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GOOD LUCK in 2017 & ∞

THINK OUTSIDE OF THE BOX

INCLUDE NON PROFESSIONALS

DISCUSS OUTSIDE THE «FAMILY»

INTRODUCE EXTERNALS

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TAREC-IN AS & Global Partners

Visit our web-site and check out products and services that may improve your business http://tarec-in.com/

• WiFi technology & VoWiFi service http://www.inovatian.com/hymesh/

• Monetize data & mobile networks http://www.alepo.com/

• Planning & Optimizing networks http://kloudspun.com/

• Asset Recovery - Reverse Logistics http://www.dtc-telecom.co.uk/

All available through:

www.tarec-in.com

ONE-STEP-AHEAD

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S.G.Bleivik/CEO