Bridging The Digital Divide

 
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Bridging The Digital Divide
Bridging The Digital Divide
Bridging The Digital Divide
Digital Seismic Shift in Developing Asia:
Asia now account for 1.87 billion internet users, which is 50% of global base.
41% of these users reside in South & South East Asia

•   Internet penetration in   •   1.4 billion users of          •   1 trillin industry in Asia
    S&SE Asia now at 35%          mobile broad band      (37%
                                  of Asian Base)                    Pacific by 2017
                              • 2.4 billion users by            •   Current Growth rate
                                  2020
•   56 X increase between
                              •
                                                                    24% YoY
    2000 and 2017
                                  3+ Billion Smartphones
                                  by 2020
                                                                •   Mobile broadband
                                                                    primary contributor
Bridging The Digital Divide
Societal Impact of Digitization:
We clearly see the impact of digitization on the economy, equal opportunity for
the population and innovation
 Forecasted annual Data traffic trend
       till 2018 in Asia Pacific
                                        •   Empirically proven impact on economic output and Job creation
                                               • US$ 1.2 trillion by 2020 in Asia/SE Asia GDP
                                               • 35 million new jobs by 2020 (all sectors)
                                        •   10% increase in Broad band penetration raises the GDP by 0.26% -
                                            1%

                                        •   Reducing the gender divide. Digital economies are known to
                                            increase women participation in the work force
                                                •   10% increase in women entrepreneurship in Pakistan
                                        •   Empowerment for small business and sole proprietors through Dis-
                                            Intermediation

                                        •   Rise in platform businesses regionally as well as country specific
                                               •    Careem, Ali BaBa , Sales Stock (online fashion store), OLX
                                               •    Pakwheels.com, zameen.com
                                        •   Increase in Peer to Peer exchange on social networking sites
                                        •   Monetization shifting from advertising to e-commerce
Bridging The Digital Divide
How is Telenor Group addressing the digital revolution in Asia
              Pakistan | Bangladesh | Myanmar
Bridging The Digital Divide
2017          2020          2017          2020              2017
  USD                                       USD                46.0M
              USD 1B        USD 44M
 100M         E-Commerce                   500M         Mobile phone Subscription
                            E- #Market    E-Commerce
E- #Market       Market
                                             Market

                                                                85%
 29.5M         83.9M          8.6M         14.0M
Smartphone    Smartphone    Smartphone    Smartphone    Mobile phone Penetration
penetration   penetration   penetration   penetration

                                                                35%
    27 X Growth in                                         Mobile Broadband
     3G/4G market                                            Penetration
   between 2013 and
         2016
Bridging The Digital Divide
Value Addition:
Telecommunication networks build the necessary eco systems required to connect and
empower people to reach out to the world faster and at the right cost

• Infrastructure Development
    • Less developed areas
• E-Commerce
    • Payment Solutions
    • Dis-Intermediation
• Entrepreneurship
    • Providing the platform
    • Seed capital
Bridging The Digital Divide
Telenor Pakistan alone has contributed to US$ 14.5 billion to
        the National exchequer between 2003-2016
                (http://www.pta.gov.pk/index.php?option=com_content&task=view&id=269&Itemid=658)
Bridging The Digital Divide
Infrastructure Development:
   The most fundamental roll is infrastructure development both technical as well as the
   distribution network. This provides the necessary reach for digital development

• 8000+ 3G sites                • 10,000+ 3G sites                 • 10,000 sites by 2018

• Covering 3500 Cities          • Covers 99% of the area           • Covers 85% of the area

• 200,000 Retailers             • 350,000 + Retailers              • 85000 + Retailers
   Universal services fund
 initiative to serve the low
  population density areas
Bridging The Digital Divide
Universal services fund:
The aim is to serve the under served, low population density areas where it is not
profitable for the private businesses to invest

 •   Operates in the area of
        •   Telecom Services
        •   Broadband
        •   Fiber-Optic
 • Telco’s typically contribute 1.5% of revenue to
     the fund
 •   USF is a public/private partnership initiative

                                                      •   Baluchistan, which is 41% of the area of Pakistan but only 5%
                                                          of the population

                                                             “Any Locality with 100 Houses will get connectivity”
Bridging The Digital Divide
E – Commerce & Payments:
      Development of the eco system which enables exchange of goods and services in a
      secure and swift environment

    Pakistan’s First Mobile
       Banking Service

•   80,000 + out lets (approx.
    2.5M + Nationwide)                                           •   Pioneering the market
•   1 Million + Active Mobile                                    •   15000 Outlets
                                   •   Brand Partnerships        •   80% market not served
    accounts
                                   •   60,000 outlets                currently
•   Targeting 85% of the un-
    banked market of Pakistan
International tech companies ike Rocket Internet acquiring Pakistani e commerce start
up daraz.pk.
Telenor Partnering with Daraz.pk to enable digital black Friday in Pakistan
Entrepreneurship and Digital Verticals:
     Enabling and investing into the platform business of tomorrow to ride the
     disruption curve. Focusing on digital verticals for dis-intermediation

                             Dis- Intermediation of
                             the agriculture sector

4.5% Dilutable Equity

•   11 Start-ups graduated                            •   600 Applicants
•   US$ 645,000 funding                               •   25 Local Start-ups Selected
M-AGRI
Platform:
 Over 3Million inbound subscribed Farmers

 Regional Language: Urdu, Punjabi & Siraiki

 Over 30 million minutes utilized monthly

 Over 14 million incoming calls monthly

Future:
   Financing through Telenor Bank
How should the policy makers react to this
                digital shift

Approach with an open mind

Understand and Accept this digital shift

Regulate and Promote (Taxation Regime???)

Predictable and transparent business environment

Simplify investment process in infrastructure projects
Thank you
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