High expectations for MWC17 were met as the event had in excess of 100,000 visitors for the first time. Whilst there was plenty of buzz, at PwC we were hard at work trying to separate hype from signs of long-term value for our clients. We hosted many of you from SE Asia this year – more than even before. Here are our 5 key take-aways from MWC17.
We launched the PwC Five trends for South East Asian telecoms in 2016, having established the concept originally for the India market in 2011, where the five trends is now approaching its 7th year and is an established annual statement. The five trends takes stock of the year and looks ahead to the next. To keep ourselves honest we look back every year at how we did with the current year’s prediction and our predictions for five key trends in telecoms in South East Asia in 2017.
Communications operators are among the most data-rich of all businesses, with opportunities to capture and store a vast array of potentially valuable customer data. Yet to date they have not capitalised on their “big data” assets as fully as they could. The underlying reason lies in the difficulty of turning an operator’s diverse mass of data into useful insight – a task that depends critically on having data that’s trustworthy, timely, and of consistently high quality. To achieve these attributes, operators need to build a data quality competency – a dedicated, specialised organisation responsible for maintaining, safeguarding and ensuring the quality of data across and beyond the enterprise. In a world where business decisions are increasingly dependent on data, building such a competency is critical. In this article, we examine the practical steps that operators can take to get their data fit for purpose.
Where Chinese businesses were once derided as copycat innovators, the leading digital players have now developed into world-class trendsetters at the intersection of eCommerce, mobile and social technologies. In addition to the large cap firms like Baidu, Alibaba and Tencent (BAT), PwC’s analysis shows that Venture Capital (VC) investment value in China-based internet businesses was worth USD20 billion in 2015, exceeding that of the United States (USD16 billion) for the very first time.
The corporate world at large is moving quickly to capture the benefits of digitization. Yet the telecommunications industry itself, while enabling its business customers to digitize their activities, has lagged in its efforts to move in the same direction. Struggling with outmoded IT systems, siloed organizational structures, and pre-digital corporate cultures, telecom operators have allowed faster competitors, notably the so-called over-the-top players, to gain the upper hand by offering better and wider-ranging services and more compelling customer experiences.
All is not lost — at least not yet. But if telecom operators are to catch up, they must first radically lower their total cost bases, simplify their product offerings, and devise better customer experiences. Then they must settle on their digital strategy and develop a much wider range of digital services for their customers, business and consumer alike. They will need to rethink the way they innovate to become much more agile and open to working with third parties. Finally, they need to engage more fully in the ongoing consolidation of their industry to generate scale, combine networks and infrastructures, and offer true fixed–mobile convergence, the basis of any effort to improve the customer experience and create the products and services their customers are now demanding.
The Internet is one of the most transformational technological innovations in human history, similar to the invention of movable type, the electric motor, radio, or television. Yet at the beginning of 2016, only an estimated 3.2 billion people — 44 percent of the world’s population — are online and connected to the digital economy. The Internet’s truly revolutionary potential will be unleashed only when the remaining 56 percent are also connected. This will create millions of new jobs, develop vast new markets, and lift millions out of poverty. However, achieving universal access in a timely manner is looking increasingly difficult as Internet growth has slowed down in the past four years. This paper seeks to understand the challenges and identify mechanisms that can accelerate Internet growth and drive universal inclusion.
Over the past thirty years, the center of gravity has shifted in the communication world from fixed to mobile to social media. Whilst fixed line players have conceded relevance in this matter, mobile operators don’t need to, provided they can show customers that they bring essential value to the delivery, security and enrichment of the communication experience.
Transforming into a digital business is the most pressing competitive and commercial imperative facing today’s communications operators—yet their organisational cultures are often perceived as barriers to radical change. However, PwC’s experience across industries including telecoms confirms that culture can be a powerful catalyst for transformational change, and may often be a prerequisite for making it happen. Changing a telco’s culture remains a major challenge, since it is likely to be deeply embedded at several levels—local, national, organisational—and it is rarely ‘changeable’ in any reasonable time frame.
IFRS 16 will fundamentally change the accounting for lease transactions and is likely to have significant business implications. Almost all leases will be recognised on the balance sheet, with a right of use asset and financial liability that recognise more expenses in profit or loss during the earlier life of a lease.
What do travellers find to be the most compelling aspect of hotel loyalty programs? Are the loyalty behaviors of Millennial travellers unique to this age group? How can traditional loyalty programs compete with the increased presence of sharing economy travel options?
Across the world, forward-thinking manufacturers and industrial product companies have made great strides in connecting their products and appliances to the Industrial Internet of Things (IIoT). But succeeding in the IIoT era demands much more than technology connectivity.
Those who make the annual pilgrimage to Mobile World Congress will be familiar with the anticlimax on departure from days of buzzing around the noisy halls of the Fira to return to the routine of office work. But this year the event that drew over 100,000 visitors replaced any feelings of sadness with an urgency around how much work is to be done to get the Internet of Things (IoT) to scale.
Right after taking power, President Jokowi’s administration raised the prominence of technology being in people’s hands, announcing an ambitious vision to create better quality of urban life by harnessing digital technologies. Whilst policy makers grapple with how realistic this vision is, many of us are already “smart” urbanistas, using applications and services to make our lives easier, more fun, informed, and connected.
But which is Indonesia’s smartest metropolis by use of city apps today?
Our 5 key trends is a concise discussion of themes to look for in the telecoms industry in 2016. Intended to be short and thought-provoking, please review it and see if our expected trends match with your views and plans. Our industry experts will be happy to discuss the trends in more detail.
Mobile operators are facing a threat to their revenues as a result of Wi-Fi becoming ubiquitous. But with carrier-grade Wi-Fi, they have an opportunity to close coverage problems and give users a more managed experience. All operators should establish a formal Wi-Fi strategy that explicitly incorporates Wi-Fi into their network road maps.
In this issue of Communication Review, our authors explore how, without Wi-Fi, data services and content wouldn’t be consumed at the levels they are today.
With old certainties fading, telecom execs are increasingly beset by ‘multiples envy’. Not so long ago, senior leadership teams at telecommunication operators (telecoms) knew what was expected of them and how to get it: strong growth in revenue and EBITDA delivered premium EBITDA multiples and investor returns. But times are changing. Some executives are increasingly frustrated because while they may be meeting Wall Street expectations, they aren’t getting the EBITDA multiples they expected. And worse yet, some of their competitors are. The old formula that brought years of success is not working anymore and their frustration grows as they watch while other operators somehow manage to find what eludes them. This ‘multiples envy’ forces them to ask: What are we doing wrong? What do they know that we don’t? And who is missing the key – is it us or the analysts?
One of the greatest challenges in the communications industry is also our greatest opportunity: delivering constant innovation by collaborating with others to drive ongoing growth in revenues. It’s critical for companies to embrace change and create a culture to foster and nurture innovation. We’ve identified learnings from innovative leaders across the ecosystem that companies can apply now with immediate effect.
What do mobile users value most and how much value do they place on what’s being offered to them? With these questions in mind, PwC’s telecom practice in India teamed up with a leading Indian business school to understand consumer value. We think the findings will have operators everywhere thinking from a different point of view about the consumer and the services they offer.
Partner, PwC Indonesia
Tel: +62 21 509 92901
Partner, PwC Indonesia
Tel: +62 21 509 92901
Partner, PwC Indonesia
Tel: +62 21 509 92901