The ultimate death of voice - WeDo Technologies · 2018-01-15 · OFFER TELCO ASSETS / CAPABILITIES...

DISCLAIMER: This document has been prepared by Delta Partners ("DP"). This material must not be copied, reproduced, published, distributed, passed on or disclosed (in whole or in part) to any other person or used for any other purpose at any time without the prior written consent of DP

The ultimate death of voiceImplications for TMD service

Lisbon, May 2015

2

DISCLAIMER

" By accepting this document, the recipient agrees to be bound by the following obligations and limitations.

This presentation has been prepared by Delta Partners Corporate Finance Limited (“DPCF”) for the exclusive use of the party to whom DPCFdelivers this presentation (“Recipient”). The information in this presentation has been obtained from the Recipient, third party licensors(described below) and publicly available sources and has not been independently verified by DPCF or any of its directors, officers, employees,agents, representatives (each a “Representatives”), advisers or any other person. No representation, warranty or undertaking, express or implied,is or will be given by DPCF or its Representatives as to or in relation to the accuracy, completeness, reliability or sufficiency of the informationcontained in this presentation or as to the reasonableness of any assumption contained therein, and to the maximum extent permitted by law and,except in the case of fraud, DPCF and each of its Representatives expressly disclaims any liability which may arise from this presentation and anyerrors contained therein and/or omissions therefrom or from any use of the contents of this presentation.

This presentation should not be regarded by the Recipient as a substitute for the exercise of its own judgment and the Recipient is expected torely on its own due diligence if it wishes to proceed further. The valuations, projections, estimates, forecasts, targets, prospects, returns and/oropinions contained herein involve elements of subjective judgment and analysis. Any opinions expressed in this material are subject to changewithout notice and may differ or be contrary to opinions expressed by DPCF as a result of using different assumptions and criteria.

This presentation contains forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because theyrelate to events and depend on circumstances that may or may not occur in the future and therefore such statements should not be relied upon.Any estimates or projections as to events that may occur in the future (including projections of revenue, expense, net income and stockperformance) are based upon the best judgment of DPCF from the information provided by the Recipient and other publicly available informationas of the date of this presentation. Any statements, estimates, projections or other pricing are accurate only as at the date of this presentation.There is no guarantee that any of these estimates or projections will be achieved. Actual results will vary from the projections and such variationsmay be material. DPCF gives no undertaking and is under no obligation to update these forward-looking statements for events or circumstances thatoccur subsequent to the date of this presentation or to update or keep current any of the information contained herein and this presentation is nota representation by DPCF that it will do so.

This presentation has been prepared solely for informational purposes and is not to be construed as a solicitation, invitation or an offer by DPCF orany of its Representatives to buy or sell any securities or related financial instruments or any of the assets, business or undertakings describedherein. The Recipient should not construe the contents of this presentation as legal, tax, accounting or investment advice or a personalrecommendation. The Recipient should consult its own legal, tax and financial advisers as to legal, tax and financial matters concerning anytransaction described herein. This presentation does not purport to be all-inclusive or to contain all of the information that the Recipient mayrequire. No investment, divestment or other financial decisions or actions should be based solely on the information in this presentation.

This presentation has been prepared on a confidential basis solely for the use and benefit of the Recipient. Distribution of this presentation to anyperson other than the Recipient and those persons retained to advise the Recipient, who agree to maintain the confidentiality of this material andbe bound by the limitations outlined herein, is unauthorized. This material must not be copied, reproduced, published, distributed, passed on ordisclosed (in whole or in part) to any other person or used for any other purpose at any time without the prior written consent of DPCF. DPCFspecifically prohibits the redistribution of this material and accepts no liability whatsoever for the actions of third parties in this respect.

By accepting this presentation, the Recipient acknowledges and agrees that DPCF is acting, and will at all times act, as an independent contractoron an arm’s length basis and is not acting, and will not act, in any other capacity, including in a fiduciary capacity, with respect to the Recipient.

This document contains information obtained from third party licensors such as S&P Capital IQ. Reproduction and distribution of third party contentin any form is prohibited except with the prior written permission of the related third party. Third party content providers do not guarantee theaccuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for any errors or omissions(negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. Third party content providers give noexpressed or implied warranties, including, but not limited to, any warranties of merchantability or fitness for a particular purposes or use. Thirdparty content providers shall not be liable for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequentialdamages, costs, expenses, legal fees or losses (including lost income or profits and opportunity costs) in connection with any use of their content.Such third party data may consist of credit ratings which are statements of opinions and are not statements of fact or recommendations topurchase, hold or sell securities. They do not address the suitability of securities or the suitability of securities for investment purposes, andshould not be relied on as investment advice.

...I cannot be held responsible if predictions are not materialized in the next years (Please do not 'bet the farm' based on them)...

A disclaimer before we start......and some most relevant zoom-ins (for those who sit in the back)

...with full confidence I can guarantee the probability of our predictions materializing between 0% and 100%...and we still believe that's the best in class result...

...I reserve the right to answer “honestly, I do not know”…and even more if do not know the answer...

3

THE ULTIMATE DEATH OF VOICE

"We (telco) are not sexy anymore”

4

MAKING TELCOS LESS RELEVANT TO THE END USER AND REDUCING THE BUSINESS TELCOS ARE ABLE TO CAPTURE

7%

38%

9%

Revenue per user $20 $22 $30

Addressed by telcos $16 (82%) $14 (64%) $14 (46%)

3%

28%

5% 41% 12%

23% 34%

2%

13% 3%

60%12%

70%

1 Global average 2 US/UK today; Source: Ofcom, Nielsen, Morgan Stanley Research, Delta Partners analysis

20202201512010

Traditional comms (voice, SMS) Connected people Media Transaction/Financial Data connectivity

5

Examples - 2015

A B

AttachmentQuality of life contribution

Brand meaningful score by sector

Finance & Insurance

Oil & Energy

Travel & Tourism

Auto

Beverages

Media

Public Transport

Telecom

Food Retail

Consumer Goods

Digital

3.5

3.6

3.7

3.8

3.9

4

4.1

4.2

4.3

4.4

4.5

3.25 3.5 3.75 4 4.25 4.5

Att

achm

ent

A

Quality of life contributionB

Digital

2010Telecoms

2010

2015

2015

70%

AS A RESULT, WE (TELCO) ARE NOT SEXY ANYMORE

71%

23% 17%

Source: Havas Media; Delta Partners analysis

6



There is a big party going on…and everyone’s invited

7

MAJOR TRENDS ARE TRANSFORMING THE INDUSTRY

Ubiquitous affordable Bandwidth

Large number of Interconnected devices (IoT)

OTT space driven

by B2C

1

24

"Always on"

Cloud is becoming a

reality

Customer imperative

3

8

THERE IS A BIG PARTY GOING ON - THE TMD VALUE CHAIN IS GETTING MORE COMPLEX...

Source: Delta Partners analysis

Network IT

TMD value chain

Device

Connectivity

Internet of Things

Cloud

Content Transactions

Commerce

Search & Advertising

Mediation

9

MULTIPLE TELECOM, TECH AND SERVICE COMPANIES ARE FIGHTING FOR A PIECE OF THE VALUE CHAIN

Network IT

TransactionsContentConnectivity

Bus

ines

sC

onsu

mer

Devices

Mediation Internet of Things Cloud

Search/Advertising Commerce


10

TELCOS MOVE INTO AREAS THAT ALLOW THEM TO PUSH MORE TRAFFIC TO THEIR NETWORKS

NON-EXHAUSTIVETrend Recent examples (2015-2016)

Network IT

Device

Connectivity

Internet of Things

Cloud


Commerce


Mediation

Verizon to Proceed With Yahoo Bid, Google Weighs Offer

Verizon Completes Its Acquisition of AOL For $4.4BComcast buys French startup StickyAds to

build out its digital video business

Comcast in Talks to Buy DreamWorks Animation for More Than $3 Billion

Philippine telecommunications firm PLDT, through unit Voyager Innovations, bought Singapore-based ecommerce startup Paywhere for US$5 million

Verizon's AOL to Buy Millennial Media for About $250 Million

Singapore Telecommunications (Singtel) is acquiring an additional 30.2% stake in MassiveImpact (leader in performance mobile adverti)

Sweden's TeliaSonera Confirms $115M Investment In Spotify

Singtel signed an agreement to acquire a 98% equity interest in US-based Trustwave, a leading specialist in managed security

Source: Reuters, Bloomberg, TechCrunch, Forbes, Delta Partners analysis

11

IT AND NETWORK VENDORS ARE FIGHTING TO PROVIDE SOLUTIONS TO TELECOM OPERATORS AND EXPAND

Source: Reuters, Bloomberg, TechCrunch, Forbes, Delta Partners analysis


Nokia Launches $16.6 Billion Offer for Alcatel-Lucent

Dell Buys EMC For $67B In Largest Deal In Tech History

Ericsson and Cisco Strategic Deal Projected To Bring Each $1B More In Sales By 2018

Cisco To Buy Jasper Technologies For $1.4 Billion

Ericsson has acquired software and services companies for the last 5 years

Huawei unveils its Softcom strategy for network / IT cloudlisation and virtualization

Cisco purchased INTUCELL (SON vendor able to manage multi-vendors RAN network) and UBIQUISYS (indoor small cell solutions)

Alcatel-Lucent's global frame agreement with Telenor covers multi-vendors implementation including contextually aware network monitoring, performance, media optimisation, traffic steering, IT hardware and Big Data

Oracle spent $2.5bn in two network-tech acquisitions: Acme Packet (hardware and software managing IP voice and video transmission) and Tekelec(PCRF)

Amdocs purchased Bridgewater (Policy management) and Actix (RAN real-time analytics and optimisation)

Network IT

Device

Connectivity

Internet of Things

Cloud


Commerce


Mediation

12

OTTS ARE SCATTERED ALL OVER THE VALUE CHAIN DRIVING THE EVOLUTION OF THE DIGITAL ECOSYSTEM



Network IT

Device

Connectivity

Internet of Things

Cloud


Commerce


Mediation

Alibaba Reaches Deal to Buy Youku Tudou

LinkedIn buys Lynda.com for $1.5 billion

Naspers Takes Control of Russia's Avito in $1.2 Billion Purchase

The InMobi Acquisition Will Help Google Take On Facebook

Amazon in talks to buy online luxury retailer Net-a-PorterAlphabet's (formerly

Google) made a $1 billion investment into SpaceX

Rakuten Leads $530M Investment In Lyft

Magic Leap (AR startup) raises $793.5 million from Alibaba, Google, Qualcomm

PayPal-Xoom Deal Shakes Up the Payments World Alibaba Group Holding Ltd.'s

finance affiliates have joined the group seeking to buy out Momo

13

IT'S LIKE A BIG PARTY HAPPENING NOW...AND EVERYONE IS INVITED

14




Do you wanna dance or 'pipe'?

15

TO MAINTAIN THEIR RELEVANCE IN THE NEW DIGITAL ECOSYSTEM, TELCOS NEED TO ANSWER 2 CRITICAL QUESTIONS

Extended TMD value chain

Connectivity Devices / aggregation Content / services / apps

Building the 'telco of the future‘

How to maximize shareholder value from the core business?

A

How to capture part of the digital value creation?

B

16

TRANSITION TOWARDS DIGITAL TELCO




AHow to capture part of the digital

value creation?

• Regain relevance with end customers (from selling minutes/Mb to selling digital experiences)

1

17






value creation?


1

• Offer telco assets / capabilities to digital players and enable them to improve customer experiences

2

18

OFFER TELCO ASSETS / CAPABILITIES TO ENABLE DIGITAL PLAYERS

Operators' infrastructure, insights of customers and the capability to reach customers can enable digital players to provide better services in multiple ways

2

Access to million of subs

Payment relationship

Profile / behaviour

Own shops / POS

Network / other infrastructure

Insi

ghts

Rea

chIn

fra

Tele

com

ass

et e

nabl

emen

t

Enablement services offered to digital players

Customer profiles identification

Advertising Customer care

Logistics and distribution

Financial service platform

QoSSecurity / authentication

Cross-platform integration

Behavior tracking / contextual info

Telecom operators assets

19






value creation?


1


2

• Transform old factories to deliver IP centric services with the right quality and lowest cost

3

20

TRANSFORMATION OF OLD FACTORIES

To become a provider of amazing digital experiences, telcos will need to succeed in transforming their infrastructure/capabilities

3

Network IT platforms Offer Channels Customers

Provide the right quality and fastest time

to market at lowest cost

Analytics

Turning into an Analytical Organization

Anticipate and tailor customer needs at

minimum cost

Zoom-in on following slides

21

External world

Our worldAnalytical intelligence

Reporting / Dashboards

Analytics – R&D

. . .

CRM

HLR

DPI

External sources & third party APIs

Management

Decision making

IT execution andfulfillment

Our clients Smart BI

Third parties

Commercialization

Third partexecution

Traditional Data Management frameworks

Big Data frameworks

Turning into an analytically driven organization

22





How to capture part of the digital value creation?


1


2

• Transform old factories to deliver IP centric services with the right quality and lowest cost

3

B

• Build an ecosystem of partnerships with digital players across verticals in both consumer and enterprise

4

• Consider investing in leading players in relevant verticals, do not compete creating own services

5

23





24

DIGITAL TELCO – SKILLS TELCO CANNOT FAIL TO DEVELOP IN TIME

• Next Gen Network– Collaborative, evolved, converged

• Next Gen IT– Horizontal platform enabling 3rd party systems/API

• Enablement of Partners and different business models• Delivering of a seamless Customer (digital) integrated experience• Analytics-driven operations

• New digital product ecosystem• Ability to integrate a large number of Partners• Personalisation and contextualisation

CORE INFRASTRUCTURE

OPERATIONS

&CAPABILITIES

OFFER

25

SOME ILLUSTRATIVE TRADEOFFS

Dividend VS Stock appreciation

Network engineers VS Software engineers

Own innovations VS Outsourced innovation

Traditional channels VS Digital channels

Benchmark VS Immersive design

Marketeers VS Data scientists

Privacy VS Awareness

26

THE ULTIMATE QUESTION

MANAGING EVOLUTION

27

KEY TAKEAWAYS

...but can still look pretty

...so let’s go there before they run out of drinks

...yet dancing requires a different set of skills




THANK YOUAlberto PamiasManaging Partner

Delta Partners

[email protected]

The ultimate death of voice - WeDo Technologies · 2018-01-15 · OFFER TELCO ASSETS / CAPABILITIES...

Documents

Transcript of The ultimate death of voice - WeDo Technologies · 2018-01-15 · OFFER TELCO ASSETS / CAPABILITIES...