Digital City

We built a Fiber network to destroy

networkscapitalist economic development arises out of the destruction of some prior economic order

29th November 2013

• We went from the board room to the road side.

• Network built and expanding.

• Now we go from road side back the drawing board.

29th November 2013

The scrap heap

The futurePile them high sell them cheap

Destruction

29th November 2013

Creative Destruction

Destruction of one is the food of the otherPC sales will suffer the “most severe yearly

contraction on record” in 2013, falling more than 10% as consumers switch to tablets and

smartphones

Demand for so-called phablets, or oversized smartphones, is playing a part in slowing

tablet growth

29th November 2013

We built 2 Fiber networks already• One to connect Core-to-Core• Another to Connect Sites-to-Core (Spurs to sites)

Next we will build 3 more networks:• One Buildings-to-Core (FTTB) (Planning and Implementation Stages

and impact evaluation)• Public buildings Schools, government entities-to-Core• Fronthaul Remote Radio Units (RRU)-to-Sites (Planning Stage)

Soon we will build another network:• FTTH• And repeat all that above in the rest of Kenya

And beyond the horizon, not very far, National Backbones as no government operated fiber network will deliver Cost Quality and Scale:

• Did not deliver anywhere, won’t deliver here

29th November 2013

Africans by passed the fixed line and went straight to mobile.

By passed the desktop computer went straight to laptops.

Now Africans will by pass the big screen TV and will go straight to tablets.

What has this to do with SDC you may be asking.

Everything is the answer

29th November 2013

Cooperation and competition among differently partitioned sets of actors

Google wants fiber connected to Google Tablets.

Samsung, LG and Sony will lose.

Google developing upstream to capture the whole ads revenues streams.

Google builds fiber in Uganda. http://ictafrica.info/FullNews.php?id=11666

Overall good to have someone prodding the derrieres of the mobile operators who have been just milking voice and SMS and 3G has never raised to its promises.

The smart operators will develop into partners of Google for tablets and Samsung, LG and Sony for smart TVs.

It is not the network.

It is who you are in bed with!

29th November 2013

Why new networks destroys legacy networks?

There was a time when operators compete based on the network they owned.

You remember that time when RF Planners were the kings of the hill

Subcontractors were called ADC (Acquisition Design Construction).

Not any more. The network don’t matter.

And this is good.

What matters today ins who the operator is in bed with

Cooperation and competition among differently partitioned sets of actors http://emnet.univie.ac.at/uploads/media/Albers_Schweiger.pdf

29th November 2013

The Survival of the Cutest

We are in the business of making Safaricom look good.

Noticed the Best Network Kenya? Making Safaricom look good.

Why?

Because Safaricom wants this network to survive the destruction

Strategic alliances and networks among firms is one of the most striking business trends of the last decades.http://emnet.univie.ac.at/uploads/media/Albers_Schweiger.pdf

The better positioned an operator will be to serve the customers the more attractive it is for alliance formation.

Like the prettiest girl in the ballroom is never without someone to dance with…

29th November 2013

Here comes the destruction thing:

It becomes interesting

Next we will build networks to serve EXTERNAL customers:• One Buildings-to-Core (FTTB) • Homes to Core (FTTH)

Now read this carefully because this concerns you

Building for INTERNAL customers is a breeze.

We know that.

29th November 2013

Built for the INTERNAL customers• 4 Project managers• Three internal handovers • 4 acceptances visits• Freeze in December stops for a month• Takes a year

FTTB FTTH Built for the EXTERNAL customers:

• They want it now!

29th November 2013

Every site is Point of Presence (PoPs)

We leverage PoPs on a concerted attack over Nairobi Metropolitan area

Consolidate all corporate traffic into the Safaricom Digital City

Traffic that is today spread among the small operators that built on opportunity

The opportunists do not have PoP spread across Nairobi Metropolitan area

Digital City

The New King of PoP.

29th November 2013

One risk being a champion of the sport that is not going to be in the 2020 Olympics Games.

The site, as we know will be a thing of the past.Unless they become fiber companies

“The future of the Tower Companies is to become Fiber Companies”https://www.linkedin.com/pulse/future-tower-companies-become-fiber-osvaldo-coelho?trk=pulse_spock-articles

Once we are inside the buildings and connected to the PoPs we use carrier class Wi-Fi, serve the costumers there and offload traffic into the Safaricom Digital City.

Deloitte: Two-thirds of U.S. consumers prefer Wi-Fi over cellularSurvey also finds that 41% of U.S. consumers willing to pay more for faster speeds

Usage of Wi-Fi while "out and about" and "at someone else's home" is also increasing (with 44 percent of respondents indicating use at someone else's home, compared to 37 percent in 2012), particularly in comparison to "at home" and "at work.

29th November 2013

Creative destruction refers to the incessant product and process innovationmechanism by which new production units replace outdated ones.

Creative Destruction permeates very aspect of the business

The microwave is a dinosaur. Fiber is taking over

All skills of microwave will be redundant due to technical obsolescence

29th November 2013

“Osvaldo do you have an advice for us?”

Sure!

Be Afraid. Be very Afraid.