understanding the needs of asia–pacific connected consumers

Understanding the needs of Asia–Pacific connected consumers

© Analysys Mason Limited 2015

WEBINAR

Understanding the needs of Asia–Pacific

connected consumers

Consumer preferences, OTT usage and

digital economy opportunities

Sherrie Huang and Satvik Singhania

MAY 2015



About the authors

Sherrie Huang (Research Programme Head, Asia–Pacific) is the lead analyst for Analysys Mason’s

Asia–Pacific research programme and is based in our Singapore office. Her research covers the

entire Asia–Pacific region, and includes market data and forecasts as well as reports on trends in the

region. Sherrie has extensive expertise in fixed and mobile services and has covered the telecoms

industry from various angles, including strategy, market sizing and forecasting, end-user case

studies, cost modelling and regulatory issues. She previously worked at IDC, Ovum and ZTE in

various Asia–Pacific countries. Sherrie has a Master’s degree in computer science from the

University of Singapore and a Bachelor’s degree in Electrical Engineering from Xiamen University,

China. She speaks Cantonese, Hokkien, English and Mandarin.

Satvik Singhania (Analyst) joined Analysys Mason in 2012 as a Research Analyst in the Singapore

office and works on our Asia–Pacific research programme. He has taken part in and led a number of

key research projects as well as been involved in examining and forecasting the overall size of the

telecoms market in developed and developing Asia–Pacific and producing market reports for various

Asian countries. Before joining Analysys Mason, Satvik was a strategy and risk management

consultant at Dragonfly, where he oversaw a number of projects in alternative energy investments for

an oil major. Satvik has a degree in Economics and Finance from the Singapore Management

University.

2



Research from Analysys Mason

We provide dedicated coverage of developments in the telecoms, media and technology

(TMT) sectors, through a range of research programmes that focus on different services

and regions of the world.

To find out more, please visit www.analysysmason.com/research

NETWORK

TECHNOLOGIES

Spectrum Fixed Networks Wireless Networks

PRACTICES PROGRAMMES

CONSUMER

SERVICES

ENTERPRISE

AND M2M IoT and M2M Solutions SME Strategies

TELECOMS

SOFTWARE

STRATEGIES

DATA PROGRAMMES APPLICATION PROGRAMMES

Telecoms Software Forecasts

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Revenue Management

Infrastructure Solutions Service Fulfilment Service Delivery Platforms

Customer Care

MEA APAC REGIONAL

MARKETS

EUROPE

European Core Forecasts

Telecoms Market Matrix

European Country Reports

The Middle East and Africa

Asia–Pacific Global Telecoms Forecasts

TELECOMS

SOFTWARE

MARKETS

Customer Experience Management Software Strategies

Digital Economy Software Strategies

Analytics Software Strategies

Software-Controlled Networking

CSP IT Strategies

Mobile Services Mobile Devices Fixed Broadband and Multi-Play

Next-Generation Services

Digital Economy

3



China

Bangladesh

India

Indonesia

Malaysia

Pakistan

Sri Lanka

Thailand

Vietnam

We divide Asia–Pacific into two regions – ‘DVAP’ and ‘EMAP’;

this is how we define them

Emerging Asia–Pacific (EMAP)

Developed Asia–Pacific (DVAP)

Australia

Hong Kong

Japan

Singapore

South Korea

Taiwan

Forecast individually Part of region Not in region

New in 2015:

Philippines

4



Agenda

About Asia-Pacific connected consumer survey

Asia-Pacific connected consumer preferences

Four key shifts to align with customers’ needs

OTT threat and strategies

The digital economy opportunity

Key implications

5



Agenda






Key implications

6



Analysys Mason uses several different modes of primary research

to get a rounded view of consumers

Passive device monitoring

Best way to get unbiased data on real-world smartphone usage

Extremely granular

Online questionnaires

Best for getting a full ‘day in the life’ view of services, devices and content that consumers use

Important for assessing preferences and future plans

On-device questionnaires

Provide a targeted set of data in context – for example, tablet users are answering questions about tablet usage directly on the device

Used for Connected Consumer in Asia

A combination of all types of research achieves multiple objectives

7



The Connected Consumer Survey 2015 covers

15 countries and 22 000 respondents

Focused report for Asia–Pacific:

The Connected Consumer Survey

2015: Asia–Pacific

Focused reports for the Middle East

and North Africa, and South Africa.

For Europe and the USA, also cover:

video consumption

wireline customer retention

bundling strategies.

22 000 respondents in:

Indonesia, Malaysia, South Korea

France, Germany, Poland, Spain, Turkey, UK, USA

Morocco, Qatar, Saudi Arabia, South Africa, UAE.

Key topics:

multi-device usage

smartphone usage evolution

mobile and OTT communications

usage and disruption

mobile customer retention

mobile commerce, finance, health

and fitness services.

8

http://www.analysysmason.com/Research/Content/Reports/connected-consumer-APAC-Apr2015-RDRP0/#28%20April%202015







Our APAC panel is designed to represent the mobile Internet

‘mainstream’ population

South Korea (sample size = 1629)

Malaysia (sample size = 1707)

Indonesia (sample size = 3253)

Source: Analysys Mason, 2015

45

Questions

?

6500

Respondents

3

Countries

Conducted on handsets

9



Agenda






Key implications

10



Competition is intense and consumer loyalty to mobile

operators is low in Asia–Pacific

Figure: Length of time respondents have been with their

current mobile operator, by country or region [Source:

Analysys Mason, 2015]

Question: “How long have you been with your present mobile phone provider?”; n = 3000.

The level of consumer loyalty to mobile

operators in Asia-Pacific region is much

lower than the worldwide average:

Asia–Pacific is a highly competitive

market

Postpaid contracts help reduce

customer churn, while in a number of

emerging markets, prepaid dominates.

Only 29% of respondents in Asia–Pacific

have never switched operator, compared

with 37% worldwide. 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Ind

one

sia

Ma

laysia

Sou

th K

ore

a

Asia

–P

acific

Wo

rldw

ide

Pe

rcen

tage

of

resp

on

de

nts

<6 months 6–12 months 1–2 years

2–3 years 3–4 years >4 years

29% 37%

Note: For details, please refer to report The Connected Consumer Survey 2015: Asia–Pacific

and The Connected Consumer Survey 2015.

11







http://www.analysysmason.com/Research/Content/Reports/connected-consumer-survey-Dec2014-RDMB0-RDMM0-RDMD0-RDMY0-RDMV0/#23%20December%202014




1

2

3

4

5

6

7

8

9

10

Reason South Korea Malaysia Indonesia Asia–Pacific

Family and friends

have same provider

Better network coverage than

other providers

It has a faster mobile network

Price of mobile data

To get the best deal on

a specific handset

Brand and image

Price of voice and messages

To get 4G LTE

Loyalty scheme

None of the above

Improving customer retention requires us to focus on

what they look for next… Table: Main reason for joining current mobile operator (by importance)

Question: What attracted you to this provider? [Select the top three reasons]? Least

important

Most important

2 1 2 2

1 3 3 1

3 2 1 3

4 5 4 6

5 4 5 10

6 8 7 4

7 6 6 7

8 7 8 5

10 10 10 8

9 9 9 9

1 2 4 1

7 1 1 2

6 3 2 3

8 4 3 4

2 5 6 5

3 6 7 6

9 8 5 7

5 7 8 8

10 9 9 9

4 10 10 10

$

$

$

$

12



…also improving customer retention requires us to

focus on why people leave

Figure: Reasons given by respondents for leaving their previous operator [Source: Analysys Mason, 2014]

0% 5% 10% 15% 20% 25%

Wanted a particular handset

Wanted a particular package

Poor customer service

To be on same network as others

Other

Poor data speed

Price

Poor coverage

Percentage of respondents

$

13



Multiple-SIM usage is prevalent in emerging markets,

increasing the division of the operator–customer relationship

Questions: “How many different SIM cards do you have?”; “Do you own any handsets that can use more than one SIM card at the same time?”; and “What key factor motivated you to leave your previous mobile provider?”; n = 3000.

Table: Percentage of respondents use more than one SIM and use a multiple-SIM handset, by country [Source: Analysys

Mason, 2015]

Indonesia Malaysia South Korea

Use more than one SIM 73% 46% 19%

Use a multiple-SIM handset 58% 35% 18%

Multiple-SIM usage is prevalent in middle-income economies, such as Malaysia and

particularly in Indonesia. That includes not only using more than one SIM, but also using

multi-SIM handset.

Driven by the fast-growing take-up of smartphones, the amount of money spent on

handsets, relative to that spent on services, is moving in favour of handsets.

This is a further division of the operator–customer relationship. That means threats to

incumbent/primary SIM but opportunities to market challengers.

14



Multi-device usage is now very common, further

fragmenting consumer demand…

Figure: Device ownership in Indonesia and Malaysia [Source:


40%

22%

6%

32%

Handset only

Handset and PC

Handset and tablet

Handset, PC and tablet

Multi-device ownership is taking off

in Asia–Pacific, which leads to more

opportunities for those devices to

disrupt and be connected to

someone else’s network.

38% 54%

of respondents

had a tablet of respondents

had a PC

MULTI-DEVICE USAGE

15



…also the relative importance of devices to services is

changing in favour of devices – particularly in emerging Asia

Figure: Relative spend on mobile services and devices per

year [Source: Analysys Mason, 2015]

Figure: Selected metrics that indicate relative spend on

devices and services (USD) [Source: Analysys Mason, 2015]

South Korea

0

50

100

150

200

250

300

0 250 500 750

Handset

spend (

US

D p

er

year)

Mobile service spend(USD per year)

Malaysia

Indonesia

South

Korea

Malaysia Indonesia

Median

service

spend per

month

59 31 9

Median

handset

spend

500–700 300–500 100–150

Median

handset

duration

30

months

24

months

18

months

Handset

to service

spend ratio

0.4× 0.5× 0.8×

16



Agenda






Key implications

17



There is potential to monetize high network KPIs such

as high speed, particularly in emerging markets

Figure: When you next change your contract or

handset, would you be prepared to pay extra for 4G

LTE? [Source: Analysys Mason, 2015]

Subscribers that did not yet have LTE were willing

to pay more for it particularly in EMAP – Direct $

Faster data speed will lead to higher usage of

mobile Internet service – Indirect $.

This overall price willingness includes the cost of

the handset, which means that much of the

revenue increase will be lost to handset vendors.

0%

20%

40%

60%

80%

100%

SouthKorea

Malaysia Indonesia

Pe

rce

nta

ge

of

resp

on

de

nts

Yes (>USD6 per month)

Yes (USD3–6 per month)Yes (<USD3 per month)No

Figure: What would make you use your mobile Internet service more?

[Source: Analysys Mason, 2015]

0% 20% 40% 60% 80%

South Korea

Malaysia

Indonesia


Cheaper pricefor data

Higher dataallowance

Faster dataspeed

18



Market education and service availability need to be improved

to maximize high-end service adoption in emerging markets

Educating customers about high-end

services and its benefits is a challenge

for mobile marketing teams. Consumers

are easily confused about whether they

have the service and what the marketing

messaging means.

About 35% of respondents in Indonesia

and Malaysia did not know what LTE is.

Operators that are going to offer LTE

services need to make sure that the

market is ready before the launch.

Nearly 40% of consumers in Malaysia

and Indonesia know what LTE is, but do

not have it. Operators need to

understand why and find a better way to

serve them.

Figure: Awareness and adoption of LTE, by country [Source:


Questions: “Do you know what 4G LTE is and do you have it?”; n = 3000; and “What would make you use your mobile Internet service more? (choose more than one)”; n = 3000

0%

20%

40%

60%

80%

100%

Pe

rce

nta

ge

of re

spo

nd

en

ts

No, I do not knowwhat it is

No, but I haveheard the term

Yes, I know whatit is but I do nothave it

Yes, and I have a4G LTE mobileservice already

19



0%

20%

40%

60%

80%

100%

Bu

nd

le

Ch

an

ne

l

Bu

nd

le

Ch

an

ne

l

Bu

nd

le

Ch

an

ne

l

MENA Europe/USAMalaysia/ Indonesia

Pe

rcen

tag

e o

f re

spo

nd

en

ts

Third-party channels Operator channels

Handset not bundled Handset bundled

Working closely with handset vendors and exerting more

influence in the value chain to remain relevant

Our survey shows that operators in Asia–

Pacific – or at least Indonesia and

Malaysia – are very involved in handset

retail channels.

The gap between “handset bundled”

and “operator channel” indicates the

operators’ relative success in selling

handsets outside contract bundles.

Operators can potentially mitigate multi-

SIM and multi-device disruption by:

Exerting greater control over sales

channels and device manufacturers

Controlling and influencing the device

choice and reduce churn

Gaining a share of device revenue from

bundled plans and being handset

channels

Figure: Handset origin and bundling options [Source:


MENA Europe and

the USA

Malaysia and

Indonesia

20



SouthAfrica

SaudiArabia

SouthKorea

UAE

Qatar

Morocco

Malaysia

Indonesia

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0% 10% 20% 30% 40% 50%

Pe

rce

nta

ge

of

resp

on

de

nts

that ra

ted

th

e p

rice o

f m

ob

ile d

ata

as im

port

ant

Percentage of respondents that rated the price of voice and messaging as important

Middle-income countries where the importance of

data is increasing

Advanced high-demand users are

in the minority

Users are not particularly interested in mobile data

Not price sensitive and demands are catered for

The importance of price has shifted from voice and messaging

to data; Price fine-tune is necessary if not yet done

The relative importance of the price shifts

from voice and messaging to data. 1

Three APAC countries are categorised

into three distinct groups.

This reflects a potential problem for

operators in less advanced markets:

differentiation will be increasingly based

on factors such as devices and value-

added services rather than price per unit.

For many countries in APAC, the

importance of data is ascending and

operators must adjust marketing

messages and fine-tune tariffs to

emphasise mobile data.

Figure: The price of mobile data VS that of voice and messaging, as

important when selecting provider [Source: Analysys Mason, 2015]

Question: “What attracted you to this provider?”; n = 8000.

1 These numbers must be viewed within the context of the panel, which was representative of mobile Internet users in each country. This obviously increases the importance of mobile data among our respondents relative to the population as a whole.

Note: For details, please refer to report The Connected Consumer Survey 2015.

21






Extending connectivity plans with an emphasis of data can

help incumbents to remain relevant via primary SIM

Figure: Types of multiple-device tariff structure [Source: Analysys Mason, 2015]

Pricing Type of plan Shared element Examples

Monthly

device or SIM

connection

charge

Multiple-device (extra

SIM for second and

more devices, such as

tablet or ‘MiFi’)

Data allowance

Sometimes include voice

and messaging services

CSL Mobile (Hong Kong)

Maxis (Malaysia)

M1 (Singapore)

Multiple-user (also

called ‘family plans’)

Data allowance

Voice and messaging

services

Some offer discounts for

multiple lines

Airtel (India)

SingTel (Singapore)

Starhub (Singapore)

No monthly

device or SIM

connection

charge

Second SIM for

mobile broadband

Data allowance

CSL Mobile (1O1O) (Hong

Kong)

SmarTone Mobile

Communications (Hong

Kong)

22



Seamless multi-screen is an expectation and it helps to

consolidate fragmented consumer demand across devices

Consumers are increasingly using

multiple devices to access OTT video

content.

Consumers now watch video on an

average of 3 device types.

OTT video services have also affected the

viewing habits of respondents, and the

most important shift is in the device types

used to access this content.

Part of TV’s high usage is because

consumers are plugging devices into TVs.

If a service provider can offering video

services across major platforms, it will

offer the convenience that consumers

long for, and improve service stickiness.

Figure : Device types used to access paid-for OTT video

services, 2012 and 2014 [Source: Analysys Mason, 2014]

Question: “Which of the following devices do you use to watch videos through an online video rental service or download-to-own video service?” n = various.

0% 10% 20% 30% 40% 50%

Other device

Console

Handset

Desktop PC

Tablet

Laptop

TV set


2012 2014

23



There is monetization potential for high KPIs, e.g. higher speed, among high-end consumers

Evolve the service wrap and VAS (content, OTT, etc.) to meet the demands of different segments

Extend the connectivity and VAS to more SIMs, devices and platforms

Form partnerships that might help, such as content providers, handset vendors and OTT

Four key shifts that operators may consider to align their

offerings with customers’ needs

24



Agenda






Key implications

25



Smartphones are bringing a variety of communication

services into competition; legacy services must compete

Figure: Penetration rates of various communication

services on smartphones

0% 20% 40% 60% 80%100%

Video call

Twitter

VoIP

IP messaging

Social networking

Email

SMS/MMS

Mobile voice

Percentage of panellists

2013

2011

Use Data

Services

27% IP Messaging

11% VoIP

14% Video Call

–3% SMS

26



Traditional communication services have come under

increased pressure from OTT, especially in DVAP

Figure: SMS revenue (total) and volume (per handset)


Figure: Voice revenue (total) and MoU (per handset) [Source:


0

50

100

150

200

250

300

350

0

50

100

150

200

250

2009 2013 2018

Mo

U (

min

ute

s p

er

co

nn

ectio

n p

er

mo

nth

)

Re

ve

un

e (

US

D b

illio

n)

EMAP DVAP

EMAP DVAP

Voice revenue:Voice MoU:

0

20

40

60

80

100

120

0

5

10

15

20

25

30

2009 2013 2018

Vo

lum

e (

SM

S p

er

ha

nd

se

t p

er

mo

nth

)

Re

ve

nu

e (

US

D b

illio

n)

EMAP DVAP

EMAP DVAP

SMS revenue:SMS volume:

27



Consumers use messaging apps over SMS for the user experience;

it’s not all about price (free SMS is wasted)

28

<3% Percentage of users who do not

use OTT messaging services

having tried it at least once

28



VoIP is not providing a compelling reason to convert usage

from voice minutes

VoIP has yet to convince most users to

convert voice minutes in the same

manner as they’ve done with SMS.

Price considerations were the foremost

reason for not using VoIP apps on their

smartphones, followed by user

experience

Operators have increasingly offered more

voice minutes to consumers and this

seems to have largely worked so far.

This though is not sustainable, and

operators will have to compete on user

experience as VoIP services get better

with improved networks.

Figure: Reasons stated by tablet and PC VoIP service users

for not using VoIP services on handsets, 2012 and 2014

[Source: Analysys Mason]

Question: “Why don't you use a VoIP application on your mobile phone?”; n = 448.

0% 20% 40% 60%

Unsure

Other

Trust

Too complicated to set up

Not reliable enough

No benefit seen

To limit data usage

Sufficient minutes in contract


2012 2014

Price

User experience

Trust

29



VoLTE and operator-led VoIP may help operators to protect the

voice business

Figure: Usage of OTT communication services, by country [Source: Analysys Mason, 2015]

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

South Korea Malaysia Indonesia

Pe

rce

nta

ge

of

resp

on

de

nts

Messaging File sharing Free voice calls Paid-for voice calls Voice messages Video calls

Question: “Which of the following features do you use on your communications app? Tick all that apply”; n = 3000.

30



Player Core

business

Feature set Comms

business model Voice Messaging Video Location Social

Hardware Indirect

Advertising Indirect

Advertising Indirect

Software

licensing Moving to indirect

Communication

services Direct

Content

distribution Indirect

MNOs Communication

services? Direct

Key consideration for operators: Understand/anticipate the

strategies of other players in the value chain

Figure: Communication services business models [Source: Analysys Mason, 2014]

Operators’ standalone value

proposition looks weak

Value of communication services

increasingly co-opted

31



Strategy Objectives Examples

Block OTT services Prevent OTT becoming mainstream

Potentially gain value from high-end bundles

Pakistan (Sindh

province)

Stimulate usage Defend legacy communication services

Buy time

Chunghwa Telecom

(Taiwan)

Launch ‘telco OTT’

services

Differentiate own services

‘Retain relevance’ as a communications

provider

LG Uplus

SingTel (Singapore)

Airtel (India)

Launch IMS-based

services

Improve operator portfolio

‘Retain relevance’ as a communications

provider

SK Telecom

SingTel (Singapore)

Partner with OTT

players

Appeal to attractive market segments

Support core data business with move to

bundles

3 Hong Kong,

DiGi (Malaysia)

Globe Telecom

Operators are responding with a variety of approaches

32



The current status of next-gen initiatives varies considerably

by region

Figure: Number of live next-generation communication service initiatives at June 2014, by region [Source:

Analysys Mason]

0 10 20 30 40 50

Partnership

Telco OTT

RCS (IMS)

VoLTE (IMS)

Number of initiatives

SSA MENA EMAP DVAP

LATAM NA CEE WE

33



Operators and OTT players can benefit in many ways from

each other and co-exist for greater opportunities

Customer acquisition

Operator grade

services

Operator billing

Local knowledge

Decreased churn

Customer acquisition

Revenue share

Consumer data

Benefits to OTT players Benefits to operators

34



Agenda



Mobile data monetization strategies



Key implications

35



The definition of the digital economy is actually simple

The goods and services within the digital economy can be broadly grouped as:

intrinsically digital – streaming video, ebooks, computing services, Facebook

substitutes for established equipment and services – virtual private

communications networks, security services, virtualised PBXs

the marketing and sales of physical goods – Amazon, eBay, Alibaba.

It also includes the role of governments in the development of infrastructure,

services, and the enablement of people and of social and economic enterprise.

The ‘digital economy’ is all economic activity mediated

by software and enabled by telecoms infrastructure.

36



One of the big problems is getting your CFO to sign off on a

model that does not follow telecoms norms

Figure: Indicative revenue growth for telecoms and digital economy initiatives [Source: Analysys Mason, 2015]

0

1

2

3

4

5

6

0 1 2 3 4 5 6 7 8 9 10

Re

ve

nu

e

Time

Traditional telecoms Digital economy

37



Key Acquisitions

Amobee (USD321m)

Adconion (USD209m)

Kontera (USD150m)

Advertising

mEducation

More and more Asian operators are launching separate

business units to focus on new digital service streams

SK TELECOM: SK PLANET

In-house technology development

strategy

1

GROUP DIGITAL LIFE

Aggressive acquisition strategy:

SGD2 billion was set aside

2

SK TELECOM

SINGTEL

Comm.

& Social

T-Cloud

Video

Music T-store

LBS Market

Place

Digital

Advertising

Key Acquisitions

HungryGoWhere (SGD12m)

Eatability (USD6m)

Local

Content

Next Gen

Interactions Gaming mCommerce

38



Cloud-based services lead in Asia–Pacific, followed by mobile

financial and health services

Asia–Pacific

Figure: Distribution of initiatives [Source: Analysys Mason DERI Tracker]

Mobile health

Mobile financial services

Mobile education

Smart homes

Mobile commerce and advertising

Cloud-based services

Mobile agriculture

Mobile identity and security

Venture capital – accelerator

Key:

18%

20%

8%

2%

15%

24%

4% 9%

APAC:116

initiatives

Cloud-based

services

Mobile financial

services

Mobile health

Mobile

commerce and

advertising

39

http://www.analysysmason.com/Research/Content/Data-set/digital-economy-readiness-index-RDMY0/#28%20February%202015

http://www.analysysmason.com/Research/Content/Data-set/digital-economy-readiness-index-RDMY0/#28%20February%202015



Case study: Easypaisa (Telenor Pakistan)

One of the leading mobile money services worldwide

40

June 2014

The Sindh government started

distributing funds to over 400 000

girls for their education through

Easypaisa, instead of through the

old manual system, which had led

to a lack of accountability.

December 2014

The Punjab government will

distribute Zakat (monetary benefit

to poor) through Easypaisa,

instead of through the old banking

system, starting in 2015.

GSMA AWARDS 2014 – WINNER

• Best NFC/mobile money product or service

• Best mobile product or service for women in

emerging markets

BILL AND MELINDA GATES FOUNDATION

• Recognised by the foundation in February

2012 and received a grant of USD6.5 million.

MOBILE MONEY TRANSFER AWARDS 2010

DUBAI – WINNER

• Best mobile money transfer entrant of the year

WORLD BANK, CGAP (CONSULTATIVE

GROUP TO ASSIST THE POOR) 2012

• Third largest mobile financial service worldwide

40




Addressed a major issue in the country by filling the gap

41

<20% bank penetration of adults in

Pakistan

Opportunity: Problems faced by people

Long

distances

Long

queues

Limited

working

hours

Telenor Pakistan

Work to your strengths

Distribution Branding Marketing

Tameer Microfinance Bank

Compliance Operations Management

1

2

SERVICES: • P2P domestic Utility bill payments Merchant payments

• International remittance Air-time top-up Charitable donations

• Life insurance scheme Micro insurance scheme

VISION:

Financial inclusion in Pakistan

41




The largest branchless banking service in Pakistan

42

Milestones and achievements

6 million monthly users

>50 000 agents and shops (800 cities)

1

3

2.8 million registered mobile accounts 2

~400 000 transactions per day 4

Moved 1% of Pakistan’s GDP in 2013

2010 2012 2014

Outlets

Txns/day

11k 20k 50k

20k 160k 400k

Revenue

share 0.4% 2+%

2 percentage points

out of 5.4% Easypaisa’s contribution to

Telenor Pakistan’s year-on-year

revenue growth in 3Q 2014

Txn Amt

(PKR) 10b 120b

42



Understanding the investment involved, and setting and

managing realistic expectations, are critical to success

Figure: Key stages in the lifecycle of an m-payment consumer [Source: Analysys Mason, 2015]

New subscriber

First-time users

Active user

Non-active user

Marketing

Registration

Know your

customer

None

Ongoing

marketing

Education

Subsidies for

service use

Low

Account

management on

platform

None

Ongoing

marketing

Education about

new services

Medium/high

Revenue

opportunity

Key costs

4–6 months

43



Mobile health: good penetration levels of apps as nearly 60% of

people pay for their own healthcare insurance; strong potential Figure: Respondents with medical insurance, and insurance payment

bearers [Source: Analysys Mason, 2015]

Figure: Respondents who use healthcare or fitness apps, by country


0%

10%

20%

30%

40%

50%

60%

South Korea Malaysia Indonesia

Pe

rce

nta

ge

of

resp

on

de

nts

Fitness (steps, heart rate) Nutrition (diet, calories)

Wellness (sleep, posture) Medical reference

Medical condition management Use some fitness/health app

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Indonesia Malaysia South KoreaP

erc

en

tage

of

resp

on

de

nts

Yes, I pay Yes, family pays

No, I pay when needed Yes, employer pays

Yes, someone else pays No, healthcare is free

No, for another reason Unsure

44

Question: “Do you have private healthcare

cover/insurance?”; n = 3000.

Question: “If you use health or fitness apps on your mobile phone,

what do those apps track? (select all that apply)”; n = 3000



Agenda






Key implications

45



Operators face multiple pressure points against a background of

increasing competition

46

Telecoms operators

Increasing importance of

handsets

Increasing competition from other operators

Increasing operational and

financial pressure

Non-traditional

competition

Multi-device

and high handset spending

Multi-SIM Customer demand for better network quality and higher data speed

Core business cannibalised by

OTT

46



Recommendations for Asia-Pacific operators

Offering extending connectivity plans with a data focus

Providing multi-screen service wraps that serve across devices and platforms

Gaining greater control of device sales channels and manufacturers

Leveraging pricing and customer experience to mitigate voice revenue erosion

Determining a holistic OTT strategy that fits

Investing in digital economy solutions such as mobile finance and healthcare

47



Our Connected Consumer survey helps us to, in particular, focus on

key pain points for operators

TMT

INDUSTRY

DYNAMICS

Positioning

for the digital

economy

Monetising

data services

Maximising

operational

efficiency Reducing churn

and acquiring

customers

Leveraging

next-generation

and virtual

networks

Understanding customer

appetite for digital economy

services and current take-up

(covered in our digital economy

presentation).

Tracking the fragmentation of

the consumer relationship

(devices, SIMs, OTT services).

Understanding why people

churn, and their priorities.

Willingness to pay.

Areas where primary research can

help significantly

Note: For details, please refer to report The Connected Consumer Survey 2015: Asia–Pacific:


48














Contact details

Sherrie Huang

Research Programme Head,

Asia–Pacific

[email protected]

Satvik Singhania

Analyst

[email protected]

Cambridge

Tel: +44 (0)1223 460600

Fax: +44 (0)1223 460866

[email protected]

Dubai

Tel: +971 (0)4 446 7473

Fax: +971 (0)4 446 9827

[email protected]

Dublin

Tel: +353 (0)1 602 4755

Fax: +353 (0)1 602 4777

[email protected]

Johannesburg

Tel: +27 11 666 4786

Fax: +27 11 666 4788

[email protected]

London

Tel: +44 (0)20 7395 9000

Fax: +44 (0)20 7395 9001

[email protected]

Madrid

Tel: +34 91 399 5016

Fax: +34 91 451 8071

[email protected]

Milan

Tel: +39 02 76 31 88 34

Fax: +39 02 36 50 45 50

[email protected]

New Delhi

Tel: +91 124 4501860

[email protected]

Paris

Tel: +33 (0)1 72 71 96 96

Fax: +33 (0)1 72 71 96 97

[email protected]

Singapore

Tel: +65 6493 6038

Fax: +65 6720 6038

[email protected]

Boston

Tel: +1 202 331 3080

Fax: +1 202 331 3083

[email protected]

Manchester

Tel: +44 (0)161 877 7808

Fax: +44 (0)161 877 7810

[email protected]

49

understanding the needs of asia–pacific connected consumers

Technology