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The Future of Telecom (Petro Chernyshov Business Stream)

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Lviv IT Arena is a conference specially designed for programmers, designers, developers, top managers, inverstors, entrepreneurs and startuppers. Annually it takes place at the beginning of October in Lviv at Arena Lviv stadium. In 2016 the conference gathered more than 1800 participants and over 100 speakers from companies like Microsoft, Philips, Twitter, UBER and IBM. More details about the conference at itarena.lviv.ua.

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The Future of Telecom (Petro Chernyshov Business Stream)

  1. 1. Lviv IT Arena The Future of Telecom Peter Chernyshov, President of Kyivstar
  2. 2. IS IT SNAFU OR FUBAR SITUATION IN TELECOM?
  3. 3. 25,4 mobile users mln 100 % shares owned by the international telecommunication group VimpelCom taxes paid to the budget of the country 47 bln investments made in the development of telecom market in Ukraine 31 bln in Ukraine 18 years Kyivstar is the biggest Ukrainian mobile operator, a part of VimpelCom Group (NASDAQ Quoted)
  4. 4. EBITDA margin: The European telecom market, Q2'16 Kyivstar – is European telecom leader in EBITDA margin (№ 1 of 58 companies) with the index 55 %, ahead of the next operator, the Velcom Belarus, by 7 p.p.
  5. 5. Giffgaff uses the network of O2 to create virtual mobile operator of new generation. No call-center, no support, no offline retail. Amazon Sells Kindles with built-in SIM cards Google Fi project allows smartphones to connect to the network with the highest speed — no matter 4G it is or Wi-Fi Telecom companies are becoming dumb pipes 123
  6. 6. The quantity of users of OTT on smartphones in the world, bln By the end of 2017, there will be 2.9 bln users of OTT services on smartphones The revenues of mobile operators in Western Europe, bln Revenues from voice and SMS are declining faster than other segments Revenues of Telecom Companies are falling Revenues of telecom companies are decreasing globally, while OPEX & CAPEX are growing. In the same time, OTT services become more and more popular The falling of revenue from voice and SMS is the main reason for falling of telecom companies’ revenue
  7. 7. Minutes, bln SMS, mln Mobile data, TB 2014 Q2 2015 Q2 2016 Q2 414 445 376 2014 Q2 2015 Q2 2016 Q2 38,9 41,6 42,4 2014 Q2 2015 Q2 2016 Q2 3238 4924 8352 The consumption model is changing
  8. 8. 20182015 20XX New technologies and services drive telco capacity 26 000 Operations per second 1 000 000 Operations per second 1 000 000 XXX Operations per second Innovations are vital for new values creation Biotech VR Reality+ + ? Block chain loT Fintech
  9. 9. 20% of IT systems will be upgraded How Kyivstar reacts To achieve necessary scalability we’ll move to NoSQL To reduce expenditures we move to open source solutions To achieve real time cooperation with clients we unify data model for all BSS applications To improve customer experience we implement omni-channel approach for all touch points = DIGITAL STACK 12345
  10. 10. Example #1 — Digital Stack Online Channels Customer Management, Interaction, Support, Sales Customer Order Management Product Management Billing, Mediation, Printing, Resource and Policy Management Service Activation, Messaging Integration very old old rather new
  11. 11. Example #1 — Digital Stack Online Channels Customer Management, Interaction, Support, Sales Customer Order Management Product Management Billing, Mediation, Printing, Resource and Policy Management Service Activation, Messaging Integration MFS Digital Full stack solution Functional application Managed server Messaging layer Common infornmation layer Cloud execution environment
  12. 12. Example #2 — Big Data&Machine Learning NPS prediction Churn rate optimization Target audience Geo positioning data Smart service offer Future proof data management platform (DMP)
  13. 13. 75% of detractors can be successfully defined Since 2013 churn rate has fallen 1.5 times. Best rate in the world among similar Telco (monthly churn 1,5%) Example #2 — Big Data&Machine Learning NPS prediction Churn rate optimization
  14. 14. Machine learning allows to define our target audience for different products even on anonymous prepaid market (f.e. age, gender, interests, gamers, multy SIM users) Example #2 — Big Data&Machine Learning Target audience
  15. 15. • Points of presence optimization • Targeted geo advertising • City traffic management • Smart cities (smart parking, lighting etc.) • Big boards advertising placement optimization Example #2 — Big Data&Machine Learning Geo positioning data
  16. 16. We define those, who has high propensity to buy an offer. By sending them personal proposition our conversion rate increased up to 30% Example #2 — Big Data&Machine Learning Smart service offer
  17. 17. We are building 1,5 PB DMP platform based on Open Source technologies, same as used for Twitter and Google Example #2 — Big Data&Machine Learning Future proof data management platform
  18. 18. Personal Offer Campaign Management solution Campaign management solution Real time analytics of undefined users and creation of personal offers 5-18 % average response rate * *depending on channel Big Data
  19. 19. Example #3 — Zoryana 75% of customers return to Zoryana 75% 70% of customers give positive feedback about chatbot 70% Over 400K dialogs since April 2016 400K 5K unique answers 5K Based on natural language processing technologies
  20. 20. Plugmee a hub that connects all wireless sensors and devices to single dashboard Pibox a cloud storage and messenger in one app, an easy way to send large files, even RAW photos or 4k video in original quality. Virbox Teleport a platform for travelling in VR360 format. Example #4 — Partnership with VDNG-TECh
  21. 21. Open to mobile technology entrepreneurs and startups from 8 countries 3 winners from Ukraine will join other regional winners in the semi- finals 3 top winning teams will get $20 000, $15 000 $10 000 and go to Global Mobile Challenge held at Mobile World Congress Example #5 — Eurasia Mobile Challenge APPLY TILL OCTOBER 20 AT WWW.EURASIAMOBILECHALLENGE.COM
  22. 22. Get ready for the nearest future 5G MFS eSim Mobile ID IoT Connected cars Personal assistants CloudsVirtual Reality & Augmented reality
  23. 23. Innovation is hard because ‘solving problems people didn’t know they had’ and 'building something no one needs’ look identical at first. Aaron Levie, Box You have to make every single detail perfect. And you have to limit the number of details. Jack Dorsey, Twitter Not having a clear goal leads to death by a thousand compromises. Mark Pincus, Zynga I don’t know the key to success, but the key to failure is trying to please everyone. Bill Cosby, actor, author Look for inspiration and follow Peter Chernyshov on Facebook 
  24. 24. Thank you

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