Patrick Lopez
VP, NETWORKS INNOVATION
TELEFONICA
CONNECTING THE UNCONNECTED IN LATAM
Internet Para Todos
21
countries
The need for the industry
to transform
IP
SOURCE: CISCO VNI GLOBAL IP TRAFFIC FORECAST,
2016-2021
0
50
100
150
200
250
300
2016 2017 2018 2019 2020 2021
96
122
151
186
228
278
24%CAGR
2016-2021
EXABYTESPERMONTH
Total Traffic Growth
0
10
20
30
40
50
60
EXABYTESPERMONTH
2016 2017 2018 2019 2020 2021
File Sharing 2% 2% Audio 8% 5% Web/Data/VoIP 30% 14% Video 60% 78%
Total Traffic Growth
MOBILE
SOURCE: CISCO VNI GLOBAL IP TRAFFIC FORECAST,
2016-2021
SOURCE: SOURCE: CISCO VNI MOBILE, 2017
REGIONS
0 10 20 30 40 50 60 70 80 90 100
MIDDLE EAST & AFRICA 96%
71%
66%
64%
52%
44%
ASIA PACIFIC
LATIN AMERICA
CENTRAL & EASTERN
EUROPE
WESTERN EUROPE
NORTH AMERICA
Total Traffic Growth
SOURCE: STRATEGY & RESEARCH AND
ANALYSIS
Telecom Industry Decrease
AVERAGE ARPU COMPOUND ANNUAL CHANGE RATE
0
5
10
15
20
25
30
35
40
45
2006 2011 2016
-1% -2%
-6% -6%
-4% -1%
-4% -4%
-6% -10%
10 YEAR
2006-16
5 YEAR
2011-16
NORTHERN
AMERICA
WESTERN
EUROPE
MIDDLE EAST
LATIN AMERICA
ASIA
0
10
20
30
40
50
60
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
161
183
198
216
229 233 233 236
244 250
SOURCE: GSMA: THE MOBILE ECONOMY, 2017
2.5%
CAGR
2014-2020
4.7%
CAGR
2008-2014
Capex
GLOBAL
MOBILE
$USBN
75%
VIDEO
X2 EVERY
2 YEARS
TRAFFIC
$20/€20s
ARPU
UNLIMITED
VOICE, DATA,
MESSAGING
2020 Outlook
How we transform
Reorganize the value
chain
Build a virtualized
and programmable
network
Modular open
network fabric
We Need a Change of Paradigm
JOINED
OPENCELLULAR
CONTRIBUTING
ONLIFE
PROGRAMMABLE
EDGE
COMPUTING
PLATFORM
JOINED PEOPLE
AND PROCESS
CO-CHAIR ML
GROUP
JOINED
TIP
BOARD
DEPLOYING
OPEN CELLULAR
IN THE FIELD
CO-CHAIR EDGE
COMPUTING
GROUP
Adapt, Personalize, Uncover New Markets
Voice
Data
Messaging
Video
IoT
VPN
Gaming
Rural
Voice
Data
Messaging
Video
5G
DISTINCT EXPERIENCES
NEXT BATTLE
PERSONALIZED SERVICES
2G 3G 4G
COVERAGE AVAILABILITY CAPACITY
FOR GRANTED
VOICE DATA VIDEO
RURAL
MARKET
DILEMMA
Improve our
rural intelligence
Assemble
innovative
networks
Explore innovative
commercial models
Test alternative
operating models
Our services don’t
reach rural
costumers
Our operations are
not fit for rural
needs
Demand is
unclear
Telco tech is not
optimized for low
density
PROBLEM APPROACH
POPULATION
DENSITY
DISTRIBUTION
Data Mining: Satellite imagery
Estimation Model: Neural networks
to identify and count households
Clustering (DBSCAN) to group
households into settlements
Training Sample: Census data to train
and iterate the model
INTERNET COVERAGE
BY TECHNOLOGY &
OPERATOR
Data Mining: Geolocate mobile sessions
Estimation Logic: Generate internet
coverage polygons by technology as
perceived by mobile internet users
Training Sample: Telefonica coverage
and infrastructure information + reported
regulatory data
INTERNET UNSERVED
POPULATION
DISTRIBUTION
Geolocate population distribution
by internet coverage status, by
technology (LTE, 3G, Wifi,
2G/Edge)
Improve Rural
Intelligence
METHODOLOGY SNAPSHOT
Assemble Innovative
Networks
1. Commoditized, open and modular radio
nodes for low cost connectivity
2. Open Compute SDN NFV edge
computing platform
3. People and Process
4. OpenCellular deployments
5. Machine learning and AI
Innovative
Commercial and
Operating Models
OPERATOR OF MOBILE RURAL
INFRASTRUCTURE
• Leveraging 3rd parties as
channels to extend network,
operations and sales
• Local market knowledge,
operations and relationships
• Nimble, efficient operating model
• Revenue share helps align
incentives
We believe there is a large opportunity
to connect the unconnected and underserved
The industry needs to change to address it
We need your help to innovate
If you build it, we will deploy it
Conclusions
(…and buy it)
Telefonica internet para todos

Telefonica internet para todos

  • 1.
    Patrick Lopez VP, NETWORKSINNOVATION TELEFONICA CONNECTING THE UNCONNECTED IN LATAM Internet Para Todos
  • 2.
  • 3.
    The need forthe industry to transform
  • 4.
    IP SOURCE: CISCO VNIGLOBAL IP TRAFFIC FORECAST, 2016-2021 0 50 100 150 200 250 300 2016 2017 2018 2019 2020 2021 96 122 151 186 228 278 24%CAGR 2016-2021 EXABYTESPERMONTH Total Traffic Growth
  • 5.
    0 10 20 30 40 50 60 EXABYTESPERMONTH 2016 2017 20182019 2020 2021 File Sharing 2% 2% Audio 8% 5% Web/Data/VoIP 30% 14% Video 60% 78% Total Traffic Growth MOBILE SOURCE: CISCO VNI GLOBAL IP TRAFFIC FORECAST, 2016-2021
  • 6.
    SOURCE: SOURCE: CISCOVNI MOBILE, 2017 REGIONS 0 10 20 30 40 50 60 70 80 90 100 MIDDLE EAST & AFRICA 96% 71% 66% 64% 52% 44% ASIA PACIFIC LATIN AMERICA CENTRAL & EASTERN EUROPE WESTERN EUROPE NORTH AMERICA Total Traffic Growth
  • 7.
    SOURCE: STRATEGY &RESEARCH AND ANALYSIS Telecom Industry Decrease AVERAGE ARPU COMPOUND ANNUAL CHANGE RATE 0 5 10 15 20 25 30 35 40 45 2006 2011 2016 -1% -2% -6% -6% -4% -1% -4% -4% -6% -10% 10 YEAR 2006-16 5 YEAR 2011-16 NORTHERN AMERICA WESTERN EUROPE MIDDLE EAST LATIN AMERICA ASIA
  • 8.
    0 10 20 30 40 50 60 2011 2012 20132014 2015 2016 2017 2018 2019 2020 161 183 198 216 229 233 233 236 244 250 SOURCE: GSMA: THE MOBILE ECONOMY, 2017 2.5% CAGR 2014-2020 4.7% CAGR 2008-2014 Capex GLOBAL MOBILE $USBN
  • 9.
  • 10.
  • 11.
    Reorganize the value chain Builda virtualized and programmable network Modular open network fabric We Need a Change of Paradigm
  • 12.
    JOINED OPENCELLULAR CONTRIBUTING ONLIFE PROGRAMMABLE EDGE COMPUTING PLATFORM JOINED PEOPLE AND PROCESS CO-CHAIRML GROUP JOINED TIP BOARD DEPLOYING OPEN CELLULAR IN THE FIELD CO-CHAIR EDGE COMPUTING GROUP
  • 13.
    Adapt, Personalize, UncoverNew Markets Voice Data Messaging Video IoT VPN Gaming Rural Voice Data Messaging Video 5G DISTINCT EXPERIENCES NEXT BATTLE PERSONALIZED SERVICES 2G 3G 4G COVERAGE AVAILABILITY CAPACITY FOR GRANTED VOICE DATA VIDEO
  • 14.
    RURAL MARKET DILEMMA Improve our rural intelligence Assemble innovative networks Exploreinnovative commercial models Test alternative operating models Our services don’t reach rural costumers Our operations are not fit for rural needs Demand is unclear Telco tech is not optimized for low density PROBLEM APPROACH
  • 15.
    POPULATION DENSITY DISTRIBUTION Data Mining: Satelliteimagery Estimation Model: Neural networks to identify and count households Clustering (DBSCAN) to group households into settlements Training Sample: Census data to train and iterate the model INTERNET COVERAGE BY TECHNOLOGY & OPERATOR Data Mining: Geolocate mobile sessions Estimation Logic: Generate internet coverage polygons by technology as perceived by mobile internet users Training Sample: Telefonica coverage and infrastructure information + reported regulatory data INTERNET UNSERVED POPULATION DISTRIBUTION Geolocate population distribution by internet coverage status, by technology (LTE, 3G, Wifi, 2G/Edge) Improve Rural Intelligence METHODOLOGY SNAPSHOT
  • 16.
    Assemble Innovative Networks 1. Commoditized,open and modular radio nodes for low cost connectivity 2. Open Compute SDN NFV edge computing platform 3. People and Process 4. OpenCellular deployments 5. Machine learning and AI
  • 17.
    Innovative Commercial and Operating Models OPERATOROF MOBILE RURAL INFRASTRUCTURE • Leveraging 3rd parties as channels to extend network, operations and sales • Local market knowledge, operations and relationships • Nimble, efficient operating model • Revenue share helps align incentives
  • 18.
    We believe thereis a large opportunity to connect the unconnected and underserved The industry needs to change to address it We need your help to innovate If you build it, we will deploy it Conclusions (…and buy it)