Sofrecom presentation for WiMAX

Jakarta, Novembre 26th 2010

Agenda
 Sofrecom Group, part of France Telecom – Orange Group
 Broadband market and trends
 WiMAX experience and feed back
 Sofrecom in Indonesia

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France Telecom - Orange Group is
the 5th telecommunication company worldwide

Tunisia
 An international footprint Jordan

Egypt
United Kingdom Poland
Belgium Mali
Senegal Niger
 186M clients / 126M mobile France Slovakia
Guinea - Bissau
Guinea RCA
Austria Moldavia Cameron
Ouganda
Switzerland CDI Equatorial
ée
Romania
Guinea Kenya

 ¾ under Orange Brand Spain

Armenia
Dominican Republic
Madagascar
Mauritius
Vanuatu
Botswana
Reunion
Caribbean

 54 B€ revenues

France Telecom Orange Group successfully launched 28 mobile operations

The precursor of 3G services
The leader in convergent and innovative services (IPTV, m-payment…)
The operational excellence (Quality of Service, QoS of network)

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Sofrecom is the engineering, deployment and consulting
Company of France Telecom Orange Group (100% subsidiary)

AMEA /
France Europe
 Sofrecom supports France RoW
Telecom Orange Group in its
international development
by conducting launch and day-
to-day operations
Expertise
 Sofrecom provides consultancy
in more than 100 countries : we
build solutions for telecom
players, structure operators, Outside Orange Footprint
can manage companies and • Telecom operators
help creating value
• Governments
• Investors

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Sofrecom, global leader in telecom and ICT

Strategy & Networks & Information Key figures

Marketing Operations Systems
 More than 1000 consultants
& experts
 2009 turnover: 105 m €

 ISO 9001 certification

 Established in 1966

Poland
Our clients
Morocco Libya Jordan  Operators and Service
Egypt
Providers
Algeria Vietnam  VNOs, FVNOs et MVNOs
El Salvador Senegal Yemen
Thailand
 Governments Regulatory
Indonesia
bodies & International
Organizations
 Investors
our subsidiaries
branches & presence Argentina

Groupe France Telecom

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Sofrecom provides a large range of skills, from Strategy
to Operations, either on marketing, IT or Network

Strategy & Organisation Information Networks

& &
Marketing Processes Systems Services
 Business planning  CRM policy  Technology expertise:
 Advice on tools choice Broadband,
 Offers design &  Commercial (billing, CRM, BI…) backbones, NGN,
launch processes (distribution  Integration & WiMax, 2G-3G
 Distribution & sales support, customer development of  Global network design
promotion service, billing…) solutions
   Engineering & RFP
Communication & Change management  Functional & technical  Contract supervision
operational marketing  Audit & risk architecture
 Churn & loyalty management  BSS/OSS solutions  Roll-out management
management  Quality management  MVNO solutions  Commissioning
 Innovative products :  Revenue assurance  Geographic  QoS Improvement
IPTV, multiplay,
 Fraud management Information System  Operation
audience, m-payment enhancement

• Project management end to end (think, build, run)

• Due Diligence
• Implementation & roll-out
• Management services
• Market intelligence
• Human resources & training
• Strategic analysis

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Sofrecom has an exceptional experience-based know-how

Sofrecom has deployed Sofrecom is also

more than half of Sofrecom has
launching Greenfield
existing Orange conducted the 6 major
operations out of
Operations worldwide Mobile launches of FT
Orange footprint :
Orange Group over the
~ 100 M clients Tunisia, Pakistan,
past 3 years
~ 30 B€ revenue Uganda + 3G launches

We’ve based this success on :

1. High-level expertise (Marketing, Sales, Regulatory, Network & IT)
2. Strong and best in class program management
3. Bringing those expertises all together as an operator for higher impact
4. Knowledge Management / Methods

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 Sofrecom has conducted numerous launches of operators
Over the years, we have accumulated unrivalled experience from having conducted
numerous consulting projects for the launch of 2nd and 3rd generation mobile operators
in the various evolutions stages of the mobile market and in very different countries

Emergence of Orange 3G technology Orange External Convergence

GSM technology re-branding spreads Growths start again + New Models

>1990’s >2000 >2005 >2007 Today

Today, our challenge is to accompany

Growth (audience, contents, health,
convergence) and to continue
supporting Greenfields

New external growth wave with M/E & Africa acquisitions

& launches : RCA, Kenya, Uganda, Niger, Armenia

3G and edge launches in Western Europe (UK, Spain, Poland, Romania, …)

followed by Eastern Europe (ie Moldavia) and M/E & Africa

High implication in the re-brandings of European countries (France, Netherlands, Switzerland, …)

followed by Middle East and Africa (Cameroun, Senegal, Jordan, …)

Support the mobile launches in France, Slovakia, Netherlands, Belgium, Denmark, Romania, Switzerland, Poland

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Some references
 Shadow Management and Management
 Al Madar Libya
 Teleyemen
 Ethio Telecom

 Program Management Office

 Telkom Kenya, Orange Uganda
 Vietnam Ministry of Information and Communications : ITC Policy Support
Program financed by the World Bank

 Revenue assurance
 Data accuracy and internal fraud prevention (Telecom Argentina, PT
Telkom Indonesia, CIT Ivory Coast, AT-Algeria, etc.)
 Measurement of atypical interconnection traffic TPSA Poland
 Overconsumption Management Process TPSA Poland

 Due Diligence / Assets evaluation

 Türk Telekom, Tunisie Telecom, Telkom Kenya, Ghana Telecom…
 GSM licenses valuation in Chad
 Asia, Middle-East (on going)

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Broadband market
and trends
Our vision of the world mobile market
 While mobile subscribers outnumber fixed-line subscribers worldwide,
most international traffic is still originated and terminated on fixed
lines. However, it’s clear that mobile originated traffic growth will
continue to outpace fixed-line growth.
 In emerging markets, mobile networks are cheaper and easier to deploy than fixed-line
networks and are frequently the only telecommunications service available to consumers.
 In Europe, Asia, the U.S., and Canada, younger consumers are increasingly opting out of the
fixed phone network and using mobiles for all voice communications. Continued fixed-mobile
substitution will keep mobile subscribers central to the fortunes of international carriers for
years to come
 Convergence is everywhere
 Convergence was only a word in 2006. Two years later, it has become an obvious fact. As of
today, it takes two new forms:
 The possible mixture of offers or services unties the imagination.
• Under the term “Open world”, each of the major players attempts to attract the greatest worldwide
community of developers to their profits.
• Google and Apple are trying to attract vast communities of developers, chasing good ideas well
beyond their own respective R&D centres.
 The services are instantly available and can be used by competing operators’ customers
as well.
• The attitude of Nokia, Apple or Google with their “Application Stores” is driving operators to change
their own operating procedure and to adopt the “from subscribers to consumers” method.

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Global trends

 Broadband everywhere  Towards all-IP networks;

 Impressive growth of communication services (IP traffic explosion);
 Global coverage and access ubiquity (anywhere, any devices);
 Improve radio efficiency;
 Increase capacity on mobile backhaul;
 Explore ways to reduce the cost per bit;
 Put in place content delivery architecture;
 Increase knowledge and management of Internet Traffic.

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South East Asia Mobile
 One of the fastest growing regions for the mobile phone industry is the Asia Pacific region.
 Asia is an area of contrasts, between the industrialised markets of Japan, South Korea,
Australia and New Zealand, and the developing economies, some of which are
massive, namely China and India.
 More than 8 countries (including Bangladesh, Cambodia, India, Indonesia, Laos, Pakistan,
Sri Lanka and Vietnam) should see an increase of more than 500 million subscribers
before 2012, which represents 37% of the total market in Asia.
 China and Asia Pacific are the regions which will offer most growth in the years to come
but it is not without risk. These emerging markets have low incomes and weak ARPU
(average revenue per user), just US$3.90 per month in some countries. Moreover, more
than 85% of mobile users in these markets are prepaid subscribers. The challenge for
mobile phone operators is to introduce new business models with attractive fixed price
plans.
 In Indonesia – where 3G networks have been up and running for several years but whose
market did not really get off the ground until 2008 – there are already plans to migrate to
4G in the short to medium term, with a service launch scheduled for late 2013.
 Asia-Pacific has the lowest ARPU levels of all the regions covered, and there is significant
churn in countries such as the Philippines, where Globe averaged over 7% churn per
quarter the last three quarters of 2009, and especially Indonesia, where 3 (an MNO)
reported a striking 24%+ churn per quarter in 2009 (source: Wireless Intelligence, 2010).

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Broadband Global

 WiMAX represents 0,8%

of the market today and
will represent 3,56% by
2015,

 during that period the

WiMAX users will increase
by 6,6 times

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Broadband Asia Pacific

 WiMAX represents 0,65%

of the market today and will
represent 4,26% by 2015,

 during that period the

WiMAX users will increase
by more than 12 times

 And will represent more

than 50% of the global
users

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Open questions ..

 Does WiMAX still have a role?

 How to positioning WiMAX successfully in emerging markets
 Spectrum Challenges & Availability in emerging markets

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WiMAX experience
feed back
Sofrecom WiMAX references
 Sofrecom has supported Orange Group to launch several
Greenfield operators, where WiMAX was one of the
technology chosen to be a convergent operator and bring a
key differentiator in the market :
 Orange Uganda
 Orange Niger
 Sofrecom has also helped Augere Group to launch several
operations fully WiMAX in
 Bangladesh
 Pakistan
 Uganda

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WiMAX experience feed back
 Due to investment costs and the low margin,equation in
WiMAX operations there is several issues that need special
care
 On the various types of WiMAX operations Sofrecom has
encountered, we foresee three main aspects where operators
should really focus on,
 Geo Marketing
 In order to get as much as users from the targeted market, a geo
marketing assessment should be a prime focus
 Delivery processes
 Connectivity with your network will require end user equipments,
OSS and inventory solutions are a key success factor or would
generate important loss for the operator
 Revenue Assurance
 Due to the tight margin, a careful revenue control should be a major
priority

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Sofrecom Indonesia
Sofrecom Indonesia
 More than 30 years of cooperation on the field
 Sofrecom has been working in Indonesia since 1976

 Official branch opened in 1994 in Jakarta

 Today fully integrated in the local Indonesian context
 Local resources and expertise

 Some examples of projects

 PALAPA Network construction and supervision (1977-1981)
 Master plan for data communication services (1986-1987)
 Project management assistance for PBH2 (125.000 lines)
 Implementation of Customer Care and Billing system with PT Telkom btw 1994-
1997
 Maintenance of the Customer Care and Billing System of PT Telkom
 World Bank and Dirgen Postel Project 2007 : Demand estimates from 2015 till
2020 and network design for the Palapa Ring project  National Fiber Optic
Backbone
 Consulting services for the FO. MPLS and WiMAX Project for PT Infokom
Elektrindo in 2007
 OSS/BSS solution Upgrade at Telkom with latest Gaïa version, starting 2009

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Sofrecom Indonesia
 Sofrecom Indonesia mission is to
 accompany the development of all types of telecoms players
in Indonesia and further more in South East Asia – fixed line,
wireless, WiMAX, ISP, MVNO, VoIP, convergent
 Provide IT services to Telco projects in Indonesia, using
local skills
 Provide IT services in other related domains where
Sofrecom Indonesia has skills and resources, as banking,
utilities and traffic systems

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Sofrecom Indonesia - Our skill Centers

Maintenance and Support BSS OSS

 IS Implementation and Support  Gaïa solutions dedicated to telecoms
 Software Development and operators
Parameterization  Gaïa BCC
 Sof’Network

Training Integration of market solutions

 Specialist in telecoms training : introduction
to telecommunications, training for sales
personnel, human resources optimization
training, telecommunications
specializations
 Mediation, DigitalRoute
 Billing for greenfield
 GIS Marketing
 Network Testing Tools

CRM expertise centre Other domains

Sofrecom Indonesia
 CRM experts: CRM strategy, project owner,  Banking
process, deployment of solutions  Public Utility (Water and electricity)
 Traffic solutions

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Sofrecom Indonesia - Partners
 In order to enhance its positioning and support its actions on
international markets, Sofrecom has set up partnership networks.
These networks enable us to provide our clients, in response to
their needs, with the best solutions on the market. In this regard and
in all Sofrecom Indonesia areas of expertise, technology watch and
sustainable relationship with software editors, equipment
manufacturers and consulting agencies enable us to conclude
partnership agreements in order to complete our offer.

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Thank You
Argentina Morocco Algeria France Poland Dubai Indonesia Thailand Vietnam

Creating value for operator

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