Bridging The Digital Divide

• Internet penetration in S&SE Asia now at 35%

• 56 X increase between 2000 and 2017

Digital Seismic Shift in Developing Asia: Asia now account for 1.87 billion internet users, which is 50% of global base.

41% of these users reside in South & South East Asia

• 1.4 billion users of mobile broad band (37% of Asian Base)

• 2.4 billion users by 2020

• 3+ Billion Smartphones by 2020

• 1 trillin industry in Asia Pacific by 2017

• Current Growth rate 24% YoY

• Mobile broadband primary contributor

• Empirically proven impact on economic output and Job creation • US$ 1.2 trillion by 2020 in Asia/SE Asia GDP

• 35 million new jobs by 2020 (all sectors)

• 10% increase in Broad band penetration raises the GDP by 0.26% - 1%

Societal Impact of Digitization: We clearly see the impact of digitization on the economy, equal opportunity for

the population and innovation

Forecasted annual Data traffic trend

till 2018 in Asia Pacific

• Reducing the gender divide. Digital economies are known to increase women participation in the work force

• 10% increase in women entrepreneurship in Pakistan

• Empowerment for small business and sole proprietors through Dis-Intermediation

• Rise in platform businesses regionally as well as country specific • Careem, Ali BaBa , Sales Stock (online fashion store), OLX

• Pakwheels.com, zameen.com

• Increase in Peer to Peer exchange on social networking sites • Monetization shifting from advertising to e-commerce

How is Telenor Group addressing the digital revolution in Asia

Pakistan | Bangladesh | Myanmar

USD 100M

E- #Market

29.5M Smartphone penetration

USD 1B E-Commerce

Market

83.9M Smartphone penetration

2017 2020

USD 44M E- #Market

8.6M Smartphone penetration

USD 500M

E-Commerce Market

14.0M Smartphone penetration

2017 2020

46.0M Mobile phone Subscription

85% Mobile phone Penetration

35% Mobile Broadband

Penetration

2017

27 X Growth in 3G/4G market

between 2013 and 2016

• Infrastructure Development • Less developed areas

• E-Commerce • Payment Solutions

• Dis-Intermediation

• Entrepreneurship • Providing the platform

• Seed capital

Value Addition: Telecommunication networks build the necessary eco systems required to connect and

empower people to reach out to the world faster and at the right cost

Telenor Pakistan alone has contributed to US$ 14.5 billion to the National exchequer between 2003-2016

(http://www.pta.gov.pk/index.php?option=com_content&task=view&id=269&Itemid=658)

Infrastructure Development: The most fundamental roll is infrastructure development both technical as well as the

distribution network. This provides the necessary reach for digital development

• 8000+ 3G sites

• Covering 3500 Cities

• 200,000 Retailers

Universal services fund initiative to serve the low population density areas

• 10,000+ 3G sites

• Covers 99% of the area

• 350,000 + Retailers

• 10,000 sites by 2018

• Covers 85% of the area

• 85000 + Retailers

• Operates in the area of • Telecom Services

• Broadband

• Fiber-Optic

• Telco’s typically contribute 1.5% of revenue to the fund

• USF is a public/private partnership initiative

Universal services fund: The aim is to serve the under served, low population density areas where it is not

profitable for the private businesses to invest

• Baluchistan, which is 41% of the area of Pakistan but only 5% of the population

“Any Locality with 100 Houses will get connectivity”

E – Commerce & Payments: Development of the eco system which enables exchange of goods and services in a

secure and swift environment

Pakistan’s First Mobile Banking Service

• 80,000 + out lets (approx.

2.5M + Nationwide) • 1 Million + Active Mobile

accounts • Targeting 85% of the un-

banked market of Pakistan

• Brand Partnerships • 60,000 outlets

• Pioneering the market • 15000 Outlets • 80% market not served

currently

International tech companies ike Rocket Internet acquiring Pakistani e commerce start

up daraz.pk.

Telenor Partnering with Daraz.pk to enable digital black Friday in Pakistan

Entrepreneurship and Digital Verticals:

Enabling and investing into the platform business of tomorrow to ride the

disruption curve. Focusing on digital verticals for dis-intermediation

4.5% Dilutable Equity

• 11 Start-ups graduated • US$ 645,000 funding

Dis- Intermediation of the agriculture sector

• 600 Applicants • 25 Local Start-ups Selected

M-AGRI

Platform:

Over 3Million inbound subscribed Farmers

Regional Language: Urdu, Punjabi & Siraiki

Over 30 million minutes utilized monthly

Over 14 million incoming calls monthly

Future:

Financing through Telenor Bank

Approach with an open mind

Understand and Accept this digital shift

Regulate and Promote (Taxation Regime???)

Predictable and transparent business environment

Simplify investment process in infrastructure projects

How should the policy makers react to this

digital shift

Thank you