DIGITAL STRATEGY FROM TELCO PERSPECTIVE

Rebeka Belavić, Hrvatski Telekom d.d.

CENTRAL AND EASTERN EUROPE CARRIERS AND ENTERPRISES EVENT 2018

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DIGITALIZATION IS INFLUENCING OUR EVERYDAY LIFE

FOR COMMERCIAL DRONES, SHIPMENTS ARE EXPECTED TO REACH 805,000 IN 2021 - 5Y CAGR OF 51% FROM 2016

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TRADITIONAL SOURCES OF INFORMATION HAVE BECOME LESS POPULAR, AND MORE CONSUMERS ARE USING DIGITAL MEDIA

- 46% - 11% + 16% + 15% + 8% + 8%

https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/finding-the-fast-lane-emerging-trends-in-chinas-auto-market

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TOP 10 COMPANIES 2007 - 2017

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IN THE PAST 5 YEARS, TELECOM INDUSTRY HAS ENTERED A PERIOD OF SLOW DECLINE WITH REVENUE GROWTH DOWN FROM 4.5% TO 4%, EBITDA

MARGINS DOWN FROM 25%TO 17%

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Keep up with MARKET TRENDS?

STAY RELEVANT?

DIFFERENTIATE?

„In the middle of difficulty lies opportunity”

Albert Einstein

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DIGITAL . strategy

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1 make the core business more agile.

identify new growth areas in the space that combines the great potential of digitization and telcos’ existing core competencies.

2REBUILD MARKET POSITIONS THROUGH STRATEGIC MOVES

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Telecos are naturally playing inConnectivity partof the value chain, but building on Applications andIntregrationservices can bringsignificantrevenues

TELECOM AS BACKBONE OF FAST-GROWING DIGITAL ECOSYSTEMS

Internet of things

Devices Connectivity Platform Applications Integration

IoT Value Chain

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Connectivity + valueservice = smart city

TELECOM AS BACKBONE OF FAST-GROWING DIGITAL ECOSYSTEMS

SMART CITY

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DIGITAL . Reinvent yourself

proposition PROCESSESIt/ntchannels

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Digitalization is more than just implementing platform or automating an existing process. Becoming digital requires reinventing the entire business process.

„Only a few out of80 companies

making big data investments had a sizable impact on

profits.

IN PRACTICE – DESIGN THINKING

DIGITALIZATION OF SERVICES AND PROCESSES RESULTS IN INCREASED CUSTOMER SATISFACTION

Digital is now the leading channel in many customer-service transactions.Customers prefer digital service, with 76 % of telecom customers satisfied with digital-only journeys, compared with 57 % for traditional channels.

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Thinking digital is deeply embedded in telcos’ business models - not only do weprovide our own digital products and services but also the essential connectivity

infrastructure that allows other sectors to function and grow in the digital economy.

P3 confirmed that HT provides the best quality of mobile, voice, and data services in Croatia

HT is largest private investor inCroatia (invested over 6 B KN inlast 4 years)

HT Group will independently meet 70% of the objectives of the Digital Agenda 2020 for Croatia