“5G IS SO LAST CENTURY”. THE CASE FOR SERVICES 5G IS SO AST CENTURY CONNECTIVITY 5G IS SO LAST CENTURY Presented By: Zunaid Bulbulia 24 October 2017 Presented by Zunaid Bulbulia Presented on 24 October 2017
GAME PLAN – By the end of this presentation, we will have covered: 1. How the Telecoms landscape has changed 2. The power of service innovation 3. A practical example 4. The key characteristics of the service innovation model 5. Replicating and improving the model 6. Other Service models in the Huge Group
Huge Group Limited The Good Old Days
Huge Group Limited Technology Driven Land Grab: particularly in Africa
Huge Group Limited Technology is expensive – those with deep pockets made the money
Huge Group Limited A vicious cycle – those making the money could afford to keep investing
Huge Group Limited Moore’s Law (and the Chinese and their innovative finance) have made technology affordable
Huge Group Limited Technology neutrality has now arrived
Huge Group Limited No-one is able to differentiate on the basis of access to technology any longer
Huge Group Limited And more players means more competition and this is decimating margins
Huge Group Limited In the frantic rush to own infrastructure, a gap has been left in the services space
Huge Group Limited Services Innovation is the 6G
Huge Group Limited In fact, we are coining a new phrase at Huge. The next evolution from 5G is Services G
Huge Group Limited Let’s not be theoretical – let’s use a real example
Huge Group Limited Let me introduce you to the Huge Group One of the principal operating subsidiaries is: It was founded in July 1993 (23 years old). We have recently acquired a Fintech/Payments business (Huge Connect) and an ISP (Huge Networks)
Huge Group Limited What do we do? Huge Telecom is a mobile telephony services business Our key proposition is the substituting of fixed-line voice infrastructure (aka copper) with mobile solutions.
Huge Group Limited What is the nature of our mobile solutions? Huge Telecom does not own core network infrastructure… Rather, it leverages off the existing mobile operator networks in South Africa Unlike a public switched telephone network (PSTN) like Telkom, Huge Telecom uses GSM to provide a wireless ‘last mile’ connection from the customer’s premises to the core of a mobile network
Huge Group Limited What is the nature of our mobile solutions? VS
Huge Group Limited A PSTN last-mile
Huge Group Limited Our GSM last-mile
Huge Group Limited Who are our customers? From the simple SOHO …to the elaborate
Huge Group Limited Who are our customers? From the residential home …
Huge Group Limited Who are our customers? …to any office… …that uses a PABX…
Huge Group Limited How many customers do we have? We have in excess of 15 000 customers, comprising corporate organisations (of any size) and residential customers who require a fixed location voice service Our equipment is located at over 15 000 sites We have over 35 000 installed telephone lines
Huge Group Limited What differentiates our telephony service? Not only is our telephone service a substitute for the fixed land-line telephone services provided by Telkom (comprising 3.2 million telephone lines at the last reporting date) but it is also: More Cost Effective Easier to Install Cheaper to Maintain
Huge Group Limited What differentiates our telephony service? The last-mile connection from the core of the mobile operator network to the customer’s premises is a single - variable solution, operating in a static ecosystem, with only one possible point of failure The Solution has been created as a Plug, Play, Walk Away Solution
Huge Group Limited How do we go to market? We have over 600 resellers (Business Partners) PABX vendors Office Automation vendors IT vendors Security Services vendors PAY TV vendors Over 3 000 sales personnel as our feet on the street
Huge Group Limited Examples of Voice Only success stories – Who says Voice is dead? Granite Telecommunications – A US based company It has amassed 1.4 million analogue telephone lines (44% of Telkom’s telephone lines) in 14 years Revenue for FY2016 is expected to be $1.25bn (R17.5bn) It employs 1 500 people http://www.bizjournals.com/boston/blog/techflash/2015/1 1/exclusive-quincys-granite-plans-to-hire-hundreds.html
Huge Group Limited So, what are the key characteristics?
Huge Group Limited Cosy up to the big infrastructure players
Huge Group Limited Find a niche in the market and become obsessed with owning it
Huge Group Limited Don’t pick a fight with the biggest dog in the junkyard
Huge Group Limited Whip your people into a frenzy on the service ethic
Huge Group Limited Don’t kill the antibodies that keep you alive?
Huge Group Limited Richly reward those who add value
Huge Group Limited Always own the customer – never compromise this
Huge Group Limited Shorten the sales cycle
Huge Group Limited If it works, do it again – and improve on it
Huge Group Limited What does Huge Connect do? Huge Connect is a mobile payment solution company, established in 2004, which provides connectivity to the card payment terminals accredited by the commercial banks in South Africa for use by merchants It makes use of secure dual SIM Card connectivity over GSM data networks – this fits perfectly with Huge Group’s investment theme of ‘Connectivity’
Huge Group Limited What is the nature of the Huge Connect solution?
Huge Group Limited What is the nature of the Huge Connect solution? Mostly merchants …but it has also expanded into other market segments by providing connectivity to ATMs, integrated points of sale, medical script verifications, telemetry applications, micro lending institutions and cash vaults
Huge Group Limited What does Huge Network do? Huge Networks is a network service provider and data communications company …it sells a variety of products and services, including Internet data services, managed network solutions, branch connectivity, hosting services and website and system development…
WE COVERED: 1. How the Telecoms landscape has changed 2. The power of service innovation 3. A practical example 4. The key characteristics of the service innovation model 5. Replicating and improving on the model 6. Other Service models in the Huge Group
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