AIS’s Strategic Directions Somchai hai Lertsu tsutiw tiwong ong CEO 1
Our challenges ahead Mobile industry stagnating Heavily relying on mobile revenue and profit High cost of spectrums Digital technologies enable new market and players 2
AIS: Digital Platform for Thais Mobile Network Healthcare 41M 3G / 4G / Super WifF / NEXT G / .. 5G Fibre Broadband Other Education Thais FTTH, FTTB, Nationwide FIBRE core, International Network Our Logistic Partner customers Digital Service Enablers Data & Transportation Connect Analytics Video, E-money, Cloud, IoT, and etc
1-3 years Overall Strategy 4
Mobile: Maintain leadership and stay competitive to retain scale Mobile Revenue Market Share Trend 47.5% 49.6% • 48.3% Retain business scale in both subscriber and revenue 28.0% 26.6% 26.4% • Optimize and digitize operation 23.8% 25.2% 24.2% 2016 2017 9M18 FBB Network Customer Branding Offering Investment Management • • • • Aim to be the brand Gain fair share in Ensure effective Revamp points and Digital for digital prepaid via use of spectrum privileges Service population • segmentation and and future-proof Implement predictive postpaid via CVM investment models 5
FBB: Focus on FMC to grow FBB Mobile FMC Mobile Fixed Mobile Convergence • 2019 target: 1m n subscribers FBB • Move to ARPH (average CVM revenue per household) Customer Value Management FBB Investment Growth strategies • • Deploy FMC and CVM to drive customer Investment of Bt4-5bn per annum base and total customer value Drive by our Allocated • 70% of investment occurs when customer capabilities to Bt4-5bn CAPEX to • Cross sell with targeted mobile subscriber request to connect capture in 2019 70% last miles base demand • Target to drive revenue and profitability • Acquisition focus in selected segments growth over mid to long term and targeted area Digital • Utilize strength of pull channels to gain Service quality subscribers • Ensure end-to-end service quality 6
Digital Service: New strategic offerings Mobile Consumer Enterprise : Leverage and enhance customer base via partner : Integrated services of Telecom-ICT-Digital platform Telco Mobile services Game Insurance Data network Products ICT Digital FBB services services Mobile wallet Video Cloud IoT DC/ICT Solutions Cyber security 41M customers + Others Partners Capabilities AWN+CSL Advertisement Other related Digital services + Service Drive quick learning curve 7
AIS: View on 5G Fair spectrum cost Available ecosystem Commercially viable use cases Equipment price 8
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Agenda • 5G standard and Global use cases • Preparation for 5G • 5G investment outlook 10
Enhanced Mobile Broadband 5G (20 Gbps) in a Nutshell Massive IOT Ultra High Reliable & Low Latency (1 msec) (1M device per sqr.km.) 11
5G Standardization – Timeline, key date and players 5G Spectrum at 2015 2016 2017 2018 2019 2020 World Radio communication Conferences (WRC) Vision Requirements Workshop Proposals ITU 2015 and 2019 WRC-19 WRC-15 Standards complete 2019 Release 16 Release 15 Commercial scaled 3GPP Define 5G Commercial Focus more on Deployments 2020 architectures Specification uRLLC and onwards Define eMBB spec. eMTC 12
Global pre-commercial/commercial 5G launch plan 13
5G deployment worldwide By mid Jan 2019, 201 operators in 83 countries investing in 5G, including tests, trials, plan, pilot deployment and commercial launch. 14
5G Devices Verizon 5G upgradable phone and AT&T announces 3 mobile 5G devices FWA devices Netgear 5G WiFi hotspot Moto Z3 5G upgradable phone Samsung 5G on mmWave & sub-6 GHz (2H 2019) Verizon 5G Home CPE since 1 Oct 2018 Samsung 5G prototype Xiaomi Mi Mix 3 5G phone by mid phone in CES 2019 Sprint & LG 5G phone by 1H2019 of 2019 15
Technology Trend Expectation Plateau will be reached Less than 2 years 5G will take 2-5 years to 2-5 years reach mainstream adoption 5 -10 years More than 10 years Expectation Ecosystem is required via collaborations of the thinker, the builder, the provider, the users. Gartner: as of August 2018 Innovation Peak of Inflated Trough of Slope of Plateau of Trigger Expectations Disillusionment Enlightenment Productivity 16
5G use case 1: WTTx WTTx = Wireless To The Everything WTTx is a new 5G-based broadband access solution, which uses wireless to provide fiber-like broadband access for household. WTTx benefits: High speed internet access with superior performance Lower investment cost compared to others wired access Deployed on high-band (28GHz) by Fast deployment some operators in late 2018 Easy maintenance e.g. Verizon and Telefonica 17
5G use case 2: Automation factory 5G technology provides low latency and high reliability connectivity for manufacturing. These are requirements that manufacturers currently rely on fixed-line networks. The mobile 5G technology will allow for higher flexibility, lower cost and shorter lead times for factory floor production reconfiguration and layout changes. Automation factory benefits: 1. Reduce system setup time 2. Increase productivity 3. Minimize machine downtime in case of any changes 18
5G use case 3: Autonomous driving Autonomous driving means the self-driving of a vehicle to a specific target in real traffic without the intervention of a human driver. Autonomous driving benefits: 1. Reduce accidents 2. Reduce traffic congestion/Lower fuel consumption 3. Reduce CO2 emission 4. More efficient parking Mainstream adoption More than 10 years 19
Agenda • 5G standard and Global use cases • Preparation for 5G • 5G investment outlook 20
Existing 4G Topology 4G Core EPC Radio Transport Network HSS IMS Antenna IPRAN RRU IPRAN ACCESS AGGREGATE MME GWC (10G) eNB CPRI SGW / 4G BBU PGW GWU Internet 5G NSA Topology (NSA: Non-StandAlone) 4G Core EPC Radio Transport Network HSS IMS AAU IPRAN Split Chain ACCESS(10G) IPRAN eCPRI IPRAN MME AGGREGATE GWC WDM Access ACCESS(10G) gNB SGW / CU/DU 5G IPRAN ACCESS(100G) PGW GWU Internet Existing Upgrade New 21
Network infrastructure preparation for 5G 5G new base stations New Frequency AIS core network is can be interworking spectrum is required to upgradable to support with existing network support 5G 5G Also including IPRAN 2.6GHz, 3.5GHz, 26- Tested & Deploy NFV 28GHz and CUPS network enhancement to support higher bandwidth solutions 22
Agenda • 5G standard and Global use cases • Preparation for 5G • 5G investment outlook 23
Scatter and Dense Network Deployment China plans to launch 5G with network US targets to launch 5G first, with densification scattered 5G coverage Sites per 10,000 people Sites per 10,000 people Sites per 10 square miles Sites per 10 square miles Source: Deloitte analysis 24
Cost and Cell Capacity: TDD NR vs FDD LTE 2T2R Commercial price per Cell Capacity Bandwidth Configuration site (USD) (Based on simulation) 1800MHz 20MHz, S111, 2T2R 3 Sectors 1X 1X 2600MHz 60MHz, S111, 64T64R, 3 Sectors 6~7X 20~23X Remarks: Above cost and cell capacity only calculated from a typical configuration of 5G TDD NR for high level comparison with LTE. The actual cost and cell capacity could be varied depending on different site configurations. How 5G achieves cell capacity gain over LTE 25
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Digital Platform & Digital Expansion 27
Digital Fibre Mobile Postpaid 6.4M 8.2M 7.4M 731k 4M 521k FTTB 2M Prepaid 34.6M 32.7M 300k 33.0M 1M FTTH 2016 2017 2018 2016 2017 2018 2016 2017 2018 3.8GB 7.3GB 11.6GB 20Mbps 100Mbps 30Mbps per sub per month Avg Speed 5.1M 2.6M 2.0M 2016 2017 2018 28
The he Fi Fixe xed-Mobile Mobile-Content Content-Convergence Convergence Winning homes 29
TOP QUALITY PRODUCT FOCUS Mobile • Next G • Top Speed • Lowest Latency • SuperWiFi Fibre • Top Quality • Lowest Latency • To the Last 10m 30
The Last 10m Top Quality 31
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FMCC WITH THE POWER OF 4 growing from with in + + + 5-20 Gbyte/mth 50-200 Mbps > 50% of new customers on bundling contents or mobile 33
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The The Vid Video eo Ser Service vice Scale up, engage, and monetize 36
> 1.5 Hr / day watching on mobile > 7 Hr / day watching on TV 4M 2M > 1.4M Hr of contents streaming a day 1M 2016 2017 2018 37
Gateway to the world premium Freemium for every one Your Entertainment Gateway Enjoy every moment, anywhere anytime ANY MOBILE ANY PC ANY TV ANY BOX 38
Gateway to the world premium Freemium for every one Your Entertainment Gateway Enjoy every moment, anywhere anytime ANY MOBILE ANY PC PLAY 365 365 ANY TV The 1 st Windows TVOD ANY BOX outside cinemas 39
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