This is the presentation I gave in the recent LTE Asia event (http://asia.lteconference.com) in Singapore. The Philippines has tremendous potential for broadband!

1. LTE
Broadband
Adop.on
in
the
Philippines
Cocoy
J.
Claravall
24
Sept
2014

2. • State of Philippine Internet
• Local Market Trends
• Key Areas to Consider for Massive
LTE Expansion
• Strategic Partnerships with OTTs
AGENDA:

3. 3

4. Internet quality, affordability, have
been in the headlines …
The
Need
for
Local
IP
Peering

7. The
Philippines
at
a
Glance
…
7
There
are
s.ll
6.5
Filipinos
without
an
internet
connec.on
and
69%
that
s.ll
access
the
internet
via
internet
cafes.
The
average
Filipino
now
uses
the
internet
for
16.4
hours
per
month
vs.
before
where
TV
/
Radio
/
Print
dominates.
1
2
We actually surpassed
100M last July 27!

8. 8
Market
Trend:
Emergence
of
2nd
.er
ci.es
City
DSL
WiMax
LTE
Baguio
Metro
Clark
Malolos
Imus
Dasmariῆas
Sta.
Rosa
Lipa
Ilo-­‐Ilo
Bacolod
Dumaguete
Metro
Cebu
Cagayan
de
Oro
Davao
1
The
Philippines
at
a
Glance
…

9. Market
Trend:
Higher
disposable
income
for
BPO
employees
THE
BPO
INDUSTRY
HAS
GROWN
AND
WILL
CONTINUE
TO
GROW
• The
BPO
industry
has
been
growing
at
an
average
rate
of
30%
annually,
faster
than
PH
economy
• BPO
employee
populaSon
expanding
20%
annually,
expected
to
conSnue
source:
Business
Processing
Associa0on
of
the
Philippines,
Everest
Analysis
BPO
EMPLOYEES
HAVE
HIGHER
WAGES
THAN
THE
AVERAGE
FILIPINO
• The
BPO
sector
as
one
of
the
most
well-­‐paid
industries
in
the
country
(NSCB,
Aug
2012)
• BPO
average
income
of
PHP
29,
385
vs.
Working
Filipinos
PHP
9,
619
sources:
2010
Annual
Survey
on
Philippine
Business
and
Industry;
www.bpmwatch.com
Market
Trend:
Increasing
HH
expenditure
for
recrea.on,
communica.on
Category
2013
2014
Growth
Rate
RecreaSon
and
Culture
24,
985
26,
146
4.6%
CommunicaSon
63,
575
67,
630
6.4%
2
3
The
Philippines
at
a
Glance
…

10. Market
Trend:
Increased
penetra.on
and
usage
of
Devices
2015
Business
Planning
INCREASED
ADOPTION
OF
TABLETS
AND
SMARTPHONES
• Globally,
42
million
units
of
tablets
shipped
in
2012
vs.
79
million
in
2013
• In
the
Philippines,
growth
rate
of
tablets
from
3%
per
month
in
2012
to
5%
in
2013
• Smartphone
have
finally
overtaken
feature
phones
in
monthly
sales
in
July
2013;
Phablets
increasingly
grabbing
share
since
July
2013
• Lower
SRP
of
Smartphones
to
contribute
to
increased
penetraSon,
50%
now
priced
Php
7,500
and
below
source:
Morgan
Stanley
research,
Nielsen
smartphone
insights
2013,
GFK
Nov
2013
Panel
report
4
The
Philippines
at
a
Glance
…

11. Source:
Nielsen, Q1 2014
Smartphones
and
Tablets
growing
fast
while
laptops
stabilize.
• Tablets’ boom is significant, moving a
projected 1M units for 2014 vs. 832K last
year (30% growth)
• Smartphones are also on an uptrend,
moving a projected 7.7M units for 2014 vs
6.2M units last year. (24% growth)
• Laptops decline slowed down from 31%
in 2013 to 13% in 2014 and still accounts
for 354K units a year

12. Seven Key Areas to Prepare for Massive Expansion
Gross
Adds
Customer
Care
D2D
Sales
Flow
Through
CollecSon
Agencies
Modem
(PSP)
Install
&
Repair
Teams
It’s all about People,
Process, Partners,
Systems, Tools &
Passion!

13. Seven Key Areas to Prepare for Massive Expansion
Gross
Adds
Customer
Care
D2D
Sales
Flow
Through
CollecSon
Agencies
Modem
(PSP)
Install
&
Repair
Teams
1. Scale
up
recruiSng
2. Fast
track
training
3. Increase
producSvity
4. Invest
in
tools
5. Streamline
and
automate
processes
6. Demo
to
sale
7. Plug
and
play
product
8. Remote
management
capabiliSes

14. Seven Key Areas to Prepare for Massive Expansion
Gross
Adds
Customer
Care
D2D
Sales
Flow
Through
CollecSon
Agencies
Modem
(PSP)
Install
&
Repair
Teams
1. Scale
up
recruiSng
2. Fast
track
training
3. Remote
serviceability
checking
4. Streamline
and
automate
processes
5. Expand
collecSon
network
6. Right
size
teams
(clusters,
stores,
ECs)

15. Seven Key Areas to Prepare for Massive Expansion
Gross
Adds
Customer
Care
D2D
Sales
Flow
Through
CollecSon
Agencies
Modem
(PSP)
Install
&
Repair
Teams
1. Modem
Price
2. Modem
Security
3. Performance
monitoring
4. Remote
manageability
5. Vendor’s
track
record
and
commitment
to
grow
with
Globe

16. WiMAX
to
LTE
Migra.on
(It’s
not
easy,
it’s
not
cheap!)
• Cost
to
convert
a
subscriber
is
high
• Messaging
is
key
-­‐
how
will
you
communicate
that
the
current
network
is
obsolete?
• Will
current
RAN
support
dual
operaSon?
• How
about
the
subscriber’s
device,
go
dual-­‐mode?
• Core
architecture
of
each
technology
is
significantly
different,
requiring
concurrent
operaSon
of
both
networks
…
• Not
to
menSon
book
value
of
the
WiMAX
infrastructure.
• Spectrum
is
a
challenge,
TDD
and
FDD
are
not
compaSble
in
adjacent
spectrum.

17. FB
has
become
the
new
CORE
…
22% 19% 20% 21% 22% 21%
48% 52% 55% 53% 54% 55%
6% 5% 5% 5% 4% 4%9% 10% 7% 8% 9% 9%
15% 13% 13% 13% 12% 12%
Oct'13 Nov'13 Dec'13 Jan'14 Feb'14 Mar'14
Chat Social
Networking App
Store Video others
TIME
SPENT
[Minutes/
day]
PLUS,
they
do
have
the
upper
hand
today:
• Hard
to
beat
a
FREE
proposiSon,
• Global,
wider
reach,
• SScky
offers
through
their
conSnuous
innovaSon
(big
R&D
budgets),
• Robust
feature
roadmap,
and
• Cracked
the
code
in
terms
of
how
to
moneSze
the
service.

18. 1. ConSnue
to
partner
…
(with
cauSon),
2. Drive
Globe
to
be
at
the
center
of
the
customer’s
digital
life,
3. Build
strategic
partnerships
with
the
top
device
players,
4. And,
on
top
of
it
all,
don’t
lose
focus
on
the
CUSTOMER
EXPERIENCE.
There’s
light
at
the
end
of
the
tunnel
…

19. IN
SUMMARY
• Huge
potenSal
exists
for
Broadband
(with
LTE,
the
Top
technology
of
choice).
• Government,
media,
and
Filipinos
are
clamoring
for
it
–
“Build
and
they
will
come!”
• The
economy
is
booming,
with
the
Outsourcing
industry
helping
fuel
growth
and
increase
in
consumer
spending,
• Globe
needs
to
massively
build
the
capacity
and
presence
–
FAST!
• WiMAX
has
to
be
migrated,
but
it’s
not
easy,
&
it’s
not
cheap.
• OTT
players
like
FB
are
both
friends
and
foes,
key
is
how
to
balance
the
relaSonship
so
both
can
win.
• Delivering
the
Next
Act
in
Customer
Experience
is
the
KEY.

20. Qclaravall@globe.com.ph