Bridging The Digital Divide
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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 • Internet penetration in • 1.4 billion users of • 1 trillin industry in Asia S&SE Asia now at 35% mobile broad band (37% of Asian Base) Pacific by 2017 • 2.4 billion users by • Current Growth rate 2020 • 56 X increase between • 24% YoY 2000 and 2017 3+ Billion Smartphones by 2020 • Mobile broadband primary contributor
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 • 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% • 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
2017 2020 2017 2020 2017 USD USD 46.0M USD 1B USD 44M 100M E-Commerce 500M Mobile phone Subscription E- #Market E-Commerce E- #Market Market Market 85% 29.5M 83.9M 8.6M 14.0M Smartphone Smartphone Smartphone Smartphone Mobile phone Penetration penetration penetration penetration penetration 35% 27 X Growth in Mobile Broadband 3G/4G market Penetration between 2013 and 2016
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 • Infrastructure Development • Less developed areas • E-Commerce • Payment Solutions • Dis-Intermediation • Entrepreneurship • Providing the platform • Seed capital
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 • 10,000+ 3G sites • 10,000 sites by 2018 • Covering 3500 Cities • Covers 99% of the area • Covers 85% of the area • 200,000 Retailers • 350,000 + Retailers • 85000 + Retailers Universal services fund initiative to serve the low population density areas
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 • 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 • 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) • Pioneering the market • 1 Million + Active Mobile • 15000 Outlets • Brand Partnerships • 80% market not served accounts • 60,000 outlets currently • Targeting 85% of the un- banked market of Pakistan
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 Dis- Intermediation of the agriculture sector 4.5% Dilutable Equity • 11 Start-ups graduated • 600 Applicants • US$ 645,000 funding • 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
How should the policy makers react to this digital shift 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
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