Sofrecom presentation for WiMAX

Jakarta, Novembre 26th 2010

Agenda
Sofrecom Group, part of France Telecom Orange Group
Broadband market and trends

WiMAX experience and feed back

Sofrecom in Indonesia

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France Telecom - Orange Group is

the 5th telecommunication company worldwide

Tunisia

An international footprint

Jordan

186M clients / 126M mobile

United Kingdom
Belgium
France

Egypt
Poland

Austria
Switzerland

under Orange Brand

Spain

Slovakia

Mali

Senegal

Guinea - Bissau
Guinea

Moldavia

CDI

Romania
Armenia

Niger
RCA
Cameron
Ouganda
Equatorial
e
Guinea
Kenya

Dominican Republic

Madagascar
Mauritius

Vanuatu
Caribbean

Botswana

Reunion

54 B revenues

France Telecom Orange Group successfully launched 28 mobile operations

The precursor of 3G services
The leader in convergent and innovative services (IPTV, m-payment)
The operational excellence (Quality of Service, QoS of network)
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Sofrecom is the engineering, deployment and consulting

Company of France Telecom Orange Group (100% subsidiary)

Sofrecom supports France

Telecom Orange Group in its
international
development
by conducting launch and dayto-day operations

France

Europe

AMEA /
RoW

Expertise
Sofrecom provides consultancy
in more than 100 countries : we
build solutions for telecom
players, structure operators,
can manage companies and
help creating value

Outside Orange Footprint

Telecom operators

Governments
Investors

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Sofrecom, global leader in telecom and ICT

Strategy &
Marketing

Networks &
Operations

Information
Systems

Key figures
More than 1000 consultants
& experts
2009 turnover: 105 m
ISO 9001 certification
Established in 1966

Poland

Operators and Service

Providers

Morocco

El Salvador

Libya Jordan
Egypt
Algeria
Senegal
Yemen

Our clients

Vietnam
Thailand
Indonesia

VNOs, FVNOs et MVNOs

Governments Regulatory
bodies & International
Organizations

Investors
our subsidiaries
branches & presence

Argentina
Groupe France Telecom

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Sofrecom provides a large range of skills, from Strategy

to Operations, either on marketing, IT or Network
Organisation
&
Processes

Strategy &
Marketing
Business planning
Offers design &

launch
Distribution & sales
promotion
Communication &
operational marketing
Churn & loyalty
management
Innovative products :
IPTV, multiplay,
audience, m-payment

CRM policy
Commercial

processes (distribution
support, customer
service, billing)
Change management
Audit & risk
management
Quality management
Revenue assurance
Fraud management

Project management end to end (think, build, run)

Implementation & roll-out
Market intelligence
Strategic analysis

Networks
&
Services

Information
Systems
Advice on tools choice

(billing, CRM, BI)

Integration &
development of
solutions
Functional & technical
architecture
BSS/OSS solutions
MVNO solutions
Geographic
Information System

Technology expertise:

Broadband,
backbones, NGN,
WiMax, 2G-3G
Global network design
Engineering & RFP
Contract supervision
Roll-out management
Commissioning
QoS Improvement
Operation
enhancement

Due Diligence
Management services
Human resources & training

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Sofrecom has an exceptional experience-based know-how

Sofrecom has deployed
more than half of
existing Orange
Operations worldwide
~ 100 M clients
~ 30 B revenue

Sofrecom has
conducted the 6 major
Mobile launches of FT
Orange Group over the
past 3 years

Sofrecom is also
launching Greenfield
operations out of
Orange footprint :
Tunisia, Pakistan,
Uganda + 3G launches

Weve based this success on :

1. High-level expertise (Marketing, Sales, Regulatory, Network & IT)
2. Strong and best in class program management
3. Bringing those expertises all together as an operator for higher impact
4. Knowledge Management / Methods

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Sofrecom has conducted numerous launches of operators

Over the years, we have accumulated unrivalled experience from having conducted
numerous consulting projects for the launch of 2nd and 3rd generation mobile operators
in the various evolutions stages of the mobile market and in very different countries

Emergence of
Orange
GSM technology re-branding

>1990s

>2000

3G technology Orange External

spreads
Growths start again

>2005

>2007

Convergence
+ New Models

Today
Today, our challenge is to accompany
Growth (audience, contents, health,
convergence) and to continue
supporting Greenfields

New external growth wave with M/E & Africa acquisitions

& launches : RCA, Kenya, Uganda, Niger, Armenia
3G and edge launches in Western Europe (UK, Spain, Poland, Romania, )
followed by Eastern Europe (ie Moldavia) and M/E & Africa
High implication in the re-brandings of European countries (France, Netherlands, Switzerland, )
followed by Middle East and Africa (Cameroun, Senegal, Jordan, )
Support the mobile launches in France, Slovakia, Netherlands, Belgium, Denmark, Romania, Switzerland, Poland
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Some references
Shadow Management and Management

Al Madar Libya
Teleyemen
Ethio Telecom

Program Management Office

Telkom Kenya, Orange Uganda

Vietnam Ministry of Information and Communications : ITC Policy Support
Program financed by the World Bank

Revenue assurance
Data accuracy and internal fraud prevention (Telecom Argentina, PT
Telkom Indonesia, CIT Ivory Coast, AT-Algeria, etc.)
Measurement of atypical interconnection traffic TPSA Poland
Overconsumption Management Process TPSA Poland

Due Diligence / Assets evaluation

Trk Telekom, Tunisie Telecom, Telkom Kenya, Ghana Telecom

GSM licenses valuation in Chad
Asia, Middle-East (on going)

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Broadband market
and trends

Our vision of the world mobile market

While mobile subscribers outnumber fixed-line subscribers worldwide,
most international traffic is still originated and terminated on fixed
lines. However, its clear that mobile originated traffic growth will
continue to outpace fixed-line growth.

In emerging markets, mobile networks are cheaper and easier to deploy than fixed-line
networks and are frequently the only telecommunications service available to consumers.
In Europe, Asia, the U.S., and Canada, younger consumers are increasingly opting out of the
fixed phone network and using mobiles for all voice communications. Continued fixed-mobile
substitution will keep mobile subscribers central to the fortunes of international carriers for
years to come

Convergence is everywhere

Convergence was only a word in 2006. Two years later, it has become an obvious fact. As of
today, it takes two new forms:
The possible mixture of offers or services unties the imagination.

Under the term Open world, each of the major players attempts to attract the greatest worldwide
community of developers to their profits.
Google and Apple are trying to attract vast communities of developers, chasing good ideas well
beyond their own respective R&D centres.

The services are instantly available and can be used by competing operators customers
as well.

The attitude of Nokia, Apple or Google with their Application Stores is driving operators to change
their own operating procedure and to adopt the from subscribers to consumers method.
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Global trends

Broadband everywhere Towards all-IP networks;

Impressive growth of communication services (IP traffic explosion);
Global coverage and access ubiquity (anywhere, any devices);
Improve radio efficiency;
Increase capacity on mobile backhaul;
Explore ways to reduce the cost per bit;
Put in place content delivery architecture;
Increase knowledge and management of Internet Traffic.

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South East Asia Mobile

One of the fastest growing regions for the mobile phone industry is the Asia Pacific region.

Asia is an area of contrasts, between the industrialised markets of Japan, South Korea,
Australia and New Zealand, and the developing economies, some of which are
massive, namely China and India.

More than 8 countries (including Bangladesh, Cambodia, India, Indonesia, Laos, Pakistan,
Sri Lanka and Vietnam) should see an increase of more than 500 million subscribers
before 2012, which represents 37% of the total market in Asia.

China and Asia Pacific are the regions which will offer most growth in the years to come
but it is not without risk. These emerging markets have low incomes and weak ARPU
(average revenue per user), just US$3.90 per month in some countries. Moreover, more
than 85% of mobile users in these markets are prepaid subscribers. The challenge for
mobile phone operators is to introduce new business models with attractive fixed price
plans.

In Indonesia where 3G networks have been up and running for several years but whose
market did not really get off the ground until 2008 there are already plans to migrate to
4G in the short to medium term, with a service launch scheduled for late 2013.

Asia-Pacific has the lowest ARPU levels of all the regions covered, and there is significant
churn in countries such as the Philippines, where Globe averaged over 7% churn per
quarter the last three quarters of 2009, and especially Indonesia, where 3 (an MNO)
reported a striking 24%+ churn per quarter in 2009 (source: Wireless Intelligence, 2010).
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Broadband Global
WiMAX represents 0,8%

of the market today and

will represent 3,56% by
2015,
during that period the

WiMAX users will increase

by 6,6 times

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Broadband Asia Pacific

WiMAX represents 0,65%

of the market today and will

represent 4,26% by 2015,
during that period the

WiMAX users will increase

by more than 12 times
And will represent more

than 50% of the global

users

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Open questions ..
Does WiMAX still have a role?
How to positioning WiMAX successfully in emerging markets

Spectrum Challenges & Availability in emerging markets

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WiMAX experience
feed back

Sofrecom WiMAX references

Sofrecom has supported Orange Group to launch several

Greenfield operators, where WiMAX was one of the

technology chosen to be a convergent operator and bring a
key differentiator in the market :
Orange Uganda
Orange Niger
Sofrecom has also helped Augere Group to launch several

operations fully WiMAX in

Bangladesh
Pakistan
Uganda

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WiMAX experience feed back

Due to investment costs and the low margin,equation in

WiMAX operations there is several issues that need special

care
On the various types of WiMAX operations Sofrecom has
encountered, we foresee three main aspects where operators
should really focus on,
Geo Marketing
In order to get as much as users from the targeted market, a geo
marketing assessment should be a prime focus

Delivery processes
Connectivity with your network will require end user equipments,
OSS and inventory solutions are a key success factor or would
generate important loss for the operator

Revenue Assurance
Due to the tight margin, a careful revenue control should be a major
priority
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Sofrecom Indonesia

Sofrecom Indonesia
More than 30 years of cooperation on the field

Sofrecom has been working in Indonesia since 1976

Official branch opened in 1994 in Jakarta

Today fully integrated in the local Indonesian context

Local resources and expertise

Some examples of projects

PALAPA Network construction and supervision (1977-1981)

Master plan for data communication services (1986-1987)
Project management assistance for PBH2 (125.000 lines)
Implementation of Customer Care and Billing system with PT Telkom btw 19941997
Maintenance of the Customer Care and Billing System of PT Telkom
World Bank and Dirgen Postel Project 2007 : Demand estimates from 2015 till
2020 and network design for the Palapa Ring project National Fiber Optic
Backbone
Consulting services for the FO. MPLS and WiMAX Project for PT Infokom
Elektrindo in 2007
OSS/BSS solution Upgrade at Telkom with latest Gaa version, starting 2009

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Sofrecom Indonesia
Sofrecom Indonesia mission is to

accompany the development of all types of telecoms players

in Indonesia and further more in South East Asia fixed line,
wireless, WiMAX, ISP, MVNO, VoIP, convergent
Provide IT services to Telco projects in Indonesia, using
local skills
Provide IT services in other related domains where
Sofrecom Indonesia has skills and resources, as banking,
utilities and traffic systems

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Sofrecom Indonesia - Our skill Centers

Maintenance and Support

IS Implementation and Support

Software Development and
Parameterization

Training

Specialist in telecoms training : introduction

to telecommunications, training for sales
personnel, human resources optimization
training, telecommunications
specializations

CRM expertise centre

CRM experts: CRM strategy, project owner,

process, deployment of solutions

BSS OSS

Gaa solutions dedicated to telecoms

operators
Gaa BCC
SofNetwork

Integration of market solutions

Mediation, DigitalRoute
Billing for greenfield
GIS Marketing
Network Testing Tools

Other domains

Sofrecom Indonesia

Banking
Public Utility (Water and electricity)
Traffic solutions

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Sofrecom Indonesia - Partners

In order to enhance its positioning and support its actions on

international markets, Sofrecom has set up partnership networks.

These networks enable us to provide our clients, in response to
their needs, with the best solutions on the market. In this regard and
in all Sofrecom Indonesia areas of expertise, technology watch and
sustainable relationship with software editors, equipment
manufacturers and consulting agencies enable us to conclude
partnership agreements in order to complete our offer.

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P. 24

Thank You

Argentina

Morocco

Algeria

France

Poland

Dubai

Indonesia

Thailand

Vietnam

Creating value for operator

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