1. Dr
Hans
Wijayasuriya
Director/Group
Chief
Execu2ve
Dialog
Axiata
PLC
&
Chief
Execu2ve
Officer
Axiata
Digital
Services,
Axiata
Group
EXPLOITING THE DIGITAL STORM
INCLUSIVE CONNECTORS TO CAPTURE EMERGING
MARKET OPPORTUNITY

2. THE DIGITAL STORM
2
In 2020 there will be >50,000 MN
devices connected to the internet
9,000 50,000
...5,000MN Internet Users
2010 2020
2000 2010 2020
394
2,000
5,000
A middle class citizen will have 10
devices connected to the Internet
Resulting in 50 times growth in the digital
universe of People Businesses and
“Things”
TV
2 3 101
PC Mobile Other
X 50
20202010
0.8 ZB 40 ZB

3. ASIA ON THE MOVE
IN THE EYE OF THE DIGITAL STORM?
54%of this middle class will live in Asia
67% of new employment will be created in emerging Asia (c.f. 1.8% in
Europe)
3
By 2020
will be 40% bigger from an
economicpoint of view
43% of the economic weight
will be Asian
52% of the world population will be
middle class
A Smart Phone will be Affordable to
54% of Asians by 2015 and >80% by 2020

4. 0.5
Bn
2
Bn
4
Bn
DIGITAL SERVICES WILL BE IRRELEVANT UNLESS THEY CAN
TRANSFORM LIVELIHOODS
Popula2onIndividual
Annual
Income
<
$
3,260
$
3,260
-­‐
$
20,000
>
$20,000
Source:
www.worldhunger.org
4
ADVANCING DIGITAL ASIA
THE OPPORTUNITY & CHALLENGE
The
Asian
Region
will
Con2nue
to
be
Challenged
by
Economic
Dispari2es
and
Socio-­‐Economic
Divides
in
terms
of
Equal
Access
to
Basic
Rights
such
as
Educa2on,
Health
&
Access
to
Informa2on
36% of South Asians and
21% of South East Asians Live on
$1.25 per Day

5. ASIA - DIVERSITY AND DISPARITY
WEALTH COEXISTS WITH ACCESS ASSYMETRIES
The Asian region is characterised by vast disparities –
between sub-regions and countries as well as within
countries.
Singapore is ranked 18th under the UN Human
Development Index (HDI), whereas Bangladesh
and Pakistan are ranked 146th*).
On average South East Asia’s
Income Gini
Coefficient is >40…
(UNDP Human Development Report 2013)
*2013
UNDP
Human
Development
Index
(HDI):
A
composite
index
measuring
average
achievement
in
three
basic
dimensions
of
human
development—a
long
and
healthy
life,
knowledge
and
a
decent
standard
of
living.

6. Top of Pyramid: (TOP)
Incumbent High-End
Consumer Segment
Middle and Base
of Pyramid (MOP/ BOP)
High Growth
Consumer Segment
λ Heterogeneous
λ Mass Market
- Global Influences
- Homogenous
- Cosmopolitan
Rapid Expansion
THE CUSTOMER SPACE DUALITY
IN EMERGING ASIAN MARKETS
ToP MoP
&
BoP
The “Customer Space Duality Will Pervade
Structural and Behavioural Dimensions of the Digital Opportunity”

7. Value Adaptation
•
Inclusive
•
Lower
Cost
•
Relevant
• High
Affinity
DIGITAL TRANSFORMATION
BI-FOCAL OPPORTUNITY IN EMERGING MARKETS
Digital Transformation Can Bridge Across Asymmetry
Flatten the Economic Pyramid & Create a More Equal World
Digital
Empowerment
Digital Transformation
Value Addition
•
Cosmopolitan
Segments
• Exclusive
&
Premium
•
High
End
Innova2on
Digital Bridge
Equalizing
Asymmetries
in
Knowledge,
Informa2on,
Commerce
&
Access
to
Basic
Rights
Digital
Advancement

8. DIGITAL SERVICES DEFINED
SOCIETAL/ECO-SYSTEM CONNECTORS AT THE CORE
Connectivity & Technology
Digital Economics, Digital Democracy, Plurality, Ubiquity
Digital Society
Digital Enterprise
(DigitalConsumption)
DIGITAL SERVICES
Connect & Interlink
• Commerce
• Payment
• Social Media
• Advertising
• Entertainment
• Health
• Education
DigitalMoney&Payment
Inter- Enterprise Engagement & Consumption
Intra - Society Engagement & Consumption
(DigitalEngagement)
INTERLINK ENCOMPASSING DIGITAL ENTERPRISES AND DIGITAL SOCIETIES

9. INCLUSIVE DIGITAL SERVICES
4 CRITICAL SUCCESS CRITERION IN EMERGING
MARKETS
Affinity
Personalisation,
Experiential
Alignment &
Trust
Affordability
Total Cost of Service
& Minimum Cost of
Access
Applicability
Context based
Offerings which
have high
Relevance
Availability
Immediacy & Reach
The Four A’s of Inclusive Market Creation
Leveraging Advanced
Technologies to Deliver
Inclusion
& Robust Inter-linkages
Between Digital Societies
and Digital Enterprises
will Maximise Socio-
Economic Development
Modern Technologies can be Leveraged to Drive
Inclusive Market Creation

10. DIGITAL SERVICES
ARE (ALSO) OFF-LINE TO ONLINE TRANSFORMERS
Consumption &
Engagement
Consumption &
Engagement Offline
ONLINE
Eco Systems
Physical Electronic
Offline Online
Asymmetries Inclusion and Parity
EMERGING MARKETS
Digital Services
should also
Seamlessly
Combine
In the Emerging Market Context, the Off-Line World is Fraught with Asymmetry
Digital Services will Trend Towards a Digital Democracy as Opposed to Digital Divide

11. The Last Mile is a Key Determinant of Inclusivity
‘LAST MILE’ FULFILLMENT EXPERIENCE
DETERMINES INCLUSION
Degree of Inclusion : Last Mile Challenged Against 4As
(Affinity, Affordability, Applicability, Availability).
Customer Facing
Interface
The ‘Last Mile’ is the
Customer Facing
Service Touch point
& Includes the
service eco-system
and support system
(including
intermediaries)
Inclusive
FULFILLMENT
is a key
Determinant of
Trust & Adoption
Services
Citizens
Physical (Offline)
Electronic (Online)
Mobile (Online)
Three Last Mile Scenarios

12. e-Service Last Mile
M-Service Last Mile
Physical
INCLUSION DIMENSIONS OF
E AND M-SERVICE LAST MILE
E-Powered
E-Centric Service Delivery
(Selective/ e-Infra Dependent)
M-Powered
Evolved Mobile Digital Services
(Inclusive/ Transactional)
Physical
(In person service delivery)
m-Last Mile
• Inclusive
• High Immediacy
• Affordable & Trusted Fulfillment
• Location Sensitive
• Personalised
• Lower Transaction Cost
e-Last Mile
• Superior Experience
• Urban Centric
• Shared Access
• Higher Transaction Cost

13. DIGITAL INCLUSION IN EMERGING MARKETS
M-LAST MILE POTENT BUT FRACTURED
Mobile Connectors to
Scale Digital Services
• Seamless Authentication & Validation
• Robust Links – ToP, Enterprise, BoP
• Relevant Apps for BoP and MoP
• Seamless Payment and Fulfillment
• Higher Affinity Customer Access Mediums
• Contextual Ecosystems at MoP and BoP
Realise
Mobile Digital
Services
Opportunity
e-Service Last Mile
M-Service Last Mile
Physical
“Experience, Relevance, and Contextual Ecosystems - Key Focus Areas to
Cure Affinity and Applicability Deficits of Mobile Digital Services”

14. …But Mobile Digital
Services have not
delivered to potential.
(E.g. Mobile share in D-
Commerce is circa 10%)
Similar Deficit in M-Ads
Entertainment and
Payments
FRACTURED INTERFACE BETWEEN DIGITAL &
MOBILE WORLDS
PERFORMANCE DEFICIT UNCOVERS OPPORTUNITY
…Mobile
Penetration in
Asia exceeds
fixed internet by
6-8X
is the Primary Internet
Access Medium
Mobile Outstrips Alternatives vis a vis Basic Information Exchange
But
Lags in Digital Engagement – Leaves 90% Untapped
Comparison with
Developed
Countries
Promises Circa
100X
Potential

15. 15
SCALABLE MOBILE CENTRIC API FRAMEWORK
CAN BRIDGE FRACTURED MOBILE LAST MILE EXPERIENCE
MOBILE.CO RICH DATA ASSETS
CAN ORCHESTRATE NEXT GENERATION ENGAGEMENT
> 7bn
>3.5bn
>$1.16Trn
Connections
Users
Revenue Industry
is the Primary Internet
Access Medium
Possess
the
required
assets
Real
Time
Rich
Data
Assets

16. 16
LINKING THE DIGITAL WORLD TO THE MOBILE
WOULD REQUIRE OPEN NETWORKS and API’S
Global
Digital
Commerce
Local
Digital
Commerce
Long
Tail
User
Generated
Commerce
Operator
API’s
Mobile.Cos & Inclusive APIs can Orchestrate
Secure Mediation & Positive Engagement Experience
Consumers
Payment
Channels
SMS,
RCS-­‐E,
MMS
Loca2on
Device,
Customer
profile
M2M
Complex
Event/
Ac2vity
Key
Partnerships
“Plug
&
Play
APIs
can
create
a
Digital-­‐Mobile
Inter-­‐linkage
which
can
create
Explosive
Inclusion
&
Enhanced
Engagement
Experience”
Social
and
Empowerment Secure
ID Privacy

17. λ Regulation
λ Verification
λ Trust Framework
ORCHESTRATING MOBILE INCLUSION (& INTRUSION)
KEY PRINCIPALS
Sacheted - MicroX Service Fragmentation
Proportionality
Experience Translation Enterprise, ToP, BoP/MoP
Immediacy - In time and space
Engagement - Multi-Media (Voice, Text, Data, Video)
Real Time, Omnipresent, Personal & Private

18. AFFORDABILITY ENHANCEMENT
API FRAMEWORKS SHOULD FACILITATE SERVICE FRAGMENTATION
Buy Micro
& ‘No Commitment’
Psyche
Affinity to ‘Cash’
and ‘ Liquidity’
Minimise Gap in Time
Between Payment and
Consumption
Variability in Cost
(relative to) Volume,
Quality, Spend per
period
High Volume Consumer
Key Triggers
Addressed ThroughSachet MarketingPrinciples
Digital Sacheting - “Breaking the Bulk”
Micro-X (Voucher, Insurance, Finance, ……)
Contextual Fit of the Payment Instrument vis Consumption Model will Determine Viability

19. Citizen Empowerment
TRANSLATING DIGITAL ECOSYSTEMS AT TOP AND BOP
KEY DELIVERBALE FROM API FRAMEWORKS
e- Last Mile
m- Last Mile
Transaction fulfilment
Transaction fulfilment
Sustainable
Digital will span
both e and m
fulfillment
& Link
Enterprises at
the ToP to the
MoP and BoP
m-
Implementation
will drive a
broader pool of
consumption

20. Mobile Money
P2P transfers, Institutional and OTC Payments
USSD, APP, NFC Interface
>1.3mn
Subscribers
Micro Insurance
Daily Payment & Coverage Rs.1mn to 5mn for Rs 1
and 5 per day. SMS, USSD, M-Money and Operator
Billing Fulfillment
Most
Subscribed
Accident
Policy
in
Sri
Lanka
>225K
Subscribers
SERVICE INNOVATION CENTRED ON MOBILE FULFILLMENT
SRI LANKA MOBILE MARKET CASES
Digital Vouchers
Gift Voucher via SMS USSD Product Code. Fulfillment via
SMS, USSD, APP, Operator Billing, Loyalty Points, Mobile
Money
>11,000
Vouchers
Sold
From
Launch

21. API Rich Application Development Environment with plug
and Play Connectors to SMS, USSD, Location, ID, M-
Ads, Mobile Money & Operator Billing.
1,500
Applica2ons,
350K
Users
Medical Appointments
Booking & Payment System. Fulfillment via Web, Call
Centre, IVR, Operator Billing, Mobile Money, .
INTERNET PAYMENTS (Via Mobile Money)
Mobile Money payment with two factor authentication
Largest
Distributor
of
Medical
Appointments
>30,000
pm
E & M Education
Secondary, Tertiary, Language and Vocational Education
Web, SMS, USSD, Mobile Money and Operator Billing Fulfillment
>23,000
subscribers
SERVICE INNOVATION CENTRED ON MOBILE FULFILLMENT
SRI LANKA MOBILE MARKET CASES
>100
Web
Sites

22. of
the
global
ci<zen
Digital
Empowerment
INFORMATION SOCIETY
will bridge ToP and BoP
Global-Local, Enterprise-Citizen & ToP-BoP
INTERLINKAGE WILL SPAWN INCLUSIVE DIGITAL
SOCIETIES
Mobile can Accelerate the Establishment of Citizen Driven Digital Societies which Span
the Socio Economic Pyramid, are Inclusive and Empowering
Inclusive Digital Commerce will Create a more equal (Commercial) World &
Sustainable Socio-Economic Development

23. SUSTAINABILITY CHALLENGE ?
SHARED VALUE CREATION DRIVES EXPANDED CONSUMPTION
Shared
Value
Crea2on
Social
Economic
Environmental
Development
ConsumpIon
Diligent Focus on Net Footprint and Environmental Impact will
ensure Shared Value Creation sums to Sustainable Development

24. CONVERGENCE ACROSS E, M, ToP and BoP
HOLISTIC SOCIO ECONOMIC DEVELOPMENT
MULTIPLIER
CONVERGENCE
E and M Convergence
via Smart Devices
ToP and BoP Convergence
via Information Societies
CONSUMER
SURPLUS
Productivity + Efficiency Dividend
Delivered Via Digital Empowerment of
Citizens and Enterprises can be as high as
4 x Direct Investment
INDIRECT
CONTRIBUTION

25. Thank
You