The Impact of 5G Network on edotco by Gayan

1. DOCUMENT TITLEThe Impact of 5G Network on edotco
Gayan Koralage
Director Group Strategy
edotco Group Sdn Bhd
1

2. 2
WE ARE THE LEADING WIRELESS NETWORK INFRASTRUCTURE
PROVIDER IN ASIA
2
1
5
4
3
6
~29,000
Towers owned / operated
and managed
Largest Multicounty
TowerCo in Asia
13th
Largest Tower Company
in the World
Revenue : MYR 1.5Bn
1. Malaysia 2. Bangladesh 3. Cambodia 4. Myanmar 5. Pakistan 6. Sri Lanka
4,600 / 7,000
towers
8,900 / 1,200
towers
2,600 / 1,000
towers
2,000 / 1,000
towers
1,300
towers
100
towers
• Build-to-suit
• Co-location
• Passive O&M
• Active O&M
• Energy
• Fiber Resell
• Build-to-suit
• Co-location
• Passive O&M
• Active O&M
• Energy
• Build-to-suit
• Co-location
• Passive O&M
• Build-to-suit
• Co-location
• Passive O&M
• Energy
• Build-to-suit
• Co-location
• Passive O&M
• Energy
• Street
Solutions
• Passive O&M
• Energy
• Fiber Resell
a) Global ranking source by TowerXchange / b) Towers owned by edotco / c) Towers managed by edotco

3. 3
5G – NEW ERA ON THE HORIZON…
5G4G
Consumer
Applications
Mainly Human
5 – 10 GB p.m.
Human + Machine
20 - 30 GB p.m.
Speed
Latency
100mbps – 250mbps 10Gbps
>40ms ~1ms
Video surveillance
4k Video
streaming
Fleet Mgmt. &
Telematics
Traffic
Control
Lighting
Water
360° video (hi-
res)
Haptic VR
Cloud-assisted
driving
Remote
training
Industrial
automation
Subscribers Today : 7.8Bn 2027 : 9.3Bn
Today : 7.5Bn 2027 : 35.0BnIoT Connections
Today : 13EB p.m. 2027 : 300EB p.m.Global Data
Per Site Power ~2kW ~4 -6kW
Power Uptime 99.99% 99.999%

4. Spectrum Allocation 5G Trials Commercial Rollout Highlights
April 2019
§ 2 MNO’s launched 5G
By 2020
§ Target to represent ~40%
of 5G connections
Globally by 2025
By 2020 § Trials on going
By 2020
§ Plans to allocate the
3.5GHz, 26GHz and
28GHz airwave bands
July 2019
§ Globe Telecom launched
5G services
By 2021
§ Spectrum allocation
timeline to be released
by Oct 2019 4
5G Deployments in Asia
S. Korea
China
Japan
Singapore
Philippines
Malaysia
3.5 GHz
28 GHz
3.5 GHz
2.6 GHz
4.8 GHz
3.7 GHz
2.5 GHz
28 GHz
700 MHz

5. 5

6. 6
FACTORS WHICH COULD DELAY THE 5G COMMERCIAL LAUNCH…
Operator Profitability is Challenged1
New Investment Cycle Before Monetizing the Previous Cycle2
More Sites Required for Densification3
Capacity Sites will Have Low Incremental Return4
New Entrants May Compete With MNOs5

7. 7
OPERATOR PROFITABILITY IS CHALLENGED
Mobile Industry Returns :
Developing Countries
Source : GSMA Intelligence / Internal Data
§ Mobile ARPU dropped at a rate of 4% in Asia over
the last 10 years and will continue to drop globally
§ Industry revenue growth expected to be in the
range of 1 – 2% for next 5 years globally
§ MNO EBITDA Margins are Decreasing in Developing
Countries
§ Grater data volume is required to reach data
profitability
1
40%
37% 38% 37%
36%
2013 2014 2015 2016 2017
(10.0)
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
-
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
0 2 4 6 8 10
Volume(PBp.m)/Profitability
RPMB/CPMB(USD)
Time
RpMB CpMB
Volume (GB Mn) Profitability
Breakeven
Point
Figures are illustrative
Actions to
advance
breakeven
point
Current level
Reduce cost
per MB
Increase revenue
per MB
Increase
Volume
Data Profitability
>20%
<5%
ROIC
ROIC

8. 8
NEW INVESTMENT CYCLE BEFORE MONETIZING THE PREVIOUS CYCLE
1990 2000 2010 2020 2030
9 years
10 years
~7-9 years
2G – GSM
3G – W-CDMA
4G/LTE (18 years)
5G
4G/LTE
Today
Time to
launch a
new
technology
is reducing
2
Investment
recovered
Investment
recovery ??
Yet to recover
the investment
Yet to find the
killer use case

9. 9
WE EXPECT INDUSTRY TOWER COUNT TO DOUBLE WITH THE 5G
DENSIFICATION
Traffic
today*
1.5 Gbps
Dense urban
downlink
Gbps/km2
5G with
mm
spectrum*
>1,000
Gbps
Sites/km2 >20015 - 20
1,800 MHz
> 28 – 40
GHz
Spectrum
Band
280 -
300m
<60m
Inter Cell
Distance
*In dense urban areas
3
edotco markets
Per Sub Data
Consumption
(GB p.m.)
2018 2022 (F) 2027 (F)
0.2 -9.0 3.0 -26.0 20.0 -79.0
Growth
‘18 – ‘27
>10x
Industry
Tower Count
~120k ~173k ~223k ~2x
Power
Requirement
(mW)
~250 ~780 >3x

10. 10
CAPACITY SITES WILL HAVE LOW INCREMENTAL RETURN4
Average
Revenue Per
User
Average Number
of Subscribers
per Site
2018 à 2022
~-5%
2018 à 2022
~-20%
Per Subscriber
Consumption
2018 à 2022
5x – 7x
Illustration : Bangladesh
Lease Fee for
a 42m
Standard Site
~ USD 1.0k
p.m.
CAPEX
recovery of
BTS
~ USD 0.5k
p.m.
Transmission
Cost
~ USD 0.5k
p.m.
Total Cost of Operation : ~ USD 2.0k p.m.
Require 3,600 + subscribers at current data
ARPU
Low
Incremental
Return
Avg. Data Subs per Tower (2017)
MY BD KH MM PK SL
1,454 1,455 1,195 2,187 2,171 2,215

11. 11
NEW ENTRANTS MAY COMPETE WITH MNOS
Traditional
BB Service
Providers
ISP
MNO
Super Macro Layer
Low Orbit
Satellites
Drones /
Balloons
Community
Based
Networks
Independent
Networks
5

12. 12
TELECOM INFRASTRUCTURE INDUSTRY NEEDS TO STEP UP TO TAKE THE
ULTRA DENSIFICATION CHALLENGE
Technical
Solutions
Operating
Model
A. Dense Urban Solutions :
§ Street furniture
§ Low altitude structures
§ BTS Hotels
§ Small cells
§ IBS
B. Shift from TowerCo to Infraco
C. Synergistic industry collaborations
D. Smart City solutions
E. Predictive analytics
F. Provide Fiber Transmission
G. Digitalized operations
Urban Ultra
Densification

13. 13
STREET FURNITURE – THE NEXT BREED OF TELCO INFRASTRUCTURE
Coverage Layer Densification Layer Ultra-Densification Layer Inbuilding Layer
A

14. § Huawei LampSite 3.0 in multi-operator
configuration
§ Capable of GSM, UMTS, LTE and ready to
accept upgrades to 5G
§ 4 units in 2 pairs to enable 4x4 MIMO
14
1ST EVER MULTI OPERATOR SMALL CELL SOLUTION IN THE REGION
POC at the KL Sentral Concourse: 4x4 MIMO,
Multi Operator, Multi Band, Multi Technology
(2G, 3G, 4G & 5G Ready) Small Cell Solution
A
SINR Coverage predictions for level 1 – LTE1800 simulations

15. 15
5G READY SMALL CELL POC BY EDOTCOA

16. 16
TOWER INDUSTRY NEEDS A PARADIGM SHIFT
Tower + Power Location + Power + Transmission
B

17. 17
COLLABORATIVE APPROACH NEEDS TO BE ADOPTED TO BE
SUCCESSFUL IN 5G ERA
InfraCo
MNO
Demand Side
Local
Authorities
Fiber Service
Providers
Supply Side
Technology
Providers
§ Upstream and
Downstream
Partnerships
§ Proactive Site
Identification and
Site Acquisition
§ Prepare Urban/
SmartCity Site
Catalogue
§ New Commercial
Models
SmartCity/
Residential
Developers
Technology
Providers
C
FWA

18. 18
MULTIPURPOSE LAMP POLES FOR SMART CITIES, BENEFIT OPERATORS,
CITY COUNCILS AND COMMUNITY
Environmental
Monitoring
Systems
Surveillance
Systems
Vehicle Charging
Stations
Telecommunication
Equipment
4
2
3 Smart Street
Lighting
1
5
6
Public Address
Systems
7Advertising
Smart City
D
Mutually Beneficial
Collaborations
between InfraCo, Local
Authorities, Smart City
Developers

19. 19
USE OF GEOSPATIAL ANALYTICS TO CREATE BUSINESS INSIGHTS AND BIG
DATA TOOLS TO PREDICT NEW SITE LOCATIONS
Pop: 20,000
District GDP p.c:
50,000
Pop: 20,000
District GDP p.c:
50,000
Pop: 20,000
District GDP p.c:
50,000
x
x
x
x
x
x xx
x
Pop: 20,000
District GDP p.c:
50,000
x
Market Share - Devices
Pop Density and POI
Analytics
Coverage Benchmarking
Network Performance
Benchmarking
Site locations
Avg Utilization Rating
Traffic Voice
Traffic SMS
Traffic Data
Traffic Below 2G + Unknown
Internal Network and Marketing Performance Data
Rev Total
Rev Voice Total
Rev SMS Total
Subs 3G %
Subs 4G %
E

20. 20
IT IS IMPORTANT TO INCREASE NUMBER OF FIBERIZED SITES IN OUR
MARKETS
Data as of 2017 / Analysys Mason, edotco Internal Estimations
TowerCos need to explore collaborative approach to fill the fiberization gap…
F
Developed Markets
China
South Africa
SEA Countries
India
MY
BD KH
MM
SL
PK
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
20% 30% 40% 50% 60% 70% 80% 90%
FiberizedSites%
MBB Penetration %
edotco Markets

21. Digitally Enabled O&M
21
AUTOMATION OF FIELDS SERVICES IS ESSENTIAL TO ACHIEVE HIGHER
UPTIME AND EFFICIENCY
Realtime
Site
Monitoring
Automated
Workforce /
Fleet
Management
Automated
Trouble
Ticket
Generation
Dynamic
Optimum
Route /
Resource
Allocation
AI Assisted
Site
Downtime
Predictions
AR
Supported
Operations
Drone
Supported
Operations
G

22. 22
§ TowerCos require to expand the service scope to “Location,
Power and Transmission” and evolve to “InfraCo” model
§ New solutions / structure designs are required to cater urban
densification demands
§ Automation and Digitalization is necessary to drive efficiencies,
improve uptime as well as identify new site locations
proactively
§ InfraCos should play a role in fiberization of sites
§ Benefit based collaboration approach is necessary to deliver 5G
aspirations

23. edotco Group Sdn. Bhd.
Level 30, Axiata Tower
Jalan Stesen Sentral 5, Kuala Lumpur Sentral
50470 Kuala Lumpur, Malaysia
www.edotcogroup.com
+603 2262 1388
Thank You…