O slideshow foi denunciado.
Utilizamos seu perfil e dados de atividades no LinkedIn para personalizar e exibir anúncios mais relevantes. Altere suas preferências de anúncios quando desejar.

MVNO issues in Thailand - and how to solve them v2.0

28.530 visualizações

Publicada em

This is the update version 2 (May 2018) of MVNO issues in Thailand, which highlights some of the issues in Thailand, regarding #MVNA and #MVNO.

Without some form of regulatory measures and changes as described in this presentation, Thailand’s telecoms market will remain an unlevel playing field, where competition and innovation of mobile services, and thereby the digital economy, may not evolve as it should - or at all.

The government has provided the platform for private industries to participate and form the final stages of Thailand 4.0 – however the current regulation from the NBTC - or lack off, has not been able to follow suit but only concentrated on the existing silos in the market instead of getting all the wheels to spin.

This presentation is an extended version from the presentation given at the Engineering Thailand 4.0 event on the 17th November 2017

Publicada em: Celular

MVNO issues in Thailand - and how to solve them v2.0

  1. 1. ISSUES IN THAILAND …AND HOW TO SOLVE THEM ยุคของการเปลี่ยนแปลงในธุรกิจโทรคมนาคม งานวิศวกรรมแห่งชาติ 2560 UPDATE TO THE PRESENTATION AT PRESENTATION BY ALLAN RASMUSSEN
  2. 2. THAILAND’S TELECOM MARKET – AN UNLEVEL PLAYING FIELD www.yozzo.com MOBILE OPERATORS PLAYING FIELD MVNO’S PLAYING FIELD Without some form of regulatory measures and changes as described in this presentation, Thailand’s telecoms market will remain an unleveled playing field, where competition and innovation of mobile services, and thereby the digital economy, may not evolve as it should - or at all. The Government has provided the platform for private industries to participate and form the final stages of Thailand 4.0 – however the current regulation from NBTC - or lack off, has not been able to follow suit, but only concentrated on the existing silos in the market instead of getting all the wheels to spin.
  3. 3. MVNO’S IN THAILAND – WHY IT FAILED In 2009 five MVNO’s where given a license by the telecom regulator NBTC to operate as MVNO’s on the state enterprise telecom operator TOT AS OF JANUARY 2018 ONLY 2 MVNO ARE LEFT i-Kool 3G (Loxley) & Buzzme (formerly IEC3G) UNLEVEL PLAYING FIELD – (UNRESOLVED) POOR PLANNING AND EXECUTION LEGACY SYSTEMS AND RED-TAPE INSUFFICIENT NETWORK CAPACITY AT LAUNCH INSUFFICIENT MVNO EXPERIENCE AND QUALITY POOR MVNO CONTRACTS AND REGULATION www.yozzo.com THE FIRST MVNO’S IN THAILAND FAILED BECAUSE OF THE FOLLOWING REASONS
  4. 4. THAILAND’S “SUPERBOARD” FAULTS THE REGULATOR NBTC FOR MVNO FAILURE www.yozzo.com In 2016, The Inspection and Evaluations Commission (also known as the “Superboard”) of the National Broadcasting and Telecommunications Commission (NBTC), failed the telecom regulator and concluded that: “…NBTC should issues regulations for mobile virtual operators to support more of them in the Industry, which should benefit consumers.”
  5. 5. WHAT HAS THE REGULATOR NBTC DONE ABOUT IT? www.yozzo.com Pronoun not anything; no single thing. Adjective having no prospect of progress; of no value
  6. 6. BUT CONTINUES TO SELL MVNO LICENSES 54COMPANIESHAVE OBTAINED A MVNO LICENSE IN THAILAND ONLY 9 HAVE LAUNCHED – 6 ARE STILL ALIVE www.yozzo.com MVNO LICENSES ISSUED IN THAILAND AS OF APRIL 2018
  7. 7. BEHIND THE NUMBERS www.yozzo.com 1/3OFTHE COMPANIES WHO HAVE OBTAINED A MVNO LICENSE IN THAILAND HAVE FOREIGN INVESTMENT/SHAREHOLDERS APPROXIMATELY
  8. 8. SOME OF THE NAMES BEHIND THE MVNO LICENSES www.yozzo.com • SB Telecom (Thailand) Co., Ltd. - Softbank • Mobile Innovation Co., Ltd. - NTT DoCoMo • NTT Comm. (Thailand) Co., Ltd. - NTT • VM Digital (Thailand) Co., Ltd. - Axiata • BT Siam Co., Ltd. - British Telecom • Tune Talk (Thailand) Co., Ltd.- Celcom • Lyca Mobile (Thailand) Co., Ltd. - Lycamobile • J-Communications Service Co., Ltd. - KCS Japan • Tesco Mobile (Thailand) Co., Ltd. – Tesco Mobile • Advanced Wireless Network Co., Ltd. - AWN (AIS) • Advanced Info Service (AIS) PCL. - AIS • UIH Co., Ltd. - DTAC founder/Chairman • Acumen Co., Ltd. - JASMINE • Real Move Co., Ltd. - TRUE • Loxley PCL - LOXLEY
  9. 9. MVNOS, ARE AN INTEGRAL PART OF THE GLOBAL MOBILE LANDSCAPE Over the past 18 years, MVNOs have helped stimulate competition in the mobile market, launching innovative tariffs and services and attracting niche consumer segments at a lower cost than mobile network operators (MNOs). In Europe virtually every cable and fixed-line operator has a mobility strategy, largely based on MVNO • 1000+ INDEPENDENT MVNOS WORLDWIDE • MVNOS INCREASED 70% BETWEEN 2010 AND 2015 • 73 COUNTRIES HAVE MVNOS IN OPERATION • MVNOS ACCOUNT FOR 14% OF THE TOTAL EU MARKET • EUROPE IS HOME TO: 600 MVNOS, APAC: 140, US: 111 • 1 OUT OF 10 PEOPLE IN AUSTRALIA IS A MVNO CUSTOMER TODAY, MVNOS HAVE REACHED 214 MILLION USERS WORLDWIDE, AND IS ESTIMATED TO GROW TO 300 MILLION USERS AND A $70 BILLION VALUE IN 2020 Ovum predicts that nearly 24% of all new subscriber connections over the next 5 years will come from MVNO subscribers. Although the current market represents less than 10% of these connections, they expect it triple By 2020, IDC predicts that 30% of the top 500 companies in Thailand will see the majority of their business depend on the ability to create digitally- enhanced products, services and experiences Overall connection growth for mobile phone service around the world was about 4.5% end of 2015. MVNO connections are growing at about 18% per annum 4 times faster than the average rate for the mobile industry. Source IDC Thailand With a predicted compound annual growth rate (CAGR) of over 10% in the forecast period to year 2020, the Asia Pacific region is home to the world’s fastest growing MVNO sector, even more than the highly competitive MVNO markets of Europe and North America. Grand View Research www.yozzo.com
  10. 10. …AND HAVE DELIVERED THE RATIONALE FOR THE INTRODUCTION OF MVNO, INCLUDE - BUT ARE NOT LIMITED TO:  Stimulate competition,  Efficient utilization of network resources,  Introduce new or better services aligned to lifestyle propositions currently unserved/underserved,  Promote investment opportunities for local and international businesses in the telecom market. Consequently, MVNOs are intended to support innovation, bridge digital divide, and contribute to the growth in the ICT sector to ensure the achievement of the broader industry and DIGITAL ECONOMY OBJECTIVES. THE CLEAR INTERNATIONAL EVIDENCE IS THAT MVNOs HAVE DELIVERED:  More consumer choice  Innovative pricing plans  Innovative products and services  innovation in, and better customer service www.yozzo.com
  11. 11. Meanwhile back in Thailand… www.yozzo.com
  12. 12. THAILAND’S TELECOM ECOSYSTEM – THE MOBILE NETWORK OPERATORS THE MOBILE NETWORK OPERATORS www.yozzo.com STATE ENTERPRISE STATE ENTERPRISE AIS, DTAC AND TRUE + THE TWO STATE ENTERPRISE OPERATORS: CAT TELECOM AND TOT
  13. 13. THAILAND’S TELECOM ECOSYSTEM – THE TELECOM REGULATOR THE NATIONAL BROADCAST AND TELECOM COMMISION (NBTC) www.yozzo.com STATE ENTERPRISE STATE ENTERPRISE 900MHz 1800MHz 2100MHz 900MHz 1800MHz 2100MHz 850MHz 1800MHz 2100MHz 850MHz 1800MHz 470MHz 1500MHz 2100MHz 2300MHz IS IN CHARGE OF SPECTRUM, LICENSES AND REGULATION
  14. 14. THAILAND’S TELECOM ECOSYSTEM - SPECTRUM CAPACITY TO MVNO’S www.yozzo.com MVNO 10% 10%10% STATE ENTERPRISE STATE ENTERPRISE 900MHz, 1800MHz & 2100MHz SPECTRUM LICENSES STATES 10% OF THE CAPACITY MUST GO TO MVNO’S 900MHz 1800MHz 2100MHz 900MHz 1800MHz 2100MHz 850MHz 1800MHz 2100MHz 850MHz 1800MHz 470MHz 1500MHz 2100MHz 2300MHz
  15. 15. HOWEVER IT IS ONLY CAT TELECOM (850MHz) AND TOT (2100/2300MHz) WHO HOST MVNO’S www.yozzo.com MVNO STATE ENTERPRISE STATE ENTERPRISE 900MHz 1800MHz 2100MHz 900MHz 1800MHz 2100MHz 850MHz 1800MHz 2100MHz 850MHz 1800MHz 470MHz 1500MHz 2100MHz 2300MHz 900MHz, 1800MHz & 2100MHz SPECTRUM LICENSES STATES 10% OF THE CAPACITY MUST GO TO MVNO’S
  16. 16. HOW MVNO’S CONNECT 1 OF 2 www.yozzo.com MNO MVNA MVNO MNO The MVNO enters into an agreement with the MNO to obtain access to airtime at wholesale rates, and then sets its own retail price and service. The MVNO either has to invest in its own telecom operational systems or employ the services of a MVNE. A MVNA is an entity, who buys large bulk of airtime from the MNO, and then wholesale it to several MVNOs (Economies of scale). The MVNOs buys the airtime from the MVNA and sets its own retail price and service to end-users. MVNO’S CAN CONNECT TO MNO’S DIRECTLY MVNO’S CAN CONNECT TO MNO’S THROUGH A MVNA MVNO MVNO MVNO
  17. 17. HOW MVNO’S CONNECT 2 OF 2 www.yozzo.com MVNE The MVNE provides infrastructure and services to both the MNO and MVNOs, which enables MVNOs to offer their services on the MNOs network. The MVNE provides services, such as billing, product setup, service delivery, customer care, fraud management, reporting, sale platforms, device and SIM management, etc. MVNA/MVNE The MVNA/MVNE purchases airtime in bulk from the MNO, adds the operational telecom components on top, and then wholesales the airtime and service as a full turnkey solution to MVNOs. The MVNA/MVNE also offers guidance during launch and operation as well as value added services. MVNO’S CAN CONNECT TO MNO’S THROUGH A MVNA/MVNEMVNO’S CAN CONNECT TO MNO’S THROUGH A MVNE MNO MNO MVNO MVNO MVNO MVNO MVNO
  18. 18. PROBLEM #1 IN THAILAND THE MNO WALL www.yozzo.com
  19. 19. THE MNO WALL OF THAILAND www.yozzo.com Somehow, and for some reason, none of the three MNOs AIS, TRUE or DTAC has had any MVNOs operating on their networks, since the introduction of MVNOs in Thailand in 2009 NO MVNO’S
  20. 20. DESPITE THE MVNO CRITERIA AND CAPACITY ON THE 2100MHz LICENSES Prior to Thailand's 2100 MHz 3G auction in 2012, the NBTC released the following criteria and procedure for the spectrum 16.5.1 The Licensee shall provide telecommunications network service with the minimum capacity of 10 percent of its networks to the MVNO who is not the Connected Person in the Shareholding Structure with any licensee when receiving such service request www.yozzo.com 2100 MHz 2100 MHz 2100 MHz
  21. 21. AND DESPITE THE MVNO CRITERIA AND CAPACITY ON THE 900MHz & 1800MHz LICENSES As with the 2100 MHz spectrum, the NBTC also added a MVNO clause in the terms for the 900 MHz and the 1800MHz licenses (2015/2016) (1) The Licensee shall comply with the Commission’s Notification Regarding Mobile Virtual Network Operator Service 2013. (2) The Licensee shall provide telecommunications network service at least 10 percent of its network’s capacity to MVNO(s) that is/are not the connected person(s) with any licensee under this Notification, upon receiving such service request. www.yozzo.com 900 MHz 1800 MHz 900 MHz 1800 MHz
  22. 22. Yet, no MVNO’s have launched on AIS, DTAC or TRUE www.yozzo.com
  23. 23. HOWEVER, ALL THREE MNO’S HAVE LAUNCHED THEIR OWN MVNO’S ON CAT AND TOT www.yozzo.com TRUE subsidary TrueMove is a MVNO on CAT’s 850MHz AIS subsidary SBN is a MVNO on TOT’s 2100MHz DTAC subsidary DTN is a MVNO on TOT’s 2300MHz
  24. 24. THE MNO WALL SOLUTION www.yozzo.com
  25. 25. www.yozzo.com “THEN OPEN THIS GATE - TEAR DOWN THIS WALL” Dear NBTC, if you seek (with the words from your own strategy statement) to manage spectrum allocation efficiently, Create equality in communication infrastructure access and digital opportunity, develop competition, fairness and efficiency in communication resource management toward Thailand's digital community and support and promote innovation and networking… THE MNO WALL SOLUTION
  26. 26. THE MNO WALL SOLUTION 1. The NBTC should publish a clear policy statement requiring the telecom network operators to provision MVNOs on their network. 2. The NBTC should exercise its regulatory mandate to monitor the market and the negotiations to ensure that mobile network operators conduct negotiations fairly and in good faith - and that the policy objectives of the mobile market are fulfilled. 3. The detailed terms and conditions of MVNO provisioning should first be left to the parties to negotiate on a purely commercial basis 4. It would be in the public interest for the NBTC to intervene, and assist the parties - or if necessary, settle and resolve in case a mobile network operator is acting in bad faith, engaging in any form of anticompetitive conduct, or if, after a reasonable period (1 months) of in- good-faith negotiations, a commercial agreement cannot be reached between the parties. The NBTC should follow up on a monthly basis to see if there is a progress in on-boarding MVNOs, and take measures if not. In addition, and as a last resort only, if no progress is made - a regulatory mechanism allowing the NBTC to intervene, to: • Ensure fair and reasonable terms for access • Safeguard fair and non-discriminatory competitive behavior • Bring parties to the negotiating table at the earliest opportunity • Introduce and safeguard the principle of in-good-faith commercial negotiations. i.e., the mobile network operator shall enter into a wholesale agreement with the MVNO, within a period of 1 months from the date of issuing a Letter of Intent (LoI) or Memorandum of Understanding (MoU) and submit a copy of the same to the NBTC (licensor). NBTC would have the power to intervene in the agreement if deemed necessary by one of the parties. The Regulations/Directives/Orders of NBTC in this regard would be binding on the telecom network operators and the MVNO. www.yozzo.com
  27. 27. NO MVNO = NO NEW LICENSE NBTC is planning an auction for one 850MHz and three 1800MHz spectrum licenses in 2018. It would suit the regulator well to live up to its reason to exist, by facing the issue of un-used MVNO capacity among the three existing spectrum license holders. One suggestion would be to add to the auction terms and conditions, that in order to participate in the upcoming spectrum auction, an existing license holder, who has not yet lived up to the terms and conditions in its previous spectrum license regarding MVNO capacity, would have to launch at least one MVNO, on their networks in order to participate in the spectrum auctions. The mobile network operators should be given a maximum period of 60 days to present an MVNO proposal. www.yozzo.com The NBTC has been very active in making sure that terms and conditions, such as minimum roll out coverage, license payments, maximum retail pricing, etc. has been followed by the 900/1800/2100MHz auction winners, while zero attention - nor consequences has been given regarding the MVNO capacity. THE MNO WALL SOLUTION
  28. 28. PROBLEM #2 IN THAILAND NO FULL MVNO www.yozzo.com
  29. 29. NO FULL MVNO’S ALLOWED IN THAILAND = NO CONTROL OF THEIR OWN BUSINESS www.yozzo.com ELEMENTS / LICENSE TYPES FULL MVNO MEDIUM MVNO THIN MVNO MVNA SPECTRUM N/A No No No NETWORK ELEMENTS SWITCHING AND DATA NETWORK BTS/Node B N/A No No No BSC/RNC N/A No No No MSC/GMSC N/A No No No SGSN N/A No No No GGSN N/A No No No SUBSCRIBER REGISTRATION, VAS, INTERNET, APPLICATION PLATFORMS HLR/AUC/EIR N/A No No No Voice Mail N/A Yes No Yes SMSC N/A Yes No Yes VAS N/A Yes No Yes IN N/A Yes No Yes IP Router N/A Yes No Yes RETAIL ELEMENT Billing N/A Yes Yes Yes Customer Care N/A Yes Yes Yes Customer Ownership N/A Yes Yes Yes Tariff & Product Development N/A Yes Yes Yes Brand visibility to end user N/A Yes Yes Yes Retail sale N/A Yes Yes Yes SIM BRANDING N/A Yes Yes Yes This table from the NBTC shows which elements are allowed and not in Thailand for MVNA’s and MVNO’s
  30. 30. FULL MVNO = CONTROL AND FLEXIBILITY TO PROVIDE INNOVATIVE SERVICES www.yozzo.com ELEMENT FUNCTION ADVANTAGE TO FULL MVNO Mobile Switching Centre • Controls call routing • Generates usage information • Ability to have independent wholesale relationships for voice / SMS routing Serving GPRS Support Node • Handles all packet switched data within the network, i.e. the mobility management and authentication of the users. Charging Functions • Location information (current cell, current VLR) and user profiles (IMSI, addresses) • Session Management • Authentication and Identity Check Gateway GPRS Support Node • Manages subscriber access to Internet network • Map and control internet gateways • Monitor / control data usage Home Location Register • Registers SIM cards • Stores subscriber information and privileges • Maps internet access point to each subscriber • Shares subscriber information when roaming • Own dedicated IMSI series, Allocate special numbers, activate / deactivate services like SMS, outgoing calls, roaming, international calling etc. Management of internet AP MSC SGSN GGSN HLR A Full MVNO has complete control over its own business, SIMs, customers and services due to certain core network elements such as: Full MVNO’s can: • Have their own roaming and interconnect agreements with other MNOs. • Gain insights into customer or machine (M2M/IoT) profile. • Create ‘stickiness’ with customers, where the customer will be under greater control of the MVNO. • Offer a fixed line convergence proposition, where technical integration may be important.
  31. 31. AS WELL AS TACKLING DIVERSE, URGENT AND SIMULTANEOUS DEMANDS ON A HOURLY BASIS  Travel & Leisure MVNO needs to urgently resolve customer billing disputes before start of Songkran holiday season tomorrow  Ethnic MVNO wants to launch mothers day promotions before competitor launches its promotions  OTT MVNO wants to launch zero rating service on videos from its own portfolio to compete in the market against HBO, Netflix  Bank MVNO wants to utilize bulk of sales-force tomorrow to visit its premium customers to make a one-day only offer for rate plan upgrades 1 2 4 6  Retail MVNO wants to provide extra bonus points in loyalty program to drive sales this weekend  Retail MVNO wants to access its user usage data) to better address the needs and wants of its own customers 35 MVNO MVNO MVNO MVNO MVNO MVNO www.yozzo.com
  32. 32. 10 KEY DRIVERS FOR FULL MVNO www.yozzo.com ❶ Ownership of the subscriber's mobile phone number ❷ Collection of inbound termination rates ❸ Deliver specific IoT/M2M Solutions ❹ Negotiation of own roaming rates ❺ Create stickiness – reduce churn ❻ Greater technical independence ❼ Access to network intelligence ❽ Ability to monitor data usage ❾ Increased negotiation power ❿ Easier to switch host MNO INCREASING FOCUS ON DIFFERENTIATION, SEGMENTATION AND CUSTOMER LOYALTY A FULL MVNO DELIVER LONGER TERM VALUE TO THE MNO
  33. 33. MVNO POSITIONING LOW HIGHPRICING SERVICEOFFERING ”No frills” MVNO’s MVNO’s based on convinience Traditional Mobile Operators MVNO’s based on value addition INNOVATIVE IoT/M2M MVNO’s As a FULL MVNO the MVNO can have control over services they can offer in the market, and thereby the flexibility to innovate and compete on new service offerings in the market www.yozzo.com
  34. 34. NOT ALLOWING FULL MVNO KILLS INNOVATION AND CREATES AN UNLEVEL PLAYING FIELD LOW HIGHPRICING SERVICEOFFERING INNOVATIVE www.yozzo.com The MVNOs will not be able to compete on neither services, pricing - or introducing new innovations to the market, thereby giving the traditional mobile network operators an unfair advantage, severely limiting innovation and competition in the market Traditional Mobile Operators
  35. 35. THAILAND vs. SINGAPORE 4 - 0 Let’s say Thailand wins 4-0 over Singapore in football, and the whole country is celebrating the victory on social media. The MVNOs also wants to join the celebrations by providing the customers with a 20% discount on all voice calls EXAMPLE TODAY www.yozzo.com
  36. 36. IN THAILAND TODAY WEEK 1 WEEK 3 MONTH ? MONTH ? Fax your request to the MNO Present your case at a meeting with the MNO Internal meeting at the MNO to approve or not Wait for result This is how it ”works” today in Thailand if MVNO’s want to introduce new promotions, service - or tackle issues www.yozzo.com
  37. 37. …Meanwhile Thailand will have lost to another country in both football and innovation www.yozzo.comEXAMPLE TODAY
  38. 38. HOW COME OPERATOR’S MVNO SUBSIDIARIES ARE ALLOWED TO OPERATE AS FULL MVNO’S? www.yozzo.com TRUE subsidary TrueMove operates as a FULL MVNO on CAT’s 850MHz AIS subsidary SBN operates as a FULL MVNO on TOT’s 2100MHz DTAC subsidary DTN operates as a FULL MVNO on TOT’s 2300MHz LINE MOBILE operates as a FULL MVNO
  39. 39. TRUE SUBSIDARY REALMOVE MVNO SETUP ON CAT TELECOM 850MHz www.yozzo.com BFKT MVNO REALMOVE BFKT builds and operates the network infrastructure ❷ CAT Telecom leases the equipment from BFKT 15,000 base stations ❸ TRUE subsidiary TRUE subsidiary CAT resells 80% of the network capacity to MVNO RealMove, leaving 20% to CAT itself and its MVNOs ❹ CAT Telecom’s own retail service MY CAT 1,9 mio subscribers Total remaining network capacity to MVNOs ~2.3 mio subscribers ❺ ❻ A new 4G roaming deal between CAT/True Move, will see True pay a rental fee of THB 4.1 bn in cash to CAT within 8 years for the use of CAT’s 850MHz spectrum, and a barter deal (valued at THB 5.2 bn) giving CAT access to some of True’s 4G network on 1800/2100MHz within 10 years. According to True’s conditions, the 4G roaming agreement is exclusively for CAT, i.e. none the MVNOs will be able to use it. ❼ CAT outsource network operations and network management to BFKT ❶
  40. 40. AIS SUBSIDARY SBN MVNO SETUP ON TOT 2100MHz www.yozzo.com TOT outsource network build and management to SBN ❶ SBN builds and operates the network infrastructure TOT will be able to use an additional 15,000 base station bringing the total to 20,520 ❸ AIS SUBSIDIARY TOT resells 80% network capacity from the 20,320 base station to the MVNO SBN 3G/4G Base stations ❺ 15,000 ❹ ❷ In September 2016, TOT and AWN, a subsidiary of AIS, signed a 6 month trial contract where AWN would roam on TOT’s 2100MHz network. Now a permanent deal, agreed and approved by relevant agencies, AWN has added 15,000 base stations to TOT’s existing 5,520 bringing the total to 20.520. AWN purchase 80% on a wholesale/resale basis, of the total bandwidth capacity to serve its own subscribers, and pay TOT an annual fee of THB 3.9 billion. In June 2017 AWN was switched to be Super Broadband Network (SBN) another subsidiary of AIS. TOT will use parts of the remaining 20% capacity for TOT and wholesale the rest to MVNOs. 20,520 Total 3G/G base stations 10% network capacity to TOT 10% 3G/4G network capacity to MVNOs on TOT ❻ SBN
  41. 41. DTAC AND SUBSIDARY TELEASSET AND DTN MVNO SETUP ON TOT 2300MHz www.yozzo.com TeleAssets builds but may not operates the network infrastructure ❷ TOT leases the equipment from TeleAssets ❸ DTAC SUBSIDIARY DTAC SUBSIDIARY DTAC TriNet Network (DTN) Year 1: 1,769 Year 2: 8,455 Year 3: 14,994 Year 4: 20,367 Year 5: 21,217 Base stations TOT Pcl is the 3rd largest shareholder in DTAC with 5.58% shares TOT selected DTAC, as its partner to deploy 4G LTE services using the 64MHz TOT was given by NBTC on the 2300MHz band. The proposal is a copy of the TRUE/CAT 850MHz setup, and involves DTAC’s wholly owned subsidiary TriNet purchasing 60% of TOT’s capacity for a fixed annual payment of THB 4.5 billion. TOT outsource network build to TeleAssets ❶ ❹ TeleAsset 20% network capacity to TOT 20% network capacity to MVNOs on TOT ❻ ❺ TOT resells 60% of the network capacity to MVNO DTN, leaving 40% to TOT itself and its MVNOs MVNO DTN
  42. 42. THE SOLUTION www.yozzo.com Allow Full MVNO’s to level the playing field, foster innovation and competition - for the benefit of the consumers and Thailand 4.0
  43. 43. PROBLEM #3 IN THAILAND DOUBLE / TRIPLE LICENSE FEE www.yozzo.com
  44. 44. UNFAIR DOUBLE LICENSE FEE HURTING THE MVNO AND CONSUMERS MNO MVNO License Fee 1.5% Voice Call Incl Fee THB 106,57 The operator pays NBTC 1.50% of revenue in license fee + 3.50% of annual revenue in USO fee - Total 5% Example: The operator sells THB 100 worth of voice calling to the MVNO which is THB 100 + 5% total fee = THB 105 The MVNO also pays NBTC 1.5% of annual revenue in license fee. It does not pay USO fee, as it dosen’t have spectrum. Example: The MVNO sells the now THB 105 worth of voice calling to customers THB 105 + 1.5% fee = THB 106,57 ❶ ❷ 1 x 1.5% License Fees (MNO) = 1.5% 1 x 1.5% License Fees (MVNO) = 1.5% 1 x 3.5% USO Fee (MNO) = 3.5% REGULATOR Unlevel playing field as the MNO can sell directly to its customers for just THB 105 vs. the MVNOs THB 106,57 As the mobile operator and MVNO each have to pay the license fees of annual revenue, the same mobile signal (voice/sms/data) ends up having double the tax, when it ends up at the MVNO and its customers. ❸ www.yozzo.com In 2009 the NBTC introduced Mobile Virtual Network Operator (MNVO) license along with a license fee scheme up to 1.5% of yearly revenue. However, the setup of the license fees causes the burden to be pushed to the MVNOs and consumers, as the NBTC is charging double fees on one ”signal”. MVNO 1.50% License Fee 3.50% USO Fee Voice call incl. Fees THB 105 Voice call THB 100 TOTAL 6.5%
  45. 45. UNFAIR TRIPLE LICENSE FEE HURTING THE MVNO, THE MVNA AND CONSUMERS MNO MVNO License Fee 1.5% Voice Call Incl Fee THB 108,17 The operator pays NBTC 1.50% of revenue in license fee + 3.50% of annual revenue in USO fee - Total 5% Example: The operator sells THB 100 worth of voice calling to the MVNO which is THB 100 + 5% total fee = THB 105 The MVNO also pays NBTC 1.5% of annual revenue in license fee. Example: The MVNO sells the now THB 105 worth of voice calling to customers THB 105 + 1.5% fee = THB 106,57 ❶ TOTAL 8% 1 x 1.5% License Fees (MNO) = 1.5% 1 x 1.5% License Fees (MVNA) = 1.5% 1 x 1.5% License Fees (MVNO) = 1.5% 1 x 3.5% USO Fee (MNO) = 3.5% REGULATOR As the MNO, MVNA and MVNO each have to pay the license fee, the same mobile signal ends up having triple tax, when it arrives at the MVNOs and the consumers ❸ www.yozzo.com In 2009 the NBTC introduced Mobile Virtual Network Operator (MNVO) license along with a license fee scheme up to 1.5% of yearly revenue. However, the setup of the license fees causes the burden to be pushed to the MVNA, the MVNO and consumers, as the NBTC is charging triple fees on one ”signal”. MVNO 1.50% License Fee 3.50% USO Fee Voice call incl. Fees THB 106,57 Voice call THB 100 MVNA Voice call incl. Fees THB 105 MVNO License Fee 1.5% Unlevel playing field as the MNO can sell directly to its customers for just THB 105 vs. the MVNOs THB 108,17 The MVNA also pays the NBTC 1.5% of annual revenue in license fee Example: The MVNA resells the now THB 105 voice calling to the MVNO. I.e. THB 1,05 + 1.5% fee = THB 106,57 ❷ ❸
  46. 46. MVNO’S MAKES ITS BUSINESS ON MARGINS MVNO VERSUS www.yozzo.com MVNO’s makes its profit on the small margins between the costs of purchasing airtime in wholesale from the MNO (or MVNA) and the retail price. They need to operate a lean and flexible setup, with low operation costs (small staff, low office rentals, cheap distribution) as every baht counts. The unfair double, and triple taxation changes the timeline significantly for the MVNO to reach financial breakeven – if ever - given that the current fee structure setup not only adds additional costs, but also provides the mobile operators with an unfair pricing advantage
  47. 47. THE SOLUTION www.yozzo.com Let the MNO and MVNO (and MVNA) split the 1.5% license fee like we do with VAT i.e. MNO 0.75% and MVNO 0.75% = 1.5%
  48. 48. PROBLEM #4 IN THAILAND UNFAIR ADVANTAGE RESULTING IN ONE PLAYER BEING ABLE TO PROVIDE LOWER PRICES www.yozzo.com
  49. 49. MVNO OR NOT www.yozzo.com 850MHz 1800MHz 2100MHz DTAC SUBSCRIBERS LINE MOBILE In June 2017, DTAC launched the sub-brand MVNO LINE MOBILE, and made it available across the 850MHz and 1800MHz network, which is under concession with CAT Telecom - and DTAC’s own licensed 2100MHz network. The sub-brand MVNO was launched without a MVNO license. DTAC claims it is not a MVNO - but that LINE MOBILE (which is a MVNO in Japan), is a service of DTAC's subsidiary DTN, who has entered into a brand licensing deal for the rights to use LINE MOBILE in Thailand, against a nondisclosed royalty fee. NBTC invited DTAC and LINE to provide information regarding the setup. NBTC pointed out amendments needed regarding online SIM registration, marketing and customer support but allowed LINE MOBILE to continue without a MVNO license. DTAC and LINE MOBILE insist, that despite LINE MOBILE not having a MVNO license, there is no unfair advantage and the country is still receiving full licensing fees from this setup.
  50. 50. IN-HOUSE SUB-BRAND = NO NEED FOR MVNO LICENSE www.yozzo.com In 2014, AIS launched a prepaid sub-brand called YOU! The setup was build from scratch by AIS but with its own YOU! SIM, branding, design, promotion packages, marketing, etc. This is a sub-brand build, owned and maintained by AIS under existing license and as such, it does not need a MVNO license.
  51. 51. BRAND LICENSING AGREEMENT = MVNO LICENSE www.yozzo.com Plenty of mobile operators have entered into joint ventures or brand licensing agreements, where the operator buys access to use the brand value of an existing brand i.e. brand recognition, distribution, users/followers etc. Examples are: • Australia: MNO Optus and Virgin Mobile • America: MNO Sprint and Virgin Mobile Virgin Mobile, is/has been a sub-brand MVNO in Australia, Canada, Qatar, India, UAE and the US. Energy drink Red Bull is/has been a sub-brand MVNO in Austria, Belgium, Hungary, Poland, South Africa and Switzerland. This is a sub-brand MVNO and as such, it needs a MVNO license. MNO
  52. 52. MNO/MVNA/MVNO – WHOLESALE AGREEMENTS www.yozzo.com MVNO Agreements Brand Licensing Capacity based pricing Retail Minus Cost Plus Revenue Share Commision based MVNO MVNO MVNO MVNO MVNO MVNO Own Subscribers Retail Subscribers Subscribers Subscribers Subscribers Subscribers Subscribers MNO LINE MOBILE
  53. 53. TO BE - OR NOT TO BE A MVNO – IT NOT A QUESTION www.yozzo.com “Mr Norling intimated that the contract was not exclusive, which suggests that Line can partner with AIS and TrueMove to provide similar services”. This remark clearly shows that LINE is a partner and not part of DTAC or DTN and therefore need a MVNO license to operator on DTAC’s network https://www.bangkokpost.com/tech/local-news/1331395/dtac-deflects-line-mobile-licence-criticism In this article published in the Bangkok Post on 26 September 2017, CEO of DTAC, Lars Norling states why he thinks LINE Mobile does not need a MVNO license DTAC DEFLECTS LINE MOBILE LICENSE CRITICISM
  54. 54. LINE MOBILE UNFAIR ADVANTAGE www.yozzo.com Line Mobile is given the unfair advantage of being able to provide lower prices than rest of the players in the market, as it doesn't have to shoulder the extra cost of a MVNO licensing fee, and the country is also not benefitting, as it won't receive MVNO licensing fees. MVNO License Fee 1.5% Voice Call Incl Fee THB 106,57 DTAC pays NBTC 1.50% of revenue in license fee + 3.50% of annual revenue in USO fee - Total 5% Example: The operator sells THB 100 worth of voice calling to the MVNO which is THB 100 + 5% total fee = THB 105 The MVNO also pays NBTC 1.5% of annual revenue in license fee. It does not pay USO fee, as it dosen’t have spectrum. Example: The MVNO sells the now THB 105 worth of voice calling to customers THB 105 + 1.5% fee = THB 106,57 ❶ ❷ 1 x 1.5% License Fees (MNO) = 1.5% 1 x 1.5% License Fees (MVNO) = 1.5% 1 x 3.5% USO Fee (MNO) = 3.5% REGULATOR Unlevel playing field as LINE Mobilecan sell directly to its customers for just THB 105 vs. the MVNOs THB 106,57 As the mobile operator and MVNO each have to pay the license fees of annual revenue, the same mobile signal (voice/sms/data) ends up having double the tax, when it ends up at the MVNO and its customers. ❸ MVNO 1.50% License Fee 3.50% USO Fee Voice call incl. Fees THB 105 Voice call THB 100 TOTAL 6.5% LINE MOBILE NOW 5%
  55. 55. DTAC AND SUBSIDARY TELEASSET AND DTN MVNO SETUP ON TOT 2300MHz www.yozzo.com LINE MOBILE If LINE MOBILE connects to DTN, which is a MVNO on TOT’s 2300MHz spectrum then it must obtain a MVNO license, as the 2300MHz isn't’ DTN’s network but TOT’s
  56. 56. LINE MOBILE WHAT WILL HAPPEN ON 2300MHz www.yozzo.com If DTAC allows the LINE Mobile customers to use its new setup on TOT’s 2300MHz, questions is how does the NTBC plan to bill the license fee. The 2300MHz is the spectrum of TOT and DTN is a MVNO – Will the NBTC allow the MVNO DTN to provide access to LINE Mobile TOT MVNO License Fee 1.5% Voice Call Incl Fee THB 108,17 TOT pays NBTC 1.50% of revenue in license fee + 3.50% of annual revenue in USO fee - Total 5% Example: TOT resell THB 100 worth of voice calling to the MVNO DTN which is THB 100 + 5% total fee = THB 105 The MVNO also pays NBTC 1.5% of annual revenue in license fee. Example: The MVNO sells the now THB 105 worth of voice calling to customers THB 105 + 1.5% fee = THB 106,57 ❶ TOTAL 8% 1 x 1.5% License Fees (MNO) = 1.5% 1 x 1.5% License Fees (DTN) = 1.5% 1 x 1.5% License Fees (MVNO) = 1.5% 1 x 3.5% USO Fee (MNO) = 3.5% REGULATOR As the MNO, MVNA and MVNO each have to pay the license fee, the same mobile signal ends up having triple tax, when it arrives at the MVNOs and the consumers ❸ MVNO 1.50% License Fee 3.50% USO Fee Voice call incl. Fees THB 106,57 Voice call THB 100 Voice call incl. Fees THB 105 MVNO License Fee 1.5% Unlevel playing field as the MVNO can sell directly to its customers for just THB 106.57 vs. the MVNOs THB 108,17 As a MVNO DTN also pays the NBTC 1.5% of annual revenue in license fee. LINE Mobile pays nothing Example: DTN and LINE Mobile sells the now THB 105 worth of voice calling to customers I.e. THB 1,05 + 1.5% fee = THB 106,57 ❷ ❸ LINE MOBILE NOW 6.5% MVNO DTN
  57. 57. THE SOLUTION www.yozzo.com LINE Mobile is a MVNO and must obtain a MVNO license, pay fees and compete on the same terms as the rest of the market
  58. 58. PROBLEM #5 IN THAILAND NBTC ISSUES A LICENSE THAT IS BOTH AN MVNA AND AN MVNO www.yozzo.com
  59. 59. NBTC ISSUES A LICENSE THAT IS BOTH AN MVNA AND AN MVNO www.yozzo.com MVNO MVNO MVNA OK! Hello handsome MVNO, Welcome! I will make special price just for you! NBTC wants the MVNO part on the MVNA license to take over customers, in case the MVNO client goes out of business!!! NBTC ISSUES A LICENSE THAT IS BOTH AN MVNA AND AN MVNO
  60. 60. COMBINED MVNA/MVNO LICENSE = CONFLICT ON INTEREST www.yozzo.com MVNO MVNA Three down, five more to go, and the world is my oyster How can you, as a MVNO client, who want to use the service of the MVNA be sure that it will take care your interest when it is also a competing MVNO? NBTC ISSUES A LICENSE THAT IS BOTH AN MVNA AND AN MVNO This will further manifest itself in negotiations of packages, fees, terms and conditions, as the MVNA will always have more power in any outcome and be able to control the competition (MVNO clients) = non level playing field.
  61. 61. COMBINED MVNA/MVNO LICENSE www.yozzo.com MVNA This also means that when a MVNA is applying for a license, the NBTC wants the MVNA to provide written information on call center, customer support, distribution and marketing plans towards end-users, which the MVNA will never use… YOU MUST FILL OUT ALL THE BOXES
  62. 62. THE SOLUTION www.yozzo.com If the NBTC absolutely have to issue licenses, then there should be one license for MVNA and another for MVNO. It is two different setups.
  63. 63. PROBLEM #6 IN THAILAND NO PLANS FOR MVNO’S GOING OUT OF BUSINESS www.yozzo.com
  64. 64. THE NUMBER YOU HAVE DIALED IS NO LONGER IN SERVICE www.yozzo.com OUT OF BUSINESS AND THEN WHAT?
  65. 65. NO PLANS FOR MVNO’S GOING OUT OF BUSINESS IN REAL LIFE X 3 www.yozzo.com Section 20 of the Telecommunications Act of 2001 stipulates that: The licensee shall not suspend or terminate the service, in whole or in part, unless permitted by the Commission under the criteria and procedures prescribed by the Commission. And Section 22: The licensee shall, without delay, inform the Secretary General of the following events: (5) any case that affects, or may affect, the business operation or the supply of service of the licensee as prescribed in notification of the Commission. In case of (5), the licensee shall inform the Secretary General immediately when the events occur. The Secretary-General shall, without delay, submit the matter to the Commission after having been informed. In this regard, the Commission shall have the power to prescribe certain conditions for the licensee to perform for the prevention of damages to public interest. At a meeting on January 17, 2017, at the NBTC commission, TOT requested guidelines from the NBTC, to suspend the service with MVNO Mojo3G on grounds that the MVNO had defaulted on payments to TOT since 2015 but TOT had continued the service. Despite Section 20 on notifying the NBTC in advanced, the MVNO, had not submitted such a plan to the NBTC at the time of the meeting taking place. Instead it was suggested that customers, could voluntarily transfer to TOT, and that the MVNO must inform the customers on the suspension of service in order for the customers to cancel the service, and get remaining funds back. This is not the first time, and it will not be the last that a MVNO goes out of business. Prior to Mojo3G, it was MVNO 365 communication, and in June 2017 the MVNO i-mobile followed suit, but did however inform the NBTC first. Before approving the exit request, NBTC, TOT and i-mobile had to figure out how to handle the remaining users. THE INTENTION
  66. 66. MVNO’S IN THAILAND ARE ALLOWED TO CONNECT TO SEVERAL MNO’S www.yozzo.com This provides a dilemma in case the MVNO ends its service. Which MNO has to take over the MVNO subscribers, CAT or TOT? MVNO’S IN THAILAND CAN CONNECT TO SEVERAL MNO’S MVNO ?
  67. 67. MVNO’S IN THAILAND CAN CONNECT TO SEVERAL MNO’S THROUGH SEVERAL MVNA’S www.yozzo.com This provides a dilemma in case the MVNO ends its service. Which MNO has to take over the MVNO subscribers, CAT or TOT? MVNO’S IN THAILAND CAN CONNECT TO SEVERAL MNO’S THROUGH MVNA’S MVNO ? MVNA MVNA
  68. 68. ALL-IN-ONE www.yozzo.com • Who owns the numbers – the MVNO or the companies? • Which MNO has to take over the MVNO subscribers if it closes? • If a MVNO can wholesale then why do we need a MVNA license? • Who are the subscribers – The two companies or the companies subscribers? ONE MVNO, WHO HAS AGREEMENT WITH TWO MNO’S, IS SELLING WHOLESALE TO NON-MVNO’S, WITHOUT A MVNA LICENSE MVNO COMPANY COMPANY The MVNO is selling SIMs and airtime to unlicensed outlets, as well as acting as a MVNA to MVNOs by selling airtime and SIM packages.
  69. 69. www.yozzo.com 1. A protection plan should be part of the MVNO Agreement between the host operator and the MVNO. I.e. The Agreement shall include provisions covering the expiration, termination or suspension of the Agreement and shall contain an adequate protection plan for MVNO customers and their payments, including processes and information to subscribers on refund process, number porting options, and the continuation of uninterrupted services (taken over by the host operator), if the customer chose not to de-activate, or port out three months after the announcement of service termination. 2. The NBTC should issue a mandatory Code of Practice notification to all new and existing MVNOs and host operators, to include the amendment to its MVNO agreements mentioned above, as well that both the host operators and the MVNOs from the date of the notification, are required to, provide mobile number portability services for at least three months after the date of service stop to allow affected customers to port out their mobile numbers to other service providers. Ensure subscribers are automatically absorbed by the Host Operator (no end-user action or consent required) if they choose not to port out, three months after the announcement of service termination. 3. To minimize the impact on various stakeholders, the NBTC should publish a Service Cessation Alert Notice standard sample format to be used for host operators to notify the NBTC, and one Service Cessation Alert standard sample to be used by MVNOs to inform the NBTC, affected customers and the public. THE SOLUTION
  70. 70. SOLUTION: IF A MVNO GOES OUT OF BUSINESS www.yozzo.com MVNA MVNO MVNO MVNO MVNO MVNO CUSTOMERS
  71. 71. THE HOST MNO HAS TO TAKE OVER THE REMAINING CUSTOMERS www.yozzo.com MVNA MVNO MVNO MVNO MVNO
  72. 72. IF A MVNA GOES OUT OF BUSINESS www.yozzo.com MVNA MVNO MVNO MVNO MVNO MVNO
  73. 73. THE HOST MNO TAKES OVER AND MAKE SURE THE MVNO’S ON THEIR NETWORK CAN CONTINUE www.yozzo.com MVNO MVNO MVNO MVNO MVNO
  74. 74. EXAMPLE: SCOPES OF 3 MONTHS TERMINATION PLAN www.yozzo.com STAGE 1 STAGE 2 STAGE 3 SERVICE TERMINATION REFUND CONTINUITY OF SERVICE MVNO issue a notice 3 months before termination to: • NBTC • Host operator (or MVNA) • Subscribers Notice shall include: • Date of termination. • Refund period for prepaid customers. • Service continuity options. • Contact information. • MNP process. MVNO to provide: • The subscribers with the choice to port or terminate. • Refund of unused prepaid deposit. • Unused credit transfer to new service provider. • Information on MNP. • Weekly report to NBTC during the 3 month termination process. Refund process to be completed 3 month after service termination notice. Main concern for subscribers: • Continue to have access. • Able to obtain refund. Subscribers Service Continuity Plan • Subscribers who have not yet ported will automatically continue to have access. • MVNO handover HLR and customer database to host operator. • Host operator takes over the remaining customers. • Utilization of remaining / transferred prepaid value. • Submit final report to NBTC. PRE-LAUNCH MVNO provides the NBTC before service launch with a notice which include: • Details and terms regarding termination of service plan from the contract with host operator (or MVNA).
  75. 75. PROBLEM #7 IN THAILAND BUREAU-CRACY AT NBTC KILLING INNOVATION www.yozzo.com
  76. 76. MVNO LICENSE APPLICATION IS IN-CORRECT AND NOT UP-TO-DATE TERMS AND APPLICATION FOR MVNO IN THAILAND IS ABOUT 15-YEARS TO OLD www.yozzo.com The application seems to be a copy and paste from old applications and various countries in early 2000’s In mid-2017 the NBTC added a MVNA license to the market without request for consulting or public hearing, ending up using the MVNO application for MVNA license as well.
  77. 77. LICENSE APPLICATION BUREAU-CRAZY NBTC OFFICER HAS TO UNDERSTAND & APPROVEFILL-OUT & HAND-IN THE APPLICATION NBTC has added their own little notice to the act regarding license approval. The NBTC officer can decline the application if he/she doesn't understand, either due to language, the service, network etc. www.yozzo.com
  78. 78. LICENSE APPLICATION BUREAU-CRAZY HOWEVER… ? The NBTC officer will not uderstand new innovative service from the MVNO and decline it because he/she is responsible, and it does not fit the boxes. Therfore all MVNOs are the same in Thailand - even MVNAs have to use the MVNO application form which makes no sense www.yozzo.com
  79. 79. LICENSE APPLICATION BUREAU-CRAZY ONCE APPROVED, THE OFFICER HANDS THE APPLICATION TO A BOARD WHO HANDS IT TO NBTC’S BOARD FOR APPROVAL AND SIGNATURE www.yozzo.com
  80. 80. LICENSE APPLICATION BUREAU-CRAZY THE MVNO LICENSE IS GIVEN BASED ON THE APPROVED AND PROVIDED INFORMATION I.e. The information given and approved is part of the license – License valid for 5-years www.yozzo.com
  81. 81. BUREAU-CRACY KILLS INNOVATION AND OPENS FOR CORRUPTION THE OFFICER BECOMES A SINGLE GATEKEEPER, WHICH OPENS FOR CORRUPTION There are people who are either direct employees or have very close ties with employees at the NBTC, who provide a service in which they guarantee you a license for the price of THB 50,000-100,000. We are aware of some who have used the service and has been awarded the mentioned license. Question is how many have used this ”service” and how is it even possible that this can take place considering the license approval process involves several stages and departments/boards? The license approval process is long, slow and non-transparent, and NBTC will drive you in circles. This further helps trigger the interest in ”guaranteed license” www.yozzo.com The setup opens a ”backdoor for further corruption. Because… The MVNO license is valid for 5- years and consist of the information provided in the application. That information is however outdated because it has to fit the old standard and knowhow from the officer. Once the MVNO launch in the real world with technology and interfaces according to updated standards the regulator can come back at anytime and say the MVNO is not operating according to the license (information provided in the license) and demand they stop operation – or solve it with a brown envelope. SAYNO! TOCORRUPTION
  82. 82. GETTING A LICENSE WITHOUT AN AGREEMENT Thailand is among few, if not the only country in the world, where you can get a MVNO license without some sort of agreement (MoU) with a mobile operator (or MVNA/MVNE) www.yozzo.com
  83. 83. GETTING A LICENSE WITHOUT AN AGREEMENT – HOW? Question: How does a MVNO without a host operator agreement fill out 9,10, 11, 12? Answer: They fill in ALL operators as example and use a network diagram from the 90’s …and who would buy equipment BEFORE having an MNO agreement AND a license? www.yozzo.com
  84. 84. THE SOLUTION www.yozzo.com • Update the license application to the present and amend it from time to time. • Drop the added clause that the officer has to understand, approve and be responsible. • There is no reason to provide a license prior to an agreement with a MNO/MVNA/MVNE. • Introduce a real MVNA license application = do not use the MVNO application it’s not the same. BUT BETTER YET… • Drop the need for MVNA/MVNO application/license altogether in-line with other countries who no longer issues MVNO licenses. Doing so would make sense, as most of the issues releated to MVNO in Thailand, as discussed in this presentation would need an update or be removed. We are aware that NBTC is very keen on licenses in order to collect fees, and we therefor suggest a solution, where NBTC could maintain a very simple MVNO and MVNA license scheme, purely for the sake of collecting its license fees.
  85. 85. Presentation by Yozzo Co.,Ltd.  www.yozzo.com  March 2016 DISCLAIMER Some statements made in this material are forward-looking statements with the relevant assumptions, which are subject to various risks and uncertainties. These include statements with respect to corporate plans, strategies and beliefs and other statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “intend”, “estimate”, “continue” “plan” or other similar words. The statements are based on our assumptions and beliefs in light of the information currently available to us. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Please note that the company and executives/staff do not control and cannot guarantee the relevance, timeliness, or accuracy of these statements. All product names, trademarks and registered trademarks are property of their respective owners. All company, product and service names used in this site are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement. Copyright © 2018 Yozzo Co.,Ltd. All Rights Reserved.

×