Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215
Hutchison Telecommunications Hong Kong — Non-Deal Roadshow (June 2016)
63 slides from Hutchison Telecommunications Hong Kong's roadshow presentation, Jun 28, 2016
Slide 1: 2016 Investor Tour Presentation
2016 Investor Tour Presentation 28 June 2016
Slide 2: Disclaimer
Disclaimer • These materials have been prepared by and are proprietary to Hutchison Telecommunications Hong Kong Holdings Limited (HTHKH) solely for use at this presentation. No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, comp
Slide 3: Peter Wong, Chief Executive Officer
Peter Wong Chief Executive Officer
Slide 4: The Management Team
The Management Team Strong in-depth industry knowledge with track record to deliver Peter Wong Jennifer Tan Suzanne Cheng Chief Executive Officer Chief Operating Officer Chief Financial Officer Raymond Ho Edward Wong Wai Ming Ho Corporate & Marketing HR & Organisational HTMCL - CEO Communications Di
Slide 5: Jennifer Tan, Chief Operating Officer
Jennifer Tan Chief Operating Officer
Slide 6: Contents
Contents 1) HTHKH - An Integrated Operator • Global Integrated Telco • Well Recognised – Innovation & Services • Investment Solid Foundation Future Growth • True Quad-play Operator 2) Transformation & Opportunities • Business Transformation • Growing Markets • Potential Value of IoT by 2025 • Wi
Slide 7: HTHKH An Integrated Operator
HTHKH An Integrated Operator 7
Slide 8: Global Integrated Telco
Global Integrated Telco UK Italy Ireland Austria Sweden Denmark Indonesia Vietnam Sri Lanka Australia
Slide 9: Well Recognised – Innovation & Services
Well Recognised – Innovation & Services 2015 36 2016 1H 20 International Customer Relationship Excellence International Alternative Award Investment Review Awards Contact Center of the Year Company of the year for Innovation & People Development Program of the Year Over-the-Top Leadership- Asia
Slide 10: Investment Solid Foundation Future Growth
Investment Solid Foundation Future Growth 900/1800/2100/ Spectrum 154.4MHz* 2300/2600 full range WiFi 20,000+ Hotspots Fibre Length 1.43 million Kilometres of Fibre Optic Cable Cores (enough to circle the earth about 36 times) Homepass Over 2 millions by 2017 Global Offices 21 Offices 60+ 3Shops
Slide 11: True Quad-play Operator
True Quad-play Operator Fixed Mobile Convergence myTV Attractive bundle SUPER - offer - Google Customer broadband International Chromecast Stickiness Plan/FMI Business tailored Fixed Mobile offer Revenue Quad -play Operating Cost LTE mobile WiFi Content/ WhatsApp & WiFi Application KKBox bundle myTV
Slide 12: Transformation & Opportunities
Transformation & Opportunities 12
Slide 13: Business Transformation
Business Transformation CONNECT B2B P2P communications communications PEOPLE E-Commerce Mobile Payment CONNECT DEVICES Music Movie apps apps TV apps Sports apps Applications Limited Applications Open Platform Service Platforms Integrated IP Networks Private Network Core Network Public Network IP Tra
Slide 14: Growing Markets
Growing Markets TRADITIONAL MARKET UNTAPPED/ NEW MARKETS Communication Focus : • Convergence Market • Voice • Under-exploited Traveller Business (Apple SIM) • Data • Carrier Billing (Google, iTune) • Roaming, IDD • OTT (myTV SUPER, LeSports, KKBox, etc.) • SMS, MMS, IMS • Mobile Payment (Mobile wall
Slide 15: Win with Partners
Win with Partners Powerful Know our Reach our Powerful Billing Network Customers Customers for Customers • Fixed Local • Profile • Extensive Retail • Solid Charging • Submarine Demographic Network Relations Cable Capacity • Location Info • Corporate/ • Valid Billing • Mobile Radio & • Behavioural En
Slide 16: Daniel Chung, Chief Technology Officer IT and Mobile
Daniel Chung Chief Technology Officer IT and Mobile
Slide 17: Mobile Network
Mobile Network
Slide 18: Spectrum
Spectrum ONLY mobile operator in Hong Kong to possess FULL set of FDD&TDD spectrum bands portfolio 900MHz (FDD) 1800MHz 2300MHz (FDD) (TDD) 2G Spectrum 3G Portfolio 4G (LTE, LTE-A) 2100MHz 2600MHz (FDD) (FDD)
Slide 19: Coverage
Coverage Spectrum 900 MHz 2100 MHz • Ideal for LTE coverage • Ideal for LTE capacity Refarming enhancement, especially enhancement at indoor buildings • Pave way for LTE-A • Excellent for 4CC/5CC CA improvement of service • Excellent for improvement quality and continuity, of service quality & user
Slide 20: Data Speeds
Data Speeds Evolution path of peak speed achievable @ live network Data Speed 2015 > 200 Mbps (2CC) F+T 5CC Under planning 2016 > 300 Mbps (3CC) 2017 > 400 Mbps (4CC) F+T 4CC Lab Trial F+T 3CC Field Trial F+T & T+T 2CC Deploying F+F 2CC Deployed LTE LTE-A 2CC 3CC 4CC 5CC … 5G Carrier Aggregation (CA
Slide 21: Services
Services Voice over LTE (VoLTE) and Voice over Wi-Fi (VoWiFi) IMS-based Multi-devices Access Multi-devices • Incoming calls at phone numbers associated with multi-devices Living room (SIM based and non-SIM based) • Ringing at multi-devices Bedroom simultaneously • Call session handover among Study r
Slide 22: Small Cell
Small Cell • Fit coverage holes and traffic hotspots (small area but large quantity) • Flexible installation locations • Improved effective user quantity, throughput (downlink & uplink), latency and battery consumption
Slide 23: Innovative Business Opportunities
Innovative Business Opportunities
Slide 24: Big Data - Mobile Operator's Data Monetisation
Big Data - Mobile Operator’s Data Monetisation • Large mobile internet advertisement spending worldwide • Mobile operator’s data becomes extremely valuable for innovative business model • Various internal and third party data and user cases through a single network integration
Slide 25: Evolution to 5G
Evolution to 5G
Slide 26: 5G – Technical Requirements
5G – Technical Requirements • eMBB: Speed & Capacity • Massive IoT: Connections & Energy • Critical: Latency & Reliability
Slide 27: Byron Chiang, Chief Technology Officer
Byron Chiang Chief Technology Officer
Slide 28: Contents
Contents 1) Fixed Network Infrastructure • Evolution of Communications • Network Infrastructure • IDC • “hgc on air” Wi-Fi Service 2) Future Development • Big Data • IoT • Business Solutions • Focus
Slide 29: Everything Built on the Fibre Layer
Everything Built on the Fibre Layer
Slide 30: Fibre / IP Network Infrastructure
Fibre / IP Network Infrastructure • Over 1,430,000 km of fibre- optic cable cores • Over 5,990 km of cable ducts • Currently over 1,820,000 homepass • ~ 5,000 FTTB non-residential buildings EAC ASE EAC • Extensive IP network FNAL generating massive customer APCN AAG FNAL IA C2C behaviour data
Slide 31: Commercial Network
Commercial Network • Flat nature • Optimise for peer-to- peer connectivity • No major difference between active and backup path • Requires careful fibre cable network design
Slide 32: Broadband (ISP) Network
Broadband (ISP) Network • Hierarchical nature (to internet) • Optimise for top-to-bottom connectivity • As more buildings are added, latency increases proportional to log(n)
Slide 33: ... the risk
... the risk Making Better [1] Hutchison Telecom Hong Kong Holdings g ette BE ALKEASS eR
Slide 34: IDC – Extended Network Infrastructure
IDC – Extended Network Infrastructure Only tier III data centre provider to offer: • Group self-owned property • Complete power resiliency – supplied by HKE & CLP • Comprehensive network coverage
Slide 35: IDC – Technical Summary
IDC — Technical Summary Cavendish Data Centre Watson Data Centre Data Center Tier Tier 3+ Tier 3 Classifications 4 710 No. of Cabinets 1,160 41,000 planned in 2016 2,000kVA IT Power Capacity 5,000kVA . + 3,000kVA planned in 2017 Racks and Cages 600mm or 800mm wide, 45U height and up to 1200mm deep c
Slide 36: hgc on air – One of the Largest Wi-Fi Networks in HK
hgc on air – One of the Largest Wi-Fi Networks in HK • 20,000+ Wi-Fi hotspots throughout Hong Kong
Slide 37: Expansion Strategy
Expansion Strategy • Venues for events Festival Walk • Hotspots for money Hysan Place transaction Jimmy’s Kitchen Joy & Joy • With useful big data Link REIT Midtown Olympian City The Peak Lookout TMT Plaza
Slide 38: Telco Big Data
Telco Big Data • With network, subscribers & app data • Wi-Fi provides excellent data source • Smartphones create billions of touchpoints - Improve user experience within a venue - Increase operational efficiency of a venue - Monetise location information
Slide 39: Functional Menu of a Shopping Mall Partner
Functional Menu of a Shopping Mall Partner • Heatmap report • Number of unique visitors • User average dwell time • Repeated visitors percentage
Slide 40: Cooperation with Smartac
Cooperation with Smartac • HGC and Solomedia Asia, a subsidiary of Smartac Group, intend to build “Smart Travel Cloud” in Hong Kong • Easy use of Wi-Fi networks while abroad • Solomedia Asia will deploy an O2O big data platform (combining Wi-Fi, bluetooth Beacon, smart interactive screen) to provide
Slide 41: IoT – Leveraging Network & Cloud Infrastructure
IoT – Leveraging Network & Cloud Infrastructure End-User Things Gateway Cloud Decision Maker Communications Communications Data Application Analytics
Slide 42: Focus
Focus • Both Big Data and IoT present new revenue generating opportunities for monetising telco insights we have been sitting on with regard to our customers and the use of our fixed, mobile and Wi-Fi networks • IoT increase of digital surface present opportunities to HGC extending from the bandwidt
Slide 43: Andrew Kwok, International and Carrier Business Director
Andrew Kwok International and Carrier Business Director
Slide 44: Contents
Contents 1) Global Expansion & Future Revenue • Hong Kong Carrier Business • International Data and Voice Business • International Mobile Services 2) Digital Evolution – Telco Suite Platform 3) Big Data Exchange (BDX)
Slide 45: Hong Kong Carrier Business
Hong Kong Carrier Business
Slide 46: Building next gen local mobile backhaul network
Hong Kong Carrier Business Building next gen local mobile backhaul network
Slide 47: Business Expansion
Business Expansion Mobile Front-haul Small Cell BBU Pool RRU RRU RRU RRU RRU RRU RRU • Save mobile cell site rental & power consumption • Save CAPEX on cell sites • Extend mobile coverage • Improve spectrum efficiency
Slide 48: Revenue Stream
Revenue Stream Mobile Front-haul Small Cell Help mobile Extend mobile operators signal coverage A restaurant, save cell (fill up coverage bus-stop, site rental gap), improve lamp-post etc spectrum can be a cell efficiency site now In exchange of mobile operators longer contract terms increase sticki
Slide 49: International Data and Voice
International Data and Voice
Slide 50: Widespread footprint in Asia & span the globe
International Data and Voice Widespread footprint in Asia & span the globe
Slide 51: Global Presence and Expansion
Global Presence and Expansion • Group gateway for CKHH’s mobile traffic • Expand corporate solution to Europe • Evolve voice to IP, apps & application messaging
Slide 52: Revenue Stream
Revenue Stream International Wholesales Data Carrier of carrier Content delivery Cloud Asia expansion specialised in for mobile & OTT connectivity e.g. with leading niche markets Amazon Internet Exchange e.g. AMS-IX
Slide 53: AMS-IX Hong Kong
AMS-IX Hong Kong • World’s largest IX • Asia partnership • Independent IX based in Amsterdam AMS Amsterdam AMS-IX HK Peering in ISP Peering Europe IPX / GRX customer In Asia Benefits to HGC • Pioneer as global IX in Asia • Strengthen HGC as an international hub • Aggregate OTTs & contents • Add valu
Slide 54: Revenue Stream
Revenue Stream International Enterprise ICT solution for OTT Private cloud solution Big Data Exchange & enterprise (BDX) for IoT, startups & app developers
Slide 55: Revenue Stream
Revenue Stream International Wholesales Voice / Messaging Bridging OTT with A2P SMS Gateway of CKHH’s traditional carriers authentication 11 mobile operations
Slide 56: International Mobile
International Mobile
Slide 57: Expand Mobile Global Reach
International Mobile Expand Mobile Global Reach
Slide 58: Global Presence and Expansion
Global Presence and Expansion Sweden UK Denmark Ireland Austria Japan Korea Italy Hong Kong Thailand Taiwan Vietnam Indonesia Singapore • Joint hands with CKHH’s mobile operations for group to group deal • Global MVNO initiatives with CKHH’s mobile operations • Collaborate with Conexus Alliance on e
Slide 59: Revenue Stream
Revenue Stream Evolve from Global prepaid CKHH’s mobile International roaming business business & digital operations & M2M to traveler market Conexus: solution & IoT business Enterprise solution
Slide 60: Digital Evolution Telco Suite Platform
Digital Evolution Telco Suite Platform
Slide 61: Digital Evolution – Telco Suite Platform
Digital Evolution – Telco Suite Platform CKHH’s mobile Smart Billing Addressable Relevance operations API Hub & Policy IoT M2M E-SIM market Engine Control HK & Macau MVNE Wholesales Data Sweden Wholesales Voice Content Enterprise Voice Denmark IPX A2P VOIP App Delivery (PSTN, IP) Network Ireland OTT
Slide 62: Q&A
Q&A
Slide 63: Thank You
Thank You
Hutchison Telecommunications Hong Kong Holdings — Non-Deal Roadshow (June 2016) on 6ix