PRESENTATION TO THE ASIA-PACIFIC INFORMATION SUPERHIGHWAY. Rabah GHEZALI Group Director Public Policy November 2017 VEON Ltd 2016

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1 PRESENTATION TO THE ASIA-PACIFIC INFORMATION SUPERHIGHWAY Rabah GHEZALI Group Director Public Policy November 2017 VEON Ltd 2016

2 VEON: AN EMERGING MARKETS GLOBAL COMPANY 235+ MLN CUSTOMERS AMSTERDAM LONDON RUSSIA UZBEKISTAN KYRGYZSTAN $8,9BLN REVENUES ALGERIA GEORGIA TAJIKISTAN PAKISTAN KAZAKHSTAN BANGLADESH LAOS 13 MARKETS, HQ IN AMSTERDAM (+DIGITAL HUB IN LONDON) 65% 3G COVERAGE 2G: 94% 4G*: 20% * excl. Italy ITALY UKRAINE ARMENIA 2

3 VEON: TELCO, TECH & DIGITAL Local Global + 3

4 VEON IN BANGLADESH Internet Usage Smartphone penetration Unbanked Adults Customers (in millions) Employees BANGLADESH 18% 30% 69% 30, VEON 38,1% 45% 58,0% WORLD 43,9% 52% 38,5% Source: ITU, 2017; World Bank,

5 GDP growth (5y average) CONNECTIVITY AND ECONOMIC GROWTH 9% 8% 7% 6% 5% 4% 3% Uzbekistan Laos Tajikistan Kazakhstan Armenia Pakistan Algeria Russia Bangladesh Georgia Kyrgyzstan A 10% INCREASE IN BROADBAND COULD RAISE ECONOMIC GROWTH BY BETWEEN 0.25% - 1.4% (ITU, 2016) 2% 1% Ukraine 0% 0% 10% 20% 30% 40% 50% 60% Italy -1% ICT Development Index growth ( ) 5

6 PRIVATE SECTOR INVESTMENTS KEY FOR DEVELOPMENT NET FLOWS OF DAC COUNTRIES (in bln USD) $32,2 $4,6 Private flows at market terms $137,2 Official development assistance Net grants by NGOs $402,9 Other official flows Source: OECD,

7 VEON PERSONAL INTERNET PLATFORM AS NEW MEANS OF CONNECTIVITY V E O N 2. x V E O N 3. x M E S S A G I N G M Y V E O N C O N T E N T & O F F E R S M A R K E T P L A C E

8 EMPHASIS ON LOCAL PARTNERS Local 80% Global 20% 8

9 EMPOWERING VERTICAL INDUSTRIES magri mgov mhealth mtransp meduc mretail 9

10 DIGITAL FINANCE Secure electronic account Ability to transact, save, borrow, insure Access to the global digital economy $2,1 trillion of loans to individuals and businesses could be made sustainably $110 billion could be gained by governments each year by reducing leakage in public spending and tax collection 95 million jobs could be created in emerging economies within a decade as a result of inclusive growth Source: McKinsey,

11 OUR DIGITAL FINANCIAL SERVICES VEON CARD USERS REMITTANCE AIR TIME CASH OUT + CREDIT DCB OFFLINE PAYMENTS +48mln Utilities, Games, Transport Sim 2 Any Sim Card ATM Post Appstore PlayStore mpos QR A CARD YOU CANNOT MISS 11

12 CONNECTIVITY & GOVERNMENT: BANGLADESHI EXAMPLE Banglalink has enabled free access for its subscriber to government sites to allow digital citizen services from various government sites. Banglalink is committed to achieve the digital agenda and trying to bridge the gap of digital divide and access to information for mass population. Banglalink subscribers can apply online for different government & citizen services and download different forms and publications including text books for free. 12

13 CONNECTIVITY & SMES: ALGERIAN EXAMPLE Djezzy provides (subsidized) the mpos technology + connectivity to SMEs BADR Bank will process SMEs payments (acquiring bank) VEON and Djezzy aim to widen electronic payment acceptance in the SME sector in Algeria, which is currently very low with 98% of transactions in cash. The regulatory environment for MNOs to provide these services is very restrictive. Hence the approach to start a project together with international stakeholders and backing of the Ministry of Industry to showcase the impact MNOs can have on SME innovation and economic development and force a diaolgue on restrictive policies. The Ministry of Industry provides political support for the project GIZ will provide training to SMEs on how to use ICT in their operations VEON orchestrates the partnership and engages international stakeholders 13

14 CONNECTIVITY & RURAL COMMUNITIES (1/3) Krishi jigyasha 7676 in Bangladesh and Bakhabar Kisaan service in Pakistan are a one stop service on a Mobile Phone for all the farmers. Mobile network medium provides effortless penetration These platforms support the farmers in every step of the process of agriculture, from land preparation till post harvesting and sale. The service provides farmers with knowledge of modern farming, makes the agriculture specialist available for the farmers over the helpline, pro actively provides the farmer with weather updates and climate behavior, makes the latest machinery available and provides access to special loans for the farmers. 14

15 CONNECTIVITY & RURAL COMMUNITIES (2/3) We have developed the following bouquet of services for the farmers: SMS Service (for farmers who can read and write for legacy phone users) IVR Service (for farmers who cannot read and write for legacy phone users) Smartphone App (for digitally literate users) SMS SMS related to Weather, Crop, diseases, fertilizers, Farming techniques so on would be proactively sent to the farmers mobile Advice would be given based on the location of the farmers (Long./Latt.) Farmers would not have to reach us, we would reach farmers proactively, however offline information would also be available and farmers can pull the required information IVR IVR/Automated OBD related to Weather, Crop, diseases, fertilizers, Farming techniques so on would be proactively sent to the farmers mobile Decision would be taken based on the location of the farmers (Long./Latt.) Farmers would not have to reach us, we would reach farmers proactively; however offline information would also be available. Smartphone App Data related to Weather, Crop, diseases, fertilizers, Farming techniques would be available over the application Live and offline training videos will be available over the smart phone application.

16 CONNECTIVITY & RURAL COMMUNITIES (2/3) Bakhabar Kisaan Service Smartphone App Tickers for Weather forecast Tickers for Market rates Agriculture News (PARC vetted) Product related to Farmers availability Modern Farming Techniques Discussion forums/techniques Agriculture Products & Equipment Crops Yield Maximization Information Livestock Information Informative videos Bidding on-line (D) Free browsing on app Details of 275k existing farmers ready to be serviced Roadshows at town level for training on app Photo analysis of soil and plant diseases (D) Discounts offered from our vendor partners MFS: Agricultural Credit Services, Crop Insurance & Live Stock Insurance payments, Payment/Rent of Agriculture equipment & machinery

17 EMPOWERING DIGITAL DEVELOPMENT Algeria Bangladesh Eurasia Pakistan 17

18 e-commerce e-gov e-education e-health e-agri AN ECOSYSTEM APPROACH TO CONNECTIVITY & ICT4D ICT empowered individuals & communities Digital Platforms DFS/MFS eid Data Policy/Regulatory Environment Connectivity 18

19 POLICY CHALLENGES INVESTMENT CLIMATE REGULATIONS DIGITAL DIVIDE DATA PROTECTION 19

20 RABAH GHEZALI Group Director Public Policy THANK YOU! CLAUDE DEBUSSYLAAN MD AMSTERDAM THE NETHERLANDS Tel +31 (0) Tax +31 (0) TWITTER.COM/VEON FACEBOOK.COM/VEON VEON Ltd 2016

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