Lviv IT Arena is a conference specially designed for programmers, designers, developers, top managers, inverstors, entrepreneurs and startuppers. Annually it takes place at the beginning of October in Lviv at Arena Lviv stadium. In 2016 the conference gathered more than 1800 participants and over 100 speakers from companies like Microsoft, Philips, Twitter, UBER and IBM. More details about the conference at itarena.lviv.ua.

1. Lviv IT Arena
The Future of Telecom
Peter Chernyshov, President of Kyivstar

2. IS IT SNAFU OR FUBAR
SITUATION IN TELECOM?

3. 25,4
mobile users
mln
100 %
shares owned by the
international
telecommunication
group VimpelCom
taxes paid to
the budget of
the country
47
bln
investments
made in the
development of
telecom market
in Ukraine
31
bln
in Ukraine
18
years
Kyivstar is the biggest Ukrainian mobile operator, a part of
VimpelCom Group (NASDAQ Quoted)

4. EBITDA margin:
The European telecom market, Q2'16
Kyivstar – is
European
telecom leader in
EBITDA margin
(№ 1 of 58
companies) with
the index 55 %,
ahead of the next
operator, the
Velcom Belarus,
by 7 p.p.

5. Giffgaff
uses the network of O2 to create
virtual mobile operator of new
generation. No call-center, no support,
no offline retail.
Amazon
Sells Kindles with built-in SIM cards
Google Fi project
allows smartphones to connect to the
network with the highest speed — no
matter 4G it is or Wi-Fi
Telecom companies are becoming dumb pipes
123

6. The quantity of users of OTT on smartphones in the world, bln
By the end of 2017, there
will be 2.9 bln users of OTT
services on smartphones
The revenues of mobile operators in Western Europe, bln
Revenues from voice and
SMS are declining faster
than other segments
Revenues of Telecom Companies are falling
Revenues of telecom
companies are decreasing
globally, while OPEX & CAPEX
are growing.
In the same time, OTT
services become more and
more popular
The falling of revenue from
voice and SMS is the main
reason for falling of telecom
companies’ revenue

7. Minutes, bln SMS, mln Mobile data, TB
2014
Q2
2015
Q2
2016
Q2
414
445
376
2014
Q2
2015
Q2
2016
Q2
38,9
41,6
42,4
2014
Q2
2015
Q2
2016
Q2
3238
4924
8352
The consumption model is changing

8. 20182015 20XX
New technologies and services drive telco capacity
26 000
Operations
per second
1 000 000
Operations
per second
1 000 000 XXX
Operations
per second
Innovations are vital
for new values creation
Biotech
VR
Reality+
+
?
Block
chain
loT
Fintech

9. 20% of IT systems will be upgraded
How Kyivstar reacts
To achieve necessary scalability we’ll move to NoSQL
To reduce expenditures we move to open source solutions
To achieve real time cooperation with clients we
unify data model for all BSS applications
To improve customer experience we implement
omni-channel approach for all touch points = DIGITAL STACK
12345

10. Example #1 — Digital Stack
Online Channels
Customer Management,
Interaction, Support, Sales
Customer Order Management
Product Management
Billing, Mediation, Printing,
Resource and Policy Management
Service Activation, Messaging
Integration
very old old rather new

11. Example #1 — Digital Stack
Online Channels
Customer Management,
Interaction, Support, Sales
Customer Order Management
Product Management
Billing, Mediation, Printing,
Resource and Policy Management
Service Activation, Messaging
Integration
MFS
Digital Full stack solution
Functional application
Managed
server
Messaging layer
Common infornmation layer
Cloud execution environment

12. Example #2 — Big Data&Machine Learning
NPS prediction
Churn rate optimization
Target audience
Geo positioning data
Smart service offer
Future proof data management platform (DMP)

13. 75% of detractors can
be successfully defined
Since 2013 churn rate
has fallen 1.5 times.
Best rate in the world
among similar Telco
(monthly churn 1,5%)
Example #2 — Big Data&Machine Learning
NPS prediction Churn rate optimization

14. Machine learning allows to define our target audience
for different products even on anonymous prepaid
market (f.e. age, gender, interests, gamers, multy SIM
users)
Example #2 — Big Data&Machine Learning
Target audience

15. • Points of presence optimization
• Targeted geo advertising
• City traffic management
• Smart cities (smart parking, lighting etc.)
• Big boards advertising placement optimization
Example #2 — Big Data&Machine Learning
Geo positioning data

16. We define those, who has high propensity to buy an offer.
By sending them personal proposition our conversion rate
increased up to 30%
Example #2 — Big Data&Machine Learning
Smart service offer

17. We are building 1,5 PB DMP platform based on Open
Source technologies, same as used for Twitter and Google
Example #2 — Big Data&Machine Learning
Future proof data management platform

18. Personal
Offer
Campaign
Management
solution
Campaign management solution
Real time analytics of undefined users
and creation of personal offers
5-18 % average response rate *
*depending on channel
Big
Data

19. Example #3 — Zoryana
75% of
customers
return to
Zoryana
75%
70% of
customers
give positive
feedback
about
chatbot
70%
Over 400K
dialogs since
April 2016
400K
5K unique
answers
5K
Based on natural
language processing
technologies

20. Plugmee
a hub that
connects all
wireless sensors
and devices to
single dashboard
Pibox
a cloud storage and
messenger in one
app, an easy way to
send large files, even
RAW photos or 4k
video in original
quality.
Virbox Teleport
a platform for
travelling in
VR360 format.
Example #4 — Partnership with VDNG-TECh

21. Open to mobile
technology
entrepreneurs and
startups from 8
countries
3 winners from
Ukraine will join
other regional
winners in the semi-
finals
3 top winning teams will
get $20 000, $15 000
$10 000 and go to Global
Mobile Challenge held at
Mobile World Congress
Example #5 — Eurasia Mobile Challenge
APPLY TILL OCTOBER 20 AT WWW.EURASIAMOBILECHALLENGE.COM

22. Get ready for the nearest future
5G
MFS
eSim
Mobile
ID
IoT
Connected
cars
Personal
assistants
CloudsVirtual
Reality &
Augmented
reality

23. Innovation is hard because
‘solving problems people
didn’t know they had’ and
'building something no one
needs’ look identical at first.
Aaron Levie, Box
You have to make every
single detail perfect.
And you have to limit the
number of details.
Jack Dorsey, Twitter
Not having a clear goal
leads to death by a
thousand compromises.
Mark Pincus, Zynga
I don’t know the key to
success, but the key to
failure is trying to please
everyone.
Bill Cosby, actor, author
Look for inspiration and
follow Peter Chernyshov on Facebook 

24. Thank you