AXIATA
DIGITAL
Axiata Digital’s mission is to enhance the Group’s core business revenue
by creating new sources of value and contributing to the long term upside
creation through partnership and acquisitions in the digital ecosystem.
Through Axiata Digital, we have expanded our portfolio of services to cater
to online customers on smartphones, tablets and fixed Internet, capturing
increased share of customer wallet and reach beyond Axiata’s traditional
mobile services of its 275 million mobile subscriber base.
Axiata Digital is in a unique position to leverage on the Group’s strength
as a leading regional telecommunications operator, by building on existing
customer relationships within our seven mobile markets. It is also able to
capitalise on the physical presence of Axiata stores in most of our markets
of operation, making it more than a Virtual RAN, with customers having a
physical point of contact, contributing towards its credibility in the market.
As the Group enter into its third phase of growth which focuses on being
a New Generation Telco, Axiata Digital plays a key contributing role in the
following areas:
•
Providing revenue uplift from Digital and OTT adjacencies to increase
customer engagement within the core mobile business
•
Supplementing the core with value creation opportunities by
unlocking assets within the core
•
Transforming the core to an OTT/Internet of Things (IoT) ready
business
•
Building and expanding digital skills, mindset and capabilities across
Axiata
As at end 2015, Axiata Digital has focused investments in five key business
verticals namely Digital Advertising, eCommerce/Marketplaces, Mobile
Money, Digital Entertainment and Education, Disruptor Models and OTT
Enablement Platforms.
By the end of 2015, it has 24 digital businesses, generating revenues and
contributing to the Group.
As at end 2015, there were 15 million customers using Axiata Digital
products or services, of which 30% are new customers to Axiata. Two
of its e-commerce businesses, Elevenia and 11Street, generated a Gross
Merchandise Value (GMV) of USD126.6 million for 2015.
Since its inception, Axiata Digital has grown in strength into the thriving
digital business entity it is today with almost a thousand employees across
all our markets.
Enabling and Investing in the Digital Ecosystem
As Axiata Digital continues to expand its digital business, it is also
driving the growth of a robust and innovative digital ecosystem through
its enablement platforms. In 2015, we launched our own Group-wide
Application Programme Interface API Platform - Mobile Internet Fulfilment
Exchange (MIFE), as a digital enabler designed to accelerate Axiata’s
Operating Companies (OpCos) fully leveraging on emerging digital
opportunities as part of its overall digital strategy.
MIFE is positioned as both an external and internal smart enablement
platformand is set up as a service for our OpCos. With core network services
exposed via simple-to-use web-centric APIs, OpCos can also leverage the
MIFE APIs for internal products, local partnerships and collaboration with
other Mobile Network Operators (MNOs). The use of MIFE by Dialog Axiata
PLC for Ideamart resulted it being awarded Best Technology Enabler at the
GSMA Awards in 2015. By the end of the year, Dialog, XL, Robi and Celcom
are all fully integrated within the MIFE platform.
In 2015, the RM100 million Axiata Digital Innovation Fund (ADIF), the largest
digital services corporate venture capital fund in Malaysia, announced the
first batch of IT investments. Six Malaysian-owned technology companies
received funds of RM12 million which will be used to expand their business
and product reach into the regional digital services marketplace.
Agreement with New York-based
music streaming service, Yonder to
provide mobile broadband customers
ad-free access to music they can
download, play and share.
A joint venture agreement with
American-based Adknowledge, Inc,
to set up Adknowledge Asia Pacific
Pte Ltd, a company pioneering social
media advertising by using user
data analytics to target relevant and
appropriate ads to customers
Invested in US Mobile Virtual Network
Operator (MVNO) Freedompop a
unique “freemium” offering a small
amount of mobile data free to
customers with a paid add-on option
for upselling
Launched 11street.my in a joint
venture with SK Planet, a major
Korean online e-commerce entity
Acquired Komli Asia as part of
Acknowledge JV, with strong Asia
Pacific presence, to strengthen our
digital advertising portfolio
Invested in WSO2.Telco for its API
platform - a breakthrough cloud-
ready solution that enables MNOs
to easily establish a collaboration
layer with Web-centric APIs for a
much quicker rollout of services to
customers
In 2015, the Group made six strategic equity investments in digital services covering digital commerce and activation, digital
advertising and digital entertainment.
axiata group berhad | annual report 2015
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