PLDT Big Data Launch A Digital Evolution & Transformation Series Keynote Address Manuel V Pangilinan PLDT Group Chairman

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1 PLDT Big Data Launch A Digital Evolution & Transformation Series Keynote Address Manuel V Pangilinan PLDT Group Chairman Introduction Good afternoon to all of you. Thank you so much for joining us today. First off, let me say that I m no techie. The good thing is that the digital revolution is not only about technology but it is ultimately eminently human. It s on that level that I hope to contribute to today s discussion. Second, we all know the world is changing very fast faster actually than what one supposes. Like you, I m constantly having to update my views about some of the things we need to do. My mind is in perpetual beta. In everything I will say, therefore, I reserve the right to never be wrong, only updateable. An I-T guy told me: artificial intelligence usually beats real stupidity. That s true, and our topic of Big Data today comes with all of us dreaming of using technology to fixing finally our traffic, our airports, our hospitals, our light rail. But wisdom, I d like to believe, cannot be programmed, and empathy remains the domain of our limited brains and boundless hearts. We d love to change the Philippines with technology but we don t have the source code. The Network as Enabler To make this digital revolution work, the first pre-requisite is an enabling network - an all I.P. data network. This so-called digital spine will be the strategic enabler on which all digital apps and solutions will hang. This is precisely why PLDT has been steadily morphing itself into an all I.P. data network the largest and most extensive in the country. PLDT is a pioneering member of the open data platform, consistent with our vision of creating a center of data excellence in the ASEAN region.

2 Over the last 10 years, we ve invested about 30 billion pesos annually to enhance our networks: Internet, fiber optic networks, high bandwidth Ethernet nodes, 3G & LTE-enabled cell sites, cable landing stations, international cable systems and international points of presence. Further, we ve invested more than 26 billion pesos in digital infrastructure, platforms, and capabilities. And this is just the start. PLDT has a network of 6 data centers with close to 2,500 racks. Two more data centers are under construction. This will bring full capacity to 8,000 racks by 2016, the largest in the country. Smart has a Big Data engine which enable us to generate insights that can radically enhance customer experience, and create new-frontier solutions for both our consumer and enterprise markets. All these technologies will redefine entertainment, appliances, cars, clothing and accessories from smart watches to smart cars, and from smart refrigerators to smarter electricity and water utilities. We are on the cusp of real-time knowledge sharing and Big Data understanding we leave it to our imagination and our boldness to turn data into knowledge, and knowledge into better service to help people manage their costs, their health, their dreams, their lives better. The Traffic Navigator Let me share a simple story about a simple data service that has benefited millions of Filipinos. In 2012, TV5 s news portal, interaksyon.com, paid a visit to the MMDA to access their real-time videos. When they got there, all went well with the videos, and the MMDA was happy to share its feeds. But InterAksyon was disappointed to discover that MMDA didn t have the means to capture its data digitally. The status of traffic for nearly 200 Metro Manila intersections were being written down on white board and updated - erased, to be precise - every 15 minutes. InterAksyon developed this simple solution the traffic navigator that has since allowed the MMDA to give real-time traffic updates for nearly 200 intersections. That simple service is what powers MMDA s own traffic app the most popular government app.

3 I share this story only to point out that InterAksyon s traffic navigator does not even begin to scratch the surface of what data service or Big Data mean. Indeed, it s relatively low-tech. The whole First Pacific Group is a huge data factory. Consider these: Each time our 70 million wireless subscribers send a text or make a call or use an app, they generate data. Each time Meralco s 5.6 million customers turn on a switch, they generate data Each time Filipinos take a shower, and that s twice a day (maybe?), they generate data. Everyday, about 400,000 vehicles pass our tollways, generating data along the way. Imagine what insights and applications are possible with data generated by all of us. Data, Insights, Knowledge, Wisdom In collecting Big Data, the question must be - how can we harness intelligence and knowledge? How can we demonstrate wisdom? There is no real barrier to generating, collating, and analyzing data. We are limited only by our imagination, and by our insight into our people and their behaviour. Innovation thru Labs and Partnerships To stress an earlier point PLDT cannot just lay down a dumb pipe - digital though it may be - it must become a smart platform. To become smart, PLDT will take any one or more of these three options: first, partner with over-the-top players, second, invest in these OTT; and third, develop our own apps and solutions. In respect of partnerships and alliances with OTTs, we ve established strong, strategic relationships with internet.org and Skype to enable further our people all over the world. Partnerships with Visa and MasterCard meanwhile, allow us to reach the unbanked.

4 We ve partnered as well with Facebook, Google and Uber, amongst others. In terms of developing our own apps, we ve launched the international rollout of PowerApp via O-E-M by Sandvine that will connect the unconnected all over the world. We re in the midst of creating a mobile payment system provider, in partnership with Rocket Internet, that can empower consumers and merchants all over the world. SafeZone, for example, gives Filipinos free access to many of the best websites, apps, and platforms from the Philippines and around the world. SafeZone is the entry point for Filipinos to experience the smart life. Within the PLDT group, innovation centers such as IdeaSpace Foundation, voyager innovations, and our 6 PLDT innovation laboratories work closely with the R&D teams and business owners within our group, to develop new and exciting digital services and solutions. Finally, with regard internet investments, we ve invested in Rocket Internet and in iflix, so far. We have a healthy pipeline of internet investment opportunities, and we intend to keep that list long and healthy From break out to stand out The network readiness index stated in the World Economic Forum s Global Information Technology Report 2015, that there is an almost perfect correlation between a country s level of ICT uptake and the beneficial impact which I-C-T has, on such economy and society. By this measure, Dr. Bhaskar notes that the Philippines is already a breakout country: we have the potential to develop a strong digital economy. That is heartening, but the question now is: how can we level up from break out to stand out? That remains our supreme task. Conclusion In closing, whilst technology will empower us, and data bind us, it will be the welfare of our people and the improvement of their lives - that should give us direction and inspiration. After all, we pursue technology not for the elegance of it - but in the belief that technology s whole purpose is improvement of welfare. Thus viewed,

5 the effectiveness of Big Data should be regarded not on the basis of how sophisticated our networks or platforms may be - but on how they both serve the needs of our people. All this excitement about Big Data will be meaningless if we do not remind ourselves of this larger vision. Let us excite our people in turn, by delivering what has only been imagined, and making our country literally, the stuff of dreams. Thank you. May the force be with you.