Originally set up as part of Brunei’s bid to accelerate mobile provision, DST celebrated a fresh milestone in 2020 when the company transitioned from a traditional telecommunications (telco) provider to a full-service technology company (techco) as part of a far-reaching national digitalization program.
The recently launched MyDST SuperApp, which made national headlines, is a crowning example of DST’s techco pivot.
DST developed its pioneering strategy as the Brunei government restructured the telecommunications industry by consolidating the country’s fibre-optic internet connectivity and mobile infrastructure under the purview of a single wholesale network operator: state-owned Unified National Networks (UNN).
Initially a mobile-focused services provider, DST had long aspired to expand into the fibre-to-home business; the national push for sector transformation presented the company with a timely opportunity for advancement.
DST became a satellite entity, relinquishing its previously extensive infrastructure responsibilities and enabling it to pivot towards the pursuit of lucrative fibre business opportunities.
Now equipped to provide fixed and mobile services, together with lease lines, DST’s new role extends beyond provision to encompass product development, marketing, sales, distribution, and customer service. It is a shift in focus that has parallels across Southeast Asia, where many countries are similarly reassessing and restructuring their regulatory frameworks.
Progress necessarily involves a comprehensive overhaul of IT infrastructure. By leveraging digital solutions in this way, telcos can optimize processes, streamline operations, and enhance customer interactions across multiple channels. This evolution underscores the industry’s transition toward digitalization and the exploration of new revenue streams beyond basic connectivity.
Following the restructure, DST is now focusing on turning its own solutions for fiber connectivity and super apps as ready-to-deploy, turnkey products that can be implemented in other countries. In this Q&A, CEO Radin Sufri Radin Basiuni explains their telco to techco shift – and how it has opened up opportunities internationally.
Q&A: Datastream Digital CEO
Q: What strategic objectives and aspirations has DST, in collaboration with industry leaders, set forth to achieve its digital aspirations and propel its vision forward?
DST pivoted from the industry transformation in 2020, marking a significant shift in the telecommunications landscape. With the traditional majority of telcos possessing their infrastructure, including mobile networks, the national industry underwent a transformative phase.
Before this, Brunei accommodated three key players: two mobile providers and one fibre-to-the-home service provider. DST had long aspired to venture into the fibre-to-the-home business, and the national push for industry transformation presented the opportune moment.
The move, a pioneering one for Brunei, involved transitioning to a single wholesale network provider by UNN, for both fibre and mobile services. Brunei embraced it comprehensively, consolidating fibre and mobile infrastructure without limiting the transition to just 5G network driven.
This transition effectively positioned DST as a satellite entity, relieving it of extensive infrastructure responsibilities. With UNN now managing towers, backhaul systems, fibre infrastructure, submarine cables, international connections, and data centers, DST could redirect its focus towards enhancing customer experiences and refining its IT stack. This strategic shift not only streamlined operations but also provided DST with the bandwidth to delve deeper into fibre business opportunities.
Reflecting on DST’s journey, it is evident that technological advancements have been pivotal. DST’s recent transformation aligns with industry’s needs for economic scalability. The announcement of an industry-wide transformation in February 2019 led to a rapid transition within 11 months, providing DST with access to the growing fibre market.
Now equipped to provide fixed and mobile services, DST’s role extends beyond mere provision to encompass product development, marketing, sales, distribution, and customer service. This transformation, however, is not unique to Brunei; similar initiatives have emerged globally, particularly in Southeast Asia. Countries like Thailand are reassessing their regulatory frameworks, echoing Brunei’s shift towards wholesale network adoption for both mobile and fixed services.
This shift from traditional telecommunications to a more tech-centric approach, colloquially termed “telco to techco,” involves a comprehensive overhaul of DST’s IT infrastructure. By leveraging digital solutions, telcos aim to optimize processes, streamline operations, and enhance customer interactions across various channels. This evolution, epitomized by DST’s journey, underscores the industry’s transition toward digitalization and the exploration of new revenue streams beyond basic connectivity.
DST’s transformation extends beyond operational efficiency to include diversification into adjacent sectors such as fintech. This resulted in DST’s own development of a telco-fintech platform (MyDST), in collaboration with Multisys Technologies Corporation, a subsidiary of Philippines Long Distance Telephone Company (PLDT Inc.), representing a strategic move towards revenue diversification. By capitalizing on emerging opportunities in digital payments and e-commerce, DST aims to future-proof its business model amid stagnant growth in traditional telco services.
Looking ahead, DST’s success in Brunei serves as a blueprint for global expansion, particularly in regions with untapped fibre infrastructure. By capitalizing on the groundwork laid by industry transformation and embracing digital innovation, DST is poised to emerge as a leading player in the evolving telecommunications landscape, transcending its legacy as a traditional telco to become a dynamic tech-driven enterprise.
Q: What specific collaborative initiatives do you envision between DST and Gulf Cooperation Council (GCC) organisations in marketing their fibre, and how do you foresee this partnership unfolding to maximize mutual benefits?
Two types of partners emerge in this scenario. Firstly, some simply utilize existing fibre infrastructure to sell their platform services, thereby expanding revenue streams that previously lay untapped. Then, some partners may possess significant fiber infrastructure but have yet to fully capitalize on its potential. By leasing out additional capacity, they stand to generate substantial additional income.
While some partners may initially balk at the idea of leasing out their infrastructure, viewing it as a direct financial investment, others recognize the untapped potential in underutilised fibre networks. These partnerships hinge on the availability of infrastructure, a topic I will delve into shortly.
This encapsulates the essence of Brunei’s telecommunications landscape. Beyond revenue generation, there is a concerted effort in DST to foster innovation and expand service offerings. This includes cultivating a pool of developers, introducing new functions such as UX/UI design, and embracing cloud-based solutions to streamline operations.
A notable milestone for DST is its transition to a fully cloud-based infrastructure, a feat unprecedented in the telecommunications industry. This move signifies a departure from traditional ownership models towards a more agile, scalable approach.
Furthermore, DST’s foray into adjacent industries, such as fintech and e-commerce, underscores its commitment to diversification. By partnering with established digital players, banks, and other non-telco entities, DST aims to embed its telco services within their existing digital ecosystems, thereby expanding its market reach.
Looking further ahead, DST’s global ambitions center around two key (ready-to-deploy) products: a fibre-in-a-box solution and a super app-in-a-box. The former offers a turnkey fibre infrastructure solution that can be deployed globally, while the latter transforms existing mobile applications into comprehensive digital platforms.
In targeting new markets, DST’s focus lies primarily in the Middle East, with Bahrain, Oman, Qatar, and Kuwait emerging as key prospects. Regulatory environments play a crucial role in market selection, with countries offering regulated broadband access being of interest. Europe, despite its regulatory complexities, presents a significant opportunity for expansion. However, competition in first-world markets remains fierce, necessitating a strategic approach to market entry.
Brunei’s telecommunications transformation can serve as a blueprint for global expansion, offering innovative solutions to address the evolving needs of the digital economy. Through strategic partnerships and technological innovation, DST is poised to redefine the telecommunications landscape on a global scale.
Q: Are there plans to expand operations or establish collaborations in regions such as the Middle East?
The current broadband landscape presents a challenge, with limited availability in certain regions. However, there are indications that regulatory changes may facilitate broader access in the future. Currently, the focus lies primarily on Mobile Network Operators (MNOs), encompassing both regulated and commercial broadband services.
Our super app strategy aligns with this approach, aiming to offer the Gulf region comprehensive tech solutions tailored to local needs. By leveraging existing mobile operator infrastructure, we can streamline access to government tech solutions and provide value-added services.
Q: How do you plan to leverage discussions with digital players in the region to potentially transform their applications into super apps, particularly within the Middle Eastern market?
The decision to venture into fintech reflects our desire to engage users more frequently and build a robust digital ecosystem. Contrary to perceptions of being a conventional telco, our evolution involves transcending mere product sales to become a transformative platform. This shift aims to redefine lifestyles in Brunei by offering a comprehensive suite of services beyond traditional telecommunications.
Addressing challenges such as the disparity between mobile data consumption and revenue growth, we aim to emulate the success of super apps like Gcash and Grab. While these platforms have diversified into various verticals, our focus lies in expanding into digital payments and e-commerce.
For us, the essence of a telco-based super app lies in its ability to cater to diverse digital needs. Any entity with a digital customer base has the potential to evolve into a super app, contingent upon the choice of verticals and strategic direction.
While the trajectory of super apps may vary, our commitment lies in leveraging our digital infrastructure to offer innovative solutions that cater to the evolving needs of our users.
Q: How long does the process take for such partnerships, from initial engagement and discussing verticals to crafting a roadmap and project execution?
In 100 days, we can achieve the conversion. The terminology “telco and fintech app” is deliberate. Across various jurisdictions globally, obtaining licenses for telecommunications and financial technology operates under a class license. While Mobile Virtual Network Operator (MVNO) licenses are relatively accessible, Mobile Network Operator (MNO) licenses are subject to stringent regulations, often limited to just a few entities. Similarly, fintech licenses follow a similar pattern of accessibility, making them appealing prospects for entry.
A crucial aspect of our telco fintech strategy lies in its comprehensive nature. It transcends mere platform provision; we offer a playbook detailing the implementation of both telco and non-telco products which enables the development of a wide range of services. Furthermore, we have integrated our operational functions, combining telco and fintech operations to streamline processes. Our unified approach aligns with key performance indicators (KPIs) across both telco and fintech realms.
In essence, our initiative goes beyond merely providing a platform; it entails comprehensive training and support to empower partners to transition into telco fintech players seamlessly.
This is an edited, extended version of the article published in Gulf News’ Brunei Business Feature on July 29, 2024.
Brunei Business Feature published in Gulf News, an initiative by BEDB
