 This is JSA TV the newsroom for tech and telecom professionals. I'm Dean Perine and welcome to JSA TV We are coming at you on location from ITW 2018 in the windy city of Chicago, Illinois And I am here with my new friend mr. Andrew Kwok Andrew is the CEO of HGC Andrew welcome to JSA TV Friends Dean so it's a pleasure. So this is a second time that I got the interview from JSA so You take a look at the YouTube. I don't know what magic you have done. So a lot of a lot of magic a lot of a lot of Lot of hits including our company. So friends with us. So yeah, lovely Chicago windy But I'm not kidding. I'm not kidding. I didn't feel it because 24 hours. I'm inside the building and have meetings Yeah, lots of meetings for you right Andrew especially this year is our new HGC Joining for the ITW. So we've been here for GTM IDW that for 15 16 years already This is after the new HGC formal transaction on the 3rd of October last year So in the portfolio of I squared capital So this is giving us a lot of new ammunition and also a lot of room to cover in the future Absolutely, absolutely, but we're here to talk about a bit about digital Transformation Specifically, you know what digital transformation means to telcos. Why don't you tell our viewers a little bit about that? Okay? Thanks for the question. I think There's a lot of digital transformation panel Discussion as they and all this so I joined some of them, but eventually I want to make it simple It is not because it is boring because basically it is simple. Yeah, okay So what does digital transformation means to a telco is that if we all believe that? The human is already stepping in the fourth industrial revolution. That means globalization Personalization and also fragmentation if we believe that this will all change our lifestyle and Digital transformation to a telco is life or death simple as that Fascinating I mean it does sound simple and yet it doesn't sound easy either does it but let's talk a little bit about what has to happen for that kind of Truly impactful change to take place So yes, then is a absolutely a very good question. So we all know what but how is a very important question If I would I would try to make it simple as possible Three different area the first one. I think the practice of the telco So for the practice that means your telco mentality The way of you contacting your business the way you strike the business model and the money No matter it is a cap as all opus that you're going to put in your business So this will change that means in a nutshell. I call it practice, but however, it is pretty complicated It is how you place a focus in the future for your growth second People of course, so I love that People We are telco people. They said the people said that you guys are traditional Especially some of the OTT is that that you are old-fashioned. So you should go back to the farm Take up some ground with your grandfather or grandmother But haven't said that haven't said that we already got 90 OTT on top of our network and services 90 some a big name some a smaller name. They're all important. So How to capture this kind of revenue? How to capture this kind of business opportunity? It depends on the people. So you have two choice one go back to the farm another one join the venture You keep yourself have new thinking pick up your new capability and all this so as such in this year February in the past six months of time for the new company. We did a lot of things I Observe, okay? Maybe some people is saying that we're a lot fast enough. I think it's pretty fast transforming all the transferring all the people to us build up the new offers Secure all the content that we have we did not any one of those Expansions fans friends with that but having said that coming back to your question one of the very important item talking about the people is that in February We established a formal digital office Leaded by a external chief digital officer joining us and together I put in at this moment 70 people only work on this Office and this is a way for us to systematically and then formally lead the whole company into a digital path That is fantastic friends friends with that. So second is the people last the business model so If we follow the traditional telco business model, of course, it's stable. It's sustainable But it is not sexy enough or it is not true It is not Blast enough, okay, right? So and then maybe some people are saying that why you need a Big changes or whatsoever, but if you are going back to my argument in the beginning We're in the fourth industrial revolution all the lifestyle will change. So for example, I don't know how you call your girlfriends So what's up? line Yes Are you going to use IDD are you going to use what's up or we chat and all this kind of stuff? But by the way for we chat they have a new function of group conference. Make sure your wife is not on it So Business model how you can get your revenue from rare and then eventually Is it sustainable? What is the future path? We all need to define it Of course in day one while we are in infrastructure operator 70% is a must coming out from our investor infrastructure Monetize it sustainable sticky and all this but the remaining 30% you have to match with the whole world development in the new digital lifestyle in the digital lifestyle, I try to name a few You use SDN software defined network and as a foundation But having said that on top of this there are some new development your company that for the big data analysis lots of information flowing into our company in which driver agents or even the department of transportation all this they wanted if it is Integrated and presented in a usable way these are revenue stream. Yeah Outstanding I feel like we could be talking for for hours and maybe we will talk for another hour I don't know but I'm just moving on, you know I'm looking at my next question and and I don't know that I'm that I that it's written right because Based on everything that you've said to this point I was gonna ask a question about timeline digital timeline around digital transformation But I think the question really should be should there be a timeline around digital transformation You're absolutely correct. So this is what my investor also asked me. So of course, I'm not an Time line. Yeah. So yeah, I agree with you low time line unless There's another fifth industrial revolution This will change all this that we may need to change drastically But time line absolutely. There's no timeline. I have to I have to one of the reputation of a GC is that We don't tell lies we tell the truth may not be the whole truth, but no lies So I can tell you that we are in the beginning stage a lot of company or said that or we are already in the digital path and all this Okay, with all the respect but in the telco basically My humble opinion is that all of us are in the beginning stage If we want to match with the OTT we are even in the in vain stage. So I do see this as changing The interaction between the telco and also the OTT the service provider and all this it has become more and more healthy So while we have the muscle of a natural infrastructure and all this and now we have become digital I think we will be more better fit into the new evolution along the line with the OTT and service provider But to answer your question. We're only at the beginning stage We're gonna end there. I do feel like we could talk to join our company I do I do know no offense Jamie Jamie. Where are you? It's been Andrew really a pleasure talking with you today. Thank you for being with us today You bet you bet and thank you viewers for watching JSA TV. We'll see you soon