Mtn Group Limited · JSE:MTN
Mtn — Investor Presentation (2008)
42 slides from Mtn's investor presentation, 2008
Slide 1: Group Technology & Information Investor Update
Group Technology & Information Investor Update Karel Pienaar Group CTIO
Slide 2: Agenda
Agenda • Best mobile operator • Current network infrastructure • Current network performance • Network drivers – coverage, quality, efficiency • Key network initiatives • Key IS initiatives • Future growth and innovation • Preparing for Future Telco • New Telco Eco system • Current MTN activities •
Slide 3: Agenda
Agenda • Best mobile operator • Current network infrastructure • Current network performance • Network drivers – coverage, quality, efficiency • Key network initiatives • Key IS initiatives • Future growth and innovation • Preparing for Future Telco • New Telco Eco system • Current MTN activities •
Slide 4: The Challenge is to be a World Class Operator
The Challenge is to be a World Class Operator in our 21 operations Switching Centre - Uganda Before After Building the Call Centre – Tehran “From a humble beginning” 4
Slide 5: Current performance benchmarked
Current performance benchmarked Network infrastructure Cote South August Botswana Cameroon CongoB Iran Nigeria Rwanda Swaziland Uganda Zambia d’Ivoire Africa Mobile switching centre 4 6 1 5 5 49 2 38 2 5 1 Home location register 1 2 1 1 3 7 1 14 1 2 1 Base station controller 6 7 2 15 50 57 3 67 2 9
Slide 6: Best mobile operator: Commitment to Quality
Best mobile operator Commitment to QUALITY • Network Quality Key Performance Indicators: • BH Congestion • Call Setup Success rate • TRX Availability • Average Half rate Utilisation 6
Slide 7: Current network performance
- 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 Guinea Bissau Peak BH Erlang Zambia Botswana Cyprus CongoB Swaziland Rwanda Liberia Benin Afghanistan Guinea Conakry Current network performance Cameroon Yemen Cote d'Ivoire Peak Busy Hour Erlang (August 2007) Uganda Sudan Iran Sy
Slide 8: Best mobile operator: Commitment to Efficiency
Best mobile operator Commitment to EFFICIENCY • CAPEX Targets: • Cumulative Capex/BH Erlang (<1 million subs): $10,000-$15,000 (>1 million subs): $15,000-$20,000 • Cumulative Capex/Sub $100-$200 8
Slide 9: Capex per subscriber (2007)
Marginal Capex/sub [USD] 0 100 200 300 400 500 600 Benin Guinea Conakry Yemen Technology CAPEX South Africa Iran Ghana Liberia Rwanda Cumulative Capex/subscriber Guinea Bissau Swaziland Afghanistan Current network performance Sudan Capex per subscriber (2007) Uganda Marginal Capex/subscriber Cameroo
Slide 10: Commitment to coverage
Best mobile operator Commitment to coverage Broad coverage ensures MTN reaches maximum potential customers… coverage is absolutely critical Coverage (July 2007) Geographic coverage Population coverage 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Cote d'Ivoire Iran Afghanistan Zambia South Africa Suda
Slide 11: Challenges of developing markets
Best mobile operator Challenges Doing business in developing markets is tough but the rewards are high and opportunities are huge • The Mobile Operator is also a Utility Provider • Initial infrastructure must be built • Transmission (Fixed Network), Power, Security, Transport (4 million litres of di
Slide 12: Existing Deployment of Vendors in 2007
Existing Deployment of Vendors in 2007 Congo- 2007 South Africa Swaziland Nigeria Zambia Uganda Rwanda Cameroon Iran Brazzaville Ivory Coast Ericsson Ericsson Ericsson Ericsson Ericsson Ericsson Ericsson Ericsson Siemens BSS/RAN Huawei Huawei Huawei Huawei Huawei Nokia Ericsson Ericsson Ericsson Eri
Slide 13: Key network initiatives overview
Best mobile operator Key network initiatives overview Network quality, efficiency Least Cost operator drive Evolving to next generation “New Telco” Network architecture and (Convergence) services VAS platforms, systems and interfaces standardisation Leverage synergies across the Group Connectivity p
Slide 14: West terrestrial connectivity
Key network initiatives West terrestrial connectivity Project to investigate the viability of terrestrial connectivity via microwave radio and fibre between all West Region OPCOs. 14
Slide 15: Connectivity between all OPCOs
Key network initiatives Connectivity between all OPCOs MTN August 17 - 2007 December 31 - 2008 Investcom Phase 1: Establishment of basic OpCo Phase 2: Improving and extending OpCo connectivity connectivity in regions • MedNet • Establishment forms most of regional important connectivity connectivity
Slide 16: BTS site build process and implementation
Key network initiatives BTS site build process and implementation Site build process focused on: • Improve cost efficiency • Improve rollout performance • Streamline approval process • Improve standardisation of site types • Network rollout standardisation • Site design • Vendors • BTS Mechanical &
Slide 17: BTS CAPEX breakdown
BTS CAPEX breakdown CAPEX Management Fee $13,500 Antenna System $14,000 Tower Structure Cost $17,500 Transmission EQ Cost $15,000 Electrical Cost (ACs, DBs , $6,000 trays etc.) RBS Cost (Average single $20,000 BTS) Internal Power Systems $8,000 Shelter $5,000 Tower Civils and Installation $17,500 Co
Slide 18: BTS OPEX breakdown
BTS OPEX breakdown OPEX Land Lease PA $4,800 Transmission lease cost (SA) $3,000 Electrical consumption cost PA $1,200 Tower Maintenance PA $700 General Civil Maintenance PA $700 BTS Maintenance PA $250 Fuel with no AC connection PA $15,000 Total $ 25,600
Slide 19: Eco friendly BTS sites
Key network initiatives Eco friendly BTS sites 19
Slide 20: Key evolution areas of the network
Network initiatives Key evolution areas of the network • GPRS -> EDGE • Driven by algorithm change for improved security • BSS modernisation (2202 -> 2206) • Compelling data offering • GPRS roaming • 3G • HSxPA – LTE • WiMax • NGN • IP/MPLS area (IMS) • Fibre rollout • DVB-H 20
Slide 21: Current status of MTN OpCos
Current status of MTN OpCos Strategic focus and investment around data and mobile media is directly related to the revenues generated by the different OpCo’s Developed Markets Industry Norm Emerging Markets 25% Data % contribution to total revenue 4% 20% Content % contribution to total data revenue
Slide 22: 3G: Planned CAPEX
Key network initiatives 3G Increased 3G efficiency provides opportunity to deliver cheaper voice in emerging markets • Combined 2G+3G CAPEX can be below the originally planned GSM investment • Options for cheap capacity (efficiency) or additional capacity (new spectrum) • Transmission infrastructure
Slide 23: 3G efficiency and handset prices
Key network initiatives 3G 3G efficiency only applies once handset prices allow mass adoption in emerging markets Trend of Decreasing Costs 3G Opportunity 3G Maturity + for 3G Handsets = in Africa 1060 Handset Cost 1000 250 Handset Cost (US$) 234 Component Count Inflated hype and Component Count lic
Slide 24: HSxPA – LTE Evolution
Network Initiatives HSxPA – LTE Evolution 7200 14000 Latency 3600 3000 2200 2 000 2000 1800 1500 1500 1200 1000 Source: RY Savy Research 800 473 300 171 200 GPRS EDGE R99 HSDPA Peak Radio Throughput/User 171 kbps 473 kbps 2 000 kbps 1 800 kbps 3 600 kbps 7 200 kbps 14 400 kbps Average User Perceived
Slide 25: Where is WiMAX going?
Where is WiMAX going? Copyrigtt 2004 WIMAX Forum
Slide 26: Overview of key IS initiatives
Overview of key IS initiatives Focus on creating an Agile base on which to build Key Activities Efficient Proactive systems to benefit of MTN Group Short Term Medium Term Common Billing processes and Customer technical environment Facing Customer Care and IS Initiatives Billing CRM & Billing Change
Slide 27: Future Growth and Innovation
Future Growth and Innovation Continued Innovation is Key to Competitiveness • TNMS (network management system) • Strong record of developing • USSD/SMS-C innovative products and tools • IBS (Intelligent broker system, open source) • Voucher distribution system that are ahead of market • Pre-paid tre
Slide 28: Drivers of MTN's future technology
Future growth and innovation Drivers of MTN’s future technology • Regulatory • Mobile number portability, legal intercept, interconnect rates • Self-provisioning by VANs/ISPs • International Voice for MCOs • Increased Competition • Drives network requirements for differentiation in terms of coverage
Slide 29: Agenda
Agenda • Best mobile operator • Current network infrastructure • Current network performance • Network drivers – coverage, quality, efficiency • Key network initiatives • Key IS initiatives • Future growth and innovation • Preparing for Future Telco • New Telco Eco system • Current MTN activities •
Slide 30: New Telco context
New Telco context A broad view of the MTN New Telco landscape Media & Content 3G DVB-H Retail & HSPA MBMS Fixed Operators Services Mp3 WiMAX MPEG4 3G VoIP P2P WiFi GSM WiMAX UMA Mobile Operators HSPA WiMAX Opensource Software 2BN+ ISPs Symbian Users VoIP Windows IMS iPod VoIP SDP Phenomenon NGN P2P
Slide 31: New Telco context: Gartner technology cycle
New Telco context Gartner technology cycle MTN Actions 31
Slide 32: Tracking global trends
New Telco context Tracking global trends Execute now!! Finalise plans Formalise strategy and experiment Low cost VOIP Managed Software voice Attack services as service Fixed Voice High Instant Mobile Messaging Corporate Online advertising solutions communities Mobile Outsource internet User generate
Slide 33: Current MTN activities
New Telco context Current MTN activities Mature Deployments 11 Mobile music Trials and Early Deployments 10 Mobile entertainment 9 Mobile TV Analysis Underway Media Retail & Fixed Services Operators 12 Quad/ Play 2 Attack fixed operators: 8 Attack adjacent industries - Fixed mobile substitution (e.g
Slide 34: Strategic initiatives: The Internet goes mobile
Strategic initiatives The Internet goes mobile Media & • Situation Retail & Content Fixed Services Operators • Connectivity moving from a want to need • User-generated content allow people to Mobile Software ISPs participate in services in real time, Operators spontaneously Devices Internet • Handse
Slide 35: Strategic initiatives: Infrastructure
Strategic initiatives Infrastructure Media & • Situation Retail & Content Fixed Services Operators • Alternative Access technologies have matured in both Technology & Deployment Mobile Software Operators ISPs • Technologies such as WiMAX provides Devices Internet more cost effective Access Network I
Slide 36: Media & content – It is all about the user experience
Strategic initiatives Media & content – It is all about the user experience Media & • Situation Retail & Content Fixed Services Operators • Evolution has lead to a Multi-sensory Experience Mobile Software Operators ISPs • Access to Media Content at appropriate location Devices Internet • Advertisers
Slide 37: Device strategy
Strategic initiatives Device strategy Media & • Overview of Activity Retail & Content Fixed 1. GSM Association & other operator alliances formation Services Operators 2. Ultra Low Cost Handset initiative Mobile 3. MTN Group SIM standardisation project: Software Operators ISPs • Application eco-syste
Slide 38: Agenda
Agenda • Best mobile operator • Current network infrastructure • Current network performance • Network drivers – coverage, quality, efficiency • Key network initiatives • Key IS initiatives • Future growth and innovation • Preparing for Future Telco • New Telco Eco system • Current MTN activities •
Slide 39: Convergence - a connected life
Convergence - a connected life Skype Video Call over HSPA Google Earth / LBS overlay On Device Portal NFC Credit Cards NFC Content purchases High Speed Mobile Access MTN Banking Value Wallet Mobile Gaming Live Video Streaming via HSPA Mobile Payment Acquiring IMS IP Centrex IMS PTT / WeShare IMS Mob
Slide 40: 40
40
Slide 41: Shukran
Shukran obrigado Thank y veal cr Su 41
Slide 42: Notice
Notice The information contained in this document has not been verified independently. No representation or warranty express or implied is made as to and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Opinions and