Mtn Group Limited · JSE:MTN
Mtn — Investor Presentation (2011)
29 slides from Mtn's investor presentation, 2011
Slide 1: South Africa
South Africa Karel Pienaar CEO MTN South Africa
Slide 2: Agenda
Agenda • Overview of South Africa market landscape • MTN SA strategic intent for Full Service ICT Sector • Key Technology overview on enabling the Full ICT strategic intent • Network Investments and Broadband Enablement • IT – Preparing for ICT 2
Slide 3: Competition has enabled a dynamic market
Competition has enabled a dynamic market • Electronic Communications Act (ECA) • ECA implementation • Neotel licensed • Altech Court Case • Growth of investment in infrastruture • New infrastruture • Growing competition providers / investors • More choice - expansion of • Emergence of new products a
Slide 4: Changes and new players in the SA telecoms industry
Changes and new players in the SA telecoms industry Mobile Operators and new adjacent players ISP Other Broadband Players Data Centre, Tower and Fibre I3 africa Players Other VANS Players in the ISP & Business Space 4
Slide 5: Africa analysis view
Africa analysis view Mobile Market Fixed Market Increased competition with increased focus Competitors will / are targeting Telkom’s on customer value as differentiator revenue stream Key Challenges Key Challenges • Manage business in a maturing market • Increasingly competitive market • Marginally
Slide 6: Africa analysis view Broadband
Africa analysis view Broadband Different trends are driving the fixed and mobile broadband markets. The uncapped fixed product is changing the roles of service providers where as mobile broadband pricing strategies remains key Mobile Market Fixed Market Key Challenges 2000 • Increasingly competitive
Slide 7: Smartphone forecast 2010 - 2016
Smartphone forecast 2010 - 2016 25,000,000 60% • Smartphones are expected to grow to 19.6 56% million in SA by 2016 • Proportion of handset models which are 19,628,802 50% considered smartphones will continue to 20,000,000 increase • A smartphone is defined as a mobile phone 17,683,605 40% which can
Slide 8: Tablet forecast 2010 - 2016
Tablet forecast 2010 - 2016 1,800,000 500% • Tablets are expected to reach 1.7 million in SA by 2016 456% • Bundling with data contracts will make 450% 1,600,000 tablets more affordable 400% • Ultra cheap models will also accelerate 1,400,000 350% growth into the market • A tablet is defined as a to
Slide 9: MTN's vision on broadband Everywhere You Go
MTN’s vision on broadband Everywhere You Go • Broadband connectivity will be a catalyst for socio-economic development and will enhance South Africa’s global competitiveness • Bringing Mobility and High Speed internet access • Bridging the Digital Divide – bringing broadband to the rural/under-serve
Slide 10: Content delivery embracing South Africa
Content delivery embracing South Africa 10
Slide 11: Driving the consumption of data
Driving the consumption of data Applications Mobile Social Mobile Multimedia Networking Augmented Touch Web Enhanced Location Virtual Goods Reality Awareness 11
Slide 12: MTN SA strategic intent for full service ICT Sector
MTN SA strategic intent for full service ICT Sector To become the Leading ICT Service Provider in our market by being indispensable to our Customer Segments (Consumer, SME and Corporate) and Partners 12
Slide 13: Africa analysis view: Importance
Africa analysis view In becoming a Full ICT Service Provider for Consumer, SME and Corporate MTN will focus on complimenting its mobile and fixed offerings with the “Growth Zone” and expanding into fixed voice and extended value chain Expansion into fixed line / fixed data and IT Services through :
Slide 14: Delta Partners view
Delta Partners view Needs to deploy both a selective fixed play and offer mobile driven convergent services Strategic Options Smart Pipe Consumer Pipe Gateway Business Consumer (Low cost) • Battle ground of Infotainment • Advertising Play Google, Apple, (smartdevice and SNs • Media/content Play (Mus
Slide 15: Rationale: Being indispensable to our customers
Rationale Being indispensible to our customers • Service consistency is central to service satisfaction. • Customer expectations have also increased and they expect more value from a service interaction with a company. The consumer base of South Africa is becoming like minded with regard to their se
Slide 16: Evolution to date
Evolution to date 2G (98% population coverage) 3G (55% population coverage) GPRS 114Kbps (2002 R99 onwards) 384Kbps (2005 onwards) LTE (100+ pilot sites) HSPA 1.8-14.4Mbps LTE (2008 onwards) 73Mbps- 10MHz EDGE (2X2) 240Kbps (2003 HSPA+ 21- onwards) 42Mbps (2010 onwards) 16
Slide 17: Spectrum re-farming – 900 MHz & 1800 MHz
Spectrum re-farming – 900 MHz & 1800 MHz ● Higher Current Spectrum re-use & Modulation efficiency ● Re-use of current MTN infrastructure 5 MHz 900 re-farming for UMTS 10 MHz 1800 re-farming for LTE • UMTS900 rural data volume out growing • Device eco-system exists GSM data on live sites • Coverage •
Slide 18: MTN LTE sites approach
MTN LTE sites approach Planning for the Future.... • 4 LTE clusters are being piloted in Gauteng • These clusters comprise of 100+ LTE sites • Ericsson and Huawei equipment being used for the Pilot • Aim is to trial the LTE technology & understand its benefits/deployment • Provide select users the a
Slide 19: LTE – network tests
LTE – network tests Local International 19
Slide 20: HD streams- LTE
HD streams- LTE &, faps//10236.100.101/1TE/fighterpilotwmy - VLC media player =/G) 8 A, ftpy//10.236.100.101/1TE/Avatar_short.mp4 - VLC media player = S| & Greoh | Onions | Daplay| About| Received: 2.0 Gbis freee $$ 42 ies ae le ill ae [___2TA Na ipa | pi /10.236.100.01 /LTE/fighterpiloti 1.00x | on
Slide 21: Long term fibre rollout
Long term fibre rollout National • Coverage Area: • Bloemfontein • Bloemfontein City Centre • Port Elizabeth • Uitenhage • East London • Kwazulu Natal • Amanzimtoti • Ballito New Sites: • ~1840 till 2014 ~ 900 target for 2012 Vendors • MTN – Metro build & Leveraging NLD, DFA, i3, COJ Fibre Km (incl.
Slide 22: New switch centres (Hubs) to enable hosting and cloud computing solutions
New switch centres (Hubs) to enable hosting and cloud computing solutions • Centres situated across South Africa with plans to connect then to the National Backhaul • 100sqm available for third parties 22
Slide 23: ICT conceptual view
ICT conceptual view Customers Development Partners Community Service Catalogue Kiosk Call Store Center MTN SERVICES Management Orchestration and Provisioning Communications Mobility Connectivity Bandwidth CAAS Internal Cloud Software SAAS Applications Applications Security Development Operating Plat
Slide 24: Service catalogue examples
Service catalogue examples Collaboration Document Process Productivity Portal Management Designer Unified Communication IP Telephony Email Comms Report Subscriber Sales Force Customer Mgt CRM Designer Analytics Applications Enterprise Procuremen SAP Oracle Payroll HR Logistics Resource Planning t Fi
Slide 25: Cloud capability differentiators
Cloud capability differentiators Security MTNSA Service Desk MTN Service CUSTOMERS Monitoring Offerings SLA Management Eg. Virtual servers, storage, backup, application, platform, Corporate Auditing other white-labeled services Reporting On site technical support SME 3rd Party Bundled Service Servic
Slide 26: Mobile ICT ecosystem
Mobile ICT ecosystem Consolidated Self-service G e a r i M2M M Commerce Cloud NaaS n g t h M2M Offerings Mobile Payments Hosted Mobile Network as a e Service O • Datazone for • App Stores, • HPBX r off peak rates micro • Mi-Cloud • One API g • Improve APN payments • Cloud compliant a service Offerin
Slide 27: Long term approach supported by focus on sustainability
Long term approach supported by focus on sustainability • Establish national networks to penetrate deeper into individual markets. • Invest in fibre networks and international submarine cable connectivity • Key focus on quality service delivery and driving of efficiencies • Strong corporate social i
Slide 28: Thank you
2011 Pioneering the way everywhere you go
Slide 29: 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