MTN Group Limited · JSE:MTN
MTN — Technical Presentation (2011)
24 slides from MTN's technical presentation, 2011
Slide 1: Technology Overview
Technology Overview Martin Lamprecht Special Projects
Slide 2: Agenda
Agenda • Group technology vision and strategic objectives • Equipment price trends, rationalisation of vendors • Voice and data technology needs • Shared services and outsourcing • Global carrier services • Evolution of technologies to accommodate ICT 2
Slide 3: Group technology vision
Group technology vision To pro-actively support MTN to become a leading convergence player in emerging markets by becoming an agile and service centric organisation that utilises relevant technologies to create business value while improving cost efficiency. Opco support Operational efficiencies • S
Slide 4: Group network snapshot
Group network snapshot Key countries South Africa Nigeria Ghana Iran Syria 2G sites 6 514 6 745 2 118 7 300 2 732 3G sites 2 873 1 808 779 - 515 2G coverage 98% 85% 78% 78% 99% (population) 3G coverage 55% 24% 29% - 10% (population) Wimax No Yes No Yes No BH Erlang 244k 492k 184k 396k 71k Gateway Li
Slide 5: Key vendors
Key vendors Multi vendor approach in the IT and networks area’s ensuring pricing and technologies are suitable for emerging markets 2011 Vendor Landscape South Africa Nigeria Uganda Cameroon Ghana Ericsson Ericsson Ericsson Ericsson Ericsson BSS/RAN Huawei Huawei Huawei Huawei Huawei Core Ericsson E
Slide 6: Price erosion and aggressive negotiation
Price erosion and aggressive negotiation CAPEX Spend- RAN Example OPEX Spend- SLA Example USD M USD M -50% p.a. 2G SW 94 73 -12% p.a. HW 222 123 39 39 42 41 41 40 39 -27% p.a. 38 37 3G SW 37 37 29 HW 24 36 39 31 16 35 2008 2009 2010 2009 2010 Implementation of additional saving levers is underway an
Slide 7: Voice evolution
Voice evolution Voice traffic trends • Voice revenue still approx 90% of total revenue (including interconnect) • Main driver for subscriber growth • Enhanced offerings • Downward pressure on price per minute • Increased MOU (elasticity) • Declining ARPU’s (as penetration increases) Evolving the net
Slide 8: Data trends
Data trends Data revenue • 3G network launched in 9 ops (R’000) / % rev 4000 3558 7 • Driven by smartphones / tablet devices 6.3 6 • Data revenues and traffic decoupled 3500 3000 5 2500 2000 2037 4 • Sufficient spectrum is a stumbling block for 1500 3.6 3 expansion 753 2 1000 435 161 1.3 • Data pric
Slide 9: Data technology evolution
Data technology evolution • Invest in flexible, scalable and profitable a b c flat architecture HSPA+ 3G/HSPA LTE 21/42/84 • 3GPP specification to ensure max traction GSM EDGE d e • Wimax only employed where no 3G licence Still be be standardised Wimax • Radio spectrum optimisation Technology migrat
Slide 10: Service delivery platform
Service delivery platform 10
Slide 11: Convergence evolution
Convergence evolution Postpaid rating / Prepaid Rating/ Credit Billing & Balance control management Invoicing ERP CRM Prepaid customers CRM Prepaid Voice/ Postpaid rating 1 Data Prepaid Voice / Data Legacy Rating/Billing System rating Postpaid customers CRM Prepaid voice/data, Postpaid Data Converge
Slide 12: Convergence evolution
Convergence evolution • Two years ago: -Silo based charging & rating, customer management and Invoicing and billing time discounts for postpaid customers; • Transition step:- • moving new services and postpaid data services to real-time charging. Provide customers with ability to control their spend
Slide 13: IT shared service: benefits of implementation
IT shared service Benefits of implementation The implementation of the new pilot IT Shared Services Organisation in SEA is deriving the following levers, which will result in the benefits listed below: • Leveraging economies of scale (Same product at a lower price) Consolidation & • Efficiency – spe
Slide 14: IT shared services evolution
IT shared services evolution With the implementation of the new IT Shared services organisation, there will be major changes in the way of working at the OPCO level. Theses changes have been summarised below: “AS=IS” “TO=BE” Only application support Services within IT Varied IT Services services pro
Slide 15: Submarine cables investment
Submarine cables investment Strategic intent • Address the internal growing demand and supply gap in international broadband capacity via self- provision over shared infrastructure • Long-term value enhancement to shareholders and customers Cable consortia participation • EASSy (East African Submari
Slide 16: Submarine cable investment
Submarine cable investment TEAMs MTN network • Operational EIG cross-connect • 1.26Tbit/s capacity • Partially Activated Jan’11 • MTN has approx 2.5 -5% • 2.88Tbit/s capacity points between • MTN has approx 8% submarine cables • Partial activation Feb’11, permitting Egypt crossing, •2 systems north
Slide 17: Roaming services
Roaming services Alliance set-up preferred agreements with Expected benefits key international partners • Benefit from larger volumes in negotiation • Offer a one stop-shop to roaming partners Int’l roaming partners* • Boost roaming profit by decreasing IOT • Extend roaming footprint • Support for s
Slide 18: Central roaming evolution
Central roaming evolution Activate partners to MTN Seamless Roaming platform enabling Local Recharge One stop shopping to internal VAS and external partners • Seamless testing Strengthen Alliance by Emerging LoR • Centralise resources Networks markets connecting Strategic RoW partners to MTN Smart C
Slide 19: Critical components for operator ICT transformation
Critical components for operator ICT transformation • NETWORK: Fibre, HSPA; LTE • Cloud enabled Data Centers 1 • SDP, etc Infra-structure Depending on market and operator’s customer base: • SME • Large Corporation, MNC • Selective verticals 4 2 Go to ORGANISATIONAL Target market CAPABILITIES segment
Slide 20: Key attributes to ICT Strategy
Key attributes to ICT Strategy Self-Service Capability Organisation & Standardisation, Governance Simplicity, Model Scalability ICT Strategy Automation of Measurable QoS Delivery and QoE Processes Open Service Architecture 20
Slide 21: ICT technology strategy
ICT technology strategy • Deployment of a scalable open architecture that can grow with customer demand and new product and services • Simplification of cloud service by standardising on technology, role of Open Source versus OEM software and solutions • Deployment of a OSS and BSS architecture usin
Slide 22: Global public cloud, regional data centre
Global public cloud, regional data centre Cloud Service Consumers (SME and Enterprise Customers) Global IP/MPLS network that provides the Global IP / MPLS Data Transport Layer for the cloud services MTN Cloud Enabled Products IaaS, PaaS and SaaS Cloud Cloud Cloud Regional Data Centres hosting the MT
Slide 23: Thank you
2011 Pioneering the way everywhere you go
Slide 24: 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