MTN Group Commercial Overview

Christian de Faria Group Chief Commercial Officer

Agenda

Transforming the strategic intent

Group commercial strategic objectives Augment voice offerings Levering data opportunities Mobile money

Consumer eco system

ICT strategy

Strategic objectives

Augment voice offerings Increase data as % of revenue

Drive new revenue opportunities

Establish MTN in digital space ICT Strategy Brand Leadership

Dynamism and differentiation of MTN

Hold key associations MTN Branded Customer Experience

Providing access, content, products and services

Understand customers to become indispensible

Segmented approach Devices Understanding what drives loyalty and prevents churn

Increase speed, efficiency and effectiveness

Center-led but locally relevant strategies, models and suppliers

Cost efficiencies
3

Augment voice offerings

Voice still offers revenue potential and remains greatest driver of revenues
Development of services based on Niche and Bulk Solutions the main theme within
the voice space revenues

Voice as bearer for content services, such as IVR services key to maintaining of voice Voice over alternative bearer technology such as VoIP becoming more relevant Enhance MTN Zone reporting and assessment of revenue impact Segmented value propositions addressing exact needs of subscriber bundled with
lifestyle products (i.e. Trace TV)

The MTN SA analysis indicates how smartphone push of selective handsets can aid in
stimulating further voice usage despite perception of inelastic behaviour of high value subscribers

Transforming strategic intent

Mobile broadband(MBB) is the key driver to win or lose value in the market
Mobile operator revenue split
6% 8% 9% 15% 30% 4% 12% 19%

MBB is key decision factor (% revenue)

VAS

10%

12-15%

Corporate

15-20%

Data access

6575%

Consumers using data connectivity services

1%

SMS

79% 68% 51%

70-75%

Voice

Voice + SMS only

15-20%

Emerging markets

Europe

Japan

Today

3-5 years

Source: Delta Partners

Aggressive intervention required to remain competitive

Non-industry Strategic Partners Digital Malls Internet
Dont compete but Partner

Logistics, Distribution & Sales Support

Gateway

3rd Party Engagements

Charging
MTN Mobile Money

Technology Partners

Network

Marketing

Play key role

Leadership in data

Device

Core to MTNs value proposition

Subscriber

Consumer

Business

Differentiate and focus on business

Value Propositions + Key Accounts

Fast-tracking access through Opera mini browser

Group Agreement

Signed a Group Agreement 11 August

2011 with Opera Mini Browser

Launched to date

South Africa (700k downloads) Nigeria (15 Sep 11 1.9mil downloads) Ivory Coast (20 Oct 11) Uganda (31 Oct 11)
Launches Planned for November

Rwanda Ghana

Approval on service delivery platform

Subscriber to benefit by accessing content via any channel00

WAP

Web

IVR

USSD

WIG/STK

SMS

Seamless delivery of content, regardless of channel

Messaging Gateway

Device Repository

Subscription Engine

Billing Engine

Transaction Log

Reporting, billing, profiling and financial reconciliation

SMSC

MMSC

Streaming Servers

Charging Interface

Handset Detection

OTA Platform

Network nodes accessed via SDP and integrated into core network functions
The SDP environment must integrated into various operations and network nodes (deployment shouldnt be for just one operation)

Service Delivery Platform

Developer 1

Developer 2

Developer n

Independent developers as well as vendor developers should be able to access and develop applications for all MTN operations

Service examples
mHealth
Feb 2011 signed a Group MOU with Sanlam as a strategic partner on mHealth

Our strategy is to enable access to affordable healthcare

MTN Uganda launched health tips & clinic finder via sms MTN Nigeria facilitated an industry mHealth workshop with participation from Govt, NGOs, private sector to define the landscape on mHealth

mInsurance
March 2011 - Group Agreement signed with Hollard MTNs role is to facilitate payment , registration and provide co-marketing

June 2011 - Pilot launched in MTN Ghana via Mobile Money

Segmented device strategy Consumer

2015 2011

10

Segmented device strategy Business

2015 2011

11

Mobile money
Achievements

Launched in 12 countries with more than 5.1 million subs Finalised Fundamo roadmap of features to be developed Governance process in place Extended partners programme (Western Union, BIBS and MFS)

Focus areas

Partner selection Evaluation of platform MoMo wallets to be linked to VISA payments

Retail payments

International airtime transfer

Launched in 10 countries Streamline existing contracts

12

Developing digital marketing strategy

To build a best in class digital presence for MTN, positioning the company as a leader
in its emerging target segments

To enhance existing and new social networks to drive engagement and increase
number of MTN ambassadors

To provide customers the platform to contribute and be part of the new Digital MTN
within the integrated digital approach

13

Social media strategy

To manage the brand reputation online, driving awareness and engagement using
paid media

To compile consumer insights, using owned media and sentiment analysis in building
relationships

To accelerate problem solving and increase sales, leveraging earned media

Objective Branding and Engagement Share of voice Engagement Reach Insights and Sentiment Active Influencers Impact Purchase and Support Satisfaction Resolution Impact

Metrics

Content

Banner Ads Adwords

Wikis Blogs

Reviews Comments

Media

Paid

Owned

Earned
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Defined the customer ecosystem

Should be addressed via an integrated approach vs isolated projects

Segmentation

Loyalty

CRM

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C: Next 50% AAA AA+

% RGS

Naming

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Top 1%

Diamond
Understanding Customers

Customer Propositions

Planning Activity

Next 4%

Platinum

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Months

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Gold

A+

Next 7%

Silver

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A-

Next 8%

Bronze

1#' 45 #!6 !7 283%+ 03&' %!

232$ 32$
0.01 4.99 5.00 9.99

34 2$ 5 4 2$ 5 2$
10.00 49.99

B: Next 25%

9/ 0$' : #2!;%<' 2: 3&' %!

GHC

50.00 149.99

Clusters our customers based

on behaviour

Prevents churn in customers

that provide highest value

A framework that informs and

integrates the strategic and operational plans of the business

Measurement

!" #$#%&' %!

Customer Channels

)($ *$ ! ) $ "+ $

Strategy & Leadership

Customer Experience

15

ICT work group established

Objectives

Establish the business and technical work streams to further define the detailed scope of
the ITC strategy deliverables strategy moving forward

Define the principle decisions to form the support governance structure to implement the
Develop the coherent strategy and develop a plan for deployment
Participation from

MTN Business Ghana Nigeria South Africa Group Technology Group Commercial

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Mobile internet ICT & mobility management

Mobile Workforce Management
Mobile Collaboration Mobile device resource tools management management

Not provided

Provided

Internet access

Additional remarks

Verizon provides full-fledged mobile

Service providers

workforce solutions, from VPN network access to enterprise messaging. It also provides service for tracking the location and dispatching mobile workforce

MTN Uganda provides a basic version of mobile office solution, combining mobile broadband access and push-based collaboration tools Vodafones featured mobility as a service offers mobile device management in a hosted Software-as-a-service model Partners with operators (Vodafone, Milcom) to offer mobile device management solutions (Software-as-a-service) Industry specialist focusing on field manpower management, including scheduling, dispatching, location monitoring as a software package System integrator with broad experience in enterprise mobility solutions, partner of international operators such as Vodafone 17

Platform providers

Product providers

Mobile internet - M2M

Individuals

Enterprises / Governments

Multinationals

Governments are
North America & Europe Many Many Many operators operators operators are are betting betting are betting big big on on on mobile mobile mobile health health health

starting smart-grid projects in US and Europe tracking/Asset management applications

STC started Fleet-

Middle East

Vodacom and MTN

Africa

have both established asset management service

Enterprise-focused
Asia Pacific Enterprisefocused M2M applications Latin America

M2M applications are being deployed in Asia Pacific trials with and integrated platform for M2M

Telefonica is doing

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Mobile internet Cloud computing

SMEs Enterprises /Governments Multinationals

North America & Europe

US vendors are

now targeting enterprises and government cloud marketplace and private cloud services partnered with Novell to offer cloud solutions to enterprises SMEs with SaaS platform and enterprises with cloud consulting partnered to introduce cloud services in Americas

Etisalat launched
Middle East

Vodacom
Africa Tata to enter SA market through Neotel subsidiary

WiPro targeted
Asia Pacific

NEC and Telefonica

Latin America

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Mobile internet Data centers

SMEs Corporations /Governments Multinationals
Major players are
North America & Europe

increasing their capacity in the US/Canada both via acquisition or increased capacity (South Africa) is seeking Data Center capacity expansion in Latin America the European market are lead by the new virtual Data Center offer launched by BT

Dimension Data
Latin America

Recent movements in
Europe

Asian operators are

Asia Pacific

also increasing their Data Center capacity and expecting a substantial increase in the demand Internet solutions expand existing capacity

Middle East and Africa

Dimension Datas

20

Thank you

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 forward looking statements expressed represent those of the Company at the time. Undue reliance should not be placed on such statements and opinions because by nature, they are subjective to known and unknown risk and uncertainties and can be affected by other factors that could cause actual results and Company plans and objectives to differ materially from those expressed or implied in the forward looking statements.
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