MVNO with a differenceNEW OPPORTUNITIES IN AFRICA

Samson MajwalaChief Commercial Officer

Country Profile•Population:50.1M 0-14yrs: 42% 14-65yrs: 55.1% >65yrs: 2.9%•Size (’000) 945km2

•GDP (PPP): $63,504

•GDP p.capita: $1,783

•Inflation: 6.8%•HIV preval. 5.3%•Currency TZS•Capital Dodoma•Mkt Size: 30 Mil active Subs

Telecommunication Q1- 2016•Subscriber base: : 28Million (21%)•Penetration: 64%

•Operators: • Vodacom ~ 10.6M subs• Airtel ~ 9.2M subs• Tigo ~ 6.9M subs• Zantel ~ 1,7 M subs• TTCL ~ 0.288 M subs• Halotel ~ 0.288 M subs • Amotel ~ 100 subs

•Market Size: Formal 500K

•Amotel Market Share: 2% Projected

VAT/Duty Impact (21,8%)•City levy 0,3%•Clearance fees 1.5%•VAT 20.00%

Key Actions

• Low Capex and Low Opex Business Model• Government Subsidy • Good MNO negotiations and relations

Key Issues

• Poor Rural Infrastructure• Low ARPU Locations• Distribution complexity•

TANZANIA AT A GLANCE

37%

32%

24%

6%1%0%

Telecom Market Share

VodaCom AirTel Tigo ZanTel TTCL Benson

10%15%

21%

32%

43%

50%

59% 61% 61%64%Mobile Penetration

Amotel Journey to the Launch

2013 2014 2015 2016

Initial Business Concept

3 BTS sites up and

running

Agreement Signed with

TTCLLaunched 5 days Ago

Submitted Application

Engaged MVNE

Receive MVNO

License

Detailed MNO

Partnership Agreement

Planned Launched

Amotel’s Successful Pillars• (World Telecom Labs) helped prepare a rural based

business Case backed by affordable Rural focused technology to support the infrastructure.

• USF Tanzania supported to start a POC in three villages

• TTCL (our MNO) agreed to share the spectrum to connect the unconnected

• Total opportunity in Tanzania is huge (Over 4,000 villages to be connected)

Business Plan First; Technology Second

• Complete working Rural solution (end to end)• Support from all the stakeholders (even if

negotiations were not always easy)• Low cost network plus low cost of operation• TTCL Optical Fiber roll out to major district Head

quarters helped to keep connectivity cost low and quality high

• Scope to expand rapidly after POC• Range of services meant compelling business case

WTL technology enabled a new direction

• WTL supplied a complete working solution

• Low capex + Low Opex

• Complete commercial management system to run the business

• Easy installation (A village per day)• Consultancy and support

• Sustainable (Multiple Revenue model)

Being an MVNO helped• It became easy to approach the MNO (TTCL)with

the new idea and they were open to suggestions

• Licensing and ordering own numbering plan was easier

• Understanding MNOs psyche in MVNO negotiations helped to successfully close the deal

• MNO is looking for extra revenues without investments

First Steps: The POC in three villages• Currently three vi l lage network running in Mwanga Distr ict

• The Help• Universal Service Fund Approved the budget• World Telecom Labs supplied the Rural telephony network• Amotel provided the passive infrastructure

• Multiple services offered• GSM telephone calls• Cybercafé• WiFi Hotspot• Calling cabins• Money Transfer

The plan

• Amotel is planning to connect • 50 villages in first six months• 500 villages in 24 months

• Looking for Key Investors/Partners to accelerate the installation to 1000 villages

• Amotel’s acquisition target is 500K in 24 Months

• With an estimated ARPU of $2.5

Advice to other MVNOs / Lessons learnt• Look for other opportunities to be more independent• Rural is perfectly valid in Africa (Villages are too small for MNOs to

address)• Technology is becoming available• Companies like WTL can offer turnkey solutions

• Make sure your technology partner can advise you on all aspects of the project (commercial as well as technical)• Makes sure you have a good agreement with MNO• Rural projects are low ARPU markets MNOs are not ready to invest in them• Anticipate the delays in decision making process of the MNO• Propose a model that is win – win from day one (if not they can take you in

wrong path)• Keep a focus on OpEx and TCO not only on initial CapEx

THANK YOU!ASANTENI!