MTN Business SolutionsAngela Gahagan - ThomsonManaging Director
Agenda
2
• Overview
• ISP / Mobile
• Integration / Innovation
• Business approach
• Looking forward
ISP vs mobile
3
Similarities Differences
ISP Mobile
Licences (IECNS & IECS) Sell it to IT and CTOSell to Finance and
Procurement Manager
Highly regulated Highly competitive Limited competitors
MTN Brand Sell complex solutions Sell packaged products
Product alignment going forward
Value proposition is largely around companies IT infrastructure
Value proposition is around mobile telecoms
Core IP networkMainly sell fixed line services
Sell mobile services
Same corporate customers and target market
Wimax spectrum Mobile spectrum
Global solutions Local solutions
Peering Interconnect
“Data” environment “Voice” environment
Corporate focus only (currently)
Corporate and consumer focus
Integration and innovation
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• When the purchase of Verizon happened it was decided to not to integrate the business into the Mobile operation
• Focused approach
• Agility
• Skills
• Customer Retention
• Achievements
• Market share in defined segment increased
• New Blue Chip customers
• Customer churn below 1%
• African solution
MTN Business Solutions
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Our differentiation is not the basic tin and wire
• It is the services, the knowledge and expertise as well as our relationships that will take us up the value chain
• This takes MTN Business from a commodity to a service provider where we differentiate from our competitors
• This is seen in the move between access and services new business, changed by 10% towards services year on year
Solutions not bound by geography or technology
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• MTN Business operates as a fully converged, turnkey provider, with an ability to offer business the largest range of Fixed Mobile Internet-Based ICT services on the African continent. Designing a 360° communication solution for business is MTN Business’ core expertise, with solutions that include the following, amongst others:
• Fixed and mobile internet access
• Networking of company branches (MPLS Network)
• Highly secure firewall, anti-spam and anti-virus system security
• Data Centres for the hosting of your Private, Trusted and Hybrid Cloud Solutions such as your website and applications
• Unified Communications & Collaboration that includes VoIP, Managed IP-PBX and Contact Centres, Video Conferencing and mobile voice options
Solutions not bound by geography or technology
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• Many decisions on communications providers are made at head offices that do not have a physical MTN office
• Or to connect to countries where MTN
MTN has a presence as an ISP Namibia and Kenya and offers solutions to countries where there are not physical offices
We are global, delivering solutions Worldwide
MTN Business Services in Africa
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• Currently MTN supplies MPLS services for a Customer in the financial service sector connecting the following African countries using multiple Telco partners and access mediums (Fiber +VSAT)
South Africa Lesotho Malawi Kenya
Mauritius Namibia Swaziland DRC
Uganda Angola Botswana Zimbabwe
Tanzania Ghana
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We design, implement and maintain complex solutions
What services are required by our customers
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63%
86%
58%
78%70%
54%
44%
89%
36% 39%43%
36%
Data services in use by corporate South Africa
Whilst internet access remains important, the spend in other areas are the future
Source: Corporate data use: change is coming, World Wide Worx
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We also have to define who will use our different product groups
Access
ConvergedCommuni-
cationsInfrastruc-
tureManaged Services SaaS Security
What it is
• ADSL or 3G• Remote
access• Satellite• Managed WAN
optimisation services
• Internetdedicated
• MPLS VPN• Private IP
Metro Ethernet
• Voice trunking• FMC• Managed IP
PBX• Unified coms
• Server virtualisation
• Virtual storage• Managed
hosting• Collocation
• Pro-active monitoring
• Total outsourced IT
• Hardware / back-ups
• Infrastructure and application monitoring
• Hosted back-up
• Fax to email• Hosted
messaging and collaboration
• Managedradius service
• Internetmanaged scanning services
• Managed firewalls
• Authentication• Certification• Total
outsourced solutions
Estimatedmarket size(Enterprise Market )
R8.3Bn
Mobile voice: R18Bn
R2.1Bn R3.6Bn R3.5Bn R2.95BnFixed voice: R18Bn
PABX: R3.2Bn
Enterprise √ √ √ √ √ √
Corporate √ √ √ √ √ √
SME √ √ √ √ √ √
The “outsourced” services (Infrastructure / Managed Services / SaaS / Security) need rigorous SLAs and very robust internal systems to be successful
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Price is important, quality and competencies even more so
5
18
77
3
17
79
2
16
81
0
10
20
30
40
50
60
70
80
90
Neutral Important Very important
Most important factors in purchase decisions
Price Maintenance Quality of product / service
6
2220
8
23
66
8
22
68
7
24
67
5
26
68
0
10
20
30
40
50
60
70
80
Neutral Important Very important
Secondary factors
Lack of downtime
Reputation of brand or supplier
Company procurement policy
Functionality (range of products / services on offer)
Convenience
An independent survey's results support the conclusions reached in our Unique Selling Proposition (USP) development
Key focus areas
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• Top 500 Enterprises
• Penetrate SOE / Government
• Multinational approach (international & Africa)
• Industry Vertical Value Enhancing Partnerships (SI’s, 3rd Parties & ICT)
• SME Growth Plan Enablement
• Consolidated Business Model Approach (MTN Turnkey Solutions)
• Unique Selling Proposition (USP) already developed - oriented around the Product and Customer Experience
• USP differentiates us from competitors on a proposition apart from Price
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Where we are heading…
Our Plan
• To build a Continental Cloud that will deliver services to Multi National Organisations
• To build a single network across the continent
• Provides Multi Nationals with a common service and experience on key services such as VOIP, Hosting, Security etc. across the entire continent
• Centralised Support Services (ITSM, ITIL and NOC/SOC)
• Regulatory Environment dependent
• Our Infrastructure and in-country resources are key differentiators
SAFE
EASSy
SAT3 / WACS
EIG
SAT2
SEACOM
Our footprint already exists and makes us ideally positioned to provide Cloud Based Services on the Continent
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Bringing IP and GSM togetherUniPresence
• Customers are already deploying apps to call over IP on their mobile devices
• MTN has developed a solution bring IP & GSM together
• Single number, single mailbox, single device
To increase subscriber numbers, it is affordable to now target corporate’s whereby employees can now get a single number
Thank you
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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.
Neither the Company nor any of its respective affiliates, advisors or representatives shall have any liability whatsoever (based on negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation and do not undertake to publicly update or revise any of its opinions or forward looking statements whether to reflect new information or future events or circumstances otherwise.
This presentation does not constitute an offer or invitation to purchase or subscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.