Presentation for MTN HQ (RSA)

Advanced Pay Phone Solutions

Communication available for all

Target: This presentation aims at providing a view at the VAS (Value Added Services) that CellNets can Provide MTN in its Worldwide operations.

This Document supplements the regular presentation of the company and its products.

Company Mission: To provide advanced communication

service solutions

SimPhonyTM solution - accessible communications to

unreached market segments in developing markets

Introduction

Various uses:

• Vodaphone (Safaricom) – Money transfers via Pay Phones

• Other competitors sell Pay Phones (of less functionalities) for hundreds of Dollars.

• Village phone introduction in many countries does not materialize to higher ARPU.

• Lack of Operators control over actual street billing, Tariffs and sale promotions consequently causing less revenue.

Competitive Analysis

• Keeping a pre-paid sim in wallet – not as robust and less funcionalities than the CellNets External Sim and

• Most people walk 30 to 60 minutes to get to the public pay phones or to get cellular coverage.

• Rural people walk for over two hours to get to public phones. Private kiosks are regarded expensive but convenient. Moreover those who attend private kiosk phones provide added features such as taking messages.

Continue: Competitive Analysis

Target Markets

• Low to mid income populations - people who cannot afford handset ownership costs• Rural areas• Urban and Semi-urban• Random users • First-time cellular subscribers• Second option for Handset Owners.

Pay Phone Solution : 1

1.Internal Sim2.External Sim3.Various Coins

All in one Pay Phone

External Sim - Business Model• Step 1: Customer at Economic Status 1 (very low)

uses available public phones (CellNets).

• Step 2: Customer at Economic Status 2 (low) is able to buy Air Time but not a Handset. Therefore uses the External Sim Card.

• Step 3: Customer at Economic Status 3 (Medium) is able to buy Air Time and shifts to a handset.

All Steps under same Cellular operator – consequently: Increase Loyality and Customer base ramp up.

• All Sim Card features (Personal ID, Outgoing & Incoming calls, SMS- send & receive, Personal account , Privet VMS, Internet use)

• Target markets (few examples)

• Unserved/remote/rural populations• Students (Schools – primary to high, Universities)• Government employees• National communication projects

External Sim - Added Values

Network Management System• Comprehensive Control, Monitoring & Billing

System

• Real-time Subscriber & Phone Management

• Calculates how much revenue is generated by phone

• Sales & Marketing Tools

• Statistics & Diagnostics Tools

• SIM locked per operator

Pay Phone Solution : 2

• Interchangeable Dual mode – internal & external SIM card operation:

• Prepaid personal SIM card

• Cash-on-Spot public pay phone

• GPRS/data/Internet connection enabled

• Extended coverage range

• Remote management (software upload, tariffs change)

• Multiple methods of battery recharge (Elect, Solar, etc..)

Pay Phone Solution : 3- highlights

CellNet`s Pay Phone Solutions Benefits

To the Operator:• Substantial and rapid increase in:

Air-time revenues Customer base ramp-up Network’s capacity utilization Customer & brand loyalty

• High SimPhony phones ARPU• Valuable usage data

To the Phone Owner:• Additional substantial source of income • Loyal customer base• Support

To the Subscriber:• Affordable communication availability to EVERY

CITIZEN• Personal and private communications • Voicemail, SMS, personal address book, etc.• Reliable, branded service

Market EffectUn-served

market Share

Shared market

Operator X Customers

Operator X

A.T.A.T.

Business Models

Cellular Operator

Pay Phone

OperatorSubscribers

€ $

Air Time.Air Time.Regular Pre-paid

Revenue Sharing

€ $

€ $

$/EU

Commission

$/EU

Commission

Scratch cards

€ $

€ $

Air Time.Air Time.Air Time.Air Time.

CellNets main responsibilities• Providing local maintenance and support

• Distributing the SimPhony phones – Rapid and efficient deployment of the SimPhony™ system, achieving the required “Critical Mass” of phones

• Purchasing and distributing wholesale airtime

• Marketing

• Airtime management

• Managing distribution channels

• SIM Page• Data services over GPRS• GPS Mobility Management• Video Mail / Conference• PC Access via data port

Future options and possibilities

Summary• CellNetS overcomes the “handset barrier” -

providing personal communications for all

• Reaching new market segments and provide cellular operators access to these unserved markets

• Benefits to operators - increased revenues, subscribers - without any required investment

• Turning random users to loyal subscribers

• High SimPhony phone ARPU

• Easy and fast implementation

Thank You

CellNetS Ltd. | +972.3.5578787 | info@cellnets.com