Delivering a range of VAS to maximise revenues from different customer segments05 July 2011

Agenda

VAS Challenges

VAS Solutions

2

Who we are

Maximising Revenues

3

Who we are

MTN

• 21 Countries in African and the Middle East

• 150 Million Customers

Agenda

VAS Challenges

VAS Solutions

4

Who we are

Future

5

Devices

Entry level handsets still make up a large percentage of our base

Services must be customised for delivery to all handsets

User experience

on smart phones

much better

High Volume High Value

6

Networks

Networks

• MTN has 10 2G networks

• MTN has 11 3G networks

Faster networks provide a fantastic opportunity to grow the types and usage of VAS but we must still accommodate entry level networks.

Services should cater for all network types

0

10

20

30

40

GSM EDGEWCDMA

HSPA

HSPA+

Mb

ps

7

Bearers

• Different bearers appeal to different segments

• Web and WAP sites create a great experience but this only accommodates a small percentage of users

• SMS still very dominant

• IVR services will grow in usage

There are many methods to engage with the customer.

SMS30%

IVR7%

USSD23%

WIG/S@T15%

WAP24%

WEB1%

8

Revenue

VAS services must be “priced right” for the market

• Disposable income levels generally very low

• Communications “share of wallet” usually fixed

• Data usage per OpCo varies between 5% and 25%

Agenda

VAS Challenges

VAS Solutions

9

Who we are

Maximising Revenues

10

VAS Services

With these complexities in mind MTN makes use of many different methods and products to fully address the various segments.

11

Football

Background

• www.mtnfootball.com launched in October 2005 to position MTN as the football supporter in Africa

• Phase 1 focused on MTN’s sponsorship of the African Cup of Nations and African Champions League

• Phase 2 focused on African Players in European Leagues with continued coverage of African competitions

• Phase 3 focused on MTN’s sponsorship of FIFA World Cup

• Phase 4 focusing on mobilising the content (SMS, WAP and applications)

2010:• Unique Users = 2,3m• Pages = 7,4m• 2011 on track to double this

Created and Owned by MTN

Uniquely African content

LOW HIGHSMS Updates WAP News Web Experience Handset App

12

Music

Strong focus on local content

MTN is one of the leading providers of legal music content purchases on the continent

• Building the digital ecosystem

• Enabling local musicians to generate income

• Quality assured

Content:

• Ringback Tones very successful

• Full Track usage small but growing rapidly

• Simplified consumption methods (IVR)

Partnership with Trace TV to help target specific demographic with product and content.

LOW HIGHSMS Updates RBT WAP Entertainment Full Tracks and Videos

13

Banking

Mobile Money

• 12 Countries

• 5 Million Customers

The mobile phone will make it much easier to bring financial services to the population

Insurance

• Targeted at mass market

• Funeral Cover

LOW HIGHUSSD Remittance Bill Payments Insurance NFC

14

Health

Solution for treating patients in an out-patient setting due to limited

access to clinics

SMSs & Please call me tag ons are sent to offer info about testing , treatment , health services and

disease management

Applications consist of 1 or 2 way comms to monitor health conditions, maintain caregiver appointments or

ensure medication adherence

• Collaborative Partnerships• Network Enabler

LOW HIGHSMS Updates WAP Health Portal Remote Monitoring

15

Applications

The MTN application store will be launching in the near future

• Wide range of applications

• Multiple Territories

• Developer portal

Agenda

VAS Challenges

VAS Solutions

16

Who we are

Maximising Revenues

17

VAS Services

The environmental complexities require a segmented approach to service offerings.

MTN offers products with maximum benefit and reach.

While this makes best use of internal resources it leaves gaps for highly targeted services.

18

Future

By dramatically growing the services ecosystem!

• Making it as simple as possible for developers to access the network

• Enabling 3rd parties to build applications to target niched users

• Creating new revenue opportunities• Sparking the creativity of our markets• Much faster roll out of new services

How will MTN approach the future of Value Added Services?

19

Africa and the Middle East have unique cultures and unique needs.

The best Content, Services and Solutions will come from within.

MTN will be there to help make this a reality.

Closing

Thank You