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CDMA 2000 - the Namibian Experience

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CDMA 2000 - The Namibian Experience Presented by Mr. Frans Ndoroma Managing Director 2007 3G CDMA Latin America Regional Conference Le Meridien Cancun Resort & Spa, Cancun, Mexico 15 – 16 May 2007 Presentation Overview ¾ Basic Facts about Namibia ¾ Telecom Namibia – Who are we? and current scenarios ¾ Why CDMA? ¾ Switch – The Brand ¾ Switch Packaging ¾ Value Added Services ¾ Launching CDMA ¾ Financial Projections ¾ Conclusion/Recommendations Facts about Namibia NAMIBIA - Map NAMIBIA – Basic Data Area Size 824,116 Km² That's roughly twice the size of Sweden or Spain and four times that of the United Kingdom. Population Only about 1.8 million people live in Namibia (2001 census), which translates into a population density of 2.5 per km². Population Growth 2.6% Population Density Map Key Market Players FIXED NETWORK OPERATOR • Telecom Namibia ¾ Providing Local, Long Distance, International & Leased Lines ¾ 100% Owned by Government (MWTC) CELLULAR OPERATORS • Mobile Telecommunications (MTC) ¾ 34% Foreign Owned - 66% NPTH • CellOne ¾ launched in March 2007 ¾JV between NamPower (37%), Telecom Management Partner Holdings (“TMPH”) (39%), Nammic (12%), Old Mutual (10%), and Educational Trust (2%) INTERNET SERVICE PROVIDERS • Four ISP’s (UUNET, Africa Online, MWEB, iWAY) Access to Telecommunication Services Customer Base – Fixed line customers 1992 2006 45,000 140,000 Customer Base – Mobile customers (Incl. Tango) 1998 2006 19,500 500,000 Telecom Namibia - Who are we? & Current Scenarios 1992 - 2007… TN owns and operates an extensive & complex digital network Challenges • First signs of a decline in TN’s business are: – Increased loss of market share – Reduced rate of revenue growth – Decrease in margins – Stifling fixed cost base – Lack of internet/high speed data and mobility – Decreased profitability – Vast country – Old technologies – Low income rural population – Long distances (too costly to roll out copper) Challenges cont’d….. • The consequences are: – Marginalisation as a result of competition – A decrease in business activity (job loss) – Destruction of shareholder value – A return to a less commercial environment; increased government intervention – Damage to the ECONOMY Challenges…TN’s fixed line revenue is under pressure 1) Number of fixed Namibian subscriber lines vs. mobile subscriber 2) TN excluding pre-paid, while MTC includes pre-paid 60000 50000 40000 Inbound minutes Loss to VoIP 30000 Minutes International traffic to Africa - VoIP 20000 10000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Why CDMA? Why TN has to launch CDMA? ¾ Evaluated other technologies such as GSM (more costly & no products below 900 MHz) ¾ Provision of services in areas with no/limited infrastructure ¾ Replacement of current obsolete technologies (Ultraphone, Magnolia, etc) ¾ Increase revenue ¾ Increase answer seizure ratio (ASR) ¾ Reduce operational expenditures ¾ Increase penetration rate ¾ Encourage economic development ¾ Provide limited mobility Why CDMA 800? ¾ Originally went out on tender on 450 MHz band Band used for commercial purposes in Namibia (regulatory) Cross-border interference Needs to be cleaned to free up band; however will take time ¾ Most CPEs available are in the 800 MHz band and higher (cheaper) ¾ ITU-R limitation for 450MHz in Region 1 ¾ EVDO and 1X high data/broadband capabilities ¾ Mobility ¾ Will continue to deploy 450MHz in future Existing CDMA Network OSHAKATI ONDANGWA Ruacana Nkurenkuru Katima Mulilo Oshakati Kongola Mashari Ondangwa Rupara Bukalo Nyangana Andara Opuwo Rundu Bagani Oshivello Namutoni Horabe Onkoshi Halali Okaukuejo TSUMEB Abenab Maroelaboom Biermanskool OTJIWARONGOToshari Kamanjab Uib Grootfontein Otavi Tsumkwe TSUMEB Otjikondo Kombat Uchab Okaputa Outjo Fransfontein Khorixhas Okamatapati Otjiwarongo Okakarara Soris-Soris Kalkfeld Okonjatu Otjinene Otjosondu Omaruru Summerdown Hochfeld Epokiro Steinhausen SWAKOPMUND Karibib Wilhelmstal Otjiwa Usakos Okahandja Hentiesba WINDHOEKOmitara Otjimbingwe Otjihase Witvlei Buitepos WALVIS BAY Arandis Neudam Airport Rossing Babi-Babi Tsaobis Gobabis Swakopmund WINDHOEK Dordabis Hochland Nina Friedentahl Rehoboth Leonardville Namibgrens Klein Aub Tsumis Park Blumfelde Aminuis Launched mid 2006 Solitaire Rietoog Hoachanas Schlip Kalkrand Omaseb v Aranos 34 BTS’s Nudaus Stampriet Maltahohe Mariental Gochas Namgorab Gibeon Bulwana Asab Grenslyn Kumakams Helmeringhausen Tses Koes KEETMANSHOOPGaibis Bethanie Aus KEETMANSHOOP Goageb Luderitz Gaibis Aroab Seeheim Feldschuhorn Narubis Kais Klein Karas Stinkdoorn Dawiab Grunau Ais-Ais Rosh Pinah Karasbur Hamab Ariamsvlei Uhabis Warmbad Oranjemund Noordoewer CDMA NETWORK (2000 1x EV-DO) GSM PSTN GSM MGW MSC AAA IN BTS HLR BSC SMSC SMGW PDSN BTS IP / MPLS WWW BTS Site in Otjiwarongo (North of Namibia) THE BASE STATION THE BASE STATION CONTROLER INTELLIGENT NETWORK MOBILE SWITCHING CENTER SHORT MESSAGE SERVICE CONTROLLER & GATEWAY Future CDMA Network Ruacana Oshikango Okongo Nkurenkuru Katima Mulilo Oshakati Kongola Mashari Ondangwa Rupara Bukalo Onesi Nyangana Opuwo Rundu Andara Bagani OSHAKATI Oshivello Namutoni Horabe ONDANGWA Onkoshi TSUMEB Halali Okaukuejo TSUMEB Abenab Maroelaboom Biermanskool Toshari Kamanjab Uib Grootfontein Otavi Tsumkwe Otjikondo Kombat Uchab Okaputa Outjo Fransfontein Khorixhas Okamatapati Otjiwarongo Okakarara Soris-Soris Kalkfeld OTJIWARONGOOkonjatu Otjinene Otjosondu Omaruru Summerdown Hochfeld Epokiro Steinhausen Karibib Wilhelmstal Otjiwa Usakos Okahandja Hentiesbay Omitara Otjimbingwe Otjihase Witvlei Buitepos Arandis Neudam Rossing Airport Babi-Babi SWAKOPMUND Tsaobis Gobabis Swakopmund WINDHOEK WINDHOEK Dordabis WALVIS BAY Hochland Nina Friedentahl Rehoboth Leonardville Namibgrens Klein Aub Tsumis Park Blumfelde Aminuis Solitaire Rietoog Hoachanas Schlip Kalkrand Omaseb v Aranos Nudaus Stampriet Maltahohe Mariental Gochas Namgorab Gibeon Bulwana Asab Grenslyn Kumakams Helmeringhausen Tses Koes Gaibis Bethanie Aus KEETMANSHOOP Goageb Luderitz Gaibis KEETMANSHOOPAroab Seeheim Feldschuhorn Narubis Kais Klein Karas Stinkdoorn Dawiab Grunau Ais-Ais Rosh Pinah Karasburg Hamab Ariamsvlei Uhabis Warmbad Oranjemund Noordoewer SWITCH – THE BRAND TN’s Switch “SWITCH” is the brand of TN CDMA services FOR PRE-PAID AND POST-PAID SWITCH PACKAGING PACKAGING STRUCTURE PRE-PAID POST-PAID CALL PLANS LIFE1 LIFE2 LIFE3 LIFE4 TIME EASY Individual Corporate LOAD1 LOAD2 LOAD3 LOAD4 1 111 2 3 4 5 6 7 PACKAGES 1 2 3 4 5 6 7 8 Packaging.... SWITCH PREPAID SWITCH POSTPAID – Two Call Plans – Eight Call plans Defined and •Time Approved •Easy • 4 Life Call Plans (Individual) – Call Plan Tariffs are Defined and • 4 Load Call Plans (Corporate) Approved – Package Tariffs are Defined and – Recharges are Defined and Approved Approved • To be launched in May 2007 – Prepaid Packages have been launched on 24/11/06 • SwitchBase – SIM Card only • $ 111 package – phone – SIM – N$ 10 airtime • $ 222 package – phone – SIM – N$ 10 airtime • Max package – SIM – N$ 100 airtime – choose phone at cost Enabling Switch connectivity… WITH OR WITHOUT THE DATA EQUIPMENT OF YOUR CHOICE!! Components of a Mobile Product Starter Package Set of Services Tariff Plans SIM Card Default: Connection Starter Kit [VND, incl. VAT] 200.000 Value included [VND, incl. VAT] Manual Voicemail Starter Kit net [VND, incl. VAT] 200.000 Monthly Fee SMS Monthly fee per month [VND, incl. VAT] 66.000 Case / Packaging Fee per day [VND, incl. VAT] Call forward Calls Onnet [VND, incl. VAT] 1.600 Offnet mobile [VND, incl. VAT] 1.600 … Fixed [VND, incl. VAT] 1.600 Fixed offnet [VND, incl. VAT] Fixed onnet [VND, incl. VAT] internat [VND, incl. VAT, excl. IDD] 1.600 approximantion for IDD [USD, incl. VAT] 0,55 SMS onnet [VND, incl. VAT] 350 Eligible: offnet [VND, incl. VAT] 400 via operator [VND, incl. VAT] 900 internat [USD, incl. VAT] 0,165 ++ MMS Other data Internet [VND, incl. VAT, excl. ISP] 1.600 Internet access WAP [VND, incl. VAT] 900 Approximation for ISP charge [VND, incl. VAT] 80 Handset or Datacard Call barring outgoing Offpeak discount Discount [%] 30% Better than standard off peak [yes/no] Charger … Night discount [%] Unitization Cables Unitization [first/susequent] 30/6 Data Time Bundle Option Accessories Nat Minutes included [] 200 Switch Time & Switch Easy CALLS TO TELECOM NAMIBIA NETWORKS DAY TIME NIGHT TIME WEEKEND (07:00 am to 07:00 (07:00 pm to 07:00 (07:00 am to 07:00 pm) am) am) MONDAY to FRIDAY MONDAY to SATURDAY SATURDAY to MONDAY N$ 1.40 N$ 0.90 N$ 0.75 ANYTIME CALLS TO OTHER MNO IN NAMIBIA N$ 1.75 AND CALLS TO TELECOM NAMIBIA NETWORKS ANYTIME RATES N$ 1.11 ANYTIME CALLS TO OTHER MNO IN NAMIBIA N$ 1.75 PRE-PAID PACKAGES RUIM PACK SPECIAL LAUNCH PACKAGE E BL CPE % Subsidy LA AI AV CALL EASY A CALL EASY AT PLAN TIME D PLAN TIME NO SIM Free SIM Free VAS Free VAS Free AIR AIR N$15 N$ 10 TIME TIME FREE SMS 20 20 SMS VALIDIT VALIDI 90 days 90 days Y TY PACKAGE BRAND PACKAGE BRAND 1 TRIPLE 1 OR 111 PRICE: N$ 49 PRICE: N$ 111 POST-PAID CALL PLANS: 2 VERSIONS OVERVIEW CLEAR & SIMPLE 1) OPEN ACCOUNT VERSION PRICING CALL PLAN MONTHLY BUNDLE FREE EFFECTIVE RATEADDITIONAL RATE BRANDS SubscriptionTN MINUTES SMS Any TN calls Any TN calls Per month Per month Any time Any time Contract 24 months LIFE 1 N$ 60 62 5 N$ 0,97 N$ 1,05 Contract LIFE 2 N$ 100 24 months 110 10 N$ 0,91 N$ 1 Contract LIFE 3 N$ 300 N$ 0,88 24 months 340 15 N$ 0.95 Contract N$ 600 24 months LIFE 4 700 20 N$ 0,86 N$ 0,90 ROLL OVER: Max 5X monthly plan minutes Per Second Billing 1st minute in full thereafter in increments of one second POST-PAID CALL PLANS: 2 VERSIONS OVERVIEW CLEAR & SIMPLE PRICING 2) CALL LIMIT VERSION CALL PLAN MONTHLY FREE RATE BRANDS Subscription SMS Any TN calls Per month Any time Contract 24 months LIFE 1 N$ 60 5 N$ 1,05 Contract LIFE 2 N$ 100 24 months 10 N$ 1 Per Second Billing 1st minute in full Contract N$ 300 24 months LIFE 3 N$ 0,95 thereafter in increments 15 of one second Contract LIFE 4 N$ 600 24 months 20 N$ 0,90 ROLL OVER: Not applicable For the « Call Limit » version there are two possibilities: • you choose to block your account. When your monthly Air Time is exhausted, you have to Top Up in Teleshops in order to use your phone • you choose to be notified by TN when your monthly Air time is closed to be reached.
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