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 Ondan gwa Rupara Bukalo Nyangana Andara Opuwo Rundu Bagani
Oshivello
Namutoni
Onkoshi Horabe Halali
Okaukuejo TSUMEB Abenab
Biermanskool Maroelaboom 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
SWAKOPMUND Wilhelmstal Steinhausen Otjiwa Karibib Usakos Hentiesba Okahandja WINDHOEKOmitara Otjimbingwe Otjihase Witvlei Buitepos WALVIS BAY Arandis Neudam Rossin Airport g Babi-Babi Tsaobis Gobabis Swako pmund WINDHOEK
Dordabis
Hochland Nina Friedentahl Rehoboth
Namibgrens Leonardville Klein Aub Tsumis Park Aminuis Blumfelde 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 Koes Tses KEETMANSHOOPGaibis Bethanie Aus KEETMANSHOOP Luderitz Goageb 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. When your monthly Air Time will be reached, you have to Top Up in Teleshops in order to use your phone POST-PAID CALL PLANS: CORPORATE 2 VERSIONS OVERVIEW
NEW POOL PRICING 1) OPEN ACCOUNT VERSION
BUNDLE FREE EFFECTIVE ADDITIONAL MONTHLY MAX CALL PLAN TN MINUTES SMS RATE RATE HANDSETS/ EXTRA BRANDS Subsription Per month CONNECTIONS CONNECTIONS Per month Any TN calls Any TN calls N$/Month/Conn Any time Any time Contract LOAD 1 N$ 650 24 months 680 30 N$ 0,96 N$ 1 10 N$ 30
Contract 24 months LOAD 2 N$ 3000 3490 40 N$ 0,86 N$ 0,94 50 N$ 30
Contract 100 N$ 30 24 months LOAD 3 N$ 5500 6590 50 N$ 0,83 N$ 0,90
Contract LOAD 4 N$ 10000 N$ 0,86 200 N$ 30 24 months 12480 60 N$ 0,80
NO ROLL OVER AVAILABLE ON CORPORATE PLANS With FOUR corporate call plans, companies will find responses to their needs
Per Second Billing 1st minute in full thereafter in increments of one second POST-PAID CALL PLANS: CORPORATE 2 VERSIONS OVERVIEW
NEW POOL PRICING 2) CALL LIMIT VERSION
RATE CALL PLAN MONTHLY FREE MAX EXTRA RATE HANDSETS/ CONNECTIONS BRANDS Subscription SMS Any TN calls CONNECTIONSN$/Month/Conn Per month Any time
Contract N$ 650 Per Second 24 months LOAD 1 N$ 1 10 N$ 30 30 Billing st Contract 1 minute in 24 monthsLOAD 2 N$ 3000 40 N$ 0,94 50 N$ 30 full thereafter in increments of one second Contract 100 N$ 30 24 monthsLOAD 3 N$ 5500 50 N$ 0,90
Contract LOAD 4 N$ 10000 200 N$ 30 24 months 60 N$ 0,86
NO ROLL OVER AVAILABLE ON CORPORATE PLANS 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. When your monthly Air Time will be reached, you have to Top Up in Teleshops in order to use your phone EVDO PACKAGES OVERVIEW: POST- 24- month contract PAID
CONNECTION FEE: N$ 185
EVDO Card = FREE Standard* EVDO Card = FREE EVDO Card = FREE
N$1.30 per MB N$225 per Month N$390 per Month N$760 per Month
USAGE: USAGE: USAGE: USAGE: VOLUME VOLUME VOLUME VOLUME
FREE: 2 MB 500 MB 1 GB 2 GB (Once-off) + 50 MB FREE + 100 MB FREE + 200 MB FREE
Outside bundle usage: Outside bundle usage: Outside bundle usage: N$1.30 per MB N$1.30 per MB N$1.30 per MB
PACKAGE BRAND PACKAGE BRAND PACKAGE BRAND PACKAGE BRAND 9 10 11 12 LAUNCHING CDMA LAUNCHING TIMING FINANCIAL PROJECTIONS FINANCIAL STATS CONCLUSION Conclusions/Recommendations
¾ International roaming must be pushed (IA450 forum/CDG forum)
¾ Needs to look at ease of re-designing if changing from WLL to Mobile
¾ If designed for full mobility, it should be more flexible to do limited mobility
¾ Standards and quality should be supported globally (Qualcomm) Sunrise in AFRICA….. Every morning an antelope wakes up in Africa
She knows that she will survive the day as long as she anticipates when the lion goes out to hunt Sunrise in AFRICA…..
YouAnd can’t every anticipate morning everything in Africa a lion wakes up He knows that he will only not starve of hunger if he anticipates when the antelopes will come to the water Sunrise in AFRICA…..
It is therefore immaterial whether you are an antelope or a lion. When the sun comes up you have to understand the nature and rhythm of other creatures around you, and behave accordingly. “Survival of the fittest” ???
Whether in the African bushveld or the global business, it is not the strongest or fastest that will survive, but the most adaptable and agile
Thank you