Botswana Telecommunications Corporation Limited 2019 Annual Report 1 177 175 178 167 179 233 232 235 166 236 180 205
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Botswana Telecommunications Corporation Limited 2019 Annual Report BTC ANNUAL REPORT 2019 1 WHAT'S INSIDE THIS REPORT ANNUAL8. FINANCIAL 4.OPERATIONAL STATEMENTS PERFORMANCE SUSTAINABILITY Board Approval of the Annual 5. Financial Statements 166 REVIEW REVIEW General Information 167 Commercial Unit Review 53 Independent Auditor’s Technology Unit Review 59 Report 170 Board of Directors 66 Statement of Profit or Loss Executive Management 72 and Other Comprehensive STRATEGIC3. Human Resourses 78 6. Income 175 GOVERNANCE PERFORMANCE Stakeholder Engagement Statement of Financial Report 86 Corporate Governance 107 Position 177 REVIEW Corporate Social Investment Compliance with the ABOUT BTC Statement of Changes 1. Strategic Themes 42 Report 92 Corporate Governance in Equity 178 10 Year History Strategic Focus To 2020 44 Code 124 Statement of Cash Flows 179 - Key Milestones 7 Strategic Performance Risk Management Accounting Policies 180 Our Mission 8 Update 45 Report 134 Notes to the Financials 205 Our Vision 10 Shareholder Analysis 232 Our Values 12 Notice of AGM 233 Our Business Structure 14 Proxy Form 235 High Level Organisational Notes to Proxy 236 Structure 15 PERFORMANCE2. SUMMARY Performance Highlights 20 Chairperson's Statement 22 7.FINANCIAL Managing Director's Statement 28 REVIEW Compliance with the Financial Review and Management Discussion 143 Our reporting Online Ten Year Review 146 Our Performance www.btcl.co.bw PAGE Summary and high level views on page 19-100 2 3 fastest Broadband Service in Botswana About BTC – Corporate Info, Milestones, Corporate Summary 9 Vision and Mission 8 Product Portfolio 10 Our Values 12 Strategic Structure 14 Organisational Structure 15 ABOUT BTC 4 5 ABOUT BTC A CULTURE OF PROGRESS IN OUR FIBRE 01 BTC is a proudly Botswana business that strives to operate and deliver to a truly international standard. In this section, we share more about our business, our history and the very essence of our brand. INTRODUCTION 6 CASE STUDY 7 BTC introduces About BTC its mobile Botswana Telecommunications Our Purpose Corporation Limited (“BTC”) is a converged network, telecommunications operator offering To provide superior 2008 fixed (voice and data), mobile (voice communications BTC launches its mobile beMOBILE solutions to Batswana service, “beMOBILE” and data) and broadband services to anywhere and consumers, enterprises and other licensed everywhere to enable service providers. them to live connected. 2012 Botswana Government Corporate Information announces separation of some network assets Botswana Telecommunications Transfer Secretaries Company Secretary from BTC into a special Corporation Limited (BTC) Central Securities Depository Sidney Mganga purpose vehicle and Incorporated in the Republic of Company of Botswana announces privatisation Botswana Contact details: 3674400 /09/11/12 Bankers plan for BTC within 2 Company Registration Number Contact person: Masego Pheto • African Banking Corporation years 2012/12936 Postal address: Private bag 00417, Botswana Limited Gaborone • Barclays Bank Botswana Limited 2013 Registered Office • First National Bank Botswana BTC is incorporated as a Megaleng House Auditors Limited limited company under Khama Crescent, Plot 50350, Ernst & Young • Stanbic Bank Botswana Limited the Companies Act 2003 In 2008, BTC launched its P O BOX 700, Gaborone, Botswana 2nd Floor, Letshego Place • Standard Chartered Bank Khama Crescent Botswana Limited mobile service, beMOBILE. P O Box 41015 • Bank Gaborone Limited Gaborone, Botswana The cellular telephony wing was established following the liberalisation 2014 of the industry in 2007. As a global community, we are BTC completes its The liberalization of the telecommunications industry About this Report fast moving into an era of digital, obligation to transfer awarded all network operators Service Neutral Licenses networked and truly connected the network assets to (SNL) which permitted them to operate fixed line communication. Digital innovations Botswana Fibre Network The theme of this Annual Report has telephony as well as cellular telephony business. underpin much of what we do (BoFiNet) and readies for been informed by something that and indeed how we do it. As BTC, privatisation The beMOBILE network grew and expanded to wholly shapes our industry and our we are wholly committed towards cover almost 90% of the country. The brand became building a digital organisation in am business; this being Digitisation. synonymous with football development in Botswana after impactful and sustainable manner. introducing the richest sponsorship to the local game, the We further support Botswana’s digital beMOBILE Premier League. This speaks to the increasingly prevalent transformation strategy and journey. This commitment and passion is digital culture or fourth industrial echoed throughout this Annual Report, revolution as it is often termed. in form, function, design and content. MISSION 9 8 “We provide superior CASE STUDY Historic BTC customer experience through IPO and Listing innovative communication The 8th of April 2016 will go down in 2015 Botswana history as the day the first solutions” successfully privatised entity, BTC, was BTC delivers Government listed on the local bourse. Broadband Data Network 462 million Shares of BTC were listed on the Domestic Main Board of the Botswana Stock Exchange (BSE).This was Products and Services a momentous occasion for Batswana, signaling the part Our product portfolio offers both mobile and fixed products ownership of everyday Batswana in a company that, in many ways, they have helped build over the years. and services through which customers can have access to 2016 voice, SMS and broadband. BTC lists on the A total of 50,301 qualifying applications were received. This BSE, becoming equated to Offer for 776,333,400 Shares, representing a 1.68 Our mobile and fixed products are offered in both Prepaid and Post-Paid packages. the first and only times over-subscription, and thus making it amongst the BTC also offers customers value added services which are mainly content based such telecommunications largest and most historic IPOs in Botswana’s history. as caller ring tones (CRBT), airtime credit and bulk SMS on mobile. The intention is to services provider listed In yet another record for Botswana, the BTC IPO also saw an introduce more value-added services to enhance our customer value proposition. on the local bourse. unprecedented majority of Offers made by individuals, with The first privatisation over 90% of the 462,000,000 accepted offers received from initiative in Botswana‘s individuals and citizen-owned companies. The balance was Consumer At home history brings over received from institutional investors, who drove the IPO to 50,000 Batswana its oversubscription status. 2016 shareholders to BTC. We offer solutions to individual customers including We provide residential solutions BTC integrates its This was an incredible and truly historic time for Botswana mobile voice, data and SMS offers. The primary focus is including broadband and fixed voice beMOBILE and BTC and a truly humbling moment for all at BTC. The business on data bundles, Mobile Financial Services, SMEGA, lines. We ensure that everyone brands into one, welcomed thousands of citizen shareholders, more versed as we aim for greater can live connected, enjoying reflecting its position in what buying shares convenience and inclusion. the convenience that voice as a one-stop shop means by virtue of an and Internet can bring for communication intense nationwide public entertainment, leisure business. BTC no longer 2017 education drive, and keen and more. goes to market as beMOBILE, fixed lines or BTC launches 4G to see BTC thrive. As we Broadband, but as one network proclaimed then, and which united BTC, with a single remains true today, “BTC ke refreshed brand. ya rona rotlhe!” BTC has solutions Our on the go suite of for customers solutions includes Post- ranging from Paid/contract-based SMEs to large solutions, SIM-only corporates; from packages and a Build- single office set up Your-Own-Bundle (BYOB) to multi-office connectivity Post-Paid product that allows services. Even our broadband solutions customers to customise their fit the needs of any business. mobile package based on their needs. VISION 10 “Market leader in CASE STUDY 11 communication BTC Digital services” Innovation 2017 March 2019 BTC embarks BTC Launches the Sentlhaga Product Portfolio on network Data Centre transformation Fixed voice constitutes 36% of To live its brand promise, BTC has taken a bold and our product portfolio, mobile 32%, deliberate decision to invest heavily in its network and broadband 29% and other 3%. BTC FIXED efficiencies for the benefit of the customer. has seen a steady growth in mobile VOICE 2018 and we believe this will continue to BTC launches a new In March 2019, BTC launched the Sentlhaga Data Centre, be our primary growth driver going converged billing an Uptime Institute Tier Certified Centre, the best top tier forward as we offer more data centric 36% platform in the world guaranteeing 99.74% availability. Central to products to the different customer OF PORTFOLIO BTC’s digital transformation, the Sentlhaga Data Centre is segments. Voice services continue to a 52 rack facility which conforms to the industry’s most dominate over fixed lines. trusted and adopted global standard for the proper 2019 design, build and operation of data centres. BTC launches Data Centre and improved This next generation modular data centre solution