Corporate review Telecom Malagasy SA Issue # 2 January 2009 Summary Editorial Discovering Madagascar 4 The Big Island Telma, a National operator complying with international quality standards 5 Telma, strong values Telma is investing for the future of Madagascar 6 To connect Madagascar to an International Optic Fiber network 7 Over 3,000 km of Optic Fiber right from 2009 7 Securing several axis thanks to Optic Fiber back-up loops 2008 Optic Fiber success stories 8 Developing the E-administration 9 Operational call centers 9 Antananarivo Metropolitan Optic Fiber Network Telma, turnkey business solutions 10 Telma Business Team 10 Voice Solutions 10 Customer Relation Management 11 Corporate network solutions Testimonies by our Partners 11 GasyNet 12 BOA-Madagascar Telma, mass market 13 Landline, Mobile, and Internet Telma, more than an operator 14 Telma supports artists and culture 14 Telma sponsors the malagasy sport 15 Telma Foundation creates events all over Madagascar Outstanding facts 16 Blackberry launch 16 “Million Nakà” : 100 % of winners tried their luck ! 16 EASSy submarine cable starting work 16 Madagascar International Fair 16 Patrick Pisal-Hamida leading Telma 17 Music Festival 17 The first color mobile phone in Malagasy 17 Inaugurating the National Backbone 17 “2 Toi à Moi” offered for the end of year festivals 17 One 17 Sponsoring 17 Telma says “thank you” to its 1,000,000 subscribers Growth Review 18 Key figures 19 Network coverage 2 Corporate review - January 2009 N°002 Editorial Dear current and coming client, dear partner, Malagasy economy experienced a high Making telecommunications accessible to all. growth of 6.8 % again in 2008. The bases for The penetration rate in Madagascar for the a quick and sustainable development actually mobile phone is 17 % ; and 2.1 % for the internet exist, i.e. the Malagasy culture which is based at the end of 2008, which are well below the on a strong national solidarity ; a population averages in the Africa - Indian Ocean area. The of 19.5 million people, in high growth as well growth potential is therefore still huge and (40 million people forecast for 2030 !), which Telma Group means to remain the engine for is mainly young (45 % is less than 15 years democratizing NICTs in Madagascar. old) and dynamic ; extremely rich natural resources (nickel, cobalt, ilmenite or titanium Developing the use of NICTs. Madagascar dioxide, oil…) some of which are endemic, a has experienced a genuine revolution in the tourism potential which is unique in the Indian services offered to clients. Xdsl, Blackberry, the Ocean area. All this contributes to the fact that USB 3G+ key are now available. Telma Group is Madagascar is potentially a new dragon in the evolving and will in the short term offer to all Africa - Indian Ocean area. its clients an overall high added value voice/ data multi support solution which enables the Telma Group is convinced that the New group securing its income : prepaid for the Information and Communication Technologies mass market, postpaid for companies, carriers (NICTs) are crucial tools for the economic & operators. development. Being more than an operator in the Telma Group strategy for Madagascar telecommunications sector in Madagascar : development is clear : “Safidiko Malagasy”. Telma Group is proud of being the pioneer operator in Madagascar. Linking the Big Island to the rest of the world As a citizen corporate company, Telma and thus to enable Madagascar to fulfill its Group sets the goal of contributing to the role as the Indian Ocean Hub, a role naturally sustainable development of Madagascar. devolved to Madagascar because of its Telma Foundation aims to facilitate civic strategic position. Telma Group is therefore or associative initiatives in the areas of one of the main contributors to the EASSy education, community based development, international submarine cable. environment, but also health, art, and Bringing high broadband everywhere, where culture. needed. The first phase of such project has Dear Client, Dear Partner, more than 1 million been materialized : the national Optic Fiber of you have chosen to trust us and I would Backbone, named “Y”, is operational. Main like to particularly thank you for such cities of the country have been linked via an confidence. Over the next pages, I invite you underground Optic Fiber network of 2,000 km. to discover how Telma reacts to the major The development process continues with the challenges of development in Madagascar. implementation of redundancy loops and the connection of very difficult to reach cities. You will therefore become familiar with the At the end of 2009, with such branching, the solutions that we are implementing to serve Optic Fiber Network will be 3,000 km long. you better. Ensuring correct level of infrastructure for Notre ambition : the private sector and the administration. “ Faire de Madagascar Telma Group connects main companies and administration buildings in Madagascar directly le pôle technologique in Optic Fiber, thus preparing them to the very de l’Océan Indien.” high broadband revolution from now on. Executive Managing Director, Telma Group Ron Allard, DG de Telma 3 Discovering Madagascar The Big Island Madagascar is the 4th biggest island in the world. It is located in the Indian Ocean 400 Km East of the African Coast. Official languages are Malagasy, French, and English. 19.5 million inhabitants live on a surface of 592,000 km2 at a density of 30 inhabitants/ km2. National currency is the Ariary. Telephone dialing code for Madagascar is 261. Antsiranana Jore Ville Nosy-Be Ambilobe Vohémar Ambanja AmAmpanepanefenfena a Sambava Analalava Sambava Bealanana Andapa Bealanana Antsohihy Antalaha Befandriana Avaratra Befandriana Avaratra Mandritsara Maroantsetra Mahajanga Port Bergé MAHAJANGA Marovoay Mampikony Mitsinjo Marovoay Soalala Ankarafantsika Mananara Avaratra AnkarafantsikaAmbato Boeny Soalala NATIONAL STATISTICS (2008) Ambondromamy Tsaratanana Sainte-Marie Soanierana Ivongo Besalampy Maevatanana Maevatanana Sainte Marie Population 19,5 million Andilamena Kandreho Fenoarivo Atsinanana Mahatsinjo Tanambe Vavatenina Ambatomainty Brieville 2 Amparafaravola Surface area 587 000 km Morafenobe Morarano Chrome Ambatondrazaka Foulpointe Maintirano Capital City Antananarivo Ankazobe Ambatondrazaka Ankazobe Anjozorobe Antsalova Fenoarivo Afovoany Fenoarivo Centre Toamasina Tsiroanomandidy MahitsyMahitsy TalatavolT alatavoloondndry Local Currency Ariary (MGA) 1,860 = US$1 (Nov 2008) Ambohidratrimo Ambatovy Antaviambo Tsiroanomandidy Marozevo Belobaka Ambatolaona AmbatomangaAndasibe Bekopaka Antananarivo Carion AMoramangandasibe Brickaville ANTANANARIVO Anjeva Manjakandriana Ranomafana Est MiarinaMiaririvonarivo Fenoarivo AmbatomangaMoramanga GNP (updated value) US$ 9 billion Analavory ImerintsiatosikaFenoarivo Mantasoa Ambila Lemaintso Analavory ArivImerintsiatosikaonimamo Ambatofotsy Ampefy Arivonimamo Moramanga Mahasolo Soavinandnriaana Behenjy Manalalondo Andramasina Vatomandry Faratsiho Ambatolampy Anosibe An’ala GNP per inhabitant (updated value) US$ 162 Miandrivazo Ambohimandroso Belo Tsiribihina Ambohibary Sambaina Antanambao Manampotsy Antanifotsy Mandoto BetafoBetafo Andranomanelatra Antsirabe Soanindrariny Mahanoro GNP per inhabitant US$ 1,018 Antsirabe VinaninkarenaVinaninkarena Manandona Marolambo FandrianFanda riana MORONDAVAMorondava GNP Real Growth 6,8 % Mahabo AmbatonandrahanaTsarasaotra Ambatonandrahana Ambositra Ambositra Ambositra Ivato Ambinanindrano Nosy Varika Form of Government Republic ManandrianaManandriana Ambalamanakana Ikalamavony AmAmbohbohimimahaahasoasoa Mandalahy Ifanadiana Landline Penetration Rate 0,8 % Alakamisy Ambohima Ranomafana Isorana Ifanadiana Fianarantsoa Manja Mananjary Mahazengy Internet Penetration Rate 2,1 % Beroroha MorombeMorombe Talatan'Ampano Vohimasina Beroroha Ambalavao Ikongo Ankazoabo Ambalavao Ambila Vatoavo Antsenavolo Mobile phone Penetration Rate 17 % Vatoavo Ankazoabo Mahavelo Manakara Ihosy Ivohibe Vohipeno Ranohira Ihosy Vondrozo Isalo Ilakaka Iakora Farafangana Sakaraha Ranohira Betroka Vangaindrano Benenitra TOLIARY Bezaha MidongyMidongy Atsimo Atsimo Toliara Betioky BefotakaBefotaka Bekily Ejeda Ampanihy TaolagnaroMahatalaky Beloha Amboasary Atsimo Amboasary Atsimo Ranopiso Ambovombe Tsihombe France (547 030 km2) Madagascar (592 000 km2) South Africa (1 219 912 km2) 4 Corporate review - January 2009 N°002 Telma, a National operator complying with international quality standards Finalization of National Backbone Telma implements Rebranding of Telma : * infrastructure for ADSL Landline-Mobile-Internet Telma Mobile National Backbone launch project launch 2007 2008 Signature 2006 of final contract 2005 GPRS/EDGE launch BlackBerry launch Implementation of 1 000 000 clients Antananarivo Telma implements infrastructure for SDSL Optic Fiber launch 2004 Development of first Metropolitain call centers (Vocalys) Optic Fiber Network CDMA Launch (Cordless landline) Creation of DTS Company by Telma and 2001 France Câble Radio (FCR) Introduction of internet 2000 in Madagascar Privatization 1998 tender launch : Distacom chosen 1997 Telma provides 1996 1995 1971 1904 1896 infrastructures to implement Digitization of and exploit VSAT telephone network Telma provides Malagasy state, Implementa- Introduction with RNIS infrastructures Telma provides France Câble et tion of call of landline requested to the infrastructures Radio created boxes in Antananarivo launch of Madacom requested to the launch of Antaris Stimad to manage with 28