This month: • MTN Uganda increased Mobile Money withdrawal fees • Airtel launched a Virtual SIM platform • Orange not selling its Egyptian operation • Tigo partnered with WorldRemit The rest of the report: • Competitor updates Key African • Vodacom OPCO operator updates − Estimated subscriber numbers and market share Competitors and − Market updates • Products and Services (Enterprise and Consumer) Country Updates • Economic and ICT indicators • Competitors’ footprint in Africa • Active operators in Africa For the period June’14 to July’14 Prepared by Strategy and Research For any questions contact Min Hua or Tersia Esbach Things to note this month… OPCOs • Airtel and the Tanzanian Government failed to agree on the • Mcel reduced the price of its Netmovel Turbo 100 pre-paid and sale of 35% TTCL shares owned by Airtel post-paid package. FNB (SA bank) launched a cross-border money transfer service between South Africa and Mozambique Competitors • MTN Uganda increase Mobile Money withdrawal fees • Orange is not selling its Egyptian operation • Airtel launched a Virtual SIM platform • Tigo partnered with WorldRemit to extend Mobile Money services Nigeria • Nigeria is targeting 30% broadband penetration by 2017 • Opened bid for the licensing of infrastructure companies to • Mobile money payments hit NGN271bn with 25m deploy metropolitan optic fibre infrastructure and associated transactions at the end of May, encompassing about 65,000 equipment in Lagos and the North Central Zone. The bid closes mobile money agents in the country on the 4th of August Fines, • Uganda levied a 10% Excise tax on Mobile Money • Nigeria’s regulator may sanction MTN for failing to abide by its Levies, withdrawals earlier directives concerning its dominance in the voice Sanctions • Côte d'Ivoire’s regulator has fined the country’s six operators segment, which includes: not to offer differential pricing on its XOF2.92bn (USD6m) in total for not meeting service quality on-net and off-net mobile voice services, and to stop running obligations. MTN was fined XOF1.34bn (USD2.78m), Moov promos on its network until QoS is improved XOF 800.72m (USD1.66m), Orange XOF 46.29m • Orange lodged an appeal with Mali’s Supreme Court to (USD0.1m), Comium XOF5.49m (USD11,373), GreenN overturn a XAF6.86bn (USD14.23m) fine levied by the regulator XOF4.85m (USD10,047) and Café Mobile XOF4.85m accusing them of illegal use of mobile bandwidth for a fixed line (USD10,047) service Report • According to the June 2014 Sub-Saharan Africa (SSA) Ericsson Mobility Report, mobile internet data has doubled in the past year in SSA. Current usage is 76,000TB of data per month, compared to 37,500TB per month for 2013, and is estimated to hit 147,000TB per month in 2015. The rise is prompted by increased social media, content-rich apps and video contents. For the full report please go to the Vodacom Library or visit Ericsson.com Vodacom Strategy and Research C2 - Confidential July 2014 2 MTN increased Mobile Money withdrawal fees in Uganda… General • Partnered with the Wikipedia Foundation to introduce free • Launched ‘Prestige Club' for high value customers in Liberia access to Wikipedia to Rwandan subscribers • Has been rated 276th among the top 500 global companies on • Is looking for digital content partners for its 'MTN Play' web corporate sustainability and environmental impact in the 2014 portal in Ivory Coast. MTN is offering rights owners between Newsweek Green Rankings. Vodafone group is ranked 152nd 30 and 60% revenue share depending on the quality of their • MTN was the only African brand to make the 2014 BrandZ Top content and the traffic they generate 100 Most Valuable Global Brand ranking (93rd) • Launched the ‘MTN Kalast’ prepaid promotion in South • Launched the ‘21 days of Y'ello Care’ employee volunteer Sudan. It offers 7 days free on-net calls for a registration fee initiative programme of SDG10 (USD0.17), and can be renewed after 7 days • MTN Guinea employees went on strike over job cuts and low • Launched Mobile Money Visa card in South Africa pay. The situation was resolved 4 days later Nigeria • The regulator may sanction MTN for failing to abide by its • A judge ruled against MTN Nigeria for terminating a contract earlier directives concerning its dominance in the voice with Tatacoms Integrated Resources Limited and NGN20,000 segment, which includes: not to offer differential pricing on was awarded to the plaintiff its on-net and off-net mobile voice services, and to stop • MTN Y’ello Care renovated six blocks of classrooms at Basiru running promos on its network until QoS is improved Dania Primary school, as its contribution to improve education • The current Chief Marketing Officer of MTN Nigeria will be in Lagos State moved to South Africa to assume a similar role Ghana • Announced that more than 5m subscribers use its Mobile • Introduced ‘Roam like Home’, a new roaming tariff that allows Money services per month, with over 2m registered MTN subscribers to pay local rates for Voice, Data and SMS, while users in any MTN operated countries Uganda • Increased Mobile Money withdrawal fees in Uganda effective • Launched ‘MTN mFaith’, a message service that will enable from 1 August, due to a 10% Excise tax levied by customers to get inspirational messages like verses from the government on Mobile Money withdrawals Bible or the Quran. The service costs UGX100 (USD0.04) per • Is suing Threeways Shipping Service, claiming the company day or UGX500 (USD0.2) per week has defrauded MTN of USD4m between 2009 and 2012 Vodacom Strategy and Research C2 - Confidential July 2014 3 Airtel launched a Virtual SIM platform… General • Signed a deal with neXva Inc. (global provider of white label • Airtel and the Tanzanian Government failed to agree on the sale of app stores), to launch Airtel-branded mobile app stores in 35% TTCL shares owned by Airtel. The operator has rejected the Africa TZS5bn (USD2.94m) government offer, despite the shares being • Entered into a group-wide framework agreement with valued at TZS3.8bn (USD2.23m), and is asking for TZS21.5bn Movirtu to launch a Virtual SIM platform. The platform (USD12.63m) enables users to temporarily activate their number on a • Launched a health insurance service ‘Airtel Mobil'Assur’ in Burkina shared handset. Already launched in Madagascar and DRC Faso, for XAF300 (USD0.62) per month • Launched iPhone 5 in Tanzania and Ghana • Airtel Zambia experienced a system error which saw about 28,000 • Airtel Congo partnered with vehicle tracking company customers lose their airtime, worth about ZMW900,000 Tramigo to offer the Tramigo real-time vehicle fleet location (USD145,818). Airtel has refunded affected subscribers and given service to customers them 30min on-net calls as added compensation Nigeria • Partnered with Apple to unveil iPhone 5s in Nigeria. Airtel is • Launched a discounted roaming package for Nigerians in Brazil offering iPhone users zero interest financing and 500MB during the World Cup. Subscribers could make, and receive calls, data per month for 24 months to Brazilian and Nigerian networks from NGN60, with a discounted • Received the Best Corporate Website award at the Web SMS rate of NGN50, and data rates of NGN1/10kb Jurist Awards Kenya • Launched a new offer that awards 25% bonus airtime to • Announced its support for Immanuel Afrika’s (I-Afrika) biogas prepaid customers when purchasing KES50 (or above) project, which promotes clean and cheaper energy sources worth of airtime using Mobile Money. The bonus is valid for 30 days and can be used on all services Vodacom Strategy and Research C2 - Confidential July 2014 4 Orange not selling its Egyptian operation… General • Orange launched the first e-care app in Kenya, dubbed • Denied reports that it plans to divest its stake in Mobinil - its ‘myOrange’ Egyptian operator • Senegal's competing petrol station operators have called • Lodged an appeal with Mali’s Supreme Court to overturn a for the State to invalidate an exclusive contract between XAF6.86bn (USD14.23m) fine levied by the regulator for the illegal Orange and Total, due to an unfair advantage. Currently use of mobile bandwidth for a fixed line service. The regulator Orange is steering customers to Total, offering XOF accused Orange Mali of breaking local telecoms rules by using a 5,000 (USD10.36) of free call credit on Orange Senegal mobile phone platform for its ‘Douba’ branded fixed line service. The when subscribers buy XOF 50,000 (USD103.58) of fuel fine has subsequently been increased to XAF11.4bn (USD23.61m) after Orange Mali refused to pay Côte d’Ivoire • Orange and the BNP Paribas Group partnered to offer • Started LTE testing in Abidjan. Subscribers with an LTE compatible retail banking customers direct access between their BNP mobile phone or tablet can test the technology for free. However, the Paribas and Orange Money accounts regulator has ordered Orange to pull 4G test ads, as the operator does not have a 4G licence. ISP YooMee is the only operator licensed for 4G commercial services Vodacom Strategy and Research C2 - Confidential July 2014 5 Tigo/Millicom partnered with WorldRemit to extend Mobile Money services… General • Real Estate portal, Lamudi, launched the first Android app for • Lamudi is a product of Africa Internet Holding (AIH), house-hunters in the world. The App will host more than developed through the partnership of Millicom, MTN and 400,000 property listings from Africa, Asia, the Middle East Rocket Internet (each owning a third of the business) and Latin America, giving international clients a free mobile platform to buy, rent or sell real estate on the go Tanzania • WorldRemit has partnered with Tigo Tanzania to allow their • Partnered with Dar Teknohama Business Incubator (DTBi) clients to send money to friends and family living in Tanzania in Tanzania to support a programme aimed at promoting via Tigo Pesa local talent and employment in the country through ICT Ghana • Tigo Ghana signed a USD2m agreement with the • Announced an investment programme to improve its International Finance Corporation (IFC) and the MasterCard network and services.