MTN Business Solutions Angela Gahagan - Thomson Managing Director Agenda • Overview • ISP / Mobile • Integration / Innovation • Business approach • Looking forward 2 ISP vs mobile Similarities Differences ISP Mobile Licences (IECNS & IECS) Sell it to IT and CTO Sell to Finance and Procurement Manager Highly regulated Highly competitive Limited competitors MTN Brand Sell complex solutions Sell packaged products Product alignment going forward Value proposition is largely around companies IT infrastructure Value proposition is around mobile telecoms Core IP network Mainly sell fixed line services Sell mobile services Same corporate customers and target market Wimax spectrum Mobile spectrum Global solutions Local solutions Peering Interconnect “Data” environment “Voice” environment Corporate focus only (currently) Corporate and consumer focus 3 Integration and innovation • When the purchase of Verizon happened it was decided to not to integrate the business into the Mobile operation • Focused approach • Agility • Skills • Customer Retention • Achievements • Market share in defined segment increased • New Blue Chip customers • Customer churn below 1% • African solution 4 MTN Business Solutions Our differentiation is not the basic tin and wire • It is the services, the knowledge and expertise as well as our relationships that will take us up the value chain • This takes MTN Business from a commodity to a service provider where we differentiate from our competitors • This is seen in the move between access and services new business, changed by 10% towards services year on year 5 Solutions not bound by geography or technology • MTN Business operates as a fully converged, turnkey provider, with an ability to offer business the largest range of Fixed Mobile Internet-Based ICT services on the African continent. Designing a 360° communication solution for business is MTN Business’ core expertise, with solutions that include the following, amongst others: • Fixed and mobile internet access • Networking of company branches (MPLS Network) • Highly secure firewall, anti-spam and anti-virus system security • Data Centres for the hosting of your Private, Trusted and Hybrid Cloud Solutions such as your website and applications • Unified Communications & Collaboration that includes VoIP, Managed IP-PBX and Contact Centres, Video Conferencing and mobile voice options 6 Solutions not bound by geography or technology • Many decisions on communications providers are made at head offices that do not have a physical MTN office • Or to connect to countries where MTN We are global, delivering solutions Worldwide MTN has a presence as an ISP Namibia and Kenya and offers solutions to countries where there are not physical offices 7 MTN Business Services in Africa • Currently MTN supplies MPLS services for a Customer in the financial service sector connecting the following African countries using multiple Telco partners and access mediums (Fiber +VSAT) South Africa Lesotho Malawi Kenya Mauritius Namibia Swaziland DRC Uganda Angola Botswana Zimbabwe Tanzania Ghana 8 We design, implement and maintain complex solutions 9 What services are required by our customers Data services in use by corporate South Africa 89% 86% 63% 78% 58% 70% 54% 44% 36% 39% 43% 36% Source: Corporate data use: change is coming, World Wide Worx Whilst internet access remains important, the spend in other areas are the future 10 We also have to define who will use our different product groups Access What it is • ADSL or 3G • Remote access • Satellite • Managed WAN optimisation services • Internet dedicated • MPLS VPN • Private IP Metro Ethernet Converged Communications • Voice trunking • FMC • Managed IP PBX • Unified coms Infrastructure • Server virtualisation • Virtual storage • Managed hosting • Collocation Managed Services • Pro-active monitoring • Total outsourced IT • Hardware / back-ups SaaS Security • Infrastructure and application monitoring • Hosted backup • Fax to email • Hosted messaging and collaboration • Managed radius service • Internet managed scanning services • Managed firewalls • Authentication • Certification • Total outsourced solutions Mobile voice: R18Bn Estimated market size (Enterprise Market ) R8.3Bn Enterprise √ Corporate SME Fixed voice: R18Bn R2.1Bn R3.6Bn R3.5Bn R2.95Bn √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ PABX: R3.2Bn The “outsourced” services (Infrastructure / Managed Services / SaaS / Security) need rigorous SLAs and very robust internal systems to be successful 11 Price is important, quality and competencies even more so An independent survey's results support the conclusions reached in our Unique Selling Proposition (USP) development Most important factors in purchase decisions 90 81 77 79 80 Secondary factors 80 70 60 60 50 50 66 68 67 68 70 40 40 30 22 23 22 24 30 10 20 18 17 16 20 5 3 26 10 2 0 20 6 8 8 7 5 0 Neutral Important Very important Neutral Important Very important Lack of downtime Price Maintenance Quality of product / service Reputation of brand or supplier Company procurement policy Functionality (range of products / services on offer) Convenience 12 Key focus areas • Top 500 Enterprises • Penetrate SOE / Government • Multinational approach (international & Africa) • Industry Vertical Value Enhancing Partnerships (SI’s, 3rd Parties & ICT) • SME Growth Plan Enablement • Consolidated Business Model Approach (MTN Turnkey Solutions) • Unique Selling Proposition (USP) already developed - oriented around the Product and Customer Experience • USP differentiates us from competitors on a proposition apart from Price 13 Where we are heading… Our Plan • To build a Continental Cloud that will deliver services to Multi National Organisations • To build a single network across the EIG EASSy SEACOM SAT3 / WACS SAFE SAT2 continent • Provides Multi Nationals with a common service and experience on key services such as VOIP, Hosting, Security etc. across the entire continent • Centralised Support Services (ITSM, ITIL and NOC/SOC) • Regulatory Environment dependent • Our Infrastructure and in-country resources are key differentiators Our footprint already exists and makes us ideally positioned to provide Cloud Based Services on the Continent 14 Bringing IP and GSM together UniPresence • Customers are already deploying apps to call over IP on their mobile devices • MTN has developed a solution bring IP & GSM together • Single number, single mailbox, single device To increase subscriber numbers, it is affordable to now target corporate’s whereby employees can now get a single number 15 Thank you 16 Notice The information contained in this document has not been verified independently. No representation or warranty express or implied is made as to and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Opinions and forward looking statements expressed represent those of the Company at the time. Undue reliance should not be placed on such statements and opinions because by nature, they are subjective to known and unknown risk and uncertainties and can be affected by other factors that could cause actual results and Company plans and objectives to differ materially from those expressed or implied in the forward looking statements. 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