Revenue Management Customer Experience at du

1. Revenue Management Customer Experience at du Matthew Mason Senior Director Billing, Payments and Collections Version 0.2 This document is confidential and is intended solely for the use and information of the client to whom it is addressed.

2. Contents Corporate Overview Re Cap last Years Presentation Highlights Customer Excellence Program Customer Experience & Billing KPI’s Question & Answers

3. Corporate Overview • Emirates Integrated Telecommunications Company PJSC, commercial launch was Feb 2007 under the brand du • 4.3 million Mobile customers • 4.1 million prepaid active mobile • 260,000 post paid mobile (6% mobile base) • 561,000 post paid fixed line • Revenues of AED 7,074 million compared to AED 5,339 million in 2009 (32% Increase) • EBITDA reached AED 2,018 million versus 1,064 million for FY 2009 (90% growth) • Net profit before royalty increased 132% (AED 1,226 million versus 528 million in 2009) • du’s retail network, currently numbering 35 du shops located in strategic locations across all Emirates

4. Convergent Services • Consumers: mobile and fixed voice calling, Internet, data services , TV • Businesses: integrated fixed and mobile business solutions, including voice, data, content and applications as well as professional services • International and wholesale : international data networks and wholesale services to international operators, multinational corporations and telecom carriers du offers voice, data, video and content services over fixed and mobile networks

5. Our Shareholders UAE Government (40%) Mubadala Development Company (20%) TECOM (20%) Shares listed on Dubai Financial Market (20%) EITC “du” • Paid up capital: AED 4.5 billion • Mubadala Development Company is a Public Joint Stock Company, wholly owned by the Government of Abu Dhabi. The company manages a portfolio of local, regional, and international investments • TECOM is a limited liability company and a wholly owned subsidiary of TECOM Investments FZ LLC, which is a part of Dubai Holding LLC • The shareholders offered 20% of their shares in a public sale on March 2, 2006

6. 2010 Billing Experience Snapshot

7. Departments that Influence Billing in du • Marketing • Bill Marketing Messages • Bill Inserts • Bill Layouts • Products/Promotions • Product Catalogue • Human Resources • Employee Payroll bill payment • Revenue Assurance • Mediation • Rating • Fraud Management • IT Billing Operations • Bill Cycle Execution • Payment Processing • Manage Print Vendor • Sales / Retail / Cust Care • Negotiate & Update Customer Contracts • Enter Customer Orders • Collect Payments • IT Billing Development • Update Product Catalogue • System Developments • Commercial OMT • Business Contract Activations • Update Credit Limit in BSCS • Commercial Billing, Payments & Collections • Billing Calendar Owner • Billing QA (partial) • Resolve TT’s • Reconciliation of Payments • Manage Credit Limit Monitoring • Manage Dunning (active customers) • Corporate Comms • Bill Marketing Messages • Bill Inserts • Network Operations • Activation of Services • Deactivation of Services • Finance Credit Control • Own Credit & Collections Policy • Approve Credit Limits • Review Credit Limits • DCA Management (inactive customers) • IN Operations • Prepaid Activation of Services • Prepaid Deactivation of Services • Operational prepaid Wallet Management

8. Departments that Influence Billing in du Customer Billing & Revenue Management Lifecycle CONCEPT BUILD TEST DEPLOY SELL PROVISION RATE BILL INQUIRE DISPUTE COLLECT EXIT PAY Marketing Sales/Retail Finance Third Party Suppliers (Banks, Dealers, Agents (Axiom, Al Ansari, etc) Billing Payments & Collections Corporate Communications Legal IT Development HR Customer Care IT Production Operations Network Operations IN Operations

9. du Customer Billing Experience • Customers don’t trust their bill is accurate • Customers complain at our customer service channels, choking our ability to serve • Increases our operational costs and overheads to handle customer calls and billing disputes • Our customers don’t pay, we suspend their services and increases bad debt • Customer goes to the opposition • Customer is dissatisfied with du and shares their experience with friends and family 9

10. Observations & Learning's • Lack of formal aligned cross company processes and work instructions and therefore inconsistency of execution and adherence • No single accountable person for the above • Manual procedures that are dependant on people and are prone to error • New Product & Service deployment is more focused on speed to market than customer experience and operations efficiency 10

11. du Projects coming in 2010 There are complex projects, offers and capabilities on their way this year increasing billing complexity • FEDM (Fixed Enterprise Data Migration) • FNL (Fixed National Launch) • MNP (Mobile Number Portability) • On Demand Billing • Segmentation, Convergent Offers • Etc, Etc ……

12. Is this Billing Customer Experience ok with you?

13. 5 Steps to World Class Billing Experience

14. Executive Summary 14

15. Marketing • Bill Marketing Messages • Bill Inserts • Bill Layouts • Promotions • Product Catalogue • Human Resources • Employee Payroll bill payment Billing Customer Experience Steering Committee Bill KPI’s Dept Lead Dept Lead Bill KPI’s • Revenue Assurance • Mediation • Rating • Fraud Management • IT Billing Operations • Bill Cycle Execution • Payment Processing • Manage Print Vendor Bill KPI’s Dept Lead Dept Lead Bill KPI’s • Sales / Retail / Cust Care • Negotiate & Update Customer Contracts • Enter Customer Orders • Collect Payments • IT Billing Development • Update Product Catalogue • System Developments Bill KPI’s Dept Lead Dept Lead Bill KPI’s • Commercial OMT • Business Contract Activations • Update Credit Limit in BSCS • Commercial Billing, Payments & Collections • Billing Calendar Owner • Billing QA (partial) • Resolve TT’s • Reconciliation of Payments • Manage Credit Limit Monitoring • Manage Dunning (active customers) • Corporate Comms • Bill Marketing Messages • Bill Inserts Bill KPI’s Dept Lead Dept Lead Bill KPI’s • Network Operations • Activation of Services • Deactivation of Services Bill KPI’s Dept Lead Dept Lead Bill KPI’s • Finance Credit Control • Own Credit & Collections Policy • Approve Credit Limits • Review Credit Limits • DCA Management (inactive customers) • IN Operations • Prepaid Activation of Services • Prepaid Deactivation of Services • Operational prepaid Wallet Management 15

16. Cross Company Billing Processes (Example only) 1 Invoice Generation and Dispatch 2 Invoice Accuracy (Rate Plans, Promotions) Invoice Accuracy (Reconcile Customer Order to Bill) 3 Switch to Invoice Accuracy (Reconcile Customer Services on Network to Bill) 4 Invoice Timeliness (define schedule and report adherence to schedule) 5 Network usage event’s to Invoice (Ensure all rateable network events are invoiced 6 New Product or Service Solution Design & Cross Company Operational Processes 7 Marketing Sales/Retail Finance Third Party Suppliers (Banks, Dealers, Agents (Axiom, Al Ansari, etc) Billing Payments & Collections Corporate Communications Legal IT Development HR Online or E-Bill Integrity & Timeliness Customer Care IT Production Operations Network Operations IN Operations 8 Power Billing Integrity & Timeliness 9 On Demand & Hot Bill Integrity & Timeliness 10 Return Bill Processing & Bill Copies 11 16

17. Cross Company Billing Processes (Example only) 1 Invoice Generation and Dispatch End to End Process Processes Processes Processes Processes Processes Billing Payments & Collections IT Production Operations Network Operations IT Development Corporate Communications HR Finance Customer Care Marketing Sales/Retail Bill KPI’s Bill KPI’s Bill KPI’s Bill KPI’s Bill KPI’s Dept Lead Dept Lead Dept Lead Dept Lead Dept Lead 17

18. Critical Success Factors footer: to alter click view "header and footer"

19. CCO & CEO public endorsement and a call to action for full engagement from all departments. Where should the function sit to drive the best outcome for the company? Focused & dedicated resources are required from each department to own Processes, KPI capture, monitoring, and drive POW to increase operational efficiency footer: to alter click view "header and footer" 19

20. Drive the right behaviors with your Colleagues via HR Performance Management Systems. IT measured on billing integrity and accuracy • Sales commissions based on cash collected not sold revenue Marketing measured on cash collected by customer segment as well as revenue and subscribers. (influences product design)

21. We did it! Customer Excellence Program Was announce by our CEO December 2010 footer: to alter click view "header and footer"

22. Customer Excellence Program - Setting the scene Current situation Target state • Despite strong financial results, du is currently facing serious issues in customer experience… • … resulting from… • people working in functional silos • processes that are not customer-centric • systems not supporting the processes. Customer Systems Processes People Our Customer Excellence Program will transform du into a customer centric organization with highly motivated employees, working in cross-functional teams.

23. Customer Excellence Program – Work-Streams Mark. CC. Sales IT Ops Facts about CEP Program Work Order Management WS • Customer Excellence Program was kicked off in December 2010 • It manages 3 customer-facing and 3 supporting work-streams, horizontal to current du organization • Total Program comprises 100 + full time employees • Program is currently managing more than 30 cross-functional initiatives Trouble Ticketing WS Billing WS Solution Delivery WS Performance Management WS Change Management WS • *WS: Work-Stream The CEP is one of du’s top priorities for this year – it will spearhead the necessary transformation of the organization through the involvement of each and every employee.

24. Progress achieved so far Completed? 1 CONTAIN CURRENT ISSUES • Stabilize Work Orders’ and Trouble Tickets' backlog • No Work Orders older than 7 days • No more failed payment transactions 2 TRANSFORM THE ORGANIZATION (Focus on customer centricity) • Customer-centric organization • Work in cross-functional teams • Shop guardian program  • Long term process improvements and process excellence • Streamlined processes (e.g. Work Order Management and Trouble Ticketing) TRANSFORM THE ORGANIZATION (Focus on efficiency) 3  The CEP Program has been able to contain issues in most areas – now it is critical to start the transformation process of the organization.

25. Employee Feedback Summary Summary of Results • Out of ~2000 employees, only 51 employees participated in the Employee feedback survey to provide their personal feedback on Customer Experience with du mobile and Home services • Out of 51 responses, • Only 1 respondent has provided positive feedback • Remaining 50 respondents have expressed dissatisfaction and highlighted issues spread across the customer life cycle. The issues range from interaction with customer touch points, service activation to service assurance • Top Issues • 1. Long waiting times at du shops/Contact Center • 2. Sales/CC agents behavior, Product Knowledge gap • 3. Blackberry Activation • 4. Bill Shocks with unlimited data offers (iPhone/BB/Elite) • 5. Unresolved Trouble Tickets • 6. Repeated suspension of Customer Internet Services • 7. Self Care access and stability Total: 51 responses 50 –veresponses 1 +veresponse * Customer’s iPhone setting issue resolved at du shop * Top issues found through this CEA activity are in line with issues detected and addressed as part of the CEP program, and confirm that ongoing initiatives are tackling customer impacting issues

26. Trouble Tickets Confirmation Calls 2,059customers with billing closed TTs between December 30th 2010 and January 12th 2011 were contacted to assess their experience. 670 calls were successfully completed (hit rate: 33%) and the results are represented in the below graph Between December 30th 2010 and January 12th2011, Only 57% of the contacted customers confirmed that their issue is resolved even though their TTs are “Closed”. 18% of the customers had to follow up on the TT 4 times or more 11% of the customers said that their issue was resolved in more than 14 days “Payment machines should be present in all malls for easy payments instead of standing in line in shops” “I don’t know if my issue is resolved, no one called me back !!” “Don’t Over promise customers, stick to your committed time” Satisfied “Please answer the calls faster !” “Please don’t keep customers waiting without follow up / Etisalat is more helpful” Overall Front Office Resolution Back Office / Resolver Groups Site Visit

27. Payment Customer Impacts footer: to alter click view "header and footer"

28. WO5: Waiting Times Drive down wait times: Short Term Actions Experiment (II) … some things don´t IbnBattuta payment desk IbnBattutapayment queue • A one size fits all approach will not work • Rapid experimentation pays dividends

29. WO5: Waiting Times Drive down wait times: Short Term Actions Experiment (I) Some things work: Al Salam payment queue

30. Customer Facing Operations where located in different Organisations footer: to alter click view "header and footer"

31. Organisation was not customer centric Before Solving a customer problem was more about your persistence, knowledge and personal networks.

32. Customer Facing Operations Merged into one Organisation (March 2011) X Customer Experience Strategy (under Marketing) Customer Operations footer: to alter click view "header and footer"

33. KPI’s Billing Bill Run   %  Print & Dispatch % % % 30 Bill inquiries & Issues 30 30 Avg 7days Total 30days Snapshot Ratio Avg 30  %

34. KPI’s Trouble Tickets Avg Avg % Contact & Create TT Avg Avg % Avg Avg Resolve TT Avg % Avg Process TT   Avg Close TT Avg Avg Avg 7days Total 30days Snapshot Ratio Avg 30  %

35. KPI’s Work Orders (1/2) Avg Avg DWH Order Capture Avg Avg DWH  DWH  DWH Order Fulfillment DWH Avg DWH Avg DWH Avg Target System WO Universe DWH Avg 7days Total 7days Snapshot Ratio Avg 7d  %

36. KPI’s Work Orders (2/2)  FE Visit  DWH % Add to Bill & Closure DWH Avg DWH % DWH Avg Target System WO Universe DWH Avg 7days Total 7days Snapshot Ratio Avg 7d  %

37. KPI Challenges and Learning's What we don’t measure we cannot improve footer: to alter click view "header and footer"

38. Thank you ! Matthew Mason Senior Director Billing Payments & Collections Matthew.Mason@du.ae +971 55 606 8745