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VODACOM CONGO (DRC) sprl OVERCOMING THE VAST CHALLENGE OF

VODACOM CONGO (DRC) sprl OVERCOMING THE VAST CHALLENGE OF DEPLOYING A MOBILE NETWORK IN THE DEMOCRATIC REPUBLIC OF CONGO(DRC) SINGAPORE ANNUAL MEETINGS SEPTEMBER 17 th , 2006. PRESENTATION. ALIEU BADARA MOHAMED CONTEH

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VODACOM CONGO (DRC) sprl OVERCOMING THE VAST CHALLENGE OF

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  1. VODACOM CONGO (DRC) sprl OVERCOMING THE VAST CHALLENGE OF DEPLOYING A MOBILE NETWORK IN THE DEMOCRATIC REPUBLIC OF CONGO(DRC) SINGAPORE ANNUAL MEETINGS SEPTEMBER 17th, 2006

  2. PRESENTATION ALIEU BADARA MOHAMED CONTEH CHAIRMAN Vodacom - Congo(RDC)SPRL Tel : +243 81 313 1400 +27 11 784 2288 Mob : +243 81 444 8888 +27 82 999 9902 Fax : +243 81 313 1405 E-mail : aconteh@vodacom.cd contehbadara@aol.com

  3. DRC inAFRICA:A uniqueconfiguration.Nine neighboringcountries

  4. DEMOCRATICREPUBLIC OF CONGO

  5. Located at the heart of Africa, DRC is the third biggest country of that continent, after Algeria and Sudan, with following specificities: • 2,345,410 sq km • 9 neighboring countries (Congo, CAR, Sudan, Uganda,Rwanda,Burundi,Zambia, Angola, Tanzania) • 47% of the all africa’s tropical forest • 52% of the country covered by forest • Many Mountains, Lakes and Rivers

  6. DRC is attractive by its population and history which can be figured out as follow: • Population: 60,000,000 inhabitant • Growth rate: 3,07% • Life expectancy:51,46 years • Languages: french, lingala, swahili, kikongo, tshiluba • Independance day: June 30th, 1960

  7. Copper Cobalt Coltan Diamond Petroleum Gold Uranium Manganese Tin Iron Radium Bauxite Germanium Silver Zinc Cadmium coal Timber Coffee Methane gaz DRC is a country blessed by Nature, considering its unlimited natural resources, spread in all over the country; among that:

  8. Among all DRC’s Natural Resources, the most important is definitely Congo River, 3,100 kilometers, the second river in the world after Amazon by its rate of flow, evaluated to 40,000 cubic meters per second.Congo River is crossing twice the Equator. This configuration results to a very stable level of water during the year, which generates at the site of Inga, close to the embouchure, the most powerful potential hydroelectricity site of the world.44,000 Megawatts of electricity will be produced at that site, at the final stage.

  9. INGA DAM

  10. Althoughblessed by Nature, DRC’s economy hasn’t been able to take off and drive a sustainable development. This is mainly due to political instability the country faced since Independence. Economic key parameters are as follow: • Nominal GDP: 7.328 billions USD ( 2005) • GDP/ capita : 700 USD (2005) • Inflation rate : 13,20 % ( 2005) • Growth rate : 6,5 % (2005) • currency : FC ( congolese franc) 1$ US= 490 FC

  11. To grow, DRC must overcome critical challenges: • National reconciliation • Building of basic infrastructures(roads, bridges, railways, ports and airports) • Development of telecommunications • Relaunch of mining production and exportation • Relaunch of Agriculture • Production of hydroelectricity.

  12. Among priorities, telecommunications stand as a key factor to drive the entire economy. Telecommunications will overcome the lack of basic infrastructures like roads, railways, airports, and allow people to exchange useful information, idea, image, data and values for their development.DRC’s telecommunication infrastructure, was totally obsolete and neglected.This justified the option taken by the Government in 1988, to open this sector to Private Investors.

  13. TELECOMMUNICATION OF DRCIN JANUARY 2000 • 2 Gsm Operators: CWN, CELTEL • 2 AMPS Operators: TELECEL, COMCELL • 1 CDMA Operator: AFRITEL • 1 Land line Operator: OCPT • 1 Wireless Operator : SOGETEL • Total Subscribers base: 145,000 • Total cities covered : 10 • Penetration rate : 0,07% (1:1,300), (the lowest of all Africa)

  14. Hunting the mobile telephone signal: A public payphone on the tree in DRC

  15. VODACOM CONGO STRATEGY • Large coverage by investing in the countryside, mainly in mining cities, border cities, and cities housing UN Bases. • Massive usage of airplane for the transport of equipment, towers, fuel, steel, cement, even stones • Massive usage of satellite, to link remote BTS to the switch located at the main city. • Massive implementation of public payphone in rural area(22,000). • Low denomination voucher, from 0,30$ to 100$ • Prepaid connection at 99,90%

  16. VODACOM CONGO MILESTONES • 323,110,000 USD of investment • 98,000,000 USD of taxes generated for the Government after 52 months of operation • Biggest south african investment in DRC • Biggest foreign investment in DRC for the past thirty years • Join venture between vodacom S.A.(51%) and a Congolese local company, CWN (49%) • Good example of partnership South- South

  17. Vodacom Congo achievements • 200 cities covered in 52 months of operation, • 1,950,000 subscribers, the biggest network of the country, • 500 new employment created for Congolese, • 5000 employments of Super-dealers, Sub-dealers, and Dealers of Vodacom products in the country, • 49 % of the market share

  18. VODACOM CONGO SOCIAL INVESTMENT 2,500,000 USD INVESTED IN: • EDUCATION: construction and renovation of schools, distribution of school benches and school stationeries; • HEALTH: renovation of hospital, distribution of beds, mattress and tools; HIV/aids awareness campaign; flue bird awareness campaign; • ENVIRONMENT: cleaning of squares, protection of environment, protection of endangered animals; • WELLFARE: distribution of clothes and foods to disabled persons, orphans, elderly and refugees; funding of micro projects for vulnerable persons.

  19. VODACOM CONGO(RDC)SPRL SUCCESS STORY 11/12/2001 : join venture between Vodacom Group of S.A. (51%) and CWN of DRC(49%) 1/05/2002 : Launch of the network in three cities: Kinshasa, Lubumbashi, Mbuji-mayi 31/12/2002 : 15 cities covered, and 221,500 subs 1/05/2003 : 27 cities covered,and 388,246 subs 30/11/2003 : 500,000 active subscribers

  20. VODACOM CONGO(RDC)SPRL SUCCESS STORY 2 • 31/12/2003: 58 cities covered, 622,478 subs • 01/05/2004: 93 cities covered, 741,100 subs • 31/12/2004: 120 cities covered, 969,326subs • 21/01/2005: 1,000,000 Active subscribers • 01/05/2005: 143 cities covered, 1,056,000 subs • 31/12/2005: 183 cities covered 1,391,000 subs • 01/03/2006: 1,500,000 Active subscribers • 01/05/2006: 187 cities covered, 1,650,000 subs • 30/08/2006: 200 cities covered, 1,950,000 subs

  21. NETWORK DEPLOYMENT • 200 CITIES COVERED • 328 BTS • 15 BSC • 5 MSC • 96 VSAT • 3 EARTH STATIONS STANDARD B • 1 International Gateway • MW Back bone 1760 KM

  22. MSC: 4 BSC: 15 Sites: 298 Towns: 184 B11 F2 B12 B1 F11 F18 F1 F9 F17 B13 F19 F7 F20 F13 F4 F21 F16 F3 F15 B14 B15 F14 F23 F22 F24 F10 B17 F25 E6 (C45) F5 E4 E1 E2 E5 E19 B9 E16 E17 B18 E3 F12 E18 E15 E34 B4 E7 E32 E21 E9 Coverage Rollout E27 B24 E20 E22 E36 B5 E23 E24 E25 B8 E26 B32 E28 E38 E8 E12 E33 E31 B21 B10 B34 E10 E37 E29 E30 B2 E11 C12 E14 B16 E13 C13 B25 (100) B28 A1 A16 A11 A12 B23 B6 A14 A9 A10 A15 A17 B27 B22 A11 C10 C17 B26 C28 A13 C1 A7 A18 A30 D13 A29 A23 C11 A20 C26 A6 A8 A21 D32 C27 A26 A5 A27 A4 D10 A24 A22 A28 A3 C29 C8 C24 D17 C4 C16 C5 C23 C20 C7 C25 B7 C30 C21 C9 C21 C2 C15 C18 C19 D14 C6 C14 C3 D16 B20 C22 B33 D15 B31 B29 D1 B30 D32 MSC D8 D11 D2 Vodacom and Celtel D18 D25 Vodacom only D21 D24 D23 D12 D4 D5 D25 D7 D19 D20 D22 D26 D27 Updated on 18th January 06 D3 D6 VODACOM CONGO (RDC) s.p.r.l. D28 D31 D30 D29 D9

  23. Subscriber Closing Base YOY growth 2005 – 32% 2006 - 52% 16.3% 15.3%

  24. Capital expenditure

  25. Traffic in Erlang

  26. STRATEGIC OBJECTIVES • Maintain leading network coverage • Achieve top network quality • Optimize and achieve effective capex management • Obtain and retain dominant market share • Lead through innovation ( new product and revenue streams) • Maximize revenue on existing streams • Maintain tariffs • Maintain average revenue per user • Effective cost management • Maximize productivity and efficiency

  27. TELECOMMUNICATIONS IN DRC AT JUNE 2006 • Gsm Operators: 6 ( Vodacom, Celtel, Oasis, Cellco, Congo China Telecom, Supercel) • AMPS Operators: 0 • Land line Operators:2( OCPT, Congo Korea Telec) • Wireless local loop: 1(Sogetel) • Covered cities: >200 • Subscriber basis: 3,900,000 subs • Penetration rate:6%

  28. Democratization of the telephone: the voice of my son!

  29. Vodacom One Nation One Network Thank You

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