1. MVNO with a difference
NEW OPPORTUNITIES IN AFRICA
Samson Majwala
Chief Commercial Officer
2. Country Profile
•Population: 50.1M
0-14yrs: 42%
14-65yrs: 55.1%
>65yrs: 2.9%
•Size (’000) 945km2
•GDP (PPP): $63,504
•GDP p.capita: $1,783
•Inflation: 6.8%
•HIV preval. 5.3%
•Currency TZS
•Capital Dodoma
•Mkt Size: 30 Mil active Subs
TelecommunicationQ1- 2016
•Subscriber base: : 28Million (21%)
•Penetration: 64%
•Operators:
•Vodacom ~ 10.6M subs
•Airtel ~ 9.2M subs
•Tigo ~ 6.9M subs
•Zantel ~ 1,7 M subs
•TTCL ~ 0.288 M subs
•Halotel ~ 0.288 M subs
•Amotel ~ 100 subs
•Market Size: Formal 500K
•Amotel Market Share: 2% Projected
VAT/Duty Impact (21,8%)
•City levy 0,3%
•Clearance fees 1.5%
•VAT 20.00%
Key Actions
• Low Capex and Low Opex Business
Model
• Government Subsidy
• Good MNO negotiations and relations
Key Issues
• Poor Rural Infrastructure
• LowARPU Locations
• Distribution complexity
•
TANZANIA AT A GLANCE
37%
32%
24%
6%1%0%
Telecom Market Share
VodaCom AirTel Tigo ZanTel TTCL Benson
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Series1 10% 15% 21% 32% 43% 50% 59% 61% 61% 64%
10%
15%
21%
32%
43%
50%
59% 61% 61% 64%
Mobile Penetration
3. Amotel Journey to the Launch
2013 2014 2015 2016
Initial Business
Concept
3 BTS sites up
and running
Agreement
Signed with
TTCL
Launched 5
days Ago
Submitted
Application
Engaged
MVNE
Receive
MVNO License
Detailed MNO
Partnership
Agreement
Planned
Launched
4. Amotel’s Successful Pillars
• (WorldTelecom Labs) helped prepare a rural based business Case
backed by affordable Rural focused technology to support the
infrastructure.
• USFTanzania supported to start a POC in three villages
• TTCL (our MNO) agreed to share the spectrum to connect the
unconnected
• Total opportunity inTanzania is huge (Over 4,000 villages to be
connected)
5. Business Plan First; Technology Second
• Complete working Rural solution (end to end)
• Support from all the stakeholders (even if negotiations
were not always easy)
• Low cost network plus low cost of operation
• TTCL Optical Fiber roll out to major district Head
quarters helped to keep connectivity cost low and quality
high
• Scope to expand rapidly after POC
• Range of services meant compelling business case
6. WTL technology enabled a new direction
• WTL supplied a complete working solution
• Low capex + Low Opex
• Complete commercial management system to run the
business
• Easy installation (A village per day)
• Consultancy and support
• Sustainable (Multiple Revenue model)
7.
8. Being an MVNO helped
• It became easy to approach the MNO (TTCL)with the new
idea and they were open to suggestions
• Licensing and ordering own numbering plan was easier
• Understanding MNOs psyche in MVNO negotiations
helped to successfully close the deal
• MNO is looking for extra revenues without investments
9. First Steps: The POC in three villages
• Currently three village network running in Mwanga District
• The Help
• Universal Service Fund Approved the budget
• WorldTelecom Labs supplied the Rural telephony network
• Amotel provided the passive infrastructure
• Multiple services offered
• GSM telephone calls
• Cybercafé
• WiFi Hotspot
• Calling cabins
• MoneyTransfer
10. The plan
• Amotel is planning to connect
• 50 villages in first six months
• 500 villages in 24 months
• Looking for Key Investors/Partners to accelerate the
installation to 1000 villages
• Amotel’s acquisition target is 500K in 24 Months
• With an estimated ARPU of $2.5
11. Advice to other MVNOs / Lessons learnt
• Look for other opportunities to be more independent
• Rural is perfectly valid in Africa (Villages are too small for MNOs to address)
• Technology is becoming available
• Companies likeWTL can offer turnkey solutions
• Make sure your technology partner can advise you on all aspects of
the project (commercial as well as technical)
• Makes sure you have a good agreement with MNO
• Rural projects are lowARPU markets MNOs are not ready to invest in them
• Anticipate the delays in decision making process of the MNO
• Propose a model that is win – win from day one (if not they can take you in wrong
path)
• Keep a focus on OpEx andTCO not only on initial CapEx
