CDMA 2000 - The Namibian Experience

Presented by Mr. Frans NdoromaManaging Director

2007 3G CDMA Latin America Regional Conference

Le Meridien Cancun Resort & Spa, Cancun, Mexico

15 – 16 May 2007

Presentation OverviewBasic Facts about Namibia

Telecom Namibia – Who are we? and current scenarios

Why CDMA?

Switch – The Brand

Switch Packaging

Value Added Services

Launching CDMA

Financial Projections

Conclusion/Recommendations

Facts about Namibia

NAMIBIA - Map

NAMIBIA – Basic Data

Area Size 824,116 Km²

That's roughly twice the size of Sweden or Spain and four times that of the United Kingdom.

Population

Only about 1.8 million people live in Namibia (2001 census), which translates into a population density of 2.5 per km².

Population Growth 2.6%

Population Density Map

Key Market PlayersFIXED NETWORK OPERATOR

• Telecom NamibiaProviding Local, Long Distance, International & Leased Lines100% Owned by Government (MWTC)

CELLULAR OPERATORS• Mobile Telecommunications (MTC)

34% Foreign Owned - 66% NPTH

• CellOnelaunched in March 2007JV between NamPower (37%), Telecom Management

Partner Holdings (“TMPH”) (39%), Nammic (12%), Old Mutual (10%), and Educational Trust (2%)

INTERNET SERVICE PROVIDERS• Four ISP’s (UUNET, Africa Online, MWEB, iWAY)

Access to Telecommunication Services

Customer Base – Fixed line customers

140,00045,000

20061992

500,00019,500

20061998

Customer Base – Mobile customers (Incl. Tango)

Telecom Namibia - Who are we?& Current Scenarios

1992 - 2007… TN owns and operates an extensive & complex digital network

Challenges

• First signs of a decline in TN’s business are:– Increased loss of market share– Reduced rate of revenue growth– Decrease in margins– Stifling fixed cost base – Lack of internet/high speed data and mobility– Decreased profitability– Vast country– Old technologies– Low income rural population– Long distances (too costly to roll out copper)

Challenges cont’d…..

• The consequences are:– Marginalisation as a result of competition– A decrease in business activity (job loss)– Destruction of shareholder value– A return to a less commercial environment; increased government

intervention– Damage to the ECONOMY

Challenges…TN’s fixed line revenue is under pressure

0

10000

20000

30000

40000

50000

60000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Min

utes

Inbound minutes Loss to VoIP

International traffic to Africa - VoIP

1) Number of fixed Namibian subscriber lines vs. mobile subscriber

2) TN excluding pre-paid, while MTC includes pre-paid

Why CDMA?

Why TN has to launch CDMA?

Evaluated other technologies such as GSM (more costly & no products below 900 MHz)Provision of services in areas with no/limited infrastructureReplacement of current obsolete technologies (Ultraphone, Magnolia, etc)Increase revenueIncrease answer seizure ratio (ASR)Reduce operational expendituresIncrease penetration rateEncourage economic developmentProvide limited mobility

Why CDMA 800?

Originally went out on tender on 450 MHz bandBand used for commercial purposes in Namibia (regulatory)Cross-border interferenceNeeds to be cleaned to free up band; however will take time

Most CPEs available are in the 800 MHz band and higher (cheaper)

ITU-R limitation for 450MHz in Region 1

EVDO and 1X high data/broadband capabilities

Mobility

Will continue to deploy 450MHz in future

Existing CDMA Network

Launched mid 200634 BTS’s

Kamanjab

Otjikondo

Fransfontein

Khorixhas

OndangwaOshakati

Ruacana

Opuwo

Oshivello

OnkoshiHalali

OtaviKombat

Grootfontein

Uchab

Abenab

Rundu

Rupara

Nkurenkuru

Tsumkwe

Okaukuejo

Namutoni

OutjoOkaputa

OtjiwarongoOkakarara

Kalkfeld

Okahandja

Otjosondu

Hochfeld

Otjiwa

Buitepos

Gobabis

WitvleiOmitara

Airport

Rehoboth

Dordabis

Leonardville

Summerdown

Epokiro

Steinhausen

Otjinene

WINDHOEK

UsakosHentiesba

Swakopmund

RossingArandis

Omaruru

Karibib Wilhelmstal

Klein Aub

Rietoog

KalkrandSchlip

Maltahohe

Gibeon

Aminuis

Aranos

Stampriet

Gochas

Omaseb

Mariental

Tses Koes

KEETMANSHOOP

Asab

Aroab

Karasbur

Grunau

Ariamsvlei

WarmbadUhabis

BethanieAus

Katima MuliloKongola

Oranjemund

Luderitz

Rosh Pinah

Noordoewer

Bagani

Hoachanas

Solitaire

Tsumis Park

Bulwana

Grenslyn

Gaibis

Narubis

SeeheimFeldschuhorn

GoagebGaibis

Ais-Ais

Nudaus

Namgorab

Kumakams

Helmeringhausen

Kais

DawiabStinkdoorn

Hamab

Klein Karas

Otjimbingwe

Tsaobis

Hochland

NeudamOtjihase

Babi-Babi

Okonjatu

Nina

Blumfelde

Namibgrens

Friedentahl

Bukalo

Andara

Mashari

Nyangana

Horabe

Maroelaboom

Uib

Okamatapati

Toshari

Biermanskool

Soris-Soris

TSUMEB

v

WINDHOEKSWAKOPMUND

WALVIS BAY

KEETMANSHOOP

OTJIWARONGOTSUMEB

OSHAKATIONDANGWA

CDMA NETWORK (2000 1x EV-DO)

BTS HLR

MGW MSC

PSTN GSMGSM

SMSC SMGW

BSC

IP / MPLS

WWW

AAA

PDSN

BTS

IN

BTS Site in Otjiwarongo (North of Namibia)

THE BASE STATION

THE BASE STATION CONTROLER

INTELLIGENT NETWORK

MOBILE SWITCHING CENTER

SHORT MESSAGE SERVICE CONTROLLER & GATEWAY

Future CDMA Network

Kamanjab

Otjikondo

Fransfontein

Khorixhas

OndangwaOshakati

Ruacana

Opuwo

Oshivello

OnkoshiHalali

OtaviKombat

Grootfontein

Uchab

Abenab

Rundu

Rupara

Nkurenkuru

Tsumkwe

Okaukuejo

Namutoni

Outjo Okaputa

OtjiwarongoOkakarara

Kalkfeld

Okahandja

Otjosondu

Hochfeld

Otjiwa

Buitepos

Gobabis

WitvleiOmitara

Airport

Rehoboth

Dordabis

Leonardville

Summerdown

Epokiro

Steinhausen

Otjinene

WINDHOEK

UsakosHentiesbay

Swakopmund

RossingArandis

Omaruru

Karibib Wilhelmstal

Klein Aub

Rietoog

KalkrandSchlip

Maltahohe

Gibeon

Aminuis

Aranos

Stampriet

Gochas

Omaseb

Mariental

Tses Koes

KEETMANSHOOP

Asab

Aroab

Karasburg

Grunau

Ariamsvlei

WarmbadUhabis

BethanieAus

Katima MuliloKongola

Oranjemund

Luderitz

Rosh Pinah

Noordoewer

Bagani

Hoachanas

Solitaire

Tsumis Park

Bulwana

Grenslyn

Gaibis

NarubisSeeheim

Feldschuhorn

GoagebGaibis

Ais-Ais

Nudaus

Namgorab

Kumakams

Helmeringhausen

Kais

DawiabStinkdoorn

Hamab

Klein Karas

Otjimbingwe

Tsaobis

Hochland

NeudamOtjihase

Babi-Babi

Okonjatu

Nina

BlumfeldeNamibgrens

Friedentahl

BukaloAndara

Mashari

Nyangana

Horabe

Maroelaboom

Uib

Okamatapati

Toshari

Biermanskool

Soris-Soris

TSUMEB

v

Okongo

Onesi

Oshikango

OTJIWARONGO

TSUMEBOSHAKATIONDANGWA

WINDHOEKSWAKOPMUNDWALVIS BAY

KEETMANSHOOP

SWITCH – THE BRAND

TN’s Switch

“SWITCH” is the brand of TN CDMA services FOR PRE-PAID AND POST-PAID

SWITCH PACKAGING

PACKAGING STRUCTURE

PRE-PAID POST-PAID

TIME EASYLIFE1 LIFE2 LIFE3 LIFE4

LOAD1 LOAD2 LOAD3 LOAD4

1 111 2 3 4 5 6

1 2 3 4 5 6 7

CALL PLANSCALL PLANS

PACKAGESPACKAGES

Individual

Corporate

7

8

Packaging....

– Two Call Plans• Time • Easy

– Call Plan Tariffs are Defined and Approved

– Recharges are Defined and Approved

– Prepaid Packages have been launched on 24/11/06

• SwitchBase – SIM Card only• $ 111 package – phone – SIM –

N$ 10 airtime• $ 222 package – phone – SIM –

N$ 10 airtime• Max package – SIM – N$ 100

airtime – choose phone at cost

SWITCH PREPAID SWITCH POSTPAID

– Eight Call plans Defined and Approved

• 4 Life Call Plans (Individual) • 4 Load Call Plans (Corporate)

– Package Tariffs are Defined and Approved

• To be launched in May 2007

WITH OR WITHOUT THE DATA EQUIPMENT OF YOUR CHOICE!!

Enabling Switch connectivity…

Starter Package Set of Services Tariff Plans

Components of a Mobile Product

SIM Card

Manual

Case / Packaging

Handset or Datacard

Charger

Cables

Accessories

+ +

Default:Voicemail

SMS

Call forward

…

Eligible:MMS

Internet access

Call barring outgoing

…

ConnectionStarter Kit [VND, incl. VAT] 200.000Value included [VND, incl. VAT]Starter Kit net [VND, incl. VAT] 200.000

Monthly FeeMonthly fee per month [VND, incl. VAT] 66.000Fee per day [VND, incl. VAT]

CallsOnnet [VND, incl. VAT] 1.600Offnet mobile [VND, incl. VAT] 1.600Fixed [VND, incl. VAT] 1.600

Fixed offnet [VND, incl. VAT]Fixed onnet [VND, incl. VAT]

internat [VND, incl. VAT, excl. IDD] 1.600approximantion for IDD [USD, incl. VAT] 0,55

SMSonnet [VND, incl. VAT] 350offnet [VND, incl. VAT] 400via operator [VND, incl. VAT] 900internat [USD, incl. VAT] 0,165

Other dataInternet [VND, incl. VAT, excl. ISP] 1.600WAP [VND, incl. VAT] 900Approximation for ISP charge [VND, incl. VAT] 80

Offpeak discountDiscount [%] 30%Better than standard off peak [yes/no]Night discount [%]

UnitizationUnitization [first/susequent] 30/6

Data Time Bundle OptionNat Minutes included [] 200

DAY TIME NIGHT TIME WEEKEND

Switch Time &Switch Time &Switch Easy Switch Easy

CALLS TO TELECOM NAMIBIA NETWORKS

AND

MONDAY to FRIDAY SATURDAY to MONDAY

(07:00 am to 07:00 pm)

MONDAY to SATURDAY

(07:00 pm to 07:00 am)

(07:00 am to 07:00 am)

N$ 1.40 N$ 0.75N$ 0.90

ANYTIME CALLS TO OTHER MNO IN NAMIBIA N$ 1.75

ANYTIME RATES N$ 1.11CALLS TO TELECOM NAMIBIA NETWORKS

ANYTIME CALLS TO OTHER MNO IN NAMIBIA

N$ 1.75

PRE-PAID PACKAGES

PRICE: N$ 111

PACKAGE BRAND

TRIPLE 1 OR 111

90 daysVALIDITY

20FREESMS

N$ 10AIR TIME

FreeVAS

FreeSIM

EASYTIME

CALL PLAN

% SubsidyCPE

90 daysVALIDITY

20SMS

N$15AIR TIME

FreeVAS

FreeSIM

EASY TIME

CALL PLAN NO DATA AVAILABLE

SPECIAL LAUNCH PACKAGE

PRICE: N$ 49

RUIM PACK

PACKAGE BRAND

1

POST-PAID CALL PLANS: OVERVIEW

MONTHLYSubscription

EFFECTIVE RATE CALL PLANBRANDS

N$ 60

N$ 100

N$ 300

N$ 600

LIFE 1

LIFE 2

LIFE 3

LIFE 4

N$ 0,97 N$ 1,05

N$ 0,91

N$ 0,88

N$ 0,86

N$ 1

N$ 0.95

N$ 0,90

Any TN callsAny time

ADDITIONAL RATE Any TN calls

Any time

ROLL OVER: Max 5X monthly plan minutes

FREESMS

Per month

5

10

15

20

CLEAR & SIMPLEPRICING

Contract24 months

Contract24 months

Contract24 months

Contract24 months

BUNDLETN MINUTES

Per month

62

110

340

700

1) OPEN ACCOUNT VERSION

2 VERSIONS

Per Second Billing1st minute in full thereafter in increments of one second

POST-PAID CALL PLANS: OVERVIEW

MONTHLYSubscription

RATECALL PLANBRANDS

N$ 60

N$ 100

N$ 300

N$ 600

LIFE 1

LIFE 2

LIFE 3

LIFE 4

N$ 1,05

N$ 1

N$ 0,95

N$ 0,90

Any TN callsAny time

For the « Call Limit » version there are two possibilities:• you choose to block your account. When your monthly Air Time is exhausted, you have to Top Up in Teleshops in order to use your phone• you choose to be notified by TN when your monthly Air time is closed to be reached. When your monthly Air Time will be reached, you haveto Top Up in Teleshops in order to use your phone

ROLL OVER: Not applicable

FREESMS

Per month

5

10

15

20

CLEAR & SIMPLEPRICING

Contract24 months

Contract24 months

Contract24 months

Contract24 months

2) CALL LIMIT VERSION

2 VERSIONS

Per Second Billing1st minute in full thereafter in increments of one second

POST-PAID CALL PLANS: CORPORATE OVERVIEW

MONTHLYSubsription

EFFECTIVERATE CALL PLAN

BRANDS

N$ 650

N$ 3000

N$ 5500

LOAD 1

LOAD 2

LOAD 3

N$ 0,96

N$ 0,86

N$ 0,83 N$ 0,90

Any TN callsAny time

ADDITIONALRATE

Any TN callsAny time

LOAD 4

10

100

200

N$ 30

N$ 10000 N$ 0,80

N$ 1

N$ 0,94

N$ 0,86

NO ROLL OVER AVAILABLE ON CORPORATE PLANS

N$ 30

N$ 30

N$ 30

30

40

50

60

Contract24 months

Contract24 months

Contract24 months

Contract24 months

BUNDLE TN MINUTES

Per month

6803490

6590

12480

50

With FOUR corporate call plans, companies will find responses to their needs

NEWPOOL PRICING 1) OPEN ACCOUNT VERSION

2 VERSIONS

FREESMS

Per month

MAXHANDSETS/

CONNECTIONSEXTRA

CONNECTIONSN$/Month/Conn

Per Second Billing1st minute in full thereafter in increments of one second

POST-PAID CALL PLANS: CORPORATE OVERVIEW

MONTHLYSubscription

RATERATE CALL PLAN

BRANDS

N$ 650

N$ 3000

N$ 5500

LOAD 1

LOAD 2

LOAD 3

N$ 1

N$ 0,94

N$ 0,90

Any TN callsAny time

LOAD 4

MAXHANDSETS/

CONNECTIONS

10

100

200

N$ 30

N$ 10000 N$ 0,86

NO ROLL OVER AVAILABLE ON CORPORATE PLANS

N$ 30

N$ 30

N$ 30

FREESMS

Per month

30

40

50

60

Contract24 months

Contract24 months

Contract24 months

Contract24 months

50

NEWPOOL PRICING 2) CALL LIMIT VERSION

2 VERSIONS

For the « Call Limit » version there are two possibilities:• you choose to block your account. When your monthly Air Time is exhausted, you have to Top Up in Teleshops in order to use your phone• you choose to be notified by TN when your monthly Air time is closed to be reached. When your monthly Air Time will be reached, you haveto Top Up in Teleshops in order to use your phone

EXTRACONNECTIONSN$/Month/Conn

Per Second Billing1st minute in full thereafter in increments of one second

EVDO PACKAGES OVERVIEW: POST-PAID

FREE: 2 MB (Once-off)

USAGE: VOLUME

2 GB+ 200 MB FREE

USAGE: VOLUME

500 MB+ 50 MB FREE

USAGE: VOLUME

PACKAGE BRAND9

PACKAGE BRAND10

PACKAGE BRAND11

PACKAGE BRAND12

CONNECTION FEE: N$ 185

EVDO Card = FREE

1 GB+ 100 MB FREE

USAGE: VOLUME

N$225 per Month N$390 per Month N$760 per MonthN$1.30 per MB

Standard*

Outside bundle usage:N$1.30 per MB

Outside bundle usage:N$1.30 per MB

Outside bundle usage:N$1.30 per MB

EVDO Card = FREE EVDO Card = FREE

24- month contract

LAUNCHING CDMA

LAUNCHING TIMING

FINANCIAL PROJECTIONS

FINANCIAL STATS

CONCLUSION

Conclusions/Recommendations

International roaming must be pushed (IA450 forum/CDG forum)

Needs to look at ease of re-designing if changing from WLL to Mobile

If designed for full mobility, it should be more flexible to do limited mobility

Standards and quality should be supported globally (Qualcomm)

Sunrise in AFRICA…..

Every morning an antelope wakes up in Africa

She knows that she will survive the day as long as she

anticipates whenthe lion goes out to hunt

And every morning in Africa a lion wakes up

He knows that he will only not starve of hunger if he

anticipates whenthe antelopes will come to

the water

You can’t anticipate everything

Sunrise in AFRICA…..

It is therefore immaterial whether you are an antelope or a lion. When the sun comes up you have to understand the nature and rhythm of other creatures around you, and behave accordingly.

Sunrise in AFRICA…..

Whether in the African bushveld or the global business, it is not the

strongest or fastest that will survive, but the most adaptable and agile

“Survival of the fittest”???

Thank you