MTN IrancellAlireza Dezfouli

MD

2

Overview

Penetration 24% (Jun 07)Market sizing 46.3m (2011)Population 70.7m (Jun 07)

IslamReligion

T bill, bond 15.5%Local Rates

Persian, Turkish, KurdishLanguage

$3,446GDP/Capita

Demographics

LC/US$ = 9,527Currency

15.4%Inflation

Economics

Source : Pyramid Research

3

Market dynamics

• Real GDP expected to grow 4% p.a. underpinned by high oil prices

• Iranian telecoms market expected to reach USD 13.4billion by 2012

• Strongest growth from data

• Penetration expected to reach 65% by 2011

• 2 major mobile operators, MCI and MTN Irancell• Irancell market share 20% end of October

4

Market dynamics

Source : Pyramid Research

High growth potential

5

Market players

3% land50% population

Nokia-SiemensEricssonHuawei

3.7m (Sept)

2006

MTN

1 016 cities15 citiesCoverage

Nokia-SiemensTsystemsHuaweiEricsson

Nokia-SiemensSuppliers

16m active450,000 activeSubscribers

19932004Launch date

MCITaliya

6

Encumbent holding structure

TCI

• Privatisation anticipated• Envisaged draft licence expected

end of 2007

TIC

• Infrastructure company• Long distance

transmission links & international gateways

TCPs

• Provider of fixed line services on behalf of TCI

• Rely on TCI licences

MCI

• Provider of pre-paid & post-paid services

• Procures long links from TCI & utilisesinternational gateways

Taliya

• BOT providing pre-paid services

• Subs limited to 2 million

7

Licence

Period

Fees

Spectrum

Coverage

Tariffs

• Granted Nov 2005 • Renewable 2 periods of 5 years• Effective July 2006 • No self-provision of intercity infrastructure and• 15 years international agency rights

• Initial fee 300m€ • Regulation fee – 0.25% of revenue• Each contractual year 28.1% of revenue • Numbering fees

(min of 80% of B.P revenue) • Limited to 32%• Universal service fee – 3% of revenue

• 900 MHz• 1800MHz

• Year 1 - 50% population Year 2 - 56% of population Year 15 - 85% of population- 248 towns - all provincial cities- 1000km of road - 4 423km of road

• Maximum premium of 20% on TCI (MCI) tariffs

8

Operational structure

Board of Directors

Human ResourcesSaeid Khak

Rah

ProcurementRahimi Rad

FinanceFerdi

Moolman

Internal Audit(vacant)

Corporate Services

Rizza Fazli

Legal and Regulatory

ThekoMabone

MarketingLarry Annetts

Chief Operating

officerJyoti Desai

Sales & Distribution

SaeidSameti

Capital Program GroupMartin

Lamprecht

Chief Technical

Information Officer

Ali AsgharEinipour

Managing DirectorAlireza Dezfouli

9

Highlights

Subscribers/ARPU • Subscribers at 3.7m Sep 07

• Up 88% from Jun 07

• Currently gaining approximately 50% of new connections

• ARPUs remained relatively consistent due to high incoming minutes and usage stimulating packages launched in Jun 07

• Interconnection agreement ongoing

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

Mar-07 Jun-07 Sep-07Closing base

$10.0$10.76

$11.0

ARPU

n/a(181)mEBITDA

n/a165%Capex/ Revenue

n/a431mRevenue

Jun 2006Jun 2007ZAR

10

Infrastructure

5.6mTotal expected active subscribers

50%% Population covered

2,846Total number of BTS’s

1,423Total number of sites

50Total number of BSC’s

5Total number of MSC’s/ MSC-S’s

Aug2007

Technologybenchmarks

3%% land

11

Rollout plan

18%

3%

63%

3%

13%

NSS VAS BSS TX Other

Anticipate spending 75% of budget • Split architecture

• 3 core locations provides resilience

• Tehran (x2) & Esfahan

• IP core and backbone provides ready upgrade path to converged services and 3G

• Capex R2 863m

• Pursuing ISP licence and Dark Fibre

12

Distribution

5%

31%

4%

7%

45%

8%

FMCG Distribution GSM Retail

Handsets Training

Internet Internet Café

Distribution channels

13

Handsets StarterPacks

AirtimeSales

Post PaidAcquisition

Post PaidPayments

Distribution

• Improved distribution channels (3 900 dealers, service centres in more than 180 cities)

1MTN

2Handset

Distributors

3Consumer Electronics

4Services Sector

5Retail

High

Medium

LowNo bundle option

available

14

MTN Irancell:

Call Center• 24/7 call center with expert agents• Single Service Portal provides agents with instant access to customer account management systems

Provides country wide serviceReduces time to address customer needs

Self management• IVR and USSD

• Customers can place requests anytime, anywhere

• E-Care• Customer account management portal

Call center load reductionBill issuing and cost reduction

Dealer Portal• SIM swap• Issue bills• Registering customers• Change of ownership• Activate / De-activate VAS

Country wide network of service outletsCall center load reductionBill issuing load and cost reduction

15

Voice proposition

Flat competitive rates for national callsCompetitive proposition as competitor charges extra for distant calling and national roamingAttractive for fix to mobile migration

Provides best value for usage

Talk for 30 minutes and pay the first 3 minutes of call

Irancell has seen an increase in calls longer than 3 minutesIncreased loyaltyDrive subscriber acquisition

Innovative subscription packages

Opening new segments and attracting high value customers and youth segmentIncreasing ARPUHigh adoption rate

Standard per second billing – no round up charges

16

Data proposition

GPRS for all customers• No charge for being on line – only for data

exchangeInnovative for Iran marketEnabling email solutions

• Data SIMS enabling SMS• Special rates

Addresses demand for telemetry and tracking usesExpanding GPRS usage~4,000 Data SIM subs after 5 weeks of launch

Segment plans caters for different levels of data usage

Unique SMS serviceStimulates adoption of boostersPush on-net SMS and communitiesGenerates 50% of total SMS

Vitrain content portal• Enables customised ring tones, phone or gift

content

Stimulates GPRS trafficEnables eCommerce and micro payments

17

Looking forward

• Demand for new innovations

• Large addressable market

• Significant MTN experience

• Youthful population

• MTN competitive and agile

• Underdeveloped legal / judicial environment

• Reliance on third party transmission

• Unpredictable and high profile political environment

• Entrenched competitor

• US embargo

ChallengesOpportunities

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