MTN Business SolutionsAngela Gahagan - ThomsonManaging Director

Agenda

2

• Overview

• ISP / Mobile

• Integration / Innovation

• Business approach

• Looking forward

ISP vs mobile

3

Similarities Differences

ISP Mobile

Licences (IECNS & IECS) Sell it to IT and CTOSell to Finance and

Procurement Manager

Highly regulated Highly competitive Limited competitors

MTN Brand Sell complex solutions Sell packaged products

Product alignment going forward

Value proposition is largely around companies IT infrastructure

Value proposition is around mobile telecoms

Core IP networkMainly sell fixed line services

Sell mobile services

Same corporate customers and target market

Wimax spectrum Mobile spectrum

Global solutions Local solutions

Peering Interconnect

“Data” environment “Voice” environment

Corporate focus only (currently)

Corporate and consumer focus

Integration and innovation

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• When the purchase of Verizon happened it was decided to not to integrate the business into the Mobile operation

• Focused approach

• Agility

• Skills

• Customer Retention

• Achievements

• Market share in defined segment increased

• New Blue Chip customers

• Customer churn below 1%

• African solution

MTN Business Solutions

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Our differentiation is not the basic tin and wire

• It is the services, the knowledge and expertise as well as our relationships that will take us up the value chain

• This takes MTN Business from a commodity to a service provider where we differentiate from our competitors

• This is seen in the move between access and services new business, changed by 10% towards services year on year

Solutions not bound by geography or technology

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• MTN Business operates as a fully converged, turnkey provider, with an ability to offer business the largest range of Fixed Mobile Internet-Based ICT services on the African continent. Designing a 360° communication solution for business is MTN Business’ core expertise, with solutions that include the following, amongst others:

• Fixed and mobile internet access

• Networking of company branches (MPLS Network)

• Highly secure firewall, anti-spam and anti-virus system security

• Data Centres for the hosting of your Private, Trusted and Hybrid Cloud Solutions such as your website and applications

• Unified Communications & Collaboration that includes VoIP, Managed IP-PBX and Contact Centres, Video Conferencing and mobile voice options

Solutions not bound by geography or technology

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• Many decisions on communications providers are made at head offices that do not have a physical MTN office

• Or to connect to countries where MTN

MTN has a presence as an ISP Namibia and Kenya and offers solutions to countries where there are not physical offices

We are global, delivering solutions Worldwide

MTN Business Services in Africa

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• Currently MTN supplies MPLS services for a Customer in the financial service sector connecting the following African countries using multiple Telco partners and access mediums (Fiber +VSAT)

South Africa Lesotho Malawi Kenya

Mauritius Namibia Swaziland DRC

Uganda Angola Botswana Zimbabwe

Tanzania Ghana

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We design, implement and maintain complex solutions

What services are required by our customers

10

63%

86%

58%

78%70%

54%

44%

89%

36% 39%43%

36%

Data services in use by corporate South Africa

Whilst internet access remains important, the spend in other areas are the future

Source: Corporate data use: change is coming, World Wide Worx

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We also have to define who will use our different product groups

Access

ConvergedCommuni-

cationsInfrastruc-

tureManaged Services SaaS Security

What it is

• ADSL or 3G• Remote

access• Satellite• Managed WAN

optimisation services

• Internetdedicated

• MPLS VPN• Private IP

Metro Ethernet

• Voice trunking• FMC• Managed IP

PBX• Unified coms

• Server virtualisation

• Virtual storage• Managed

hosting• Collocation

• Pro-active monitoring

• Total outsourced IT

• Hardware / back-ups

• Infrastructure and application monitoring

• Hosted back-up

• Fax to email• Hosted

messaging and collaboration

• Managedradius service

• Internetmanaged scanning services

• Managed firewalls

• Authentication• Certification• Total

outsourced solutions

Estimatedmarket size(Enterprise Market )

R8.3Bn

Mobile voice: R18Bn

R2.1Bn R3.6Bn R3.5Bn R2.95BnFixed voice: R18Bn

PABX: R3.2Bn

Enterprise √ √ √ √ √ √

Corporate √ √ √ √ √ √

SME √ √ √ √ √ √

The “outsourced” services (Infrastructure / Managed Services / SaaS / Security) need rigorous SLAs and very robust internal systems to be successful

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Price is important, quality and competencies even more so

5

18

77

3

17

79

2

16

81

0

10

20

30

40

50

60

70

80

90

Neutral Important Very important

Most important factors in purchase decisions

Price Maintenance Quality of product / service

6

2220

8

23

66

8

22

68

7

24

67

5

26

68

0

10

20

30

40

50

60

70

80

Neutral Important Very important

Secondary factors

Lack of downtime

Reputation of brand or supplier

Company procurement policy

Functionality (range of products / services on offer)

Convenience

An independent survey's results support the conclusions reached in our Unique Selling Proposition (USP) development

Key focus areas

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• Top 500 Enterprises

• Penetrate SOE / Government

• Multinational approach (international & Africa)

• Industry Vertical Value Enhancing Partnerships (SI’s, 3rd Parties & ICT)

• SME Growth Plan Enablement

• Consolidated Business Model Approach (MTN Turnkey Solutions)

• Unique Selling Proposition (USP) already developed - oriented around the Product and Customer Experience

• USP differentiates us from competitors on a proposition apart from Price

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Where we are heading…

Our Plan

• To build a Continental Cloud that will deliver services to Multi National Organisations

• To build a single network across the continent

• Provides Multi Nationals with a common service and experience on key services such as VOIP, Hosting, Security etc. across the entire continent

• Centralised Support Services (ITSM, ITIL and NOC/SOC)

• Regulatory Environment dependent

• Our Infrastructure and in-country resources are key differentiators

SAFE

EASSy

SAT3 / WACS

EIG

SAT2

SEACOM

Our footprint already exists and makes us ideally positioned to provide Cloud Based Services on the Continent

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Bringing IP and GSM togetherUniPresence

• Customers are already deploying apps to call over IP on their mobile devices

• MTN has developed a solution bring IP & GSM together

• Single number, single mailbox, single device

To increase subscriber numbers, it is affordable to now target corporate’s whereby employees can now get a single number

Thank you

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Notice

The information contained in this document has not been verified independently. No representation or warranty express or implied is made as to and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Opinions and forward looking statements expressed represent those of the Company at the time. Undue reliance should not be placed on such statements and opinions because by nature, they are subjective to known and unknown risk and uncertainties and can be affected by other factors that could cause actual results and Company plans and objectives to differ materially from those expressed or implied in the forward looking statements.

Neither the Company nor any of its respective affiliates, advisors or representatives shall have any liability whatsoever (based on negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation and do not undertake to publicly update or revise any of its opinions or forward looking statements whether to reflect new information or future events or circumstances otherwise.

This presentation does not constitute an offer or invitation to purchase or subscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.