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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
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PRESENTATION
ALIEU BADARA MOHAMED CONTEHCHAIRMAN
Vodacom - Congo(RDC)SPRLTel : +243 81 313 1400 +27 11 784 2288
Mob : +243 81 444 8888 +27 82 999 9902
Fax : +243 81 313 1405E-mail : [email protected]
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DRC inAFRICA:A uniqueconfiguration.Nine neighboringcountries
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DEMOCRATIC REPUBLIC OF CONGO
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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
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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
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DRC is a country blessed by Nature, considering its unlimited natural resources, spread in all over the country; among that:
• Copper• Cobalt• Coltan• Diamond• Petroleum• Gold• Uranium• Manganese• Tin• Iron
• Radium• Bauxite• Germanium• Silver• Zinc• Cadmium• coal• Timber• Coffee• Methane gaz
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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.
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INGA DAM
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Although blessed 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
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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.
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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.
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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)
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Hunting the mobile telephone signal: A public payphone on the tree in DRC
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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%
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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
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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
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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.
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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
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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
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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
2323
D9
Vodacom and Celtel
MSC
VODACOM CONGO (RDC) s.p.r.l.
A26
B16
A4
A10
A28
A21
A7
A14
A20
A13
A30
A8A23
A1A16 A11
A22
A15
A29
A27A5
A6
A12
A11
B6
B7
B22
B20
B2
B21
B5
B23
E10
E13
D13
E12
E9
E11
E8
E7
E4
E5
E6
E27
E37
E22
E20
E26
E23
E1
E25
E32
E14
F12
E31
E29
E17 E3
E15
E21
E16
E28
E19
E24
E18
E2
F7
F11
F9
F5
B14B15
B11
B1
F19
F17
F13
B12
F18
F10
F20
F15
F21
F22
F24
F23
B13
F16
F14
F4
F25
F3
F1
B17
B18
B9
B31
B30
B33
B26
B25
B27
B32
B8
B24
B28
C19
C6
C16
D21
C8
C17C10
C11
C7
C12
C23
C13
C24
D26
D4
D2
D20
D27
D18
D15
D10
D16
D14
D8
D11
D23
D25 D5
D6
D3
D12
D29
D22D7
D30D31D28
D1
D17
D19
D24
C14
C3
C27
C4
C26
C2
C25
C15
C21
C1
C29
D32
C22
C9
C5
C30
C18
(100)
C20
B4
A3A24
E30
E38
B34
E36
D25
Vodacom only
(C45)
F2
E33
Updated on 18th January 06
A17A9
B10
B29
A18
C21
D32
E34
C28
Co
vera
ge
Ro
llou
tMSC: 4
BSC: 15
Sites: 298
Towns: 184
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16.3%15.3%
Subscriber Closing Base
70
6,1
22
1,0
40
,81
4
1,5
70
,79
2
1,0
31
,82
8
700
800
900
1,000
1,100
1,200
1,300
1,400
1,500
Clo
sin
g b
as
e (
'00
0)
Closing base 2005/2006
Closing base 2004/2005
YOY growth
2005 – 32%
2006 - 52%
2525
Capital expenditure
32
3,1
10
68
4,5
71
11
7,6
10
38
6,5
71
44
9,2
86
51
9,3
81
59
6,8
95
28
0,4
68
22
6,8
09
171177
474
272
184193206206
339
160180200220240260280300320340360380400420440460480500
2003 2004 2005 2006 2007 2008 2009 2010 2011
$
Cumulative Investment ($ '000) Capex per subscriber ($)
2626
Traffic in Erlang
1,935,695
2,044,986
2,210,746
2,406,137
2,575,650
2,959,873
3,478,059
3,304,246
2,898,470
2,856,626
2,001,114
1,739,957 1,872,527
2,172,2952,150,0662,170,477
1720000
2220000
2720000
3220000
Actual
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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
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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%
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Democratization of the telephone: the voice of my son!
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VodacomOne Nation One
NetworkThank You