mena region abdallah homsi
TRANSCRIPT
MENA RegionAbdallah Homsi
MTN Syria CTIO
2
Middle East & North Africa (MENA)Footprint
63%8,025Total MENA
+ 16%2,592Syria (1)
+ 1188%1,983Iran (2)
+43%1,523Sudan (3)
+ 12%1,301Yemen (4)
+142%527Afghanistan (5)
+ 30%99Cyprus (6)
Growth % from Dec06Jun 07
Subscriber numbers (m)
+3% pts19%Mobile penetration
1.7%181mPopulation
17 %% to Group
1
2 5
3 4
6
3
Middle East & North Africa (MENA)Overview
• Strong subscriber growth
• Iran
• Afghanistan
• BTS Sites: 8,132
• Timely rollout in Iran, Sudan & Afghanistan
• All successfully MTN branded
4
Middle East & North Africa (MENA)CAPEX Rollout plan
36
75
64
353
206
2,149
Approved or committed
at30 Jun 2007
91
166
56
492
242
714
Actual6 months ended
Jun 2007
126Cyprus
288Afghanistan
82Yemen
839Sudan
451Syria
2,863Irancell
Approved or committed to31 Dec 2007
Rm
MTN Syria green field site
5
Middle East & North Africa (MENA)Regulations and licences
• 900 MHz• 1800 MHz• 3G
• 21m€• 20 Years
• Dec 2003• 20 Years• Renewable thereafter
Cyprus
• 900 MHz• 1800 MHz
• US$ 40m• 15 Years
• Oct 2005• 15 Years• Renewable for additional 10
years
Afghanistan
• 900 MHz• E-900 MHz
• US$10m• 15 Years• No revenue share
• Jul 2000• 15 Years• Renewable thereafter
Yemen
• 900 MHz• 1800 MHz
• US$150• 15 Years• Profit share 2.5% from PAT
• Oct 2004• 15 Years• Renewable thereafter
Sudan
• 900 MHz• 1800 MHz
• Upfront US$20m• Revenue share:
Year 1 to 3 - 30% Year 4 to 6 - 40%Year 7 to 15 - 50%
• Jun 2002• 15 Years BoT contract• Renewable, 3 years at discretion
of licencing authority
Syria
• 900 MHz• 1800 MHz
• Initial fee 300m€• Each contractual year 28.1%
• Nov 2005• 15 Years• Renewable 2 periods of 5 years
Iran
SpectrumLicence fees(High level)
Period
6
MTN IrancellMarket dynamics
• Strong subscribers growth >3.2m in August 2007
• Improved distribution channels (3900 dealers, service centersin more than 180 cities)
• Growing content business through GPRS
• Pursuing ISP licence and Dark Fibre
• New licence permitted to be issued from July 2008(2 years exclusivity)
Market share 12%
Launched Oct 2006
Market sizing46.3m (2011)
Shareholding 49%
Penetration24%
Population70.7m
7
MTN IrancellInfrastructure
5.6mTotal EOY 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
8
MTN IrancellRollout plan
18%
3%
63%
3%
13%
NSS VAS BSS TX Other
Anticipate spending 75% of budget
TehranCall Centre and Network Management Centre
9
IrancellLooking forward
• Demand for new innovations
• Large addressable market
• Significant MTN experience
• Youthful population
• Underdeveloped legal / judicial environment
• Reliance on third party transmission
• Unpredictable and high profile political environment
• Well positioned competitor
• US embargo
ChallengesOpportunities
10
Market share 45%
Launched Feb 2002
Market size8.6m (2011)
Shareholding75%
Penetration30%
Population19.1m
MTN SyriaMarket dynamics
• Extensive 2G network quality and customer service
• More than 3000 dealers ensuring reach to all regions
• 3G trials in 2 main cities
• Internet penetration of 7% growth limited bandwidth and poor infrastructure
• Shortage of skilled resources
• Acceptable transmission and now power infrastructure
• Supplies available locally, no restriction except the US embargo
11
MTN SyriaInfrastructure
2.9mTotal EOY active subscribers
98%% Population covered
2,763Total number of BTS’s
2,035Total number of sites
32Total number of BSC’s
14Total number of MSC’s / MSC-S’s
Aug2007
Technologybenchmarks
77%% land
12
MTN SyriaRollout plan
55%
29%
16%
EquipmentCivil work for NWCustoms & stamps fees
Anticipate spending 80% of budget
MTN Syria challenges
13
SyriaLooking forward
• Growing market
• Data services
• ISP licence, VoIP, Wimax
• BoT conversion to licence
• Entry of 3rd operator
• Managed market share
• Well positioned competitor
• US embargo
ChallengesOpportunities
14
MTN SudanMarket dynamics
• Strong competition
• 2 GSM operators – 3rd operator by mid 2009
• 1 CDMA operator
• Improved market share to 29%
• 3G service launched in greater Khartoum
• Aggressive launch of new products
• Per second billing, 3G data cards, voice sms, credit transfers
Market share 27%
Launched Sep 2005
Market sizing 12.5m (2011)
Shareholding85%
Penetration15%
Population37m
* Till Aug 2007
15
MTN SudanInfrastructure
2.2mTotal EOY active subscribers
42.25%% Population covered
1,053Total number of BTS’s
840Total number of sites
38Total number of BSC’s
4Total number of MSC’s / MSC-S’s
Aug2007
Technologybenchmarks
3.08%% land
16
MTN SudanRollout CAPEX 2007
36%
64%
Telecom equipment & IS
Site construction
Anticipate spending 100% of budget
MTN Sudan VSAT
17
SudanLooking forward
• Rapidly developing market
• Coverage expansion
• Data services
• Strong competition – Mobitel, Sudani
• Rollout challenging in Darfour, South
• Possibility of additional operators
• Local skill shortage
• US embargo
ChallengesOpportunities
18
Funding
• Strong cash flow sufficient to cover CAPEX• Local capacity for additional funding120558Yemen
• Group funding• 3rd party project finance to replace in due course
• Group funding
• Strong cash flow sufficient to cover additional CAPEX• Purchase of forex a challenge• Limited local capacity• Group funding support
• Group funding• 3rd party project finance to replace in due course
• Group and vendor funding• 3rd party funding continues to be explored
Commentary
24164Afghanistan
12710Cyprus
4481,358Syria
845640Sudan
2,863Iran
CAPEXEBITDA*Rm
* 6 months to Jun 07 x 2
1919