Transcript Vodacom in the DRC

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 CONTEH
CHAIRMAN
Vodacom - Congo(RDC)SPRL
Tel : +243 81 313 1400
+27 11 784 2288
Mob : +243 81 444 8888
+27 82 999 9902
Fax : +243 81 313 1405
E-mail : [email protected]
[email protected]
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DRC in
AFRICA:
A unique
configuration.
Nine
neighboring
countries
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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:
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Copper
Cobalt
Coltan
Diamond
Petroleum
Gold
Uranium
Manganese
Tin
Iron
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Radium
Bauxite
Germanium
Silver
Zinc
Cadmium
coal
Timber
Coffee
Methane gaz
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:
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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
To grow, DRC must
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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overcome
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,
obsolete
and
was totally
neglected.
This justified the option taken by the Government in 1988,
to open this sector to Private Investors.
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TELECOMMUNICATION OF DRC
IN JANUARY 2000
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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)
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
• 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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MILESTONES
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,
Subdealers, 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
squares,
protection
environment,
protection
endangered animals;
of
of
of
• 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
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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
NETWORK DEPLOYMENT
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200 CITIES COVERED
328 BTS
15 BSC
5 MSC
96 VSAT
3 EARTH STATIONS
STANDARD B
• 1
International
Gateway
•
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MW Back bone 1760
KM
MSC:
4
BSC:
15
B11
F2
B12
B1
F11
F18
F1
F9
F17
B13
Sites:
298
F19
F7
F20
F13
F4
F21
F16
F3
B14
B15
F14
F15
F23
Towns: 184
F24
F10
Coverage Rollout
B17
F25
E6
F5
(C
45)
E4
E2
E16
E17
B18
E3
F12
E18
E15
E34
B4
E32
E7
E21
E9
E27
B24
E20
E36
B5
B8
B32
E22
E23
E24
E25
E26
E38
E8
E28
E12
E33
B21
B10
B34
E31
E10
E37
E30
E11
E29
B2
C12
E14
B16
A16
A9 A10
A17
A1
A12
A14
A11
B25
B28
A11
B27
B22
A4
A5 A24A26
A8 A21
A28
A27
C17
C28
C1
A7
A30
A29
A6
C10
B26
A13
A18
A23
E13
C13
B23
B6
D13
C11
A20
C26
D32
C27
A3
D10
A22
C29
C8
C24
C4
D17
C16
C5
C7
B7
C21
C2
C23
C20
C25
C30
C9
C21
C15 C18 C19
D14
C6
C14
C3
D16
B20
B33
B31
C22 D15
B29
D1
B30
D32
D8
MSC
D11
D2
D18
Vodacom and Celtel
D25
Vodacom only
D12
D23
D21
D24
D4
D7
D20
D25 D5D19
D22
D26
D27
D3
23
E1
E5
E19
B9
(10
A15
0)
F22
Updated on
18th
January 06
VODACOM CONGO (RDC) s.p.r.l.
D6
D28
D31 D30
D29
D9
Subscriber Closing Base
YOY growth
2006 - 52%
1,500
Closing base 2005/2006
Closing base 2004/2005
1,300
1,200
1,000
16.3%
15.3
%
ar
ch
M
ec
em
D
Ja
nu
ar
y
Fe
br
ua
ry
be
r
r
be
ov
em
N
ct
ob
er
O
st
Se
pt
em
be
r
ug
u
A
Ju
ly
Ju
ne
A
pr
il
700
M
800
ay
706,122
900
1,031,828
1,100
1,040,814
Closing base ('000)
1,400
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1,570,792
2005 – 32%
474
339
272
519,381
596,895
684,571
171
449,286
177
386,571
184
2003
2004
2005
2006
2007
2008
2009
2010
2011
Cumulative Investment ($ '000)
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193
323,110
206
280,468
206
226,809
500
480
460
440
420
400
380
360
340
320
300
280
260
240
220
200
180
160
117,610
$
Capital expenditure
Capex per subscriber ($)
Traffic in Erlang
3,478,059
Actual
3,304,246
3220000
2,898,470
2,959,873
2,856,626
2720000
2,575,650
2,406,137
2,170,477
2220000
2,150,066
2,172,295
2,210,746
2,044,986
2,001,114
1720000
A
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1,739,957
1,935,695
1,872,527
4
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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)
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•
•
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Wireless local loop: 1(Sogetel)
Covered cities: >200
Subscriber basis: 3,900,000 subs
Penetration rate:6%
Democratization of the telephone:
the voice of my son!
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Vodacom
One Nation One Network
Thank You
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