Bundling of Service “Converged Products &

Services”

See the following:

Customer Base Growth TrendRevenue Growth TrendChurn Rate TrendActive / Inactive Trend

Background

No Customer Base GrowthNo Revenue GrowthVery Low Traffic Generation to On - NetChurn is Growing Everyday

Now, what should we do???????

Observations

PART A: PPA Bundles

Voice and Data

IntroductionPropose one shilling per second to all networksReflections on current situationProposed bundle package (voice + data)Projections and market volume estimatesProposed PPA voice packagesProjections and market volume estimates

Contents

Campaign aims at:Promoting Prepaid Fixed VoicePromoting Prepaid Mobile VoiceExtending Prepaid Fixed DataPromoting of FONC (Fixed Off Net Calls)Use of Convergence Billing System

Introduction

VandalismPoor after sales support / Fault attendanceNo customer satisfaction survey (KYC)Dialing planMarket dynamics FMPPPoor market initiatives

Reasons

Promote PPA on – net callsPromote PPA off – net callsExtend PPA Data – NetworkIntroduce sales dynamics through KYC

Campaign

There are two proposed packagesPackage one to target residential PPA usersPackage two to target SME/SOHO PPA usersMonthly unlimited on – net callsPPA voice & data bundlingReduced off – net calls price planOut of bundle calling is TZS 1 / Second to all

networks

Proposed Packages & Assumptions

1.Kasheshe Pack Unlimited on – net calls + Data unlimited /

volume based package

2. Chizika Pack Unlimited on – net calls + Reduced off – net

calls + Data unlimited / volume based package

PPA Bundles

Group Name Region (s) Number of Region(s)

Group A Dar 3

Group B Arusha, Mwanza, Mbeya, Dodoma & Unguja

5

Group C The rest 19

Regions & Numbers

Group Name Each RegionMonthly

ActivationsQuarterly

ActivationsAnnual

ActivationsGroup A 70 210 630 2,520

Group B 30 150 450 1,800

Group C 20 380 1,140 4,560

Grand Total 2,220 8,880

Target on Activations (PPA Bundles)

Group Name Each RegionMonthly

ActivationsQuarterly

ActivationsAnnual

Activations

Group A 100 300 900 3,600

Group B 50 200 600 2,400

Group C 30 570 1,710 6,840

3,210 12,840

Target on Activations (PPA Bundles + Voice Bundles)

Assumptions:Kasheshe pack contribute 70% of ONSUChizika pack contribute 30% of ONSURatio of Existing vs. New acquisition is 2:1Off – net call minute is rated TZS 50For off – net call minute IR is rated TZS 35TTCL gains TZS 15 for every off – net call

minute

Projections

Period Activations Ratio Existing Customers

New Customers

Quarter 1 3,210 2:1 2,140 1070

Quarter 2 3,210 2:1 2,140 1070

Quarter 3 3,210 2:1 2,140 1070

Quarter 4 3,210 2:1 2,140 1070

Estimated Market Volume

Period Activations Fantasy Pack (70%) Favorite Pack (30%)

Quarter 1 3,210 2,247 963

Quarter 2 3,210 2,247 963

Quarter 3 3,210 2,247 963

Quarter 4 3,210 2,247 963

Forecasted Package Activations

Assumptions:Except favorite pack three, all other packages

Nduki is a preferred data packageKasheshe pack ratio is 4:2:1Chizika pack ratio is 5:3:1

Revenue Projections

Period Activations Ratio Pack 1 Pack 2 Pack 3 Rev in TZS

Q 1 2,247 4:2:1 1,284 642 321 186,180,000.00

Q 2 4,494 4:2:1 2,568 1,284 642 372,360,000.00

Q 3 6,741 4:2:1 3,852 1,926 963 558,540,000.00

Q 4 8,988 4:2:1 5,136 2,568 1284 744,720,000.00

Revenue Projections (Kahseshe Pack)

Period Activations Ratio Pack 1 Pack 2 Pack 3 Rev in TZS

Q 1 963 5:3:1 535 321 107 238,877,500.00

Q 2 1,926 5:3:1 1,070 642 214 477,755,000.00

Q 3 2,889 5:3:1 1,605 963 321 716,632,500.00

Q 4 3,852 5:3:1 2,140 1,284 428 995,510,000.00

Revenue Projections (Chizika Pack)

PART B: PPA Bundles

Voice only

Package Type On – Net in TZS

Off – Net Minutes

Bundle Price in TZS

Kasheshe Voice

unlimited N/A 10,000.00

Chizika Voice 1

unlimited 300 25,000.00

Chizikae Voice 2

unlimited 450 32,500.00

Chizika Voice 3

unlimited 600 40,000.00

PPA Voice Packages

Assumptions:Kasheshe pack contribute 70% of ONSUChizika pack contribute 30% of ONSURatio of Existing vs. New acquisition is 2:1Favorite pack ratio is 3:2:1TTCL gains TZS 15 for every off – net call

minute

Projections on PPA Voice Packages

Group Name Each RegionMonthly

ActivationsQuarterly

ActivationsAnnual

ActivationsGroup A 70 210 630 2,520

Group B 30 150 450 1,800

Group C 20 380 1,140 4,560

Grand Total 2,220 8,880

Target on Activations (PPA Bundles)

Period Activations Ratio Existing Customers

New Customers

Quarter 1 2,220 2:1 1,480 740

Quarter 2 2,220 2:1 1,480 740

Quarter 3 2,220 2:1 1,480 740

Quarter 4 2,220 2:1 1,480 740

Estimated Market Volume

Period Activations Fantasy Pack (70%) Favorite Pack (30%)

Quarter 1 2,220 1,554 666

Quarter 2 2,220 1,554 666

Quarter 3 2,220 1,554 666

Quarter 4 2,220 1,554 666

Forecasted Package Activations

Period Activations Price in TZS Revenue in TZS

Q 1 1,554 10,000.00 15,540,000.00

Q 2 3,108 10,000.00 31,080,000.00

Q 3 4,662 10,000.00 46,620,000.00

Q 4 6,216 10,000.00 62,160,000.00

Grand Total 155,400,000.00

Voice Revenue Kasheshe

Period Activations Ratio Pack 1 Pack 2 Pack 3 Off – Net Rev in TZS

On – Net Rev in TZS

Q 1 740 3:2:1 369 246 123 52,920,000.00 26,460,000.00

Q 2 1,480 3:2:1 738 492 246 105,840,000.00 52,920,000.00

Q 3 2,220 3:2:1 1,107 738 369 158,760,000.00 83,790,000.00

Q 4 2,960 3:2:1 1,476 984 492 211,680,000.00 114,660,000.00

Voice Revenue Chizika

End Of Presentation

Shukrani