Michel Mansard

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Restricted - Confidential Information GSMA 2011

Lessons Learned from CPM

Michel MansardMay 2013


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Studies have shownthat a

increase in mobile penetrationleads to a 1.2% increase in GDP.

%10

6 billion mobile connections this year

91% of connections made using GSM technology

4 out of 5 new connections are made in the developing world

The largest underserved markets are in remote, rural geographies

Most people in developing countries will visit the internet for the first time

using a mobile phone

Africa is the fastest growing mobile market in the world, and is now the

second largest market based on number of connections

The Rapid Growth of Mobile is Enabling the Mobile forDevelopment Revolution

GSMA Mobile for Development Overview


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The opportunity exists to "skip a technologicalgeneration when it comes to energy, in much the way

that mobile phone technology reached manypopulations before they had access to conventional

phone technology.


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Energy is the backbone of the Mobile Industry

Over 3M mobile towers globally

Operators spend on energy is increasing: price/kWh + increased traffic

Energy is up to 40% of technical OPEX spend in emerging markets

640,000 off-grid towers in 2012:energy & diesel theft major challenges 548M off-grid mobile connections

Off-Grid subscribers spend up to $2 -$3 on phone charging

All VAS for rural areas have energy requirements


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Leverages mobile technology & infrastructure to provide accessto rural energy services while improving the business case for

network and tower operators



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Increasing GSM coverage is now reaching distant population where energy (and water) access canremain scarce

We estimates that the total number of people who could benefit from enhanced utilities to be 411 millionpeople for energy and 165 million for water

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Electricity Access

Clean Water Access %

Sanitation Access %

GSM Population Coverage

CSMAddressable

Markets

Energy

Water

Source GSMA,

World Bank, IEA


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Mobile can provide energy access through three channels


1. CPM from BTS infrastructure

(i) Outsource power solution to ESCo who sells communityenergy services or

(ii) Sell power from over-capacity of BTS power equipment (DG)

2. CPM from retail distribution network

Leveraging extensive rural sales dealer/ retail network for distribution or sale of charging/lighting devices through commercial partnerships

3. CPM from payment technology

Opportunity for micro e-payments: High volumes of smallpayments for off-grid domestic & small business energy

Potential impact on ARPU for off-grid customers is 14%+


8/12Restricted - Confidential Information GSMA 2011

Regulatory framework that supports CPM

Understanding community level energy needs & ability to pay

Accounting for diversity across geographies

Whos role is it to prove the business model?

Who should take the risk?

We need more than just CSR pilots: Access to R&D capital for large scaletrials (3rd party support)

Room to innovate & trial several business models before choosing a winner

Challenges CPM faces



Mobile infrastructure can support energy access initiatives: Inside the fence: Leveraging existing power equipment to provide services to the community

Outside the fence: 3rd party energy service companies can use the mobile tower as an anchor customer andprovide services to the community

Channel 1: Leveraging presence of mobile infrastructure to support Community Power

24/7 Power to tower

Example: OMC Power in India and Bharti Infratel

Leases product to customers Home delivery



Sales and distribution channels can support energy access initiatives: Providing customers phone charging services at retail outlets providing revenue opportunities for retail

entrepreneur Partnering with product companies for co-promotion and distribution

Channel 2: Leveraging distribution channels to support Community Power

Example: Fenix International and MTN Uganda



Micropayments can support energy access initiatives: Allows for flexibility of payments and remote transaction

Providing consumer financing to customers Other services can leverage business model (i.e. water)

Channel 3: Leveraging mobile money and e-payments to support Community Power

Example: M-Kopa and Safaricom


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Restricted Confidential Information GSMA 2011

Thank you

Michel Mansard

Michel Mansard

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