Technology Overview Martin Lamprecht Special Projects Agenda - - PowerPoint PPT Presentation

Technology Overview

Martin Lamprecht Special Projects

Agenda

2

• Group technology vision and strategic objectives
• Equipment price trends, rationalisation of vendors
• Voice and data technology needs
• Shared services and outsourcing
• Global carrier services
• Evolution of technologies to accommodate ICT

To pro-actively support MTN to become a leading convergence player in emerging markets by becoming an agile and service centric organisation that utilises relevant technologies to create business value while improving cost efficiency.

3

Group technology vision

• Strategic technology and guidance on

products and services

• Transformational change and ad-hoc

problem solving

• Knowledge and expertise transfer

Opco support

• Standardisation for ease of product launch

and additional services

• Strategic partnerships with vendors and

key suppliers

• Facilitation of infrastructure and

maintenance sharing

• Identification and implementation

strategies for capex and opex efficiencies

Operational efficiencies

4

Group network snapshot Key countries

South Africa Nigeria Ghana Iran Syria 2G sites 6 514 6 745 2 118 7 300 2 732 3G sites 2 873 1 808 779

• 515

2G coverage (population) 98% 85% 78% 78% 99% 3G coverage (population) 55% 24% 29%

• 10%

Wimax No Yes No Yes No BH Erlang 244k 492k 184k 396k 71k Gateway Licensed Licensed Licensed Restricted Restricted Fibre (km) 2 500 8 500 2 220

• Cable landing

stations EASSy, WACS WACS, Main1 WACS

Key vendors

5 2011 Vendor Landscape South Africa Nigeria Uganda Cameroon Ghana BSS/RAN Ericsson Ericsson Ericsson Ericsson Ericsson Huawei Huawei Huawei Huawei Huawei Core Ericsson Ericsson Ericsson Ericsson Ericsson Transmission/Packet Switches Cambridge Ericsson Ericsson Ericsson Ericsson Aviat Aviat Huawei Aviat NEC NEC Nera IN/ Billing Platform Ericsson Ericsson Ericsson Ericsson Ericsson

Multi vendor approach in the IT and networks area’s ensuring pricing and technologies are suitable for emerging markets

41 37

35 36 37 38 39 40 41 42

2009 2010

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Price erosion and aggressive negotiation

Implementation of additional saving levers is underway and will bring additional benefit in the next year:

• Optimise pricing model and business model in place
• Allow transfer of assets across OpCos to optimise utilisation
• Optimise forecasting and planning tools
• Increase supplier cost transparency during negotiation

2G

• 50% p.a.

HW

39 39 123 73 222 94 SW HW

• 27% p.a.

2009

SW

2010

31

2008

29 39 16 37 24

3G

• 12% p.a.

Quick wins Long term achievements

Capex spend reduced by 30-50% and opex spend by 10-15% in 3 years

CAPEX Spend- RAN Example USD M OPEX Spend- SLA Example USD M

Voice evolution

• Voice revenue still approx 90% of total revenue (including interconnect)
• Main driver for subscriber growth
• Enhanced offerings
• Downward pressure on price per minute
• Increased MOU (elasticity)
• Declining ARPU’s (as penetration increases)

Voice traffic trends

• Employing coding schemes – AMR half rate
• Capture a larger volume of voice on 3G; 30-40% less spectrum needed than on 2G
• Proprietary solutions
• Introduction of HSPA allowing for more efficient voice calls on circuit switch mode and VOIP
• Actively pursuing international VOIP peering opportunities
• LTE trials
• Interfacing traditional voice call infrastructure to becoming seamless and infinitely adaptable

Evolving the network for voice

8

Data trends

• 3G network launched in 9 ops
• Driven by smartphones / tablet devices
• Data revenues and traffic decoupled
• Sufficient spectrum is a stumbling block for

expansion

• Data pricing is key
• Apps shift power balance from carrier to

apps developer

• Difficult to match fixed line operators

2037 435 117 55 161 753 3558

3.6 0.8 0.2 0.1 0.3 1.3 6.3

1 2 3 4 5 6 7

500 1000 1500 2000 2500 3000 3500 4000

South Africa Nigeria Iran Ghana Syria Other Group

Data revenue (R’000) / % rev

Voice dominant Data dominant Traffic Revenues & Traffic decoupled Revenues

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Data technology evolution

• Invest in flexible, scalable and profitable

flat architecture

• 3GPP specification to ensure max traction
• Wimax only employed where no 3G licence
• Radio spectrum optimisation
• Evolve and modernise SDR platforms
• LTE trial in SA
• New generation fibre transport networks

50 100 150 200 250 300 350 400 450 0.1 1 10 100 1000 Relative costs (Dimensionless) Traffic in Mbps/km2

EDGE HSPA 7.2 900 HSPA 7.2 2100 HSPA 42.2 DC 2100 LTE 10+10 1800 FTTH

GSM EDGE 3G/HSPA HSPA+ 21/42/84 LTE

Technology migration will be driven by economic considerations through ABC simulation of TCO

Wimax

a b c d e

Still be be standardised

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Service delivery platform

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Convergence evolution

Prepaid Rating/ Balance control Postpaid rating / Credit management Billing & Invoicing ERP CRM

• Billing and invoicing for all

services;

• Converged invoice – multiple

service lines

CRM

Prepaid Voice/ Data Prepaid rating

CRM

• All services rated & charged in

real-time;

• Real-time credit control available

to all;

• Avoidance of bill shock;

Legacy Rating/Billing System CRM Legacy Rating/Billing System

• Postpaid fixed line

Prepaid customers Converged customer view Allcustomers

CRM

Postpaid customers

Converged Invoicing

Postpaid rating Voice / Data

Prepaid voice/data, Postpaid Data

Existing prepaid Services Support for hybrid models Any new service rated in real-time Voice / Data

Converged Charging

1 2 3

Convergence evolution

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• Two years ago: -Silo based charging & rating, customer management and Invoicing

and billing time discounts for postpaid customers;

• Transition step:-
• moving new services and postpaid data services to real-time charging. Provide customers with

ability to control their spending e.g. monitor their data usage in real-time

• Unified customer management – prepaid and postpaid customers managed in a single platform
• Converged/ centralised charging for all services: -
• All services charged in real-time
• Product portfolio extension to all –prepaid/postpaid/ fixed/ WiMax
• Customer choice in a payment method – elimination of billing shock

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IT shared service Benefits of implementation L E V E R S

• Leveraging economies of scale (Same product at a lower price)
• Efficiency – specialisation
• Economies of skill – Type of competencies required
• Unified governance structure

Consolidation & Diversification

• Improving services levels, quality and performance
• Increase productivity
• Consistency of operational processes
• Reducing operational complexity and resources
• Efficient operating model

Standardisation

• One global organisational structure
• Optimises the governance of the structure
• Streamlining of operations

One Way of Working

• Facilitate information, knowledge and experience sharing
• Foster collaboration
• Implement best practices
• Avoid reuse of assets and duplication of efforts

Create a new IT Shared Services Culture The implementation of the new pilot IT Shared Services Organisation in SEA is deriving the following levers, which will result in the benefits listed below:

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IT shared services evolution

With the implementation of the new IT Shared services organisation, there will be major changes in the way of working at the OPCO level. Theses changes have been summarised below:

“AS=IS” “TO=BE”

Services within IT Business Varied IT Services provided at an OPCO level Only application support services provided at an OPCO level Reporting Lines within the IT Department Each OPCO was a stand alone organisation and

• perated autonomously

IT Shared Services Or. is centralised and OPCO IS report into the HUB Governance structure within IT Department Used to have their own governance structure Global IT Shared Services Governance structure Relationships & interactions with Vendors Relationship was established at an OPCO Level Standardised/global approach for the IT Shared Services org.

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Submarine cables investment

• Address the internal growing demand and supply gap in international broadband capacity via self-

provision over shared infrastructure

• Long-term value enhancement to shareholders and customers

Strategic intent

• EASSy (East African Submarine Cable System)
• Europe-India Gateway (EIG)
• West Africa Cable System (WACS)
• The East African Marine System (TEAMS)
• Long-term leases on other cables, incl. SAT-3 (Back to back)

Cable consortia participation

• Current
• STM1 Units:

> 1,300 (200Gb)

• Design
• STM1 Units:

> 15,000 (2.3Tb over next 15yrs)

MTN capacity ownership

• All Opcos to access capacity (excl. where regulatory restrictions exist)
• Abundant capacity over resilient links around Africa and Middle East, to

global peering points

• Limited reliance on third parties
• Cost significantly lower than market prices

MTN operations benefiting

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Submarine cable investment

• Ownership in EASSy & TEAMs, EIG & WACS
• IRU capacity (indirect) ownership on SAT-3/SAFE
• Multiple cross-connect points between systems to create “Y’ello Africa Fiber Ring”

MTN network cross-connect points between submarine cables

WACS

• Ready Q1, 2012
• 5.12Tbit/s capacity
• 500 Gbit/s initial capacity
• MTN share approx 12%

SAT-3-SAFE

• Operational (max 320 Gbit/s)
• MTN purchased 10m MIU/km (approx 10Gbit/s)

MTN WACS Landing Stations

• Cameroon
• Nigeria
• Ghana
• Cote d’Ivoire

TEAMs

• Operational
• 1.26Tbit/s capacity
• MTN has approx 2.5 -5%

EIG

• Partially Activated Jan’11
• 2.88Tbit/s capacity
• MTN has approx 8%
• Partial activation Feb’11,

permitting Egypt crossing,

• 2 systems north & south
• Full activation exp. 4Q12

EASSy

• Operational
• 3.82Tbit/s capacity system
• MTN has approx. 16%
• OPCOs guided by MTN

Group exploring “small” capacity purchases on

• ther cables:
• WECA: Main-1 & ACE
• SEA: SEACOM & TEAMs
• MENA: New cables (still

confidential)

• OPCO’s access to the MTN

capacity is through MTN GCS IRUs offering end- to-end capacity provisioning from CLS to London/ Amsterdam PoP

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Roaming services

Expected benefits

• Benefit from larger volumes in negotiation
• Offer a one stop-shop to roaming partners
• Boost roaming profit by decreasing IOT
• Extend roaming footprint
• Support for smaller OPCOs to obtain

agreement(s)

• Seamless testing
• Speed up roll out of roaming agreements

for all MTN Opco’s

Int’l roaming partners*

* illustration of partners

Roaming Alliance MTN Opcos 3rd-party MNOs Alliance Key functions

• IOT negotiation for Group

and/or Alliance

• Management of traffic

steering

Alliance set-up preferred agreements with key international partners

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Central roaming evolution

MTN OpCos

VAS

Expanding Roaming Footprint

Introduction of MTN Roaming Hub with expansion roaming services with all MTN Affiliates Activate partners to MTN Seamless Roaming platform enabling Local Recharge

Growing Roaming Alliance

Connecting Africa partners to MTN Roaming Hub expanding alliance Strengthen Alliance by connecting Strategic RoW partners to MTN Roaming Hub

Emerging markets Africa Networks

Increase Business Opportunities Int’l Remittance Procurement

Voice SMS 3G GPRS

(Data)

CAMEL

Smart Call Assist Smart Call LoR

Peering with Roaming Hubs

VRS, Link2One, Comfone

One stop shopping to internal and external partners

• Seamless testing
• Centralise resources

• CT Centric vs IT centric
• Horizontal vs Vertical
• Solution Partnert

Depending on market and

• perator’s customer base:
• SME
• Large Corporation,

MNC

• Selective verticals

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Critical components for operator ICT transformation

• Service packaging
• Pricing & Bundling
• Customer Support
• Promotion
• Channel
• NETWORK: Fibre, HSPA; LTE
• Cloud enabled Data Centers
• SDP

, etc

Infra-structure Target segments Go to market know how ORGANISATIONAL CAPABILITIES

2

Service & solution roadmap

1 4 3

• Organisational Structure
• Competency: IT skills, SI, Industry

knowledge, etc

• Sales
• Process, etc

5

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Key attributes to ICT Strategy

ICT Strategy

Self-Service Capability Standardisation, Simplicity, Scalability Automation of Delivery Processes Open Service Architecture Measurable QoS and QoE Organisation & Governance Model

ICT technology strategy

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• Deployment of a scalable open architecture that can grow with customer demand and

new product and services

• Simplification of cloud service by standardising on technology, role of Open Source

versus OEM software and solutions

• Deployment of a OSS and BSS architecture using current and new system capabilities
• Automation of complex Provisioning and Mediation processes (non Telco elements,

disk, CPU, license consumption, QoS indicators, etc.)

• Establishment of a flexible billing capability that can accommodate fixed and usage

charging across the ICT product portfolio (NaaS, IaaS, PaaS, SaaS and Manage Services)

• Establishment of a Service Assurance framework (processes, systems and human

resources) that can support the required Service Level Agreements and QoS KPI

• Deployment of a robust Security framework, Security Audit Compliancy (3rd party

cloud integration)

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Global public cloud, regional data centre

Cloud DC Cloud DC Cloud DC

Global IP / MPLS

MTN Cloud Enabled Products IaaS, PaaS and SaaS Global IP/MPLS network that provides the Data Transport Layer for the cloud services Cloud Service Consumers (SME and Enterprise Customers) Regional Data Centres hosting the MTN Public Cloud

Thank you

Notice

The information contained in this document has not been verified independently. No representation or warranty express or implied is made as to and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or

• pinions contained herein. Opinions and forward looking statements expressed

represent those of the Company at the time. Undue reliance should not be placed on such statements and opinions because by nature, they are subjective to known and unknown risk and uncertainties and can be affected by other factors that could cause actual results and Company plans and objectives to differ materially from those expressed or implied in the forward looking statements. Neither the Company nor any of its respective affiliates, advisors or representatives shall have any liability whatsoever (based on negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation and do not undertake to publicly update or revise any of its opinions or forward looking statements whether to reflect new information or future events or circumstances otherwise. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.