presentation to an operator
TRANSCRIPT
August 08
CellNet Solutions Ltd.
2Introduction
• What we do• We provide public cellular payphones for population
segments covered by cellular networks but unable to afford handsets
• What we offer• A compelling value proposition to our cellular service
provider partners: Operators broaden their urban and semi-urban customer base (e.g., Telefonica, Hutchison)
• Robust business model • Alignment of interests with operators based on revenue
sharing or partnership agreements• Road map for new value-added services beyond
telephony
3Cellular Penetration
• >95% of developed country population are cellular subscribers
• >75% of population cannot afford a handset• Poverty not decreasing• Low penetration rates despite massive
investments• Hence enormous payphone-based business
opportunity
4Our Mission
• Convert random, unidentifiable, payphone users Convert random, unidentifiable, payphone users into cellular service subscribersinto cellular service subscribers• Give payphone users individual telephone numbers & Give payphone users individual telephone numbers &
convert them from one- to two-way communicatorsconvert them from one- to two-way communicators
Emerging Countries Pre
CellNetS
Emerging Countries Post
CellNetS
5 SimPhony System
• Airtime authorization• Activation / De- activation• Fraud Management • Tariff changes• Software updates• Billing• Prefix set up• IMSI range
SimPhony Phone
(low cost device)
SimPhony SIM card
(personal phone number & advanced services)
SimPhony NMS (handles multiple operator business models and marketing
campaigns)
6
• In-shop, indoor, public pay phone• Dual mode
•Coins (multiple denomination) or Cash to Shop Owner•Prepaid SimPhony external SIM cards
• Quad band; GSM or CDMA; GPRS/data connection enabled
• YAGI antenna extends coverage (15-25km)• Multi power connections: battery, solar, electricity• Displays number called, duration, charge• Remotely controlled by the NMS• Interchangeable Prefix Table or AOC (Advice of Charge)
SimPhony Phone
Beyond cash-on-spot: payphone that Beyond cash-on-spot: payphone that accepts personalized prepaid SIM cardsaccepts personalized prepaid SIM cards
7
SimPhony SIM CardBenefits to end user• Personal phone number (“Number for
Life”)• Get & retrieve SMS (text) messages, VM• Micro payments, cash transfers• Data and GPRS services• Convenient
Unique benefits to Shop Owner• More services => more customers• Revenue from sale of cards & airtime• Revenue even if card purchased elsewhere• New income sources: cash transfers,
lottery, etc. Only from Only from CellNetSCellNetS
8Value Proposition to the Operator• Create differentiation and fortify brand• Increase network utilization, market share and
revenues via payphones that can accept prepaid external SIM cards
• Convert unidentified, random, payphone users to subscribers; create new customers
• Remotely manage tariffs & respond to demand trends • Provide higher satisfaction levels for shop owners• Expand network reach with SimPhony’s powerful
antenna• Be the first to identify “heavy users” – handset
candidates• Expand network of top-up POS for prepaid handset
customers • Develop a path to future value-added services
9Value Proposition to Shop Owner
• New entrepreneurial opportunity• Install an indoor payphone at low cost• Offer customers lower airtime tariffs• High revenue per payphone • Share payphone revenue• Increase general customer traffic • Repeat payphone customers • Enables “unattended” phone
10 Value Proposition to End User / Subscriber• Get a phone number for without buying a handset• Keep the number for life even when migrating to
handset• Receive messages, not just make calls (2-way
communicator)• Receiving party can identify you as the caller• Lower airtime tariffs• Transparency• Fewer dropped calls• Advanced features: VM, SMS, address book, etc.• Value-added services - data applications
11Future Product & Services Roadmap
New Generation phone currently undegoing tests• New CDMA /GSM phone (interchangeable) • Internet over GPRS Capabilities • Optional magnet card reader and printer (Q4/08)
2008 roadmap2008 roadmap
Home Based phone – development being completed• To serve as a multi-user family phone• Gives each family member an individual phone number • Enables control over family members spending• Provides privacy for voice mail and SMS
Remote control activation • Allows Store Owner to control payphone without disruption of other business• Enables preset limit based on pre paid amount hence less fraud by end user
12Future Product & Services Roadmap
Data applications• Enable DATA connection to Internet• GPRS services• Fax capability• Hot keys
InternetInternet
Micro Payments• Immediate opportunity – loading airtime on handsets • Money transfers – store owner as mini ATM• Lottery
WiFi & WiMax• WiFi-based VoIP payphone enabling voice, video and data• WiMax-based payphone (W-CDMA)
2009 roadmap2009 roadmap
13SimPhony
OperationsOperationsSri Lanka
Mali
Mexico
14Operations have demonstrated that:
• Our basic payphone service is viable• Our revenue sharing template works• With cellular operators• With local store owners
• Our SimPhony SIM card concept is highly attractive • Cellular operators (small to Tier 1) are enthusiastic
& prepared to commit substantial resources• Enables “unattended” phones at retail outlets,
chain stores etc.
15CellNetS Differentiation
• Personalized SIM cards•Managed payphone that accepts personalized SIM cards•Telephone numbers to users who cannot afford handsets•Converts users from one- to two-way communicators•Enhanced value-added services
• NMS – Network Management System•Adapts to an operator’s business model•Interfaces with operator’s systems•Tracks airtime for payphones accessed by multiple external
SIM users•Remote segmentation & tariff updating of selected payphones •Remote software updates and bug fixing
16
Summary
• Random and unidentifiable users become members of the operator’s subscriber base • Early identification of potential handset
customers• Manage entire network of SIM card
operated public payphones • Powerful value propositions to partners &
end users• Tier 1 validation of our solution