Presentation of GrameenPhone

Transcription

1 Presentation of GrameenPhone Discussions with the Management Team August 22,

2 2 GP organisation Management Group

3 Management presentation - content GP Organisation Telecom industry GP history and milestones GP in Bangladesh GP strategy Sales and Marketing activities The GP network CSR and sponsorship activities The Village Phone Program GP financials 3

4 Telecom Industry 13% mobile penetration by 2007 Million subs E2005 E2006 E2007 Telecom Market Mobile Market Mobile penetration 1.4% 2.8% 5.7% 9.7% 13.3% Numbers from GP 4

5 Telecom Industry Mobile is dominated by GP 5% 6% 0.3% 27% 62% Numbers per Q

6 Telecom Industry Regulatory environment The Bangladesh Telecommunications Regulatory Commission, a statutory body, was formed in January 2002 It is trying to build competence and run projects with the help of ITU, World Bank and other international organizations 6

7 Telecom Industry Regulatory challenges Some PSTN operators are providing mobility by using WLL technology violation of licensing terms 37 licenses (to 9 companies) for different regions Interconnect agreement with BTTB (fixed and international operator) To obtain VOIP license for international capacity Awaiting BTTB to establish connection to sea cable Secure continuous free market pricing To work with Government to avoid any new subscriber based taxes (like the newly imposed SIM tax) To secure a level playing field and equal implementation of licensing terms Extensive support and synergies are achieved through the Telenor group in the regulatory area 7

8 GP in Bangladesh Large MNCs ,700 In Mn BDT 8,631 2,598 1,224 3, , Net Turnover Corporate Tax Net Profit after Tax GrameenPhone British American Tobacco Bangladesh Bata Shoe Co. (Bangladesh) British Oxygen Company (Bangladesh) 8

9 9 GP in Bangladesh Contribution to Government Exchequer

10 GP history and milestones Nov 96 Received license, 400k fixed lines in Bangladesh 4 shareholders Mar 97 Sep 99 Mar 00 Jun 00 Aug 03 Launched Village Phone and commercial services in Dhaka Launched the first Prepaid Service in the country US President Bill Clinton visited Bangladesh and Village Phone 100K customers 1 million customers Marubeni Corp, 9.5% Gonofone, 4.5% GTC, 35% Oct 03 First dividend payout Telenor, 51% 10

11 GP history and milestones (2) GTC, 38% Mar 04 Covered 61 districts (total 64) Apr 04 Established interconnect charging with other mobile operators Dec 04 2 Shareholders: 62% Telenor, 38% Grameen Telecom Dec 04 Sep 05 Dec 05 Obtained 1800 frequency license 4 million customers and growing fast 85% population coverage Telenor, 62%

12 GP strategy Telenor Mobile way - tools Strategy and business planning tools HR and management tools Common segmentation and products Reduced time to market Pricing strategies Benchmarking and brand management Distribution best practice Infrastructure management and procurement Benchmarking Large procurement synergies 12

13 Sales and Marketing activities Djuice a segmented product More than 300k customers A number of djuice branded activities Lifestyle Different! 13

14 14 Sales and Marketing activities Strong brand position corporate ads

15 15 Sales and Marketing activities Product and sales campaigns

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17 Sales and Marketing activities Prepaid customers - knowledge Traditional Scratch cards Cost efficient Scratch cards Electronic recharge For cost savings And more flexibility 17

18 Sales and Marketing activities Prepaid recharge cash economy January February March April May June July 300 Tk. 600 Tk. 50 Tk. 18

19 Sales and Marketing activities Best distribution competitive advantage Adjusting the distribution structure for cost efficiency and quality Controlling product delivery and securing transparent prices. Focus on the end seller Exclusive channels for some segments Sales channel focus and loyalty towards GP with strong Trade Marketing support Increased focus on regional sales and service organization 19

20 GP Network Best coverage in Bangladesh Population 36% Population 55% Population 85% 20

21 GP Network Introducing new technology Network Evolution (1) Introduction of Dual Band Capacity Enhancement Introduction of Data Evolution towards 3G type Customer based optimization 21

22 GP Network Introducing new technology Network Evolution (2) Countrywide coverage Extensive countrywide coverage Provide GP services every where all the time Capacity Focus on capacity expansion: New capacity sites Dual band network Optimize for better quality Business& Service focus Focus on targeted coverage improvement Indoor Coverage Highway Coverage Hot Spots Data Introduction (Edge Technology) Enhanced Customer focus 22

23 GP Network Extensive use of Dual Band sites 900 Coverage 900 only handsets Extended coverage Spill over traffic from 1800 band Both Voice & Data 1800 Coverage Capacity Traffic (Close to Site) Data Traffic 23 Example (overlay diagram and key principles)

24 CSR and sponsorship activities Funding various charitable activities Computers to schools and institutions Long term funding of orphanage Road beautification projects Raising funds for tsunami victims Earthquake Preparedness program A number of socio-cultural activities 24

25 25 CSR and sponsorship activities Sponsoring various sports

26 The Village Phone Program The Village Phone Program was started in March 1997 It provides telephone services in remote rural areas Currently 150k village phones in 50k villages 26

27 GrameenPhone financials Trends since 2004 Subs / Gross adds ( 000) Revenues / EBITDA % EBITDA and Capex 106.3% Subs growth 26.5% Subs growth 51.1% Rev growth 9.8% Rev growth 6, % EBITDA growth 0.9 % EBITDA growth 1,520 1,795 2,024 2,388 2,928 3, ,372 5,181 5,434 4,627 4, % 57.3% 57.9% 59.0% 51.5% 47.3% 2,409 4,932 4,444 3,600 3,541 3,298 3,207 3,279 3,308 2,678 2, , Q Q Q PostPaid Q PrePaid Q Gross adds Q Q Q Q Q Q Q Q Q Q EBITDA Q Q CAPEX Q

28 GrameenPhone financials ARPU trend ARPU Q04 2Q04 3Q04 4Q04 1Q05 2Q05 Blended Prepaid Postpaid 28

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