VODACOM LESOTHO

V O DA COM LE SOT H O

Diversifying its revenue stream by embracing technology change www.vodacom.co.ls

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ince launching in 1996 with just one telecom tower, Vodacom Lesotho has emerged 19 years later as the market leader in mobile communication services, with an 80 percent market share.

As the wider Vodacom Group’s first business venture outside of South

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Africa, Vodacom Lesotho has spent two decades deeply rooting itself into the country, initially inviting the Government of Lesotho to become a shareholder prior to its privatisation in 1999, followed by a 12 percent local shareholding - which later grew to 20 percent- awarded to Sekha-Metsi Consortium after this date.

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Early investment in a solid distribution network has enabled the Company to reach 94 percent of the population, which also helped to drive mobile penetration in Lesotho to more than 84 percent in 2015.

Diversifying its revenue stream to better focus on the customer’s changing needs and embrace the data

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Beyond

Telephony Vodacom Lesotho is keen to build a reputation as a fully-fledged services Company with solutions that leverage the evolution of data and the Internet of Things (IoT) in order to cater for changing customer needs Writer: Emily Jarvis • Project Manager: Donovan Smith

revolution has resulted in the Company securing an impressive 1.3 million subscribers across a population of more than two million people.

Vodacom Lesotho is majorityowned by Vodacom Group Limited (80 percent), and Sekhametsi consortium owns the remaining 20 percent of the Company.

Infrastructure backbone

The need for services beyond voice and SMS on the African continent - and indeed the world - are being dictated by the increased consumption of data services and the additional inclusive applications that internet access brings. Therefore, in the past two years, Vodacom Lesotho has been

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investing in ways to differentiate itself in order to diversify its data offering and place customers at the heart of its investments as part of a long-term strategic focus; starting with the relevant investments in the network’s infrastructure backbone.

In 2013, the Company reinvested more than M150 million into its network infrastructure, representing just under half of its operating profit at the time; which was followed by a further M170 million in 2014. “These investments resulted in Lesotho becoming the first in the Vodacom Group to have 3G available at all sites where 2G is available, and the first within the Group to launch LTE services. This huge investment drive formed part of our core strategy and was designed to ensure that we can deliver on the promise we have made to our customers, putting the power of the internet in their hands and making communication services available to them at much lower cost,” says Vodacom Lesotho’s Acting Managing Director, Johnny Dos Santos.

Now equipped with more than 250 2G and 3G-enabled towers – with a growing number of LTE enabled sites in all districts – the Company

STATS Approximately 202 permanent employees, including the 75 added over the past two years 150 contractors in the outsourced call centre and retail environment 5,700 appointed airtime resellers 3,378 M-Pesa agents and merchants

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About the Group Vodacom Group Limited (Vodacom) is an African mobile communications company providing voice, messaging, data and converged services to more than 61 million customers.

From its roots in South Africa, Vodacom has grown its operations to include networks in Tanzania, the Democratic Republic of Congo, Mozambique, and Lesotho and provides business services to customers in more than 40 African countries

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Due to the uptake of data services and our investments in an improved network, Lesotho has seen the price of communication drop by 60 percent in past two years...

has invested a total of R1.2 billion into the entire network, including investments in microwave and transmission backhaul, towers and the network, and a world-class Tier 1 data centre which has just received a crucial upgrade. These network upgrades were completed with the assistance of local suppliers where possible, or through Group partner channels in neighbouring South Africa.

“Due to the uptake of data services and our investments in an improved network, Lesotho has seen the price of communication drop by 60 percent in the past two years, extending the reach of mobile

Our product suite: AIRTIME ADVANCE

Airvantage is the pre-eminent innovator of value added services to the telecommunication industry in emerging markets.

We are dedicated to developing and delivering the best, most innovative solutions that will grow our clients’ businesses, enhance their brands, and positively contribute to the total customer experience and increase in revenue per user.

MOBILE MONEY LENDING MOBILE MARKETING SPORTS BETTING & LOTTERY PROMOTIONS

We offer a suite of products that add value and change subscriber’s lives including: airtime, data, content and mobile money lending, mobile marketing solutions, sports betting and lottery, content and mega promotions.

Our flagship product is prepaid airtime and mobile money lending solutions to telecom operators. It gives telcos the ability to advance airtime, content, data and mobile money to subscribers on credit. Through our many years’ experience in the telecommunications and credit industries, we have developed a proprietary profiling and dynamic rules engine that allows for flexible lending, avoids revenue losses and ensures on going customer loyalty while increasing revenues.

We have a deep understanding of customer behaviour and can offer a tailor made credit solution to meet the requirements of any customer base.

As a service provider to Vodacom Lesotho for many years, we have developed innovative solutions to add value to Vodacom Lesotho by increasing revenue per user, decreasing churn and enhancing the overall customer experience.

Please contact us for more information: Website: www.airvantage.co.za | Email: info@airvantage.co.za

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telephony services to a wider portion of the population through the creation of even better value,� he details.

Further continuing its improvement of the network and introducing world-class and innovative services to Lesotho, this year, Vodacom is undertaking a key development partnership with the Lesotho Electricity Corporation that will greatly help transmission capacity, helping the organisation to get closer to customers via the deployment of fibre to the business, while also removing other potential challenges or stresses that the predicted increased data usage could put on the network.

Customer engagement

As well as investing in a strong infrastructure and value proposition, Vodacom Lesotho also launched the M-Pesa service in 2013, which has seen one of the fastest uptakes of the five African markets where the product has been launched. He explains: “11 percent of our active user base is currently using this service, which is a huge achievement considering that less than half (38 percent) of the adult population has some form of a bank account, compared to some African nations where financial inclusion is much higher.�

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We are also looking at products and solutions in the insurance and healthcare sectors to further enhance our mobile money offering

Vodacom Lesotho implements the Business Logic Systems blueprint for effective Customer Value Management Vodacom Lesotho chose Business Logic Systems (BLS) as its Customer Value Management (CVM) partner in a 2-year Technology and Services Programme in 2012.

The project was split into a set of phased, prioritised deliverables for both the technology and the services components. This ensured a pragmatic approach in which key revenue-generating software and components were delivered in the early phases of the programme.

Vodacom Lesotho recognised early on that technology was only part of the solution. A data-driven marketing strategy also requires new skills to complement the technology, as well as a fundamental rethink on how to plan, shape and drive the communication with the subscriber base to drive incremental value.

BLS was requested to provide these skills under a Managed Services Programme.

Once the core platform was up and running, a short diagnostic project revealed the underlying dynamics of the subscriber base from which areas of opportunity were identified for targeted campaigns. The led into the

Managed Services Programme which involved a mixture of onsite and remote resources to work closely with the Vodacom team to plan and deliver the portfolio of campaigns.

Under the commercial objective of driving incremental revenue as early in the project as possible, we focused our activity on Up-selling and Cross-selling campaigns using the existing Vodacom Lesotho product portfolio. A governance framework was also implemented with the local team. An essential component was weekly cycles of activity – designing and testing new ideas that could be targeted to micro segments of the subscriber base. All the campaigns were also evaluated for their true incremental value by comparing the results to both universal and campaign level control groups. As part of our governance framework, results were independently verified by the Vodacom Lesotho commercial and finance teams.

According to Motlalepula Ramaisa, Executive Head of the Consumer division at Vodacom Lesotho, by using the BLS software and service, “Vodacom Lesotho generated significant net incremental revenue and could demonstrate sustained increases in subscriber activity levels to reduce prepaid churn”

T E C H N O LO GY Phase 1 CMS installation on virtualised H/W

Phase 2 CMS Installation on procured production H/W

Phase 3 System (Loyalty points scheme) installed

24 MONTH PROGRAMME

CVM Diagnostic Customer base, opportunity and risk analysis

Full CVM Managed Service Weekly campaign refresh cycle based on KPI Analysis, products portfolio, market opportunities and campaign test performance

C O N S U LTAN CY

A PORTFOLIO OF CAMPAIGNS FOCUSED ON THE DIFFERENT STAGES OF THE SUBSCRIBER LIFECYCLE

GET • Recommend a friend • Trgeted acquisition prospect lists

WELCOME • Introduction to key products & services • Introduction to selfservice

WIN BACK • Reactivation campaigns for dormant prepay • Targeted win back for ports out

RETAIN • Churn management • Retention optimisation

www.businesslogicsystems.com Tel: +44 (0) 1635 887 963 Email: info@businesslogic.co.uk

UP-SELL • Targeted stretch offers • Service bundles

LOYALTY • Continious opt-in permission based push & pull market

CROSS-SELL • Trials for new products & services

ADVOCASY • Social influencers • Product champoins

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TVS TELECOM

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VS Telecom is an engineering and technology company with over 15 years of operational experience in many African countries. The company’s strategic business units include telecommunications, fuel management, construction and marine engineering.

We currently service various industries including, ISPs, carriers, mobile operators, mining, transportation, power utilities, oil & gas and others.

In addition to this, Vodacom Lesotho is to explore other converged services opportunities by looking closely at opportunities in the TV, localised online content and streaming services in order to remain relevant to the customer and adapt to market demands.

“We are also looking at products and solutions in the insurance and healthcare sectors to further enhance our mobile money offering. We believe that M-Pesa is an extremely powerful and life transforming product, and we are committed to working with our

clients and partners to ensure that our technology continues to change people’s lives for the better,” he adds.

Key to building the perfect product portfolio is brand engagement in the relevant market segment, which is something Vodacom Lesotho is passionate about, understanding and catering to customers’ needs.

Dos Santos details: “This year marks the fourth edition of Vodacom Superstars, a musical talent recognition platform that we provide to identify and nurture musical talent

Johnny Dos Dantos, Acting MD Johnny Dos Santos took on the role of Acting Managing Director of Vodacom Lesotho in August, 2015; having previously been with the Company for two and a half years and held several key roles including looking after the mobile money side of the business, enterprise operation, finally moving into consumer and commercial roles

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...we are committed to working with our clients and partners to ensure that our technology continues to change people’s lives for the better

TVS is a preferred supplier for Vodacom Lesotho, and has been providing them with an array of different solutions over the past few years, including the following: • Point to multipoint wireless, using best effort and QoS capabilities • Multi point to point broadband high capacity wireless with dedicated bandwidth • Aggregation of voice and data services over multiple platforms • Integration between legacy and next generation equipment • Sophisticated lightning protection systems, using certified ESE technology Our telecommunication products and services portfolio includes a variety of connectivity methods from cabled to wireless, telecom access equipment including fibre optic multiplexers, and management and monitoring solutions among others.

We provide vendor independent demarcation and management devices capable of fault finding and network optimisation, with built in firewall, security, IP encryption, IT QoE, router, VOIP/PABX, accounting packages and SBC capabilities at the CPE. We supply ruggedised routers with integrated 3G/4G modems with built in security mechanisms specifically designed for ATMs and smart grid applications and used for intelligent transportation, water and gas utilities.

Our monitoring and management systems are capable of remotely monitoring fuel tank levels, CCTV, alarms, battery levels and others.

TELECOMMUNICATIONS TECHNOLOGY AND SECURIT Y SOLUTIONS ESE LIGHTNING PROTECTION OIL & GAS PRODUCTS AND SERVICES CONSTRUCTION SERVICES MARINE ENGINEERING PROFESSIONAL ENGINEERING SERVICES

We provide professional engineering products and services to the telecommunications, oil & gas and transportation industries as well as to others. Our international team is truly versatile and focused on ensuring the delivery of outstanding results to our clients. www.tvstelecom.com

SOUTH AFRICA 37 Mopedi Road,Sebenza

+ 27 11 452 5009

Edenglen, 1601

info@tvstelecom.com

REACHING NEW HEIGHTS

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CAMP-IT

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AMP-IT was employed in August, 2013 to provide project management and consultancy services at a time when Vodacom Lesotho was implementing a turnaround strategy in the company.

The EXCO team was re-structured resulting in many new members joining the team. As the Executive Head of Networks, I immediately identified the need for project management and consultancy services as VCL never had a dedicated function performing this responsibility which resulted in projects not being executed on time and with very little planning. VCL Capex Intensity for FY14 was also increased due to the lack of investment in previous years which placed even more pressure on this function.

T +27 823717176 E marius@camp-it.co.za

Vodacom Superstars identifies and nurtures musical talent in Lesotho

in Lesotho; this is just one of the many ways that we engage our customers with the brand, as we continue to deliver to their needs and improve their livelihood at the same time.

“We can then take this brand engagement exercise and build our products and services into this in a way that allows us to monetise an artist’s music through ringback tones, streaming music services and so on. So it is not just recognising and creating a platform for talent, it is giving us a business platform to bring these stars under the Vodacom Lesotho brand to help build their music careers.”

One such partner who works closely with Vodacom Group to drive loyalty management and capitilise on engagement is Business Logic Systems, who provide an automated two-way communication channel to monetise subscriber data through notifications, offers and rewards that benefit and enhance the customer’s experience of the network.

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BRAND FUSION GROUP

...it is not just recognising and creating a platform for talent, it is giving us a business platform to bring these stars under the Vodacom Lesotho brand...

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perating in Africa since 2004, the BrandFusion Group has a wellestablished, extensive footprint in 19 countries across the African continent, with 11 years experience in providing Channel Development services to various industries including Telecommunications, FMCG, Financial Services (Mobile Money) and NGO’s.

Channel Development services includes market research/surveys, channel audits, strategy development, trade marketing and promotional activations.

Our Sales Force Automation technology and data collection, management and reporting capabilities, enables customers to manage the efficiency of their sales force and institutionalise data collection to support route-to-market decisions and strategy. Experienced local staff ensures an unparalleled ability to execute on strategy.

www.brandfusion-africa.com

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MAKE IT HAPPEN, DO IT RIGHT, FIRST TIME • • • • • • • • • •

Site Build Cost Saving Up To 25% Planning and Process Optimization Driving Business Efficiency Local Skills Development (Within 12 Months) Specifications (Definition, Design, Implementation, Measuring & Change Management) Capacity Dimensioning & Forecasting (RAN, TX & Power) Budgeting (Facilitation, Planning, Execution & Tracking) Project Management (End to End, Technological Methods) Coordinated Sourcing Spares Management Performance Based Remuneration

16 years of deep Africa market & telecommunications experience.

GET IN TOUCH

Marius van den Bergh Email: marius@camp-it.co.za Mobile: +27823717176

Vodacom Business Partner of the Year Internationa l

We’ve been present

in Africa for over

10 years

with footprint in

19 African Countries

R P M S S Y S T E M

R E P O R T I N G , A N A LY T I C S , M O B I L E

• Channel Development Services • Trade / Field Marketing • Experiential and Promotional Activities • Retail Strategy Design and Auditing • Sales Force Automation and Management Solutions • Specialising in Below the Line Mobile Money Services • Market Research and Surveys www.brandfusion-africa.com Tel: +27 12 345 1082 Email: roux@brandfusion-africa.com / charl@brandfusion-africa.com

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Beyond this, the Company is an official sponsor of Lesotho’s top soccer division, the Vodacom Premier League. Vodacom is very supportive of the individual teams, which have a large following in Lesotho. Directly supporting clubs by providing starter packs, airtime and M-Pesa startup packs, the Company is helping them to monetise their operations and create an alternative revenue stream to support the clubs.

“Our activities ensure that we create an emotional connection with the community and this is just one way in which we have become the leader and go-to partner in youth-focused CSR activities,” he further adds.

Healthcare, education, entrepreneurship

Over the past few years, Vodacom has been working on three big projects in a corporate social responsibility (CSR) drive that has proved crucial to addressing the real social issues that

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Lesotho is facing; all made possible through its standalone organisation, Vodacom Lesotho Foundation.

Dos Santos explains: “Our flagship project in healthcare is designed to address the high prevalence of HIV in Lesotho and the huge strain this is putting on the sector. With the third highest HIV-positive prevalence in the world, we have found that there are preventative programmes in place but the gap lies in, among other things, transportation methods to reach the clinics; and we identified around 20,000 possible children that could not access treatment.”

Together with the Foundation, Vodacom Lesotho has so far raised more than US$12 million to be invested in identifying vulnerable and exposed mothers and children, and utilising technology to provide a transport allowance through the M-Pesa service to access transport to the local treatment centre; implementing a comprehensive text-to-treatment,

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FELIX (PTY) LTD

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ounded in 2005, Felix (PTY) Ltd offers complete telecommunication infrastructure solutions. We supply equipment, consulting, installation, commissioning and support services.

Operating within Telecommunications and Construction industries, Felix delivers unique turnkey infrastructure solutions to mobile operators and other customers throughout Southern Africa.

Our skilled work force combines a wealth of Telecommunications and Solar expertise and experience. We project manage operations across two business lines - Construction and Solar Solutions aimed at delivering tangible, sustainable solutions.

Backed by our Mechanical and PlantHire Companies and TyreCentre, Felix is synonymous with efficiency, trust, quality and excellence.

www.felixgroup.co.ls

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We provide Telecommunications infrastructure with a successful track record in delivering more than 200 semi turn-key and 20 full turn-key projects to Vodacom Lesotho, as well as various other projects for Rohde-Schwarz and WIOCC. We strive to consistently build and maintain telecommunications infrastructure within agreed time, quality and costs, and has acquired a reputation as a company guaranteeing superior excellence even in the harshest conditions.

innis@felixgroup.co.ls Johan: +266 5900 3747 Innis: +266 5888 2010

www.signworld.co.ls Tel: +266 22313221 / 22312573 Cell: +266 58857330 Email: signworld@tlmail.co.za info@signworld.co.ls

• BRANDING • PRINTING • SIGNAGE • EMBROIDERY

Proudly creating signage for Vodacom

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mobile health management system that will ensure that patients are not only initiated on life-saving treatment, but they also remain enrolled in treatment.

“Given that HIV can now be treated and managed, we are hoping for longterm success stories to give children a real chance in life. We are hoping to ramp up investment in this area as the project gains traction in the coming months,” he emphasises.

Vodacom’s second project in Lesotho is centred around education as a vital area to secure the country’s future economic development.

In a partnership with iSchool - an organisation that has been working to digitise education in Zambia - and the Ministry of Education, Vodacom Lesotho has provided an alternative and effective way of educating school children in Lesotho who in a lot of cases do not have access to textbooks or other educational resources.

“At the five schools we are currently trialling this in, two children share a tablet and teachers are able to track their performance. We will soon deliver

We want to be seen as an entrepreneurship and innovation hub that looks to incubate business ideas from the local community

Approach to employment: Two-year rotational graduate development programme and placement Short-term internships Internal online education and development programmes Regional training workshops and initiatives Lesotho repatriation opportunities

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the service in the local language and roll this out across Lesotho to build the next generation of thinking by leveraging the tech revolution trend,” Dos Santos says.

To continue its employment creation and education focus, Vodacom strives to address the growing gap in the funding and support available for startup businesses in Africa, where the larger financial institutions have not traditionally had the appetite to invest.

Vodacom Lesotho Foundation built a first-of-its-kind business acceleration hub in Maseru - The Vodacom Innovation Park - which allows startups to utilise the space over a period

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of 12 weeks, providing the financial support and mentorship needed to get their business off the ground in Lesotho. The application process is rigorous and the programme even more so; with the aim to pick only the very best ideas and entrepreneurs who will change the business landscape of Africa and generate endless job opportunities for other Basotho.

“We want to be seen as an entrepreneurship and innovation hub that looks to incubate business ideas from the local community. Plus, if this is successful in Lesotho, we want to roll this out across our other African operations,” he further adds.

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20th anniversary

With 2016 marking Vodacom’s 20th year in Lesotho, the operator is keen to build a reputation as a total communication services provider, with a repertoire of converged solutions that leverage the evolution of data and the Internet of Things (IoT) to explore new ways to utilise technology beyond telephony services.

“As data usage continues to increase, other content aggregators and players will enter the market which makes it vital that we diversify our offering into areas such as finance, VOIP and streaming so as to not only relieve the pressure on traditional growth areas of voice and SMS in the long-term, but in becoming a platform that truly enables our customers to connect,” Dos Santos highlights, adding that in the short-term, Vodacom will benefit from bringing in microfinancing and other value-add financial inclusion services to the M-Pesa offering.

“In line with this, we have ambitious targets for M-Pesa to reach 50 percent of our subscribers in the next four years, which would contribute significantly to our business and accelerate the banking and financial inclusion landscape in Lesotho,” he further adds.

Vodacom Lesotho has a strategic advantage over its competitors in that it can achieve the best return on investment possible by aligning innovation would mean with the Group’s experience in added simplicity to your business... other African markets; with M-Pesa representing just one example of this in practice.

Dos Santos concludes: “As we move to becoming a fully-fledged services provider, it is important that our customers know they are at the centre of our future vision.

We want to be an admired Company that is not just a network provider of choice, but a local employer of choice and an industry leader.”

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VODACOM LESOTHO P.O. Box 7387 Block B, Level 7 Development House, Kingsway Maseru, Lesotho T: +266 5221 2000 E: customercare@vodacom.co.ls

www.vodacom.co.ls