Kenneth Brown, Managing Director Lionchase Holdings, Inc. www.lionchase.com June 12, 2009 Wireless Devices, Africa, and Public Policy
Goals, Plans, and Direction Create mutually beneficial strategies to bring device manufacturing to Africa Stimulate job creation in the U.S., abroad, and in Africa Leverage existing initiatives to generate momentum Leverage public policy to guide business efforts Use examples to create similar programs in other parts of the world
Part I. Background What is the opportunity? What is happening now? What are the big ideas?
Facts – Real Opportunity in Africa 2 billion new cell phones in emerging market countries 500 million new cell phones in Africa The African cell-phone sector is the fastest growing in the world, with subscription growth between 2007 and 2008 at 41% annually. Cell phones currently account for 90% of telephone subscribers in Africa. At the beginning of 2008, there were 300 million mobile subscribers on the continent. Mobile subscribers in Africa are also now more evenly distributed. In 2000, South Africa accounted for more than half of all Africa’s mobile subscribers. By 2007, however, almost 85 per cent were in other countries.
Zambia and Malaysia Team to OEM In Zambia, A $10 million mobile phone manufacturing plant, known as M-mobile Telecommunications Zambia limited (M-Tech), has officially opened in Lusaka on March 12, 2009. It is the first cellular phone manufacturing company to open in the country and proof that the cell phone boom in Africa is real. Employment Goal – 200-300 Zambians Manufacturing Goal 1,000 phones per day Cost: About 200,000 Kwacha (about 36 USD) each
Africa and China Becoming Partners -China Accounted for 16% of Africa’s Total Exports -19% of Exports from Sub Saharan Africa -China is catching U.S. and EU -China doubles trade with Africa to $100 billion by 2010 Technology is next logical step for Africa-China Trade
Next Steps – Business Community Wireless Device Joint Venture Development in Africa via Creating means for U.S. small business, IT community, and parties interested to create joint ventures projects to capture new IT opportunities in Africa. Worker Training, Manufacturing, Trade, Finance, etc.
Next Steps – Public Policy U.S. Trade, Investment, and Commerce Committee Action Tax Credits U.S. and OECD for Trade and Manufacturing Wireless Towers Via Wind, Solar, and Hydrogen Enable Green Initiatives to Work Disposable Devices Enviro-Friendly Manufacturing
Experiment – Open Zone Wireless Partners with African Nation to Become the 1st Open Zone Communications Device Region in the World Video Communications Broadcasts Wireless Voice Competing Carriers Apps Remote Programming Programmable Devices
Part II. Open Zone Wireless New Idea!!! Proliferation of New Technology, Growth, and Investment that is Network Neutral Will be funded in part by Lionchase-
Goals of Open Zone Wireless Experiment Bring African Nation to Forefront of Device Innovation Security & Communications Banking App Stores VOIP New Content Music, Radio, News Data Collection and Reporting New Manufacturing Standards Smart Chip Architecture
Rules of Open Zone Wireless Network Neutral Zone for Devices 1) Ties Manufacturing to Real Investment and Deployment 2) Mandates Public Policy that Will Not Allow Carriers to 3) Lock Devices to Any Network
Lionchase Holdings – And Open Zone Wireless in Africa $15 Million Project (3 year / 5 million annually) 10,000 Users - $200-400 annually Growth Goals - $1-4 million annually for ecommerce - $1-4 million annually for banking - $1-4 million annually for app sales - $1-4 million for standard apps- voice, text, video, etc. Multiplier Expectation - $100 million New networks, new technology, test market value, new product introduction
Partners in Open Zone Wireless Countries – New Markets with 10,000+ Customer Sign-up Companies – Google, Motorola, and Qualcomm Government- IMF, UN, OPIC, World Bank Content Companies –International Content Cos Software Companies – Adobe, Microsoft, Symantec Aggregators – Any and all!
Partners in Open Zone Wireless Participation for $15,000,000 Pilot $5 million – Lionchase Holdings $5 million – NGO Participation $ 5 million – Private Markets – Country Funding
Benefits Africa Gains Fast Launch Data Collection – 1st in the World Financed with Self-Funding Strategy Bring Fast-Paced Technology to Africa and Host African Nation
Needs – More Partners! Advocacy Groups Small investors, App companies, People here! Help Creating 1st Fully Democratized Device Network Any and all ideas Other Self-Funding Projects