CellNetS has developed the SimPhonyTM solution to provide accessible cellular communications to unreached markets through public pay phones. The solution uses dual-mode phones that operate with internal cash payments or external SIM cards. This allows random users and low-income individuals to access cellular services affordably. The business model partners CellNetS with cellular operators and local dealers to deploy and manage the phones, generating increased revenues and subscribers without investment from the operators. CellNetS has seen success in several countries in Africa and Asia reaching hundreds of thousands of subscribers.
2. Table of Contents
• The Company
• Target Markets
• The SimPhonyTM Solution
• Business Model & Success Stories
• Africa Advantage
• Future Prospects
• Summary
3. Company Overview
• Mission: To provide advanced communication
service solutions
• SimPhonyTM
solution - accessible communications
to unreached market segments in developing
markets
• Group of highly experienced professionals
• Part of the leading ForeGroup.
4. The ForeGroup
• Two IPO’s on AIM
• Two exits valued at over $100 million each
• Return on Investment on LeadCom’s share price - over 130%
Products Real EstateServicesOperations Investments
CellNet Solutions
Public Cellular
Telephony
ITS Telecom
Peripheral PBX
Equipment
Front Line
Customer
Relationship
Management
Hectare
Real-Estate
Investment
CT Ware
Contact Center&
IVR Solutions
F.T.S
Billing & CRM
solutions
Ymax Telecom
Wi-Max Products
& Applications
Tower Vision
Wireless
Infrastructure
Management
Ymax Pro
Wi-Max Operations
& Networks
Top Spice
Enterprise & Residential
Security Solutions
Exits
Backcell
Cellular
Operator in
Azerbaijan
LeadCom
Integrated
solutions
Septir
Cellular Location
Application
Ginko Oil
Oil & Gas Exploration
Colarity
Web Search Engine
Link U
Intl. Cellular Roaming
Evolution Fund
Late Stage
Investments
RunCom
Wi-Max system On
Chip
5. Table of Contents
• The Company
• Target Markets
• The SimPhonyTM Solution
• Business Model & Success Stories
• Africa Advantage
• Future Prospects
• Summary
6. Target Markets
Potential Users:
• Low to mid income populations - people who
cannot afford handset ownership costs
• Semi-urban and rural areas
• Random users
• First-time cellular subscribers
7. • Fixed- line payphones:
Too expensive to deploy
No longer being deployed in the developing world
• Satellite Telephones:
Expensive to purchase
Expensive tariff per minute of usage
• Mobile phones:
Even ultra low cost handsets are still too expensive
Competitive Analysis
8. Table of Contents
• The Company
• Target Markets
• The SimPhonyTM
Solution
• Business Model & Success Stories
• Africa Advantage
• Future Prospects
• Summary
10. Billing sys & Phones
• Comprehensive Control, Monitoring & Billing System
• Real-time Subscriber & Phone Management
• Calculates how much revenue is generated by phone
• Sales & Marketing Tools
• Statistics & Diagnostics Tools
• SIM locked per operator
Billing
Module
Dealer
Module
Inventory
Module
Report
Module
11. Highlights
• Dual mode – internal & external SIM card operation:
Prepaid personal SIM card
Cash-on-Spot public pay phone
• Quad band GSM/CDMA
• GPRS/data connection enabled
• Extended coverage range
• Remote management
• Remote software upload, tariffs change
• Durable power supply, internal backup battery
12. Phase I - Cash on Spot (COS) – Internal SIM
Card
• Designed for random users
• Internal billing for cash payment to
the phone owner
• Monitoring:
Number called
Call duration
Call charge in local currency per units
+442074200555
3: 43 min
8 unit
194.32 Cents
14. SimPhony Benefits
To the Operator:
• Substantial and rapid increase in:
Air-time revenues
Customer base ramp-up
Network’s capacity utilization
Customer & brand loyalty
• High SimPhony phones ARPU
• Valuable usage data
To the Phone Owner:
• Additional substantial
source of income
• Loyal customer base
• Support
To the Subscriber:
• Affordable communication availability to EVERY
CITIZEN
• Personal and private communications
• Voicemail, SMS, personal address book, etc.
• Reliable, branded service
15. Table of Contents
• The Company
• Target Markets
• The SimPhonyTM Solution
• Business Model & Success
Stories
• Africa Advantage
• Future Prospects
• Summary
16. Business Models
Main Dealer
Phone owner
Local
Operation
Cellular
Operator
Main Dealer
Phone owner
Local
Operation
$$$
Airtime
$$$
$$$
Airtime
Exclusive
commissioning
$$$
$$$
Airtime
$$$
Airtime
$$$ $$$
Subscribers
17. Business Model (cont.)
Operation’s main responsibilities
• Marketing
• Distributing the SimPhony phones –
Rapid and efficient deployment of the SimPhony™ system, achieving
the required “Critical Mass” of phones
• Purchasing and distributing wholesale airtime
• Providing local maintenance and support
• Airtime management
• Managing distribution channels
18. Success Stories
Azerbaijan – reaching 20% of cellular market. Currently
over 500,000 subscribers (phones and cards).
Mali – Biggest private public cellular operation. 40% of
Public Cellular phones. 30% of total public phones.
Fast deployment (thousands of phones in less than a year)
Burkina Faso – ARPU of 400 US$ per phone
More phones operational in Uganda, Senegal, Sri-Lanka,
and Mexico
19. Table of Contents
The Company
Target Markets
The SimPhonyTM
Solution
Business Model
Africa Advantage
Future Prospects
Summary
20. Africa Advantage
Fast growing Mobile sector since its introduction
Estimated market capacity for hundreds of thousands
of public pre-paid phones.
Government policies and efforts to make services and
utilities available to rural areas
CellNets has proven capability to increase access to
remote areas
No Cost to Operator
21. Public Pay Phones
Payphones are becoming increasingly popular
although their number remains small compared to the
size of the population.
Most people walk 30 to 60 minutes to get to the public
pay phones. Indications of the scarcity of public pay
phones compared to kiosk phones.
Rural people walk for over two hours to get to public
phones. Private kiosks are regarded expensive but
convenient. Moreover those who attend private kiosk
phones provide added features such as taking
messages.
22. Table of Contents
The Company
Target Markets
The SimPhonyTM
Solution
Business Model
Africa Advantage
Future Prospects
Summary
23. • SIM Page
• Data services over GPRS
• GPS Mobility Management
• Video Mail / Conference
• PC Access via data port
Future options and possibilities
24. Table of Contents
The Company
Target Markets
The SimPhonyTM
Solution
Business Model
Africa Advantage
Future Prospects
Summary
25. Summary
1)CellNetS overcomes the “handset barrier” -
providing personal communications for all
2)Reaching new market segments and provide
cellular operators access to these unserved
markets
3)We developed the only technology that exists
today that addresses this market
26. Summary
4) Benefits to operators - increased revenues,
subscribers - without any required investment
5) Turning random users to loyal subscribers
6) High SimPhony phone ARPU
7) Easy and fast implementation