August 08
CellNet Solutions Ltd.
2
Introduction
• 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
3
Cellular 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
4
Our Mission
• Convert random, unidentifiable, payphone usersConvert 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 acceptsBeyond cash-on-spot: payphone that accepts
personalized prepaid SIM cardspersonalized prepaid SIM cards
7
SimPhony SIM Card
Benefits 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 fromOnly from
CellNetSCellNetS
8
Value 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
9
Value 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
11
Future 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
12
Future 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
13
SimPhony
OperationsOperations
Sri Lanka
Mali
Mexico
14
Operations 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.
15
CellNetS 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

presentation to an operator

  • 1.
  • 2.
    2 Introduction • What wedo • 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
  • 3.
    3 Cellular 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
  • 4.
    4 Our Mission • Convertrandom, unidentifiable, payphone usersConvert 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.
    5 SimPhony System • Airtimeauthorization • 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.
    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 acceptsBeyond cash-on-spot: payphone that accepts personalized prepaid SIM cardspersonalized prepaid SIM cards
  • 7.
    7 SimPhony SIM Card Benefitsto 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 fromOnly from CellNetSCellNetS
  • 8.
    8 Value Proposition tothe 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
  • 9.
    9 Value Proposition toShop 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.
    10 Value Proposition toEnd 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
  • 11.
    11 Future 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
  • 12.
    12 Future 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
  • 13.
  • 14.
    14 Operations have demonstratedthat: • 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.
  • 15.
    15 CellNetS Differentiation • PersonalizedSIM 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.
    16 Summary • Random andunidentifiable 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

Editor's Notes