Cyprus

Cyprus
Bassel Jamaleddine
CEO
Country overview
Population 0.9m
Market sizing 1m (2011)
Penetration 87% (Jun 07)
Economics
GDP/Capita
$13,235
Inflation
2.2%
Local Rates
3.5%
Currency
$USD 2.49 = 1 CYP
Demographics
Language
Religion
Greek, English, Turkish
Christian Orthodox, Islam, Maronite
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Telecommunications environment
• Pre-2004
• Encumbent monopoly rights for fixed, mobile, and broadband
services and networks
• Liberalisation
• Accession of Cyprus in European Union in 2004
• Spectrum allocated and licences issued for provision of e-
communications
• Ministry of Communications and Works, Department of Electronic
Communications (DEC), manages allocation of spectrum
• Office of the Commissioner for Electronic Communications and
Postal Regulation (OCECPR), regulates markets and services
3
Market players
MTN
Launch date
Subscribers
Coverage
Shareholders
2004
106K (Sep 07)
5 cities
245 towns
MTN 99%
Cytamobile –
Vodafone
CyTA, PrimeTel,
OTEnet (fixed line)
1988
CyTa : 1961
PrimeTel : 2003
OTEnet : 2003
530 (est)
CyTa : 350K
PrimeTel : 10.5K
OTEnet <5K
99.97% of population
CyTa : nationwide
PrimeTel & OTEnet : main
urban areas
Vodafone
Government
CyTa : State-owned
PrimeTel : TeleDev East Ltd
OTEnet : Germanos, CTC
OTEGlobe, OTEnet
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Operational structure
CEO
Mr Bassel Jamaleddine
Corporate Services
Corporate Communication
& Foundation
Vanessa Kyprianou
Risk Business
Management & Internal
Audit HOS
Regulatory & Commercial
Legal
Mrs Evridiki Papadopoulou
Company Secretary
Chief Finance Officer
Mr Joseph Iosifakis
GM Customer Care
Mr Anwar El Helweh
Sales Director
Mr Stathis Efstathiou
Chief Marketing
Officer
Mr Dany Dweik
General Manger
Technical
Mr Younes Chaaban
Chief Information
Officer
Mr Dany Kattar
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Licence
Period
• 2003
• 20 years, renewable
• 21m€
Fees
Hidden sites
Spectrum
• GSM 900MHz
• GSM 1800MHz
• 3G / UMTS
Coverage
Year 2
• 50% geographical coverage
Year 10
• 60% of 3G / UMTS
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Highlights
Subscribers/ARPU
ZAR
• MTN Cyprus surpassed the
Jun 2007
Revenue
100,000 subscriber milestone
167.8
93
5
(15.9)
EBITDA
Capex/ Revenue
Jun 2006
• 15% market share
• Third mobile operator expected
55%
• Multiple device ownership
200
39
39
40
39
150
100
38
35.4
76
3687
99
106
37
36
expected to increase mobile
penetration
• Turned EBITDA positive after 3
years expected to turn PAT
positive in 2008
35
50
34
0
33
Q4 06
Q1 07
Q2 07
M TN Subscribers ('000)
Q3 07
ARPU (USD)
7
Infrastructure
Technology
benchmarks
% Population covered
Aug
2007
93.51%
Total number of
MSC’s / MSC-S’s
1
Total number of
BSC’s
7
Total number of sites
355
Total number of BTS’s
355
8
Distribution and products
• Developing virtual and
MTN
Indirect Sales (exclusive Prepaid)
Customer Service
Points (CSP)
Direct Sales
MTN Cyprus
Indirect Sales
Cyprus Trading
Corporation (CTC)
Virtual
(currently with JCC)
(more channels coming soon)
Vending
(coming soon)
(Postpaid & Prepaid)
vending distribution channels
for greater presence and cost
efficiency
• Average commission
140,000 CYP / month
• Products
Other smaller
distributors
Stephanis
Aeliotis
Telefone
Germanos
• Corporate
• Locals
• Youth & expatriates
• Tourists & short term visitors
9
Looking forward
Opportunities
• Inflow of expatriate work
force
• Partnership with
alternative providers
• Strong relation with
Challenges
• Cytamobile – Vodafone strong
brand equity
• Readiness for offering
quadruple play
• WiMax licences in 2008
distributors
• Regulator not pushing for
• MTN brand
competitive environment
• Site dismantling
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www.mtn.com
[email protected]
Notice
The information contained in this document has not been verified independently. No
representation or warranty express or implied is made as to and no reliance should be placed on
the fairness, accuracy, completeness or correctness of the information or opinions contained
herein. Opinions and forward looking statements expressed represent those of the Company at
the time. Undue reliance should not be placed on such statements and opinions because by
nature, they are subjective to known and unknown risk and uncertainties and can be affected by
other factors that could cause actual results and Company plans and objectives to differ
materially from those expressed or implied in the forward looking statements.
Neither the Company nor any of its respective affiliates, advisors or representatives shall have
any liability whatsoever (based on negligence or otherwise) for any loss howsoever arising from
any use of this presentation or its contents or otherwise arising in connection with this
presentation and do not undertake to publicly update or revise any of its opinions or forward
looking statements whether to reflect new information or future events or circumstances
otherwise.
This presentation does not constitute an offer or invitation to purchase or subscribe for any
securities and no part of it shall form the basis of or be relied upon in connection with any contract
or commitment whatsoever.
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