Secure Bulk Printing & POS Terminals - Blue Label Telecoms
Secure Bulk Printing & POS Terminals - Blue Label Telecoms
Secure Bulk Printing & POS Terminals - Blue Label Telecoms
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<strong>Secure</strong> <strong>Bulk</strong> <strong>Printing</strong><br />
&<br />
<strong>POS</strong> <strong>Terminals</strong><br />
AFRI<br />
ICA PREPA<br />
AID SERVI<br />
ICES<br />
NIGE<br />
ERIA
NIGE ERIA<br />
AFRI ICA PREPA<br />
AID SERVI<br />
ICES<br />
Trends | Rising African Consumer<br />
• Brand conscious<br />
• Price sensitive...extremely<br />
• Not loyal –switches quickly<br />
• Love promotions and giveaways<br />
• Increasingly connected...cellular & Internet<br />
• Increasingly urban<br />
• More educated dand aware, some with ihinternational<br />
i qualifications<br />
• Very entrepreneurial<br />
• More discretionary spending power but selective<br />
• Spends on communications before Coca Cola<br />
• Most are young (below the age of 35)<br />
• Increasingly speak and read English –financial services<br />
2
DON‐P COMMUNICATIONS<br />
AFRI ICA PREPA<br />
AID SERVI<br />
ICES NIGE ERIA<br />
The leader in Abuja regarding branded d outlets t as well as<br />
distribution channels
NIGE ERIA<br />
AFRI ICA PREPA<br />
AID SERVI<br />
ICES<br />
Context | Snapshot of Nigeria<br />
• Population (millions): 151.3 (largest in Africa)<br />
• GNI per capita ($): 1,160<br />
• GDP ($ billions): 212.1<br />
• GDP growth (%): 5.3<br />
• South Africa’s and Nigeria’s<br />
GDP in nominal prices<br />
comprises over 50% of<br />
SSA’s GDP<br />
4<br />
Source: World Bank African Development Indicators 2010
NIGE ERIA<br />
AFRI ICA PREPA<br />
AID SERVI<br />
ICES<br />
Context| Banking Profile of Nigerian Adults<br />
Never<br />
Banked<br />
74%<br />
• Bank penetration is relatively low<br />
• 85% of adult females are unbanked<br />
• 86% of rural population are currently<br />
21%<br />
unbanked<br />
• Only 21% of the adult population has a<br />
a ed<br />
bank account, which is equivalent to<br />
22 million people<br />
• 74% of the adult population have<br />
Previously 5% never been banked, which is<br />
Banked equivalent to approximately 64 million<br />
people<br />
• About 4 million other adults are<br />
previously banked, in other words,<br />
have left the banking system<br />
Currently<br />
Banked<br />
Source: Enhancing Financial Innovation and Access<br />
5<br />
Banked definition:<br />
currently have any of these: ATM card, debit card, value<br />
card, credit card, savings account, current account, fixed<br />
deposit account, mortgage loan, overdraft, Islamic loan<br />
or Islamic financing investment.
NIGE ERIA<br />
AFRI ICA PREPA<br />
AID SERVI<br />
ICES<br />
Context| Why the unbanked are unbanked!<br />
• Traditional commercial banking as we know it is operated on ‘high margin low<br />
volume commercial template’<br />
• There is a disconnect between classic banks and lower income customers.<br />
Bottom of the Pyramid customers do not want the services offered by banks.<br />
and typically do not buy the services offered by the existing banks while banks<br />
presume that they are not very profitable to service<br />
• The documentation hurdles set by regulators and the banks are typically too<br />
high for customers at the bottom of the pyramid to scale;<br />
• Lack of complex systems to handle high volumes of transactions (with very<br />
high levels of availability) and bespoke business processes which are<br />
uncommon to traditional banking principles<br />
• Inadequate financial services infrastructure and limited customer touch points<br />
6
NIGE ERIA<br />
Context | <strong>Telecoms</strong> in Nigeria<br />
AFRI ICA PREPA AID SERVI<br />
ICES<br />
7<br />
Total connections 2010 forecast 88,267 million<br />
% Growth in total connections p.a. 20.68%<br />
Prepaid as % of total connections 98% plus<br />
Market penetration 57.3%<br />
Prepaid ARPU (USD/month) 8 to 14<br />
Source: BMI‐T
NIGE ERIA<br />
AFRI ICA PREPA<br />
AID SERVI<br />
ICES<br />
Context | Active GSM lines in Nigeria<br />
80<br />
74.07<br />
70<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
Mobile subscriber base (millions)<br />
55<br />
40<br />
30<br />
25<br />
65.53<br />
2005 2006 2007 2008 2009 Aug‐10<br />
Total active lines (GSM + CDMA + fixed lines): 80.69<br />
8<br />
Source: BMI‐T
NIGE ERIA<br />
AFRI ICA PREPA<br />
AID SERVI<br />
ICES<br />
APSN | Overview<br />
• Started trading May 2009<br />
• Subsidiary of JSE‐listed <strong>Blue</strong> <strong>Label</strong> <strong>Telecoms</strong><br />
– Necessary financial backing as well as wealth of<br />
experience in distribution of prepaid products and<br />
transactional services<br />
• Initial focus on the sourcing and supply of Telco<br />
products and services<br />
• Moving beyond: sale and support of multiple<br />
l<br />
carriers and the introduction of value‐added<br />
services<br />
– Strengthening dealer and super‐dealer relationships<br />
– Network agreements with AIRTEL, GLOBACOM,<br />
ETISALAT, and STARCOMMS for direct recharge<br />
purchase<br />
– Prepare to offer single <strong>POS</strong> device and bulk printing<br />
9
NIGE ERIA<br />
AFRI ICA PREPA<br />
AID SERVI<br />
ICES<br />
APSN | 2010 and next steps<br />
• November 2010, APSN announced cancellation of<br />
distribution agreement with Multi‐Links and claims<br />
for damages<br />
• Procedure:<br />
– Quantifying claim<br />
– Arbitration process<br />
– Jurisdiction in South Africa<br />
• Right‐sizing operations in Nigeria<br />
• Overall strategy for Nigeria continues<br />
– Expand existing footprint by growing the distribution of<br />
virtual, it prepaid products, in partnership with Nigerian i<br />
network operators and utility providers<br />
10
NIGE ERIA<br />
AFRI ICA PREPA<br />
AID SERVI<br />
ICES<br />
APNS | Key focus areas<br />
• One device, multiple<br />
networks, multiple products,<br />
one investment<br />
• Virtual secure vending<br />
• Leverage Group technology,<br />
devices and terminals<br />
• All operators<br />
• National Vending<br />
• Pilot phase end Dec –<br />
rollout Jan 2011<br />
Operators<br />
Value<br />
Proposition ‐<br />
Dealers<br />
Key Drivers<br />
New product<br />
and<br />
Technology<br />
Platforms<br />
11<br />
• EVDO<br />
• Mass market recharge<br />
• Virtual distribution<br />
• <strong>Bulk</strong> printing via bulk mailer<br />
Market<br />
Penetration<br />
• Introduce Virtual Distribution<br />
• Low cost terminals from<br />
US$100<br />
• Mobile Merchant<br />
• Device market early stages<br />
compared to other countries
NIGE ERIA<br />
AFRI ICA PREPA<br />
AID SERVI<br />
ICES<br />
APSN | Distribution Footprint<br />
Extensive national footprint<br />
APSN has an extensive nation‐wide<br />
footprint, which enables the<br />
distribution of products and services<br />
to outlying areas.<br />
Blu Approved devices and service<br />
agents have been deployed across<br />
the country to ensure intensive<br />
market penetration<br />
12
NIGE ERIA<br />
AFRI ICA PREPA<br />
AID SERVI<br />
ICES<br />
APSN | Detail distribution footprint<br />
An illustration of dealers and sub‐dealers across Nigeria<br />
Points of distribution<br />
44<br />
152<br />
93<br />
North<br />
38<br />
North Central<br />
122<br />
South East<br />
South West<br />
South<br />
2010<br />
13
NIGE ERIA<br />
AFRI ICA PREPA<br />
AID SERVI<br />
ICES<br />
APSN | Networks and Partners<br />
Network<br />
14<br />
Partners<br />
350 dealers<br />
nationwide
NIGE ERIA<br />
AFRI ICA PREPA<br />
AID SERVI<br />
ICES<br />
APSN | Products and Services<br />
<strong>Secure</strong> <strong>POS</strong> Solution Eezzee Recharge <strong>Secure</strong> <strong>Bulk</strong> <strong>Printing</strong><br />
• Electricity<br />
• Airtime<br />
• Electricity<br />
• Airtime<br />
• Credit Transfer • Airtime<br />
• Bus Tickets<br />
• Bus Tickets<br />
• DSTV<br />
• DSTV<br />
• Internet<br />
• Internet<br />
• Virtual money<br />
• Virtual money<br />
• Wt Water • Wt Water<br />
15
NIGE ERIA<br />
AFRI ICA PREPA<br />
AID SERVI<br />
ICES<br />
APSN | <strong>Secure</strong> <strong>POS</strong> M‐Payment solution<br />
• User friendly<br />
• Manual and automated ordering menus<br />
• Excellent shift and stock controls<br />
• High margins<br />
• Multiple levels of security access, sales analysis and<br />
reporting functionality<br />
• Automated reporting systems<br />
• Web‐interface for management report<br />
• Not tlimited it to high h turnover stores<br />
• Efficient and secure transaction processing<br />
• Multiple different <strong>POS</strong> terminal devices can incorporated<br />
our software and be integrated to our system<br />
16
NIGE ERIA<br />
AFRI ICA PREPA<br />
AID SERVI<br />
ICES<br />
APSN | Eezzee Recharge<br />
• Print and vend airtime...Anywhere, Anytime<br />
• Light and compact<br />
• Display sold PIN either:<br />
• On the mobile bl unit<br />
• Print on thermal printer<br />
• SMS to client<br />
• No stock kept on mobile unit<br />
• Sell all denominations of all networks<br />
• Can utilise the mobile unit for normal calls and SMS<br />
17
NIGE ERIA<br />
AFRI ICA PREPA<br />
AID SERVI<br />
ICES<br />
APSN | <strong>Secure</strong> bulk printing solution<br />
APSN bulk printing helps overcome:<br />
• Complicated logistics<br />
• Difficult distribution strategies<br />
• Expensive distribution<br />
• High‐risk distribution methods<br />
• Expensive production costs<br />
• Financial risk and fraud to the cellular service provider<br />
and the merchant<br />
• Time dl delays and late dli deliveries i of prepaid voucher stock<br />
• High stockholding shrinkage<br />
18
NIGE ERIA<br />
AFRI ICA PREPA<br />
AID SERVI<br />
ICES<br />
APSN | Multi‐tier software<br />
APSN Virtual Warehouse<br />
Selected Super Dealer<br />
Networks<br />
Selected dealer<br />
networks or vendors<br />
Street<br />
Merchants<br />
End<br />
User
NIGE ERIA<br />
AFRI ICA PREPA<br />
AID SERVI<br />
ICES<br />
APSN | <strong>POS</strong> strategy<br />
In assigning gprojected figures to the various regions, we<br />
considered the following parameters holistically:<br />
• Network availability: the number of networks present have a direct<br />
effect on recharge sales<br />
• Population: the number of people p within this region as well as the area<br />
• Economic viability: this considers the availability of businesses,<br />
educational institutions and places of considerable economic<br />
availability in the area<br />
20
NIGE ERIA<br />
APSN <strong>POS</strong> Strategy |<br />
National distribution<br />
Distribution Overview<br />
AFRI ICA PREPA<br />
AID SERVI<br />
ICES<br />
40%<br />
10%<br />
10%<br />
North<br />
North Central<br />
20%<br />
South East<br />
South West<br />
20% Lagos<br />
21
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