Vodacom's Presentation to Parliamentary Portfolio Committee on Consumer Issues

1. VODACOM’S PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE CONSUMER ISSUES 5 NOVEMBER 2002

2. INTRODUCTION • Vodacom thanks Parliament • The CONSUMER is the most important part of our business!

3. OUTLINE • Customer Focus • Critical success factors • Network - Coverage, Capacity and Quality • Products and Tariffs • Customer Care

4. CUSTOMER FOCUS LICENCE REQUIREMENTS: Network - Coverage, Capacity, Quality Products and Tariffs Customer Care Vodacom has met all requirements and Reports to ICASA bi-annually

5. CUSTOMER FOCUS • Vodacom is also committed to democratise telecommunications in South Africa!

6. CUSTOMER FOCUS • Democratisation is succeeding • 12 million cellular subscribers in only 8 years • Gross Connections per annum exceed 3m • Vodacom subscriber base – 7,3m customers • 100m min/month Community Services

7. Cell C Market entry

8. NETWORK Coverage, Capacity and Quality

9. NETWORK Technical Licence Requirements

10. NETWORKFactors affecting Quality of Service • Currently the primary factors affecting quality of service are: • Non-availability of 1800MHz spectrum • Delays due to environmental impact assessment and local authority approval (up to 3 years) • Handsets • Jamming Devices • Transmission Failures

11. NETWORK 1800MHz Spectrum • 1994 - 11 MHz 900 Mhz spectrum for 250 000 customers • 2002 - still 11 MHz for 7,3 m customers • Plus Cell C Roaming traffic

12. NETWORK 1800MHz Spectrum • 1800 Spectrum benefits • Capacity and Quality of service in high traffic areas will improve dramatically in the most cost effective way • Interference between cells will decrease, dropped calls and call set-up failure will reduce

13. NETWORK QUALITY TRADE-OFFS

14. NETWORK Handsets • Rapid evolution of technology –pros and cons • Vodacom Licence : ensure that only GSM handsets are connected • Vodacom has heavily invested in testing equipment • Only endorse phones that perform up to standard

16. NETWORK Handsets • Phone performance varies from model to model, e.g. Some phone have very directional antennas which result in poorer RF performance • Phone performance degrades with age and (ab)use, eg dropping phone • Almost half of calls drops as a result of Handset problems / damage

17. NETWORK Handsets • Grey phones are still filtering into RSA • Vodacom recommend ‘scientific’ type approval by ICASA • Type approval standards of GSM Certification Forum should be recognised

18. NETWORK Jamming Devices • Jamming prevents the use of cellphones in certain areas. • Transmit noise signals that interfere with the ability of cellphones to receive signals from mobile base stations. • Jamming is an illegal practice

19. Vodacom continuously improve an already high standard of service by extensive capital investment in network

20. NETWORK Conclusion • Finally, Vodacom compares favourably with the best in the world

21. COMPARISON OF PERFORMANCE

22. PRODUCTS AND TARIFFS

23. PRODUCTS AND TARIFFS • CUSTOMERS ARE PROTECTED! • Cellular tariffs are regulated • Tariffs are lodged with ICASA • New tariffs • Tariff increases • Vodacom may not increase any tariff plan by an amount greater than the % year on year increase in the CPI.

24. PRODUCTS AND TARIFFS • Vodacom has not fully utilised its right to increase by CPI • E.g. Vodago pre-paid was launched in Nov 1996 @ R2.75 per minute at all times • Only peak tariff increased once to R2.85 per minute, whilst the off-peak tariff was reduced by 44% to R1.55 per minute • CPI increases would have been R4.11 per minute peak and off-peak!!!

25. Twenty-one tariff plans designed to meet every need of the customer

26. Customers across all tariff Plans Business Talk 1000 S Talk 100 S Business S Talk 500 S Talk 120 Frequent Talk 240 Frequent S Talk 200 S Weekender Weekender S Family S Vodago Messenger 4U Contract Smartstep 4U Prepaid

27. PRODUCTS AND TARIFFS VODACOM’s COMMUNITY SERVICE • Original licence bid approved 99c/min • Outgoing calls less than 70c/min for 8 years despite CPI increase of more than 50%. • 100 million outgoing minutes p/month • Only 22 000 phones • More minutes than of total 6 million pre-paid customers

28. CUSTOMER CARE

29. CUSTOMER CARE Vodacom’s licence provides for: Publication of a “Code of Practice for Consumer Affairs and Guidelines and Procedures for Enquiries and Complaints” (see information pack for copy) Bi-annual report on Customer Care statistics submitted to ICASA

30. CUSTOMER CARE Customer Care is a Vodacom priority! 365 days a year; 24 hours a day 4 state-of-the-art Call Centres 50+ different integrated systems One-stop solution: integration of Customer Care of Vodacom Network & Service Provider Co. 1,000 full time staff

31. CUSTOMER CARE Customer Care staff are: Recruited according to country’s demographics, incl. physically disabled Extensively trained Continuously measured Rewarded in terms of incentive bonus scheme

32. CUSTOMER CARE Quality of Service Matters: Recording all call interactions Evaluate 9700 calls monthly

33. CUSTOMER CARE Sensitive to Customer’s needs: Call agent interaction in Zulu, Xhosa, Sotho, English, Afrikaans Listen to and implement Customer suggestions

34. CUSTOMER CARE Walk-In Customer Care Centre Open 7 days a week!

35. Our commitment to the Customer Vodacom strives for excellence and will continually improve its Customer Care

36. THANK YOU