SMS UTILITY PAYMENT Company Profile SMS Media is

SMS UTILITY PAYMENT

Company Profile SMS Media is East and Central Africas and leading SMS content and Wireless application service provider. Our mission is to provide the most advanced mobile applications and value added SMS & MMS services in Africa The company over the year has supplied VAS to African renewed GSM Operators. SMS MEDIA & ELECTROGAZ 2

SMS Media service SMS Media software and experience allows all kind of SMS services including § SMS Applications (SMS Banking, SMS Utility payments, SMS E-bill, SMS results, SMS Insurance…) § Bulk SMS § SMS and GPRS content service § SMS and GPRS entertainment (Ring tones, logos, wallpapers, mobile screen severs, games…)

ELECTROGAZ and Electricity prepayment in Rwanda § ELECTROGAZ is the national utility (water and electricity) company of Rwanda – Rwanda area: 26, 340 square meters; – Population: 9, 000 § Total Number of electricity customers: 120, 000 – Kigali: 80, 000 – Up country: 40, 000 – Prepayment customers: 50, 000(Only within Kigali) § Total Demand: 60 MW SMS MEDIA & ELECTROGAZ 4

Purposes of implementing Prepaid System Ten years ago Electrogaz began to replace the conventional billing system by prepayment system to help in the followings: § Reducing losses due to fraud ( conventional meters are accessible) § Avoiding the difficulty of collections in rural areas § Reducing the arrears § Improving cash collection

Prepaid System Utility Benefits § Payment in advance (improved collection and access to finance) § Zero consumer debt (no arrears) § Simpler and cheaper revenue collection cycle § Reduced operational costs § Commercial losses reduced § Reduced electricity consumption § No more Bills & Debt accumulation

Prepaid System Consumer Benefits § Convenience of purchase (places, methods, 24 -hour) § Customers manage their own budget § Visible credit and consumption indication § Solves landlord problems § Privacy (meter readers do not enter the premises) § Improved relationship with customers (no wrong reading, no disconnections and no reconnection fees)

SMS Utility Payment SMS Media has developed a solution to provide anyone with a cell phone and sufficient money the possibility to recharge he’s prepaid electricity meter using power card. The solution also allows anyone with a cell phone and a small capital to become a vendor or registered reseller of prepaid electricity to consumers. SMS MEDIA & ELECTROGAZ 8

SMS Media Power Card 1. Consumer purchases a Power Card from a Retailer 2. Consumer send an SMS to SMS Media Short number 123 with a keyword CP + Meter Number + Power Card PIN. 3. Consumer receives an SMS with a token Credit Transfer Number. 4. Consumer enters 20 digits token number into he’s prepayment electricity meter at home. SMS MEDIA & ELECTROGAZ 9

Direct sale from mobile phone § SMS Media sign a contract with individuals or business organizations in possession of a mobile phone and sufficient funds to purchase prepaid electricity stock and get PIN to allow them to enter in the system and protect their sales account. § Once registered, the authorized vendors buy a stock of electricity upfront by depositing cash in the SMS Media bank account. § Then the cashier credits the vendors account via the web interface for the amount of the electricity stock paid for. § The vendor may now sell prepaid electricity up to the amount paid and earn commission for the sales. SMS MEDIA & ELECTROGAZ 10

Advantage of using SMS Utility Payment § Simple yet effective mechanism to purchase electricity § Consumers use cell phone to purchase electricity 24/7 any where MTN network is available (95% Rwanda). § Reduced cost for reaching point of sales, available near the customers § Reduced infrastructure cost, such as personnel, internet connection, building of kiosks, maintenance cost and operational costs § Revolutionizing the industry § Social economic impact: Empowering job creation and business opportunity § Expand vending network (neighborhood) rapidly at no extra cost. SMS MEDIA & ELECTROGAZ 11

Performance: Current status § For customer satisfaction we implemented vending system using Power cards; SMS Vend and Web Vend. § We have 90 street vendors and 200 locations across the country using SMS vend, or Power Cards to sell electricity. § Currently we are selling 40% of total Electrogaz prepaid electricity. SMS MEDIA & ELECTROGAZ 12

Performance Sales performance Period sales Q 108 Q 208 116, 785, 356 431, 699, 606 Q 308 600, 070, 159 Q 109 1, 324, 216, 296 Total Sales From beginning up to now: 2, 472, 771, 417 Frw Total Numbers of Dealers: 90 Total point of sales: 200 locations SMS MEDIA & ELECTROGAZ 13

Customer Support § SMS Media has design a web based interface where call center agents monitor all transaction and give support to customers. § SMS Media has opened a call center office with a tool free number dedicated for vendors available everyday from 8 Am to 8 Pm. § SMS Media in partnership with Electrogaz has also outsourced a private call center company to handle all prepaid customer calls 24/7. SMS MEDIA & ELECTROGAZ 14

Advertising § For advertising SMS media use Website, Radios, TV, Banners at dealers locations and Electronic Billboards as media for communication with our customers. SMS MEDIA & ELECTROGAZ 15

Challenges § Bad cooperation with the Network operator (use of MTN 1 400 000 airtime) 1 200 000 § Cost of SMS very high. 1 000 000 800 000 § Customer care support (Call 600 000 center) and 2 nd level or on field 400 000 200 000 support. Series 1 - § Instability of connection between servers. SMS MEDIA & ELECTROGAZ Q 108 Q 208 Q 308 Q 109 16

SMS Utility payment Server Deployment System administration Electrogaz Server MTN SMS-C 1 Customer care 6 3 2 4 SMS Media Server Wireless network 5 LAN VPN SMS MEDIA & ELECTROGAZ 17

Way Forward § Facilitation of loans to our dealers from microfinance institutions and commercial banks. § We will reduce cost of SMS from 65 Frw to 18 Frw from 15 th July 2009 (Sponsored by Gov & NGOs). § We are implementing additional methods for services: Point of sales terminals, Bank transactions, … § Looking other API (SMS based on low cost phones) )which can be VAS to the existing distribution channel (Like mobile money transfer, Electronic Voucher Distribution…) § Integrate Mobile GIS and help users to find (Location + Contacts) electricity distributors (especially in rural areas) SMS MEDIA & ELECTROGAZ 18

Awards § In 2007 SMS Media won the TIGA award by the United Nations Economic Commission for Africa (UNECA) and the Canadian e-Policy Resource Center (Ce. PRC), for the effective use of ICTs for public services delivery to citizens contributing to the development of the Information Society on the continent. § In the same year SMS Media received another award for the 'Most Innovative ICT Company in Africa' From the Ministry of Communications of the Republic of South Africa. § In September 2008, SMS Media was nominated for the East African Power Industry Excellence Awards as the winner in the Best Distribution category § In October 2008, SMS Media won the INTEGO Award organized by Rwanda Information Technology Agency in the category of Best potential Outsourcing. SMS MEDIA & ELECTROGAZ 19

Thank You Contacts: Jeff Gasana SMS Media E-mail: jgasana@smsmedia. rw Web site: www. smsmedia. rw Boulevard de l’Umuganda, KBC Building P. O. Box: 7491 Kigali, Rwanda SMS MEDIA & ELECTROGAZ 20