1. RICA

2. Agenda Progress to date Initiatives since Aug 2009 Challenges experienced Planned initiatives going forward

3. 3 Progress to Date (Active customers) 3 78% of active customers have been successfully registered as at end of October 2010. 4.6 million active customers still need to be registered. (3.6 million Prepaid customers & 1 million contract customers) Registrations vs. Active base as at 1 November 2010 Vodacom Base Last 3 Months active base RegisteredNot Registered % not Registered Prepaid19,304,06016,239,57812,081,9213,619,54322% Contract4,867,339 3,802,8351,064,50422% Total24,171,39921,106,91715,949,0984,684,04722%

4. 4 Initiatives since Aug 2009 Implemented required systems & processes : –Developed and rolled out RICA applications & 14,000 Rica terminals in formal & informal markets –Signed up & trained 160,000 Rica agents countrywide Educated customers about how easy it is to register when buying new starter packs as well as customer who connected prior to July 2009 : –TV, Radio & Print campaigns to educate customers on RICA requirements –Direct education campaigns via SMS, Vodacom bills etc

5. 5 Initiatives since Aug 2009 During 1 st six month registrations per day increase day-by-day. Between July and Dec 2009 on average 112,000 prepaid registrations were done a day. January onwards saw a month- on-month decline in registrations eg, in July only 5,000 Prepaid registrations per day. Month ContractPrepaid Per MonthPer DayPer MonthPer Day Jul - Dec 2009667,94821,7913,444,229112,757 Jan to Apr 101,030,4418,6302,128,35417,748 May-1071,6922,313336,78110,864 Jun-1076,6392,555204,3736,812 Jul-10159,8465,156156,9685,063 Aug-10131,7634,250190,8056,155 Sep-10153,1455,105190,0046,333 Oct-10291,0859,390366,33511,817 Total2,582,5597,017,849

6. 6 Initiatives since Aug 2009 (continued) Registrations efforts included: Trade Partners incentives: –Trade partners were paid bonuses when monthly targets were reached Customers incentives: –R5 free airtime or 10 Free SMS’s (Dec’ 09 to July ‘10 ) –Ad-hoc offerings of R29 and more airtime to selected customers –Launched Rica Quicka promotion whereby 100 customers could win R10,000 a week in Aug, R5,000 in Sept and R2,500 in Oct Targeted registrations at place where : –People work ie industrial areas, Office Parks, –They go with their ID’s and Proof of residence ie Outside police stations, Municipalities, Home affairs office, Banks, Colleges & universities, –Where they live – Foot soldiers were used to walk the streets in informal areas to register people at home

7. 7 Challenges experienced It took much longer, than anticipated, for customers to understand the RICA requirements Customers in outlying areas are not exposed to traditional media ie TV, print & radio Contract customers didn’t think they need to register as the Network have got their details Most Prepaid customers don’t have Proof of residential address –They have prepaid electricity, no accounts that indicate residential address. –Many people don’t receive post at residential addresses or at schools and at retail stores Prepaid customers are mainly located in rural & outlying areas, serviced by informal traders making it difficult to reach them. Customer’s apathy to registration slowed registrations down ie they’ll wait for the last minute to register.

8. 8 Initiatives going forward Campaigns: Start with Media campaigns (TV, Print, Radio) – just more aggressive ie RICA to avoid being be disconnected Continue with targeted SMS campaigns to register before the deadline Contract customers (1 million customers) Trade partners - increase incentives to register customers Corporate customers & Small businesses - Call Centre agents are used to call these customers and set up appointments for Vodacom RICA agents to visit them to do their registrations Individual customers: Upgrades: When customer upgrade they are required to register. This has been enforced since July. Customers will be offered Freebees to register – minutes, data etc House holds will be visited to do registrations

9. 9 Initiatives going forward- Continued Prepaid (3,6 million) Introduced a proof of residence form that customers can take to local authorities or traditional leaders to certify where they stay These forms where distributed at taxi ranks, informal markets & townships as well as with RICA agents at events such as Vodacom’s Mpesa roadshow etc Trade Partner incentives have been increased for existing customer registrations Clustered customers into areas where there are 1000 and more customers to be registered. –Partnering with rural communities to get the people to register eg Pay for the paint of a school or set up soccer nets etc, pay money to churches or community centres if 500 people or more to RICA

10. 10 Initiatives going forward- Continued Prepaid (continued) –RICA stations are being rolled out in these areas and move on to other areas as registrations finish. –Permanent RICA agents are located at these RICA Stations for long periods of time –Inform customers with community radio and SMS that RICA Agents are in the area –Promotional events will be used to draw crowds eg traditional dancing in the KZN area, concerts etc. –Customer giveaways will be used to incentivised customers to register