RICA Presentation to the Portfolio Committee on Justice and Constitutional Development. 9 November 2010

Contents  What has MTN currently done to register our existing customer base?  Key Challenges  What MTN will do differently if the RICA extension is granted? 2

3 What has MTN currently done to register our existing customer base? RICA status at a glance

4 What has MTN currently done to register our existing customer base? MTN has launched many specific radio and print media campaigns since the effective date of RICA targeting our existing customer base. MTN also leveraged off the 2010 FIFA Soccer World Cup to register our existing customer base. Existing customers had the opportunity to register at MTN fan parks and Ekasi TV sites and where also incentivised to do so(e.g. through airtime “giveaway” ). MTN has been focusing on innovative ways to take RICA to the people such as our latest campaign, which involves the use of Mr Delivery to register existing customers in their homes when placing orders for certain consumables (such as food). RICA reminder campaigns for our existing customers have also been rolled out such as sending SMS’s to customers that have not registered. The RICA reminder messages are also incorporated into our sponsorship activities such as the MTN 8, Football Clubs, MTN 40 and Miss Soweto. MTN will also be using certain celebrities and sportsman to become RICA ambassadors. Marketing/ Training/ Awareness Marketing/ Training/ Awareness

5 What has MTN currently done to register our existing customer base? MTN has deployed MTN Zoners” (These are individuals who sell MTN starter packs and airtime and they are also mobile and travel easily between specific locations) to informal settlements and rural areas to register existing customers. MTN has also appointed Agencies to assist in the registration of existing customers at campuses and shopping malls and other public venues as part of our approach to take RICA to the people MTN has rolled out training and awareness campaigns to thousands of stores (within the channel environment). RICA points of presence MTN has rolled out +-26,000 points of presence across the country to register customers. RICA points of presence include major retailers (such as Edcon and PEP), MTN branded stores and retail stores in the informal channel/rural areas (e. Spaza Shop).

6 What has MTN currently done to register our existing customer base? MTN has introduced 6 technology options for our channels (i.e. RICA points of presence) to comply with the RICA Act and to effectively register customers For example, a “spaza” shop in a rural area that does not have a computer and internet access to RICA customers, can simply register an MTN customer using his /her handset (MTN WIG Application) The Mobile Cellular Operators have also invested in RICA devices to registers customers. These devices are “mobile” and can be used in most places to RICA customers Technology MTN has invested more than R150 million since the effective date of RICA (i.e. 1 July 2009) This investment includes Marketing costs, RICA technology costs and channel support costs. Financial Investment

Contents  What has MTN currently done to register our existing customer base?  Key Challenges  What MTN will do differently if the RICA extension is granted? 7

8 Key Challenges The Department of Home Affairs reported that it has more than 500K uncollected ID documents. Backlogs/problems have also been reported in the media relating to the processing of ID and passport documents. Customers who cannot produce an original identification document as a result of processing problems at the Department of Home Affairs cannot be successfully registered according to the RICA Act. Certain MTN customers that reside in the informal areas have difficulty in providing proof of residential address. The Act assumes that a individual who does not have a formal residential address or employment address, will receive post at a school, church or retail store, which is not the case. Many Small medium enterprises (“SME”) in the informal areas have discontinued the selling of pre-paid SIM cards. The reason that this has occurred is that the SME’s report that it is inconvenient to their other business operations, therefore limiting the registration points in these areas. Key Challenges Experienced Key Challenges Experienced

Contents  What has MTN currently done to register our existing customer base?  Key Challenges  What MTN will do differently if the RICA extension is granted? 9

10 What MTN will do differently if the RICA extension is granted? MTN will intensify our marketing campaigns and our approach, which is to take RICA to the people. More RICA Officers will be deployed at schools, universities, shopping malls and other public venues across the country. MTN will also be increasing funding in relation to marketing /training and awareness activities. MTN will also be using geo-coding techniques to identify the areas where there are high concentrations of customers that have not registered and deploy RICA officers to these areas in more efficient manner. The number of MTN ‘s RICA points of presence will need to increase and it is our intension to appoint more RICA Officers for the period December 2010 to June 2011 Marketing/ Training/ Awareness Marketing/ Training/ Awareness RICA points of presence MTN is also engaging with various governmental departments to establish RICA points of presence at their respective branches.

Thank You