RICA

Agenda

• Progress to date

• Initiatives since Aug 2009

• Challenges experienced

• Planned initiatives going forward

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

BaseLast 3 Months active base

Registered Not Registered

% not Registered

Prepaid 19,304,060 16,239,578 12,081,921 3,619,543 22%

Contract 4,867,339 4,867,339 3,802,835 1,064,504 22%

Total 24,171,399 21,106,917 15,949,098 4,684,047 22%

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

Initiatives since Aug 2009

• During 1st 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

Contract Prepaid

Per Month Per Day Per Month Per Day

Jul - Dec 2009 667,948 21,791 3,444,229 112,757

Jan to Apr 10 1,030,441 8,630 2,128,354 17,748

May-10 71,692 2,313 336,781 10,864

Jun-10 76,639 2,555 204,373 6,812

Jul-10 159,846 5,156 156,968 5,063

Aug-10 131,763 4,250 190,805 6,155

Sep-10 153,145 5,105 190,004 6,333

Oct-10 291,085 9,390 366,335 11,817

Total 2,582,559 7,017,849

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

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

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

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

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