Consumer Issues Relating to Cellular Services

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Consumer Issues Relating to Cellular Services
Talaat LahamCEO Chairman 5 November 2002
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s
Agenda

• Company Overview
• Quality of Service
• Customer Care
• Tariffs
• Challenges
• Conclusion

Consumer Issues Relating to Cellular Services
3
Company Overview Saudi Oger
Saudi Oger Saudi Arabia
Oger Telecom South Africa Holdings Ltd. Bermuda
90
Border
Multiple South AfricanOrganizations
100
100
CellSAf
Oger Telecom (South Africa)
40
60
3C Telecommunications Holdco
100
Cell C Opco The Licensee
100
100
Cell C Prop Co
Cell C Service Provider Company (Pty) Ltd
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Saudi Oger

• Privately run conglomerate
• Operations in the Middle East, Africa and Europe
• Top tier contractor for the construction,
  operation and maintenance of complex
  infrastructure and facilities projects in the
  Middle East
• Projects worth over 20bn over the past 20 years
• Also runs operations covering shipping,
  transportation, banking and telecommunications
• At December 2001, had equity retained earnings
  of 1bn 28,000 employees globally
• In 2002, SOs shareholders transferred 220
  million of assets into the business as part of a
  general recapitalisation

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Company Overview - CellSAf

• Historically disadvantaged persons own 40 of the
  company
• CellSAf is formed from more than 30 BEE groups

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Company Overview - Who we are?

• We are a South African incorporated company,
  practising true empowerment
• We are a significant player in the South African
  economy
• creating innovative employment opportunities and
  contributing to skills development in the country
• using preferential procurement practices
• setting and meeting tremendous growth targets
• We boast a diverse, multicultural,
  multi-disciplined workforce

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Company Overview - Who we are?

• We are a consumer champion, offering
• flexible packages tailored to the needs of
  various target segments in the market
• innovative, quality products and services at
  affordable prices

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Company Overview - Employment Equity
September 2002
Over 75 of our staff comprise of previously
disadvantaged individuals and span all areas of
management
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Company Overview Milestones Achieved

• Feb 16, 2001 Licence awarded by Minister
• Jun 25, 2001 Service licence issued by ICASA
• Aug 3, 2001 Spectrum licence issued by ICASA
• Nov 17, 2001 Commercial Launch
• Nov 17, 2001 Pre-paid Launch
• Dec 11, 2001 Post-Paid Launch
• Dec 21, 2001 E-GSM frequency band awarded
• Sept 13, 2002 Community Service
  Telephones tariff has been approved
• Nov 5, 2002 More than 970 000 Subscribers

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Agenda

• Company Overview
• Quality of Service
• Customer Care
• Tariffs
• Challenges
• Conclusion

Consumer Issues Relating to Cellular Services
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Quality of Service - Is Our Differentiator

• The South African mobile sector is highly
  competitive, more so since our entry into the
  market
• The South African consumer is discerning and
  expects high levels of quality
• It is therefore in our interest to offer the
  highest levels of quality

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Quality of Service Our Policy

• We aim to provide products and services of
  superior quality to our customers
• We pursue quality excellence in all areas of our
  organisation
• We continually benchmark ourselves against
  international best practices

13
Quality of Service Our Standards

• Our licence prescribes the following targets
• Network Availability to be at least 95
• Call Completion Rate to be at least 95
• Call Blocking to be less than 2
• Call Quality to meet ETSI standards
• Our network performance is subject to
• independent audit and is periodically
• reported to ICASA

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Quality of Service Network Monitoring

• The network is monitored on a 24-hour basis by
  our Network Management Centre
• Daily tests are performed on systems for
  preventative and corrective action
• Maintenance is planned and performed to ensure
  the least disruption to service
• We have invested in world-class test and
  measurement technology to maintain international
  standards

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Quality of Service Network Coverage

• Since our launch Cell C has offered national
  coverage via a roaming agreement with Vodacom
  this is a first for South Africa
• Cell C is the first dual band cellular operator
  in SA
• The 900 MHz band is almost fully utilized in
  urban areas by the other operators. We are
  rolling out our own urban network using the
  1800MHz band, which provides more capacity hence
  less congestion for the customer
• Cell C is using the 900 MHz band in rural areas
  to achieve cost-effective coverage over larger
  areas

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Quality of Service Coverage Principles

• We use the Siemens GSM/GPRS 900/1800 platform
• We are aiming for 2500 base stations by the end
  of 2003
• We have focused our rollout on key metropolitan
  areas
• Coverage is provided by Vodacom sites in areas
  where we are still in the process of rolling out
  sites
• Our base station sites comply with industry
  regulated
• electro-magnetic emission and compatibility
  standards

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Quality of Service Coverage Locations

• Site locations are selected based on
• Licence requirements to cover 8 of the territory
  and 60 of the population within 5 years of
  commercial launch
• Exclusion zones as per roaming agreement with
  Vodacom
• Populated areas in rural South Africa
• Roads and access points to towns and cities

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Quality of Service - Dropped Calls

• Dropped calls are a reality in GSM networks
  worldwide
• We are equipped to monitor and manage the dropped
  call rate on a continual basis
• Engineering teams are trained to use best
  practices for investigating and solving dropped
  calls
• Our dropped call rate meets internationally
  accepted norms

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Quality of Service - Reducing Dropped Calls

• We experience dropped calls for two main reasons
• low signal strength
• external interference
• We can reduce dropped calls by
• Rolling out base stations without unnecessary
  delays
• Operating without radio interference

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Agenda

• Company Overview
• Quality of Service
• Customer Care
• Tariffs
• Challenges
• Conclusion

Consumer Issues Relating to Cellular Services
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Customer Care Our Code of Conduct

• Our customer service Code of Conduct is approved
  by ICASA
• It is available to all customers by telephone, as
  well as on our website
• Confidentiality of customer information is
  sacred
• Our Customer Call Centre operates 24-hours and
  aims to resolve queries and complaints

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Customer Care Advice and Assistance

• Our customers can expect informed advice and
  assistance from qualified staff on
• The choice of package best suited to their
  needs
• Instructions in the operation and maintenance
  of handsets and selection of value-added
  services
• Information regarding prices and terms and
  conditions in accordance with which the service
  is provided

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Customer Care

• All our customers are important to us, therefore
• We provide products and services that offer
  simplicity, choice and value
• We are committed to providing superior customer
  service support
• We invest in staff training in these critical
  areas
• customer care
• products and services
• GSM technology
• All calls to the Call Centre are recorded and
  monitored for service quality purposes

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Customer Care Multi-lingual service

• We employ multi-lingual staff at our Call Centre
• The many languages spoken by our Call Centre
  agents is a differentiator of which we are proud
• We are striving to ensure that our services are
  available in each one of the 11 official languages

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Customer Care Please Contact Us

• Our Call Centre can be reached by dialling 140
  toll-free on a Cell C mobile
• Or by dialling 084 140 from any other mobile or
  fixed line
• Anyone can send a query via email to
  custserv_at_cellc.co.za
• We have voluntarily registered as a corporate
  member of the consumer watchdog website,
  www.hellopeter.com

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Agenda

• Company Overview
• Quality of Service
• Customer Care
• Tariffs
• Challenges
• Conclusion

Consumer Issues Relating to Cellular Services
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Tariffs - Our Value Proposition

• Provision of lifestyle enhancing cellular
  services based on

VALUE
SIMPLICITY
CHOICE

• Uncomplicated tariff
• Per second billing on all tariffs (60/1, 30/1 or
  1/1)
• All day R2 flat rate on pre-paid

• Choice of lifestyle taylored tariffs Value
  Added Services
• Choice of Friends and Family Members
• Choice of contract lengths 1,12,24 months
• Packages with and without inclusive minutes

• All day R2 flat rate
• Discount on frequently used numbers
• Discount on Cell C to Cell C calls
• 5 Free Call me back SMSs per day
• Per second billing (60/1, 30/1 or 1/1)
• Discount on international calls
• Upfront voucher bonus minutes
• Moonlight period

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Tariffs Some Key Benefits

• All our tariffs include Per Second Billing at no
  premium to the standard tariffs
• Based on usage analysis, a tiered approach
  includes Per Second Increments after 60s, 30s, or
  1 second depending on the chosen package
• A 10 discount applies when dialing pre-selected
  Friends and Family numbers
• Flat rate tariff of R2 per minute is the lowest
  available in the prepaid market and customers
  can receive incoming calls for as little as R5
  per month.

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Tariffs Post Paid Summary
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Tariffs Pre-Paid Summary
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Agenda

• Company Overview
• Quality of Service
• Customer Care
• Tariffs
• Challenges
• Conclusion

Consumer Issues Relating to Cellular Services
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Challenges

• We require the assistance of the
• Portfolio Committee on Communications

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Challenges - Constraints

•  

The frequency bands assigned to Cell C are
encumbered with legacy government and industry
operators and/or illegal cordless systems.
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Challenges - Interference

• Where we experience interference it
• Degrades call quality, producing
• Poor call processing (call set up failure,
  dropped calls, failed handovers)
• Poor speech quality (breaking up of voice)
• Hinders the performance of next
  generationservices ie GPRS, by
• Constraining data throughput
• Restricting data reliability

•  

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Challenges Action Needed

• The following actions, if expedited by
  Parliament would result in better cellular
  service for our customers
• Migration of all legacy systems in accordance
  with radio frequency band plans i.e.
  SABRE
• Budgetary provision for cost of migrating
  legacy systems
• Effective mediation between concurrent
  users of the frequencies prior to migration

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Challenges Site Approval Delays

• We are governed by the following legislation
  with regard to base station site approvals
• Local Authority (LA)
• Town Planning Townships Ordinance 15 of 1986
• National Building Regulations and Buildings
  Standards Act 103 of 1977
• Municipal System Act 32 of 2000
• Environmental Provincial Department (EPD)
• Environmental Conservation Act 73 of 1988
• Regulations contained in Government Notices R
  1182, 1183 and 1184 of 1997 promulgated in terms
  of sections 21, 22 and 26 of the Environment
  Conservation Act (Act no. 73 of 1989)
• EIA guideline document Department of
  Environmental Affairs and Tourism. 1998.
  Guideline Document. EIA Regulations.
  Implementation of Sections 21, 22 and
  26 of the Environment Conservation Act. Pretoria.
  Department of Environmental Affairs and Tourism
• Civil Aviations Authority
• Civil Aviations Act

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Challenges Site Approval Delays

• Our site approval process is delayed by
• Cumbersome and conflicting administrative
  processes
• Unnecessary use of consultants and experts
• Lengthy advertisement process
• Lengthy and unstructured public participatory
  process

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Challenges Other Delaying Factors

• Disparate policies and legislation between the
  local, provincial and national authorities
• Conflicting approval conditions and processes
  between the local and provincial authorities
• Lack of clarity on type, validity and
  significance of objections that may be lodged
  within the public participatory process

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Challenges - Approval delays
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Challenges - Approval delays
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A prime example of factors contributing to
APPROVAL DELAYS
Public Objections to all 6 alternative site
options including site sharing. Issue still
pending

Site cancelled after two years of site
acquisition problems owing to irresolvable
conflicting permit issues between LA and DACEL
Construction of permitted site stopped due to
public objection
Site stopped due to conflicting permit issues and
public objection received
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Challenges - Recommendations

• Establishment of a National Environmental
  Legislative framework that
• Reinforces the essence and purpose of the
  National Environmental Management Act.
• Supports a harmonised approach to the creation of
  policy and legislation at all levels of
  government.
• Promotes co-operation between Local Authority and
  the Provincial Authority

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Challenges - Recommendations

• Establishing criteria for assessing the
  significance of the type and validity of
  objections received within the public
  participatory process.
• Formulating a national legislative framework that
  allows for a uniform approach to authorisations
  in the Cellular Industry.
• Facilitating our network rollout process thereby
  improving the quality of service given to the
  consumer

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Agenda

• Company Overview
• Quality of Service
• Customer Care
• Tariffs
• Challenges
• Conclusion

Consumer Issues Relating to Cellular Services
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Conclusion

• We are committed to providing a high quality
  network to our consumers
• Our potential to provide even better service is
  inhibited by the lack of interference-free
  spectrum and a coherent and speedy site approval
  process
• Your assistance in meeting these objectives is
  crucial to reduce delays in achieving the
  national communications objectives

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Agenda

• Company Overview
• Quality of Service
• Customer Care
• Tariffs
• Challenges
• Conclusion

THANK YOU!
Cell C celebrates its first birthday on 17
November 2002