MICRO FLEXIBLE TOP-UP Bridging the Digital Divide

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MICRO FLEXIBLE TOP-UPBridging the Digital
Divide
2008
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Importance of payment collection

• All MNOs are concerned about providing their
  services to the territory of operation
• No one is concerned about collecting the proceeds
  within the territory of operation

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How are the proceeds collected?

• Upper middle class people are mainly postpaid
  subscribers
• Middle class people use scratch-cards to pay for
  the mobile communication services
• Low-income people? Do not have enough money to
  pay for scratch-cards
• Minimal MNO scratch-card face value in Europe
• is 5 Euros (7.5)

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The proceeds are feasible to be collected via
scratch-cards only if payments are above 3 Ђ
Face Value Production Cost Retailers Margin Cost of Proceeds Collection from Low-income People
15 3 5 8
10 5 6 11
5 10 8 18
4 12 10 22
3 18 15 33
2 25 20 45
1 50 30 80
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It is impossible to attract subscribers with ARPU
lower than 3 Ђ
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Are there a lot of subscribers with ARPU lower
than 3 Ђ?

• Successful experience of implementing micro- and
  flexible top-up solutions has demonstrated that
  42 of the total subscriber base can be added
  within the above mentioned category. Thus the
  subscriber base was increased by 72, even in
  Russia which is relatively wealthy.

Subscriber base growth in Russia
72
42
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What about other countries?

• The indicators amount to 20 and 25 respectively
  in the developed countries which as well have
  low-income groups of population
• These indicators amount to 80 and 400
  respectively in other developing countries

Subscriber base growth
25
400
20
80
Developed countries
Developing countries
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Is this profitable?

• Electronic flexible micro top up networks are
  ready to operate as follows
• For 3 commission (including the retailers
  margins) or 0.5 (excluding the retailers
  margins) if the turnover is above 1 bln
• For 5 commission (including the retailers
  margins) or 2 (excluding the retailers margins)
  if the turnover is initially small

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Contact information
Andrey Gribov, PRESIDENT CEO, CYBERPLAT
OJSC Address Floor 12, Entrance 7, World
Trade Center-2, Moscow, 123610,
Russia Telephone [phone] Fax 7
[phone] Internet http//www.cyberplat.com
E-mail gribov_at_cyberplat.com