Posts Tagged ‘mtn uganda’

Wish List: My Telecom Service Provider Needs

Looks like the economy is back in the open, but the lingering effects of the COVID19 pandemic have driven a more digital focus on life and work. Looks like our local service providers have not really made any moves over the last 2 years

Here is my checklist based on my exposure across the places I have lived

  1. Having a buffet of services that are paid off at a regular cadence (rythmn)
    • Voice minutes for on-network and off-network – removes the need for multiple simcards
    • Data – mobile data and broadband data
    • SMS messages (yes I still use them)
  2. Family plan to help me manage my household telecom needs (I have teenagers who are due to get their own phones and numbers)
    • Ability to add and remove numbers to a plan, I would be happy to pay for batches of 5 numbers
    • Happy to pay a service fee for each number added to the plan – I already do this when gifting airtime and data
    • Shared pool of minutes across the plan both on and off network
  3. Tax invoices as they are required by URA for tax purposes and/or clients for reimbursements
  4. Weekly/Monthly plan options since this helps manage cash flows and cater for usage pattern changes like school and holidays
  5. Ability to measure usage by different members – who is using the services the most, this is by the default account on the plan. Better if it is an online dashboard so that I can check it regularly and adjust accordingly
  6. Unlimited Internet access in the suburbs outside the CBD with fairly high FUP (350GB and above per month)

What are your telecom service needs – what are they doing right or not?

A Frugal Innovation Approach to Simcard Verification 2019 Edition – Design & High-level Architecture

Happy Easter Monday to you all, and I hope that the rains on Sunday night completed the cleansing process from the festivities, the resurrection of the Lord Jesus Christ and from the feast of the Goddess Ester (depending on which side you lean)… I am one who embraces all religious doctrines an faiths.

So over the last few days I have started receiving a message from MTN Uganda, to physcially visit a service center to verify my sim card registration, well this is only the 3rd cycle for selected customers whose details were screwed up during cycle 2, and I guess I am one of the lucky few with time to waste.

This is a followup to the 2013 recommendations for Simcard Registration https://ssmusoke.com/2013/03/12/uganda-simcard-registration-alternate-approach/ which apparently were not providing sufficient value 😉

Anyway after having to make 10 calls this morning, the reminder message, a hardcoded IVR message, has left me frustrated, but also wondering, why do I have to physically visit the service center, it is 2019!

Rather than complain all the time, I focused my anger with support from my trusted colleagues at Styx Technology Group (http://styxte.ch) we got to protoyping a quick and dirty solution to this mess. What MTN and the regulator need are my National ID details, since they will scan the ID or take a photo of it, take a photo of me then I will have to wait 2-3 days,

A frugal innovation can be:

  1. Mobile App front end to capture data that is needed
  2. A backend system – doesn’t matter what it is – can even reuse the exisiting simcard registration database they have with processes to complete the verification flow, and link into the audit process that triggered this verification
  3. A verification process, which can be done by the app automatically, or using a backup USSD channel. This follows 2FA (two factor authentication to prevent mis-use)
  4. A notification that the verificatio process has been completed and *197# can be leveraged to check status.

This method is not for everyone, but provides a solution for those of us who may not be able to line up and waste 2-3 hours in line to do just this…

Some mobile screenshots from the design team

 

NIN Details

National ID Details

Phone Numbers

Phone Numbers

Confirmation

Confirmation

Thoughts and additions are welcome!!!

UPDATE 1: One of the team members asked me, so does this solve your problem? How do you know which numbers are listed on your NIN that has been provided? Leading to iteration 2 of the Phone Numbers screen allowing the display of existing numbers with functionality to remove currently registered numbers…

Phone Numbers - v2

Alternate Approach to Voice Price Wars in Telecom Industry in Uganda

My colleagues at Styx Technology Group are looking at alternate approaches to telecos in Uganda to increase their ARPU (Average Revenue Per Unit) a metric for revenue from each customer, instead of the current price war tagged to 3/= per second (US$ 0.1 per minute).

  1. Accept that voice is now commodity, being pushed further out by VOIP for both regular users and business, due to the improving Internet connectivity both via fixed and mobile connections. There is no longer a competitive edge to having cheaper voice, the revenues are fixed and can only go lower
  2. Bundled services: Currently there are separate plans for voice, SMS and data, which have to be purchased daily or when needed. The monthly plans have a premium attached, so without looking at the numbers I suspect that a majority of the regular users purchase daily plans as and when is needed. The telecoms can create bundled plans (already existing for voice) to include SMS and data without the hefty premium. Additional incentives can be provided for further discounts when a user pays consistently for a plan for 6 months, without any breaks.
  3. Smartphone Device and Service Contracts: While these are being gotten rid of in the US and Europe, the market in Uganda is ripe for disruption, where smartphones are paid over 12 to 24 months, with bundled services. Obviously the argument here is the risk associated with lending in Uganda, but options include partnering with financial institutions can help reduce the risk profile, work through employers to deduct the costs of the contract directly at source.
  4. Multiple Smartphone Data Plans: This is similar to the device plans above, however this allows the owner of the plan to register additional devices for monthly fee to share the data. This has been common with unlimited plans, and would provide a new revenue stream.
  5. Extending Mobile Money Services: The best service to copy is PayWay with a wide range of devices, and platforms on which to use the service based on what infrastructure the agent has. I would like to be able to swipe my VISA card and transfer money to my account without having to go through the bank interface which tends to be down more often than not.
  6. Bulk Sales of Devices to Schools: The new underlapped customer base, sell more devices to schools get parents to pay part of the costs to push e-education services, why do kids still have to fill Advanced Level and University Level choices on paper forms that can be lost? With powerful tablets in the $50 to $100 range only the telecoms have the clout, network and drive to push this through.
  7. Custom Devices and Services: These are for data collection needs, surveys etc, which can be accessed through third parties but pushing the envelope on what is possible. The key here is flexibility of service, enabling channel partners build and innovate by creating custom services and plans to meet their specific needs.
The telecoms need to think of blue ocean strategies to create new markets, provide ability for others to leverage their platform investments for new revenue channels, leveraging the example of Amazon that has created a multi-billion dollar technology infrastructure business based on solving internal problems.
What do you think?

UPDATE: This blog post follows the same thinking as The Telecom Wars in Uganda – Round 5 – 2015 and Beyond on this blog too

The Telecom Wars in Uganda – Round 5 – 2015 and Beyond

The telecom wars in Uganda just got a new lease in life, however looking forward the next round will claim some casualties. Why do I call this Round 5?

  1. Round 1 – Oct 21, 1998: MTN comes into Uganda, after a monopoly by Celtel (now Airtel) where simcards fell to the equivalent of US$30 with a monthly service fee of $10
  2. Round 2 – 2007 to 2009: Warid and Orange launch in Uganda, the Value Added Service Provider (VAS) boom, thanks to James Oloo Onyango for pointing this out
  3. Round 3 – 2009 to 2012: Mobile Money wars
  4. Round 4 – 2013 and 2014: Airtel acquires Warid telecom, Smart Telecom & Vodafone join the fray, MTN launches voice bundles

At this point each of the telcom companies operating in Uganda have voice bundles, data and internet plans plus mobile money platforms. With international calling plans falling towards zero, currently even cheaper than local network calls, social media/VOIP/Messaging applications cannibalizing SMS revenues, the battle for survival is ever-fierce with the any mis-step proving fatal.

Looking into my crystal ball, the next round is going to be fought along the following avenues:

  1. Mobile Money Partnerships – with banks, utilities, and other commercial players to entrench mobile money transfer deeper into the economics of the country.
  2. Service Partnerships – can be seen around data & internet services, so that the telecos are not reduced to dumb pipes. The agricultural, health and education sectors will see a new push for value added services via SMS in order to keep the users captive on a specific network.
  3. Personalized Bundles – combined voice, data and SMS bundles are not yet the rage, but they will gain prominence
  4. Family Bundles – with families having more than one phone, I see a push towards shared bundles to reduce the costs of new customer acquisition & increasing opportunity cost of switching. The impact of this tactic will be further complicated by the multi-sim phones that most consumers have.
  5. Smart device leasing plans – one I have called for, complicated by lack of a national ID, but I see success for whoever nails a working version of business model first.
  6. Business Customers: Majority of the telecom usage is personal, however business customers provide an interesting selling point with a knock on effect for smart devices, family or business plans and shared bundles. Most users are forced to use a service or network convenient to the bread winner or trend setter.
  7. Quality of Service: after all that is said and done, when the costs are almost at par, the quality of service for a specific provider will become a critical deciding factor both for business and personal use.

With all this opportunity also comes great peril, from the following:

  1. Niche players – ISPs for Internet and data as the capabilities for deploying metro-wide WIFI accelerate, informal money transfer services especially under Islamic banking
  2. Regulatory pitfalls and taxes – the impact of the recent 10% excise duty on mobile money fees is yet to be assessed
  3. Mobile Virtual Network Operators – are they friend or are they foe? Partner or competition if running atop of your infrastructure?
  4. Market saturation with falling revenues per customer – the telcos need to innovate to stay atop of the fast moving market that is to render them dumb pipes and their services commodity
  5. Number Portability – when this comes, it will disrupt the players as it abstracts the underlying providers.

How do you see the telecoms responding to these threats, please share in the comments below ….

UPDATE: Round 2 includes VAS providers who saw exponential growth in revenues at this time using SMS based solutions

Uganda Simcard Registration – Alternate Approach

By now all of you know that the mandatory simcard registration by Uganda Communications Commission (UCC) has gone naught, died a natural death like most Ugandan projects, a white elephant dead on conception. Sam Agona (http://www.samagona.org/?p=14) hit on the nail why UCC could not enforce its threat.

The approach I am proposing has the following strategic objectives:

  • Simplifying the process for the customer not the telecom providers
  • Centralized registration for telcos while segregating the data for each telco (Do I smell Number Portability ahead)
  • The minimum registration information for each telco is the same while allowing for each  telco to collect more data as may be required

The high-level architecture is as follows:

  • The telcos form a joint venture to manage the centralized registration system to keep it away from government to cater for privacy concerns, which can be mandated by the regulator or paid for from telco contributions to the regulator development fund 
  • Each telco pays based on the number of simcards registered – they are already paying agents a commission to register users anyway
  • The data for the subscribers for each telco are segreagated from each other but a user can access their registration information across the different telcos (technically this is no-longer a deal breaker)
  • A single set of mobile applications is used to register the customers – with each telco having an option to customize and brand the application for its own use
  • A unique sim-card registration number that’s only useable within this system, similar to the Financial Card Number for the credit reference bureau
  • Ability for a customer to add more simcards to their portfolio, does not have to be online or automated, but without the need for submitting all the documentation all over again
  • Support for business customers to register and maintain simcards (this also needs to be looked into as it can be used to circumvent why the registration was done in the first place
  • REQUIRED: An interface (not necessarily automated) to validate “official” documents like:
    • Passport – for Ugandans at least via Ministry of Internal Affairs
    • Drivers Licenses – Face Technologies – they already have tablets for Police to verify validity
    • NSSF Cards – okay I know these are not available but they took my photos and biometric
    • Corporation IDs (I am not sure how this would work since there are many briefcase companies abound)
    • Voter Registration cards – Electoral Commission?
    • Corporate Registration – Uganda Registration Services Bureau and Uganda Revenue Authority (TIN/VAT numbers)

The next question is who pays for the operations of this center which may be an annual service fee for the telcos based on the numbers of simcards maintained with fees for addition and removal of simcards,  “accurate and timely statistics” on Uganda mobile telco industry.

What are your thoughts? What else could be added?