Cell Phone Vending The Tshwane Case Study Dirk Pieterse Dr. Walter Smuts Cell Power

Outline The System (Walter) The Project (Dirk) Cell Power

System Design Objectives Job Creation Many Sales Points Mobile Sales Points Reduced Risk Cell Power

Technologies Used Point-of-Sales Device Standard cell phone Communication SMS USSD GPRS Administration Terminals Standard PC with Web browser Cell Power

Project Cell Power

The Problem Crowds at payment points Distances to payment points Maintenance of payment points Risk Cell Power

Implementation Strategy Controlled roll-out Requirements: Permanent Tshwane address No debt R 5000 first payment Cell Phone Contract GPRS phone Cell Power

Vendor Business Case Vendor runs independent business Vendor pays GPRS comms cost Vendor receives 5% commission (ex VAT) Top Vendors: PeriodTurnoverCommission DailyR 5,000R MonthlyR 125,000R 5, AnnualR 1,500,000R 65, Cell Power

Statistics ParameterValue Active Consumers Vendors on 31 July Total Sales (1Jul 05 to 31 Jul 06)R 25 Million Sales for July 2006R 2.7 Million Transactions for July Highest Vendor Turnover for July 06R Average transaction sizeR Cell Power

Statistics Cell Power

Statistics Cell Power

Problems Encountered Database Speed VAT and Commission Double Redemption Cell Power

Problems NOT Encountered Imposters GSM Coverage Transaction Speed Writing Errors Vendors Charging More Cell Power

Newer Trends 3 rd Party Vending Outsourcing Franchise Model Cell Power

The Bigger Picture Cell Power

Conclusion Technology mature Residents embrace solution Cell Phone Vending is here to stay Cell Power

Contact Information Dirk Pieterse Chief Engineer City of Tshwane Dr Walter Smuts Managing Director Expertron Group (Pty) Ltd Cell Power