1. E mpowering C ommunities T hrough T elecommunications I t works, I t’s S ustainable Presented By N obuhle C honco W orkshop on E mpowering the P oor 02/12/02

2. BACKGROUND Community Services:  Came as a result of the National Telecommunications License obligations.  To provide 22 000 affordable telephones in underserviced/rural areas.  Empower disadvantaged communities and SMMEs.  Create jobs.  Facilitate training, skills transfer and career development.

3. Corporates: Transportable  These are deployed in institutions (e.g Fort Hare Univ) and NGOs- (e.g Hospice)  They are like any other mobile phone (such as Nokias, Phillips, etc)  These will be completely phased out by July 2003 METHODS OF DEPLOYMENT

4.  These are deployed in phone shops and spaza shops or other non- containersied premises (e.g shebeens)  A phone shop is a Vodacom branded 6m steel container which is fitted with 5 to 10 phone cubicles and a counter. PHONE SHOPS:SIGI PHONES

5. COMMUNITY SERVICES Turnover and Commission (Sigis) for October 2002 ($1=R9.50)

6.  We have a total of 4102 phone shops Owned by 1635 entrepreneurs 15% have expanded their businesses to include Vodashops 5% have expanded to other businesses e.g tourism, guesthouse owners, etc. 2% have expanded outside the Republic of South Africa.  124 000 000 minutes a month are generated by the phone shops. These generate more minutes than the entire Vodacom pre-paid commercial phones. CREATED PLATFORM TO GROW

7.  It can hold 5 to 10 Sigi phones  Phone shops are owned by independent community members who offer the service to the public  The refurbished containers remain the property of Vodacom PHONE SHOP

8. Job creation Spin-offs from phone shops include small businesses around the phone shops. Insert video clip More than 20 000 jobs have been created as each phone shop employs 4 to 5 employees. Those who have expanded their businesses employ more than 5 employees per establishment. CREATING JOBS

9. VIDEO CLIP

10. Phone shops owned by community members. Technology is pre-paid Profit guaranteed Tariffs subsidised Excellent support system which comprises of: WHY IT WORKS

11. Support System Training entrepreneurs in Basic Financial Accounting concentrating on: How to run a small business To how to prepare a business plan How to manage cash flow Ho to interpret financial statements To to decide on appropriate business structure e.g closes corporations, sole proprietorship, et Basic labor legislation e.g. unemployment insurance fund and workmen’s compensation act. IT WORKS, IT’S SUSTAINABLE More than 500 entrepreneurs have been trained

12. 1.2 Road Shows Promoting the use of phones by the public (Clip of video insert) 1.3 Communication through:  Ringers  Show picture of ringers (insert picture of Ringers Newsletter)  SMS  Quarterly meetings at regional and (Focus Group) national levels (Nitosa) 1.4 24 hour Community Services Helpline. IT WORKS, IT’S SUSTAINABLE

13. ENKOSI!!