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

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

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

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

6. Project Cell Power

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

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

9. Vendor Business Case Vendor runs independent business Vendor pays GPRS comms cost Vendor receives 5% commission (ex VAT) Top Vendors: PeriodTurnoverCommission DailyR 5,000R 219.30 MonthlyR 125,000R 5,482.46 AnnualR 1,500,000R 65,789.47 Cell Power

10. Statistics ParameterValue Active Consumers110 000 Vendors on 31 July 2006120 Total Sales (1Jul 05 to 31 Jul 06)R 25 Million Sales for July 2006R 2.7 Million Transactions for July 200683 000 Highest Vendor Turnover for July 06R 135 000 Average transaction sizeR 30.00 Cell Power

11. Statistics Cell Power

12. Statistics Cell Power

13. Problems Encountered Database Speed VAT and Commission Double Redemption Cell Power

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

15. Newer Trends 3 rd Party Vending Outsourcing Franchise Model Cell Power

16. The Bigger Picture Cell Power

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

18. Contact Information Dirk Pieterse Chief Engineer City of Tshwane 012 358-9449 www.tshwane.gov.za Dr Walter Smuts Managing Director Expertron Group (Pty) Ltd 012 844-0330 walter@expertron.co.za www.expertron.co.za Cell Power