David Ryder discusses the innovation around mobile content in African markets. This presentation was given at ME's Monetising Mobile conference in September 2010.

1. Oxygen8 Communications
David Ryder
Group Marketing Director

2. Company Overview
 Established in 2000
 Largest privately owned interactive communications company
 Turnover more than £50 million p.a. & operating profitably
 Single integrated global communications infrastructure
 Supporting voice, mobile and online services
 Offering integrated digital solutions
 Covering delivery, billing, applications and content
 88 staff located across our global offices
 A “one stop shop” service for our clients
Worldwide Voice & Mobile Solutions

3. Global Footprint
Dublin London,
Denver Birmingham & Litchfield
Barbados
Dar es Salaam
Johannesburg
Sydney
Offices in 7 Countries and connectivity in 38 Countries
Mobile Messaging, Voice & Mass Media Solutions

4. Company Overview
CMS (Caribbean) acquired
Operataing in Africa Since 2006 JV with Mobiya announced 2009
Push Mobile Mozambique opened
2008
Company formed in South Africa
2007
Push Mobile JV established in East Africa
2006
Sunday Times No 54 fastest growing
business 2005 in UK
2005
Company formed in Australia
2004
Awarded Sunday Times No1
2003 fastest growing business in UK
2002 Direct connections to Irish mobile operators completed
Irish Telco licence awarded
2001 Company formed in Ireland
Direct connections to UK mobile operators completed
2000 UK PTO license awarded
Company formed in UK
‘Brands Need to Interact with Consumers’

5. Oxygen8 South Africa
 The Group‟s fastest growing business unit
 Directly connected to all 3 mobile operators
 Implemented WAP billing directly with Mobile Operators
 One of the Biggest WAP markets in the World
 Currently within top 5 aggregators
 Achieving great success in the brands and agency sector
 Brands such as Cadbury‟s, Unilever, McDonalds
 Ready-made media buying & production service
‘Brands Need to Interact with Consumers’

6. General observations
 SA has over 100% cellphone penetration
 4 Mobile networks – Vodacom, MTN, Cell C &
Virgin
 Recent new addition Telkom Mobile
 4.5 million internet/SA PC users end of 2009 vs.
44.5 million mobile users (worldwideworx figures)
 78% of mobile users in SA don‟t have PCs
 1 in 6 internet searches in 2009 were from
cellphones
 So where would you send advertising
messages?

7. Challenge & Opportunity
 SA mobile/roaming rates amongst highest in the World*
 Poor historic view/mistrust of mobile (legacy: rip-off
comps & hidden daily subscriptions)
*NB we balance this with airtime voucher awards– attractive even to „contract‟ users
(transferable as a gift to children/domestic helps etc. on pre-paid phones).
Balanced by (upside/opportunity):
 Influence of iPhone (apps/downloads on phones are
cool again)
 Recession driven need for more cost-effective,
measurable marketing & advertising
[NB we‟re also building iPhone apps for clients – SA market only
approx. 200,000 iPhones; mostly decision-makers – e.g. adv
agency directors].

8. Most of our current effort ...
 Moving to a more „mobile media‟ stance by creating
selective, cost-effective marketing for corporates et al.
 Offering mobile as the media which locks together
traditional adv & mkting (print, radio, TV) – it‟s „as well
as‟, not „instead of‟. Put it in the audiences‟ pocket.
 Don‟t ask for extra marketing budget, just 10-15% of
current advertising budget
 Advantages (USP) – interactive (audience can talk back
immediately), measurable response, cost-effective &
personal – almost everyone opens a mobile message
 Captures & builds active databases for future marketing
 Immediate targets are adv. & media agencies, brands,
TV production companies & corporates

9. Additionally we have targeted
Information for people on the move ...
 Financial groups/advisors – StanLib, IFA Net (e.g.
client investment portfolio info)
 Hotel & country lodges – (where to stay/click here to
book/local interest places, etc.) – Orion Hotel Group
 Sports sites (esp. football) – e.g. Supersport.mobi =
1m hits/month
 Mobisites are good for attracting 3rd party supportive
advertising – sites can pay for themselves
Others in our sights – these are just the starting points

10. East Africa
 Based in Dar es Salaam, Tanzania
 Formed in 2006 & Push Mozambique in 2007
 Joint venture between Oxygen8 & Six Telecoms Company
 Direct connections in Kenya, Tanzania, and Mozambique
 Access to subscriber base of over 25 Million people
 Servicing subscribers in English, Kiswahili and Portuguese
 Only company in Tanzania to offer premium SMS & Voice
 90% penetration in media sector in Tanzania
 Ready-made formats for premium-rate campaigns
 In-house production of video, audio & print marketing
 Consultation on regulatory environment
 Managed by local personnel with knowledge of local market
Worldwide Voice & Mobile Solutions

11. The Opportunity - Mobile Penetration
-Subscriber base in English speaking Markets-Excluding South Africa
 Nigeria 63,000,000
 Kenya 18,000,000
 Tanzania 17,000,000
 Uganda 11,570,000
 Ghana 12,000,000
 Zimbabwe 2,000,000
 Botswana 1,800,000
 Zambia 3,500,000
 Malawi 1,900,000

12. Some Issues
Iphone App- Most phones are still basic but numbers of Smart
phones increasing steadily.
High Revenue Services- This can only run for Niche groups,
most subscribers cannot afford High Premium services which
cost over $2 per transaction
Post paid services: Most of the market is prepaid
approximately 90% across the region
Online Gaming via Mobile phone- Regulatory authorities don‟t
know how to regulate. (Opportunity!!)
Adult Services : Conservative laws and Culture –Adult sites
are accessed by mobile phone and on the Internet.
Wap based services: wap penetration remains low except for
countries like South Africa, Kenya, Morocco

13. Opportunities
Music Content : Mostly offered by Networks so there is an
opportunity to create a reputable source of content to network and
B2C content brands.
Sport Services : Football services- Premier league and Champions
league.
Mega Promotions : Regional Campaigns over two or more countries
run concurrently. Opportunity to run campaigns with Big prizes
Mobile Marketing : Marketing Via the Mobile and SMS Based
marketing
M-Government- Working with Government and Ngo‟s to provide key
services over the mobile phone- M-Education-Health-Election
Monitoring –Product Authentication
Infrastructure Business: Providing a backbone for Companies in
developed markets to run campaigns in emerging African Markets.
13

14. Thank You!
For further information contact:
David.ryder@oxygen8.com
+44 7876033155