I-Tel Business Plan

I-TEL LTD BUSINESS PLAN & BUSINESS OPERATING MODEL
PART I: BUSINESS OVERVIEW
1.0
INTRODUCTION
1

I-Tel is one of the six licensed telecommunications operations in Uganda. The
Company operates under the business name of I-Telecom and started its
operations in 2009.
It holds licenses for both GSM and CDMA. The Company is eligible to procure
any other licenses such as 3G or 4G (LTE) if there is business sense to invest
in such a network.
I-Tel launched its services in September 2009 under CDMA technology. Its
current CDMA equipment has an advantage since it is manufactured with inbuilt capacities for EVDO Rev A which helps deliver data speeds of 3.1 Mbps
to our subscribers.
I-Tel hosts its equipment with Uganda Telecom Ltd. under a site sharing
agreement.
The Company currently has 58 installed CDMA sites and is rolling out a
further 80 CDMA sites by the end of 2014 throughout the entire Uganda.
The Company is building a sustainable business model which strategic
investors might be willing to consider.
2.0
STRATEGY

I-Tel Ltd was set up to fill the gap in the telecommunication service sector in
Uganda and at the same time build shareholder value.
The company has achieved its initial goals because it has an operational
network and is providing telecom services in Uganda.
The company has enabled business to thrive through easing communications
and enabling education through the use of network infrastructure.
Currently, I-Tel is supporting initiatives that will enhance the delivery of
health services and health education.
The Company however requires strategic investors to join us in
strengthening and expanding the business portfolio especially in the
following core areas:
Building the complementary GSM network
Expanding our fibre-optic cable network
Developing a competent management team through dedicated

executive selection programmes and personnel training schedules as
well as human resource capacity building
Sourcing for and coordinating with an international interconnect

partner
Accessing international project finance on concessionary borrowing

terms and market-competitive interest rates
3.0
PURPOSE AND VALUES (OUR PHILOSOPHY)
Our Vision
3

To provide East Africans with telecom services, seamlessly connected with a
world class information and communication network.
Our Mission
To be a trusted and proven partner for an innovative and exciting
communication experience, providing health educational services to be
delivered with passion, quality and commitment.
Five Core Values
I-Tel Ltd has always sought to be a value-driven organisation. These values
continue to direct the Company's growth and businesses. The five core I-Tel
values underpinning the way we do business are:
INTEGRITY: We must conduct our business fairly, with honesty and

transparency. Everything we do must stand the test of public scrutiny.
UNDERSTANDING: We must be caring, show respect, compassion and

humanity for our colleagues and customers around the world, and
always work for the benefit of the communities we serve.
EXCELLENCE: We must constantly strive to achieve the highest

possible standards in our day-to-day work and in the quality of the
goods and services we provide.
UNITY: We must work cohesively with our colleagues across the

Companys activities and with our customers and partners around the
world, building strong relationships based on tolerance, understanding
and mutual cooperation.
RESPONSIBILITY: We must continue to be responsible, sensitive to

the countries, communities and environments in which we work,
always ensuring that what comes from the people goes back to the
people many times over.
Commitment

Telecommunication services have been extended beyond the traditional
areas of providing data and voice. Companies in the sector are providing
services such as mobile money remittances and banking, as well as SMS
mobile campaigns like malaria-prevention and anti-smoking programmes.
I-Tels commitment is to partner with educational institutions in training PHC
(Primary Health Care) physicians, dentists, dental hygienists, behavioural
and mental health professionals, certified nurse midwives, primary care
nurse practitioners, certified family nurse practitioners, and physician
assistants and other health professionals in East Africa. In addition,
partnerships with education institutions engaged in practical professional
programmes in Engineering, Agriculture, Law and Business shall be
developed.
4.0
OUR COMPANY AND NETWORK

I-Tel Limited, a cost effective CDMA mobile telecomunications services
provider and operator.
I-Tel Limited was established in 2006 to cater for the growing demand for
professional and innovative solutions in information, communication
technology sub-sector.
A company limited by shares, I-Tel Ltd is incorporated in the Republic of
Uganda under The Companies Act and is licensed to provide
telecommunication services by the Uganda Communications Commission, a
body set up by Parliament.
Over the course of its existence, the professionals at I-Tel have been
involved in providing a wide range of ICT projects and products on the
Uganda market. I-Tel carries the latest in CDMA wireless technology from one
of the major wireless companies in the industry.
The company's management philosophy is based on responsibility and
mutual respect. I-Tel maintains an environment and structure that
encourages productivity and respect for customers and fellow employees.
Additionally, the environment encourages employees to have fun by allowing
creative independence and providing challenges that are realistic and
rewarding.
Company Directors
Mr. Mulenga Augustus

Dr. Charity B. Mulenga
Ms. Angel Amy Mulenga
Lord CeasarMulenga
Organization Structure of I-Tel

6

Figure 1: Company Organization Structure
Board of
Directors
Chief Executive
Officer
Finance
Manager
Sales and
Marketing
Manager
Human Resources
Manager
Network
Planning
Manager
Technical Manager
Systems
Planning
Manager
Corporate Governance
Organizations, like individuals, depend for their survival, sustenance and
growth on the support and goodwill of the communities of which they are an
integral part, and must pay back this generosity in every way they can...
This ethical standpoint, derived from the vision of the Company founders,
lies at the heart of the CSR philosophy I-Tel.
While we strongly believe that our primary obligation or duty as corporate
entities is to our shareholders we are just as mindful of the fact that this
imperative does not exist in isolation; it is part of a much larger compact
which we have with our entire body of stakeholders: From employees,
customers and vendors to business partners, eco-system, local communities,
and society at large.We evaluate and assess each critical business decision
or choice from the point of view of diverse stakeholder interest, driven by the
need to minimize risk and to pro-actively address long-term social, economic
and environmental costs and concerns.
For us, being socially responsible is not an occasional act of charity or that
one-time token financial contribution to the local school, hospital or
environmental NGO. It is an ongoing year-round commitment, which is
integrated into the very core of our business objectives and strategy.
I-Tel continually reviews corporate governance best practices to ensure that
they reflect global developments. It takes feedback into account, in its
periodic reviews of the guidelines to ensure their continuing relevance,
7

effectiveness and responsiveness to the needs of local and international
investors and other stakeholders.
Our codes of conduct and business policies encompass the following areas:
Values and commitments
Code of ethics
Business policies
Ethics management
Prevention of sexual harassment
Policy on insider trading
LICENSING
I-Tel obtained a Public Infrastructure License on 3 rd January 2007 and a Public
Service Provider (Voice and Data) License on 27th September 2007.
I-Tel was assigned the mobile code 076 with number ranges 076-0000000 to
076-4999999 on 7th June 2011.
OPERATING FREQUENCIES
I-Tel Ltd has both GSM and CDMA operating frequencies as follows:
CDMA 450 MHz band
Rx: 450.000 453.825 MHz
Tx: 460.000 463.825 MHz
GSM 1800 band
Rx: 1731.00 1741.00 MHz
Tx: 1826.00 1836.00 MHz
INTERNATIONAL GATEWAY
In I-Tels CDMA network, the functions of the international gateway are

performed by the Universal Media Gateway (UMG8900).
8
UMG8900 supports both narrowband and packet switching functions

with multiple access interfaces.
The packet switching provides IP interface to implement service
process traffic and conversion between IP/TDM network, which
implements efficiently the inter-working between different networks.
As a large capacity Universal Media Gateway, it performs the functions
of subscriber access, large scale TMG, NGN-enabled switch and mobile
network gateway as well.
SOURCES OF POWER
I-Tel has three main sources of power, namely:

National grid a dedicated transformer directly feeds the switch room
110 KVA Generator
Battery Bank
DC bank; banks of 48V each battery capacity of 2V, 3000ah
AC UPS; Full bank at 160 batteries each with a capacity of 6V, 200ah
Billing System
The billing system handles all aspects of customer billing.

The billing system is capable of producing periodic bills as monthly,
quarterly, annually, etc. and billing on demand.
The billing system also allows the user to perform various audit tasks
during the various stages of the billing process e.g. checking for
correct charging events after invoice creation, taxation, discounts
offered, etc.
Interconnect billing is also supported.
Customer Management
The I-Telswitch supports a variety of core customer features such as:

Generation of customer acknowledgement letters
Capturing, maintaining and updating customer account and billing
information
Differentiating between several customer types thereby allowing
targeted marketing
Managing customer trouble tickets
Setting and managing customer services information such as price
plans, discount plans, charge plans, trouble tickets, etc.
BTS SITES
9
I-Tel currently has 58 sites with BTS and 46 repeater sites across the
country.
The main suppliers of radio equipment and antennas are Huawei
Technologies, Ericsson and NEC.
I-Tel has purchased 100 BTSs to expand its network coverage. These
BTSs will be hosted on specific UTL sites across the country.
Figure 2: Radio Equipment and Antennas Suppliers
Market Share
24%
32%
Huawei
Ericsson
NEC
44%
CURRENT COVERAGE
The Company using its CDMA technologies that has vast capabilities of
large coverage has been able to roll out its services majorly in towns
and their immediate outlying rural areas.
The company is currently increasing its coverage base within the
Kampala city area and the rest of the country.
The figure below shows the current I-Tel network coverage as
highlighted in green shade.
Figure 3: I-Tel Network Coverage
10
5.0
CHALLENGES & CSR
CHALLENGES
The Companyschallenge has been lack of financial muscle to invest in

more infrastructure equipment, marketing and promotion.
The other challenge is of stiff competition from the other mobile
network operators in the Uganda market. I-Tel intends to put more
focus and emphasis on niche markets of organized groups such as
11

educational institutions (colleges and universities), health institutions,
churches, NGOs, and other private sector and civil society
bodies/associations.
Social Responsibility
I-Tel is committed to making positive incremental changes in the world
through the mobile telephony revolution. In this endeavor, the Company has:
Sponsored the roofing of health centres, schools and churches.
Made financial contributions towards various fundraising activities in

the health and education sectors.
6.0
CONTACT US
I-Tel Limited
Plot 9, Portal Avenue,
P.O. Box 7326
Kampala Uganda
Tel: +256-712 777040
Cell: +256-717 333333
Fax: +256-760 000000
Email: info@itelug.com
12

Customer and Sales Center
Technical Department
Plot 9 Portal Avenue, Opposite

Platinum Hall
Christ The King Church
Tel:
+ 256 760 000000
+ 256 760 000001
+ 256 760 000002
+ 256 760 000003
Email: customercare@itelug.com
Plot 196, Block 29 Mulago, Along

New Mulago Hill Road,
Mulago, Kampala
Email:technical@itelug.com
7.0
TELECOM SECTOR IN UGANDA
Optical Fibre Capacity in East Africa

Table 1: Optical Fibre Capacity in East Africa
Cable Name
Landing
Design
Launch Date
Points
Capacity
Lower
Indian
Ocean Network
(LION 2)
Eassy
Seacom
Est.
Cost
Cable
Mombasa
1.28 Tb/s
2012
US$
76,000,000
Dar es Salaam,
Mombasa
Dar es Salaam,
4.72 Tb/s
2010
1.28 Tb/s
13
2009
US$
263,000,000
US$

TEAMS
Mombasa
Mombasa
1.28 Tb/s
2009
600,000,000
US$
130,000,000
Mobile Penetration, Dec 2011

Figure 4: Mobile Penetration, 2010/2011
Mobile Lines per 100
Mobile Lines per 100
60
50
40
30
20
10
0
4Q 2010
1Q 2011
2Q 2011
3Q 2011
Bandwidth Growth, 2010/11

Figure 5: Bandwidth Capacity Growth, 2010/11
14
4Q 2011

Total Bandwidth mbps
Mbps per 1,000,000 inhabitants
20,000.00
700
18,000.00
600
16,000.00
500
14,000.00
12,000.00
400
10,000.00
300
8,000.00
6,000.00
200
4,000.00
100
2,000.00
0.00
0
Jun 2010
Dec-10
Jun-11
Dec-11
Quarterly Traffic 2011

Figure 6: Quarterly Traffic 2011
On Net
Off Net
Intl Outgoing
3,000,000,000
2,500,000,000
2,000,000,000
1,500,000,000
1,000,000,000
500,000,000
0
1Q11
2Q11
3Q11
4Q11
Internet Subscription and Usage

Figure 7: Estimated Internet Subscription, 2010/2011
15

Fixed Internet Subscriptions
Mobile Internet Subscriptions
1,000,000
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
2Q2010
4Q2010
2Q2011
4Q2011
Figure 8: Estimated Internet Users, 2010/2011

Chart Title
Column2
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
2Q2010
4Q2010
2Q2011
Sector Financial Performance

16
4Q2011
An estimated USD 270 million was invested in the sector in the sector
in the period 2009/10.
The roll out of mobile broadband solutions accounted for the bulk of
investment.
An estimated UGX 1.4 trillion in revenues which translates into a 7.7%
increase in total earnings.
Figure 9: Industry Investment Expenditure 2009, USD
Industry Investment Expenditure 2009, USD
2005
40,859,493
270,751,740
73,499,693
367,809,156
326,563,198
2006
2007
2008
2009
Revenue Drivers
The mobile market accounted for 63% of the telecommunications

revenue.
Low cost handsets retailed by the operators have emerged as a major
source of revenue.
The sector saw the emergence of a new revenue generator in the
wholesale infrastructure market.
Figure 10: Revenue Distribution, 2009
Revenue Distribution, 2009
4%3%
Cellular Operation &

Revenue
14%
Domestic Intercom
Fixed Line
16%
Internet Services
63%
17
Other

8.0
THE FUTURE
Ugandas Telecommunication Sector will peak at US$ 1 billion by

2017
The report, Uganda: Growing Operator Competition to Drive Network
Expansion, estimated that by the end of 2012 the sector had accrued US$
858 million in service revenue. Pyramid Research identified the main growth
drivers to be fixed data services, with a CAGR of 23 percent, and mobile data
with a compound annual growth rate (CAGR) of 27.1 percent, amounting to a
cumulative revenue opportunity of US$ 1.9 billion (UGShs 4.7 trillion)
between 2012 and 2017.
Mobile service revenue is, however, expected to drop in the coming years.
Looking forward, we expect mobile voice service revenue to decline from
US$ 613 million (UGShs1.45 trillion) in 2012 to US$ 576 million (UGShs 1.4
trillion) in 2017, in an otherwise optimistic market, the report deduced.
According to a report published last year by www.budde.com.au, an online
research database, over 90 percent of Ugandas internet connections are
mobile.
Mobile data and 3G broadband services as well as mobile money transfer
and m-banking services are at the forefront of development in a country
where less than 20 percent of the population currently has internet access or
holds a traditional bank account, the report said.
Pyramid Researchs analysis emphasizes the importance of data across Africa
in a bid to keep telecom companies on the continent profitable and relevant.
Business Opportunity
Uganda where I-Tel operates is part of the East African Community

(EAC) that includes Uganda, Kenya, Tanzania, Rwanda and Burundi
and very soon South Sudan. The East Africa block countries are now
pushing to have a political federation by 2015. I-Tels strategy is to
acquire operating rights within the east African block. The Directors of
the Company own 100 percent of I-Mobile Kenya and 20 percent of
Gemtel South Sudan.
East African block countries are rich in oil, water, minerals and arable
land.
18
The discovery of oil and government intervention in alleviating poverty

will ultimately increase the countrys GDP.
The countries of East Africa are aggressively promoting Universal
Education from primary to university levels, hence literacy rates have
tremendously improved. I-Tels partnering with educational institutions
is geared to improve the training of professionals in the fields of health,
engineering, agriculture, law and business.
This factor together with the growing population will boost the
purchasing power and disposable incomes of the ordinary citizens and
henceforth increase telecom revenues.
NATIONAL BACKBONE INFRASTRUCTURE (NBI)

The Government of Uganda through the Ministry of ICT is building the
national data transmission infrastructure and E-Government infrastructure
(NBI/EGI) for high speed communications. It is divided into three phases:
Linking Kampala, Bombo, Entebbe and Jinja (Phase I 168.51 kms).

Linking Kenya, Kampala, Kabale South west (Phase II 1,542.33 kms).
Linking north, west and Masindi (Phase III 407.8 kms).
The EGI component is intended to connect Ministries and Government

Departments into an e-Government Network to provide services such as
video-conferencing, Data and Voice communication.
Overall Benefits of the NBI/EGI Project
1. The E-Government Network Infrastructure is designed to reduce the
cost of doing business and public administration in government,
improving communications between government agencies, and the
19

delivery of E-Government services within government, to citizens and
businesses such as the:
2. Electronic Document storage, retrieval and processing
3. Government web portal and websites for the various branches of
Government.
4. Public Key Infrastructure and Electronic Signatures.
5. Online services within Government in areas like procurement
6. Electronic forms for Passport application, Assessment on Taxes
7. National Backbone Infrastructure (NBI) which involves the laying of
Fiber Optic Cable in major towns across the country is intended to
ensure that high bandwidth data connection is available in all major
towns of Uganda at a reasonable rate.
8. Create a more accountable Government;
9. Increase transparency;
10.
Strengthen good governance.
Figure 11: Coverage of the NBI

20
KEY: Phase I (Yellow) Phase II (Blue) Phase III (Green).

Source: National Information Technology Authority Uganda
(NITA-U)
Once the backbone is complete it will be leased to telecom operators such as
I-Tel to utilize and carry out businesses such as e-Education and e-Health.
The backbone will create more business and investment opportunities in
various sectors of the society and economy in Uganda.
Figure 12: Planned National Broadband Infrastructure

21

52.5km
158.2km
57km
Kyenjojo Hoima
Gulu
Lira
Soroti
Kumi
Bushenyi
57.4km
150km
Tororo
29km
Luwero
30.15km
Bombo
36.81km SDH Stations
22km
103.1km
Masaka
36.7km
Mpigi
Busia
66km
Mukono
37km
Jinja
42.2km
Ntungamo
79km
Legend
Mbale
54.9km
56km
113.6km
Kabale
20km
56km
Nakasongola
Kasese
65km
Masindi
48km
155.8km
98km
82.8km
Mbarara
201km
DWDM& Main Stations
Katuna
22
43km
38km
Iganga
Bugiri
PART II: BUSINESS OPERATING MODEL
1.0
EXECUTIVE SUMMARY
Introduction
I-Tel Ltd is taking advantage of an opportunity to become a highly
distinguished and recognized industry leader in the cellular communications
23

industry in Uganda. It is the goal of our company to become established as
one of the leading distributors of wireless communications services in the
country.
In order to achieve this goal, I-Tel Ltd's critical success factors will be to
identify emerging trends and integrate them into I-Tel's operations, respond
quickly to technology changes/be there early, provide high-quality services,
continue to invest time and money in marketing and advertising, continue to
expand into specialty markets, and stay ahead of the "technology curve."
The Company
I-Tel is one of the six licensed telecommunications operations in Uganda. The
Company operates under the business name of I-Telecom and started its
operations in 2009.
It holds licenses for both GSM and CDMA. The Company is eligible to procure
any other licenses such as 3G or 4G (LTE) if there is business sense to invest
in such a network.
I-Tel launched its services in September 2009 under CDMA technology. Its
current CDMA equipment has an advantage since it is manufactured with inbuilt capacities for EVDO Rev A which helps deliver data speeds of 3.1 Mbps
to our subscribers.
I-Telcapitalized on the growing wireless communications industry in Uganda
and within the East African Community bloc countries to create a niche
market for its services and accessories. Through its research and
development, I-Tel has maintained a technological lead in the marketplace
and provided the best quality care for the consumer. Today, revenue sources
include a full range of voice, dataand value-added services.
I-Tels head office is located at Portal Avenue, Plot 9, Kampala, Uganda. I-Tel
leases its more than 3,000 square feet head office which, has adequate
office space to conduct its operations. At some point in the future,
management expects to outgrow this office space.
I-Tel has a world class management team with direct knowledge of the
industry, extensive research experience, and unique administrative skills. Its
team includes Mulenga Augustus Caesar; Dr. Charity B. Mulenga; Angel Amy
Mulengaand Lord Caesar Mulenga. Together, they have a combined total of
over 10 years experience in the cellular network operations management
and retail industries. In the future, I-Tel expects to require a highly qualified
24

Chief Financial Officer (CFO), additional customer service
additional sales reps, and a public relations (PR) manager.
personnel,
The Services
The company has a developed mix of services targeting both businesses and
consumers. At today's breakneck pace of business, companies need more
ways than ever to keep in touch, and the easier the better.
I-Tels innovative product and service offerings provide the best advantages
to customers, including voice calling, prepaid and postpaid services, data
capability, no roaming or landline connection charges, and much more.
The Market
The ten-year outlook in the wireless communications service is excellent. The
number of new cellular subscribers in Uganda increased dramatically from
2005 to 2010 and 2011 saw continuation of that growth. The total number of
fixed and mobile subscriptions and penetration exceeded 15 million in the
year 2010/11, which was a dramatic increase up from the slightly over 2.1
million subscribers in the period 2005/06.The sector posted the
highestnumber of new subscriptions in aFinancial Year with 4.37 millionnew
subscriptions in the FY2010/11.This translated into a year to yeargrowth in
subscriptions of 41% in2010/11 from an annual growth of10% recorded in
2009/10.Subsequently, national telephone penetration rose to 45.6 lines per
100 inhabitants from 33.5 lines per 100.With the evolution of new
technology, this industry is expected to generate increased revenues.
There are a number of trends that are driving this growing industry. The most
significant ones are greater marketing and advertising efforts, rapidly
expanding networks, and technological advances. New services and
applications such as advanced messaging, data and video transmission,
location technology, and remote monitoring are in the early stages of what
most analysts predict will be a period of explosive growth.
The company plans to focus on the specialty e-services niche markets that
will provide us with the greatest market penetration. This includes the eEducation and e-Health services that are an underserved but rapidly
emerging market segments within the Uganda ICT services sector with
plenty of opportunities to technology-savvy mobile network operators. We
intend to offer service packages that are priced appropriately for each
segment and will offer the services that best suit each segment's needs.
25

I-Tel ongoing marketing strategy involves the company maintaining and
expanding a broad base of clients in target market areas, establishing
alliances with product and services companies so that it can deliver high
quality products, and invoking its own organization to bring these together
and implement total solutions for customers. The company will move from
the traditional product-focused strategy to a total-focus on customer
ownership.
Financial Considerations
It is estimated that I-Tel will have strong profits based on US$98.19 million
in sales by Year 5 (i.e. 2018). I-Tel is currently seeking partnership funding
in the amount of US$35,000,000 for the purpose of acquiring additional
network infrastructure to upgrade its GSM capabilities and expand its optic
fibre cable network, increasing market share, opening up additional retail
locations, hiring additional staff to develop a competent management team,
and effectively advertising and promoting its services.
1.1
Objectives
Business Objectives
Establish the first phase of its GSM cellular network in Uganda by 1st
September 2014.
Implement an extensive marketing campaign to introduce the new

GSM cellular service.
Company growth.
Become established as the
communications services.
Increase number of retail outlets.
Financial Objectives
Increase revenue
Marketing Objectives
Increase marketing efforts.
Expand market area.
Expand marketing reach.
26
leading
distributor
of
wireless
Brand recognition.
Increase telemarketing efforts.
1.2
Mission
I-Tel is committed to continued high levels of customer service and selling

cellular, broadband and value-added services through progressive retail
locations and outside sales representatives.
I-Tel is striving to become one of the nation's leading providers of cellular
service and accessories. I-Tels vision capitalizes on technologically superior
products and services and is designed to enhance business and personal
communication.
1.3
Keys to Success
Timing is critical in business. I-Tel is taking advantage of an opportunity to

become a highly distinguished and recognized industry leader because of
certain key advantages:
The management team has a unique combination of business

knowledge and experience in this market.
I-Tel has combined its expertise to offer services for every type of
customer in this credit-sensitive industry.
I-Tel proposes to establish partnering relationships with leading
companies in the industry and customers.
Maintain and build upon existing customer contacts and relationships.
Continue to provide quality services at competitive prices.
Expand level of services into new regions.
Offer new services that complement existing services by implementing

a GSM network.
Implement an aggressive marketing and promotional campaign for the

GSM network roll out.
Provide turnkey solutions and services.
Stay abreast of the latest technological changes and market trends and
apply appropriate strategies.
27

I-Tels critical success factors include funding, marketing, quality sales
professionals, good management, aggressive branding, increasing reach,
affiliating with the right partners, being specific to the needs of businesses
and the public, competitive intelligence, appropriate use of technology, and
remaining dynamic to keep pace with evolving wireless communications
business strategies.
Figure 13: Projected Financial Performance Highlights
Sales
Gross Margin
Net Profit
120,000,000
100,000,000
80,000,000
US$
60,000,000
40,000,000
20,000,000
0
2014
2015
28
2016
2017
2018

2.0
SERVICES
The Company has a developed mix of services targeting both businesses and
consumers. At today's breakneck pace of business, companies need more
ways than ever to keep in touch, and the easier the better.
I-Tels innovative product and service offerings provide the following
advantages to customers.
A full range of sleek, modern handsets to choose from.

Text and numeric paging.
Data capability.
A full range of features.

A national network.
No roaming or landline connection charges.
One-second rounding after the first minute.
2.1
Service Menu
I-Tel Ltd offers its customers with a wide range of CDMA (Code Division
Multiple Access) mobile services which are available the moment they get
an I-Tel connection.
The services currently available among others include:
Voice call
Postpaid
Prepaid
SMS
Internet/Broadband
Packet data
Delivery of e-Health and e-Education service solutions
2.2
Service Description
I-Tel has created a niche market as a one-stop shop for wireless services.
Additionally, I-Tel has professionals with over 10 years combined experience
in the industry, sophistication, and sales and distribution channels that are
successful. Our services are formulated with ingredients known to increase
29

the quality of communications, enhance internal business communications,
and give users the opportunity to access the latest technology such as the
ability to access the Internet on their handset.
I-Tel maintains a number of different services and accessories. Each of these
services and accessories can be placed at the growth phase on the product
life cycle curve.
2.3
Competitive Comparison
I-Tel is well positioned as a significant player in the cellular and data service
marketplace. There are varying degrees of competition in each area, ranging
from a great deal of perceived competition to the very minimal competition
in satellite dishes. New technology research and upgrades will be on the
cutting edge to improve our product and service lines and ensure that I-Tel
remains one of the leaders in this field. In comparison to the other key
industry players in Uganda, I-Tel offers a greater complement of products
and services that make it a truly one-stop shop for wireless communications
services. Significant differences include these offerings: satellite dishes,
specialty markets with a direct need, and residual revenue from service lines.
2.4
Fulfillment
I-Tel is required to comply with various rules and regulations among a

number of local government as well as national agencies and statutory
bodies. Locally, the company is required to maintain its business license and
comply with local regulations and city codes. At the national level, the
Company is required to comply with all national laws concerning taxation,
employment law, corporate law, consumer products regulations, etc.
I-Tels accounting policy follows generally accepted accounting principles. ITels financials are turned over to the Company accountants/auditors on a
quarterly basis.
I-Tel accounting system is based on the accrual method. The fiscal year is
based on year-end. Financial reporting methods include monthly, quarterly,
and annual statements. An annual audit is to be performed by the firm's
auditing firm in January.
I-Tel carries insurance for business liability, automobile, and medical
coverage. Additional insurance programs such as worker's compensation and
30

key-man coverage will most likely be consummated by the close of the fourth
quarter of 2013.
Management has no knowledge of pending lawsuits or threat of legal action
directed at either the company or its officers.
2.5
Technology
I-Tels business tools may be considered to be those assets that keep the
business running smoothly. These tools include computers, software,
business forms, standard agreements, various internal process standards,
and other company-specific documentation.
Estimated technological changes in this section concern those changes that
would most likely affect I-Tels ability to compete. As I-Tels management
identifies changing technology, these changes will be studied, analyzed, and
evaluated. Of those technological changes that show significant impact on ITelsfuture, funds and resources will likely be committed to making
adjustments to I-Telsbusiness operations. Actions include expanding sales,
customer service, and training in order to meet the demand of the business
community.
31
3.0
MARKET STUDY
3.1
Market Overview
I-Tel continues to conduct industry analysis to stay current on the nature and
dynamics of the industry. This process helps management develop insight
and devise sustainable business and marketing strategies to assure future
success and avoid making decisions based on blind assumptions. I-Tels
business model was developed under two areas of knowledge:
understanding the industry, and by having worked for and observed
successful companies (and their business models) in the wireless
communications services industry.
Uganda is one of the fastest and most consistently growing economies in
Africa. The introduction of mobile telephony has revolutionized its
telecommunications sector since Celtel/Zain (now BhartiAirtel) launched the
first network in 1995, followed by MTN in 1998, Uganda Telecom (UT) in
2001, Warid Telecom in 2008 and HiTS Telecom, in which France Telecoms
mobile unit Orange bought a majority stake in 2009. The intensified
competition has led to a price war which has accelerated subscriber growth
but also the decline in average revenue per user (ARPU). The operators
started increasing their tariffs again in 2011 and at the same time are trying
to find ways of generating additional revenue streams. 3G and 4G mobile
broadband services as well as mobile money transfer and m-banking
services are at the forefront of this development in a country where less than
20% of the population currently has internet access or holds a traditional
bank account.
A simplified and converged licensing regime has significantly reduced
barriers to market entry and increased competition. Fixed GSM and WiMAX in
combination with VoIP now make up more than half of the fixed telephony
market. Improvements in infrastructure are making broadband access more
affordable and enabling converged voice, data and digital media services.
Being landlocked, the country depended entirely on satellites for its
international internet connectivity until 2009 when several international
32

submarine fibre optic cables landed on the African east coast, to which
Uganda is now connected via a national fibre backbone extending to its
borders. By 2012, prices for international bandwidth had fallen to a fraction
of their original cost, but retail pricing of broadband services is still relatively
expensive, especially when considering purchasing power parity. However,
wireless and mobile technologies such as WiMAX, CDMA-2000 1x EV-DO,
HSPA and LTE are now putting the internet within reach of a much wider part
of the population than DSL and other traditional fixed-line services have in
the past.
Uganda Telecom is majority-owned by the Libyan governments investment
arm, the Libya Africa Portfolio (LapGreen). Its assets were frozen under UN
sanctions against the Gaddafi regime in 2011, but in early 2012 the company
stated its commitment to provide UT's funding needs for the year, and in
May 2012 its control over UT was reinstated.
With market penetration still below the regional average and annual GDP
growth forecast to rise from currently 4% to 7% by 2015, growth prospects
for Ugandas telecoms sector are excellent.
Market highlights:
More than 90% of internet connections are mobile;

3G mobile broadband pricing varies widely, consolidation expected;
First 4G (LTE) network launched;
Major tower outsourcing deal signed;
Libyan government back in control of Uganda Telecom;
New regulations for SIM card registration may put temporary pressure
on subscriber growth;
Strong fixed-line growth fuelled by wireless systems;
Alternative fibre link to international submarine cables to be built.
Table 2: Estimated market penetration rates in Ugandas telecoms

sector end-2012
Market
Mobile
Penetration
rate
47%
33

Market
Penetration
rate
Fixed
1.6%
Internet
15%
3.2
Medium Term Industry Outlook
Voice & Data

Growth in the nascent wholesale infrastructure market coupled with
increase in infrastructure sharing.
Increased investment in wireless data services.
Increased bundling of voice and data services characterized by hybrid
bundles.
Increased e-governance following completion of the first phase of the
national backbone.
Growth of the mobile applications market.
Increased prominence of non-traditional services like mobile money
and mobile apps in the industrys top line.
3.3
Market Segments and Definitions
As a result of the technology neutral licensing regime adopted at the end of

exclusivity in 2006, the market is segmented under two broad categories;
infrastructure and services.
Public infrastructure provider license holders are authorized to establish,
maintain, operate and provide telecommunication infrastructure to licensed
public service providers and private network operators for a period of fifteen
years. The public service license on the other hand allows for the
provisioning of voice and data services as well as capacity resale services.
It is however worth noting that UTL and MTN continue to operate under their
licenses issued in2000 and 1998 respectively, since the UCC has yet to
terminate the existing licence. Bharti Airtel (formerly Zain/Celtel) Uganda,
whose license expired in 2008, has migrated to the new licensing regime.
34

In line with the above licensing categories, the regulator has put in place a
framework for the assessment of the competitiveness of Ugandas
communications sector which includes the definition of markets, the criteria
for assessment of competition in each market and remedies where
necessary. Ten relevant markets (four retail and six wholesale markets) have
been defined for Uganda.
Table 3: Relevant Telecommunications Markets in Uganda

Retail Markets
1
Voice services (fixed and mobile)
2
Internet services (retail, broadband and dial-up)
3
Leased line services (retail)
Wholesale Markets
4
Fixed termination
5
Mobile termination
6
Fixed call origination
7
Mobile call origination
8
Transit
9
International access
10
Transmission links (wholesale leased lines and transmission links
(trunk and partial private circuits (PPC))
Source: UCC Competition and Market Assessment Report
35
3.4
Internet and Data Services
Table 4: Fibre Optic Cable Coverage, 2010/11

Company
Route
Uganda Telecom
MTN Uganda Ltd
Warid Telecom
Airtel
Infocom
UETCL
GOU NBI
GOU NBI
Kampala Entebbe
Kampala Mukono
Kampala Masaka
Kampala - Katuna
Malaba Mombasa
Kampala Busia
Kampala - Mbarara
Kampala - Masaka
Masindi
Northern
Route
Around Kampala
Around Kampala
Kampala
Eastern
Uganda
Kampala Katuna
Nalubale
Malaba,
Masaka
Mbarara,Nalubale
Tororo, Tororo Malaba

Kampala
Entebbe,
Kampala
Mukono,Kampala
Jinja,Kampala Bombo
Luwero,
Nakasongola,
Masindi,
Gulu,
36
Length
2010
(kms)
42.2 km
20 km
258 km
220 km
900 km
206 km
289 km
258 km
185 km
42 km
40 km
240 km
590 km
336.6 km
168 km
May

Lira,Soroti, Kumi, Mbale,
Tororo,
Busia,
1,542 km
Hoima,Kyenjojo,
Fortportal,
Kasese,
Bushenyi,Mbarara,
Ntungamo
GOU NBI
Lyantonde,
Masaka,
Mpigi,
Apac,
407.8 km
Iganga,Bugiri,
Tororo,
Busia
Source: 2010/11 Annual Post and Telecommunications Market
Review
Table 5: Internet Service Access, June 2011

Category
Coverage
Geographical coverage
Near national GPRS and EDGE
coverage
76, 80 km CDMA Points of Presence
Wimax in Kampala metro
National VSAT coverage
Govt MDA
33 MDAs connected to e-govt
infrastructure
Local Govt Admin Units
78 local govt administrations
connected to the internet
Government Hospitals and Health 53 hospitals connected to the
Centres
internet
50 HC IV facilities connected
Public and Private Universities
53 universities connected to the
internet
Government Secondary Schools
708 ICT laboratories in secondary
schools
Source: 2010/11 Annual Post and Telecommunications Market
Review
37
4.0
MARKETING STRATEGY
I-Tel developed its sales and marketing strategy by analyzing its own internal
strengths and then analyzing current market conditions. This process helped
I-Tel create its marketing and sales strategy to leverage its competitive
advantages with a unique marketing strategy, thus establishing it as one of
the nation's leading wireless communications service provider for businesses
and consumers.
The company will create momentum through critical mass and brand
recognition. I-Tel will monitor the effectiveness of its marketing efforts in
order to determine the advertising return on investment and the commerce
generated from the various channels.
I-Tels ongoing marketing strategy involves the company maintaining and
expanding a broad base of clients in target market niches, establishing
alliances with product and services companies so that it can deliver highquality products, and invoking its own organization to bring these together
and implement total solutions for customers. The company will move from
the traditional product-focused strategy to a total-focus on customer
ownership.
The overall marketing plan for I-Tels service is based on the following
fundamentals:
38
The segment of the market(s) planned to reach.

Distribution channels planned to be used to reach market segments:
retail outlets, sales representatives, and telemarketing.
Share of the market expected to capture over a fixed period of time.
Our year 2014 marketing goals include the following:
Capture 10 20% market share of wireless communications business in

Uganda by end of 2014.
Develop market share for satellite dishes and equipment.
Educate businesses and consumers about services provided.
Substantially increase sales over 2013 levels.
Position the company as the number one provider of solutions to
wireless communications.
Make a major branding effort emphasizing I-Tels name and array of
services.
Initiate new marketing program with a budget of US$1,920,000.
Create new collateral marketing materials (brochures, radio ads,
video).
Media placements including magazine, TV, radio, Internet, print, and
banner advertising.
Expand product and service offerings.
Provide sales reps with free demo systems.
4.1
Pricing Strategy
I-Tels retail prices are competitive and affordable for businesses. The
company has also established a pricing and commissions structure for sales
representatives and distributors. Bulk purchasing enables the company to
reduce its cost of goods sold, increase revenue, and pass on the savings to
businesses and consumers.
4.2
Promotion Strategy
I-Tels overall goal is to generate additional retail traffic, increase

the business and consumer base, and create more awareness to the need for
this type of service in the marketplace. Currently, marketing efforts have
revolved around sales representatives and telemarketing.
39

During 2014, I-Tels marketing goals will also include positioning the
company for co-branding alliances with several industry leaders. It is I-Tels
belief that the best way to introduce its services to businesses as well as
consumers is through aggressive telemarketing.
In addition to standard advertisement practices, I-Tel will gain considerable
recognition through these additional promotional mediums:
Press releases sent to major industry publications.

Television advertising.
Trade shows.
Construction.
Oil and gas journals.
4.3
Marketing Programs
Advertising programs include direct response advertising, public relations

program, co-marketing promotion, relationship building, direct sales efforts,
telemarketing, trade shows, ads in print media and radio and television.
I-Tels marketing propositions are designed to appeal to various target
audiences, regardless of their level of sophistication. I-Tel will continually
inform businesses and consumers through press releases and media
placements about the service benefits as well as endorsements from other
customers.
These two factors naturally create a curiosity from those not previously
exposed to I-Tel services, as well as the public sector seeking improved
methods in cellular service deals. Overall, this is intended to encourage
further investigation by businesses and consumers and is precisely the result
I-Tel seeks. It is believed that this strategy will draw an abundance of
curiosity from which a substantial market can be developed.
As an extra incentive for customers and potential customers to remember ITels name, the company plans to distribute advertising specialties with the
company logo. This will be an ongoing program for the company, when
appropriate and where it is identified as beneficial.
The objective of incentives is to portray I-Tels goals and products as an
attractive functionality. It is also to show customers how to use the latest in
technology as it relates to wireless communications services.
40

4.4
Strategic Alliances
I-Tel is interested in seeking to develop a strategic business partnership with

some of the global leaders in the telecommunications that can help it to
attain a range of immediate and intermediate strategic business growth
objectives including: the development and set up of a complementary GSM
network; the installation and maintenance of our own optical fibre cable
network throughout Uganda; technical assistance in the training and
development of our human resource capacity; provision of technical support
in linking our network to the global market through an international
interconnect partner; and linkage to international project finance resources.
Management feels that these partnerships will enhance sales and help build
critical mass and business momentum.
When I-Tel agrees to accept a new client, it is accepting a new business
partner. Plans are underway to further strengthen relationships and establish
other relationships as the need arises in the future.
4.5
Competitive Edge
Activities contributing to company success include identifying emerging

trends and integrate them into I-Tels operations, respond quickly to
technology changes/be there early, provide high-quality services, continue to
invest time and money in marketing and advertising, continue to expand into
specialty markets, and stay ahead of the "technology curve."
Our future is highly dependent upon measuring resources we need in order
to execute our plans and be competitive. Our method includes qualitative
and/or quantitative measurements of competition and by estimating our own
company growth, sales, and cash flows.
Our resources are also measured in terms of people, equipment, financial,
and critique to see if the resources fit are adequate for the situation.
Resources are available as needed to meet the technology curve. In general
our strengths include business management, accounting and finance,
knowledge of the wireless communications services industry, and experience
in running successful businesses in the past.
41

I-Tel prides itself on its high-quality customer service. Although excellent
customer service is expected, not all provide this. I-Tel is available at all
times for customer orders and inquiries.
5.0
STRATEGIC ENTERPRISE MANAGEMENT

5.1
FEATURES
Essentials of Operating a Successful MNO
Leverage is essential for value creation

A Mobile Network Operator (MNO) is no different to any other business
and must have a source of (sustainable) competitive advantage if it is to
create value for investors. Competitive advantage is achieved by successful
MNOs through effectively leveraging their existing assets to generate
customer growth with low customer acquisition costs. It is this leverage that
provides the basis for a good business story. MNOs typically seek to
leverage the following assets:
Existing customers it is easier to sell a new service to existing

customers than it is to win entirely new customers
Brand to be successful the leveraged brand must drive the purchase
of mobile telephony
Distribution existing channels to market will help reduce the cost of
customer acquisition
42
Content for some, mobile provides simply another media for the
distribution of existing content (e.g. using the mobile to deliver
advertising, music downloads)
Convergence bundling of multiple communication services is
increasingly common and has been shown to increases customer
loyalty
Figure 14: Operational Ecology of an MNO

Distribution
Infrastructure
Content
Brand
Convergence
Customer
Base
43

5.2
5.4
5.5
5.6
Flexibility/Co
mplexity
5.7
5.8
5.9
5.10
5.11
Defining Characteristics of a Mobile Network Operator Model

5.3
Figure 15: Defining Characteristics of a Mobile Network Model
Spectrum and
Radio
Network
CDMA
GSM
GPRS
UMTS
Core
Network
HLR
SMS-C
MSC
SGSN
GGSN
Interconnect
SIM
Basic Services
Service
Activation
CDR Connect
CRM
Billing
In-house activity
Advanced
Services
Bundling of
fixed and
mobile
Exclusive TV
content
Sales and
Marketing
Branding
Advertising
Pricing
Core activity
5.12
5.13
5.14
5.15
5.16
5.17
5.18
5.19
5.20
5.21
44
Distributio
n
Web
Retail
Telesales
Other

5.22 Control Levels of a Mobile Network Operator Architecture
5.23
Branding
Pricing
SIM Card
Messaging and value-added services
Traffic management
Customer provisioning
Billing
Customer care
Fraud and bad debt risk
5.24
5.25 Analysis of Costs
5.26
5.27 MNO cost base
5.28
5.29 The cost structure of an MNO is biased heavily towards
fixedcosts. The main fixed cost elements of the MNO are:
Network operations and maintenance (typically 30% of allfixed costs)
Sales (20%)
Customer service and billing (15%)
Marketing and communications (10-15%)
5.30
5.31 The main variable cost elements for the MNO are:
Interconnect costs
Customer acquisition
Customer retention costs
5.32
5.33 Figure 16: Typical cost structures for an MNO
Typical cost structures for an MNO
Fixed
Variable
25%
75%
6.0
5.34
PROPOSED BUSINESS OPERATING MODEL
6.1
45

6.2
6.3
6.4
6.5
6.6
6.7
6.8
6.9
Introduction
The market for fixed and mobile services is nearly saturated.
Growth is flat to negative, seriously impacting Service Provider
(SP) profits. Tough economic times only amplify this situation. To
maneuver in this business climate, I-Tel must reinvent its
business models by offering new, profitable, next-generation
managed services, such as web-based video conferencing and
collaboration, and other unified communications solutions. These
services can help I-Tel to realize revenues incremental to those
from network-based legacy services such as access and
transport. Next-generation managed services also offer the
potential for rapid returns on investments.
Next-generation
managed
services
provide
attractive
opportunities for SPs because they can be integrated into their
current product and services portfolios. Not only will these
services enhance I-Tels offeringsthey will also generate pullthrough revenue by combining existing capabilities such as audio
with, for example, web-based collaboration.
The market for next-generation managed services is growing fast
the compound annual growth rates (CAGR) of the web-based
video conferencing and collaboration segments in Uganda are
forecast to reach 19 percent and 15 percent, respectively, by
2015.
By adding next-generation managed services to their existing
portfolios, I-Tel can provide customers with a rich collaboration
environment that includes content sharing, instant messaging,
and webcam videoall in a single communications session.
Meeting New Opportunities
6.10
6.11 Although SPs have a solid track record of delivering high-quality,

stable services, the time it takes to deliver them is often affected
by a rigid and time-consuming development and implementation
process. For example, time to market (TTM) for an IP VPN-related
managed service takes nine months, on average, for most
SPs.For others, TTM can take as much as 18 months.Research
from the Cisco Internet Business Solutions Group (IBSG)
indicates that approximately 50 percent of the TTM cycle is
impacted by the readiness of an SPs operations, including
changing operational processes, updating IT systems, and
46

improving the skills of sales, marketing, and service-operations
staff.
6.12
6.13 This classic approach to bringing services to market is
antiquated in todays challenging environment. By working with
established third-party suppliers of next-generation services and
enabling new business models, I-Tel can reap the following
benefits:
6.14
6.15 Additional Revenue from:
6.16
New and innovative services;
6.17
New platforms that can enable I-Tel to up-sell legacy and
network-based equipment, and cloud services;
6.18
Shorter time to revenue and improved cash flow through
reduced TTM and service lead times.
6.19
6.20 Low Implementation Costs from:
6.21
New/more agile business models, with Operating Expenses
(OpEx) elements outsourced to third parties;
6.22
Service upgrades that are easily deployed, with minimal impact
on business operations;
6.23
Limited changes to operational processes and IT systems.
6.24
6.25 Low Business Risk from:
6.26
No up-front Capital Expenses (CapEx), enabling sales staff to
easily articulate the value of the services;
6.27
Low-risk service operations, stable services, and immediate
access to support;
6.28
Secure and scalable service infrastructure provided by market
leaders.
6.29
6.30 Although the benefits of partnering with third-party suppliers are
substantial, setting up a collaborative model can be challenging
because it requires that I-Tel changes its business architecture
and strategies.
6.31
6.32 How can I-Telimplement an agile business model based on
partnerships with third parties to drive incremental revenues,
improve TTM, lower implementation costs, and decrease
business risks?
6.33
6.34 Recipe for Success
6.35
6.36 Working with multiple partners requires a standardized process

that enables SPs to create an ecosystem blueprint that is
47

replicable across all partners. Based on engagements with SPs,
Cisco IBSG identified some major challenges that must be
overcome to implement a sustainable ecosystem model:
6.37
Marginsestablish a commercial framework that provides SPs and
third-party suppliers with sustainable margins;
Billing systemsintegrate billing systems with those of third parties;
Saleschange the mindset of sales staff to enable them to easily
understand and articulate the value proposition of complex services.
6.38
6.39 Over time, the third-party supplier landscape will evolve further
to include multiple partners of varying interests and service
offerings. Each partner, however, must work effectively to
provide enough value for I-Tel and end customer, while
maintaining healthy margins.
6.40
6.41 The following steps can help I-Tel redefine and optimize
important areas of their overall business architectures to develop
successful ecosystem models with third-party suppliers:
6.42
Implement a standardized and scalable partner ecosystem that drives
service innovation and reduces TTM;
Optimize service operations to integrate third-party and SP services,
along with end-to-end service-management processes;
Align go-to-market (GTM) service-branding strategies with those of
third-party suppliers, and identify and optimize the right channels to
accelerate service sales and improve the customer experience.
6.43
6.44 By taking these actions, I-Tel can develop an agile ecosystem
model that is deployable across multiple departments within the
SP organization. Based on a real-life scenario, Figure 17 depicts
an agile business model in which a third-party supplier delivers
web-based services to the end customer. Employing a Softwareas-a-Service (SaaS) approach, this model uses the SP as the
sales, delivery, and support channel.
6.45
6.46 Figure 17 also illustrates (from left to right) how SPs can create
differentiated value for end customers by adopting the principles
of modularity and mass customization, and by assembling a
services portfolio tailored to customers needs.
6.47
6.48
6.49
48

6.50
6.51
6.52
6.53
49

6.54 Figure 17: Delivering Next-Generation Managed Services via an Agile Business Model
6.55 Service Supplier
Service Provider
Customer
6.56
6.57
Meeting
WebEx
Meeting
Centre
6.58
Meeting
Event
Services
Centre
Centre
6.59 Centre
VPN
GSM
6.60
Sales
WebEx
GSM
xDSL
6.61
3G
DSL
Centre
Services
6.62
3G
VoIP
Event
Centre
Training
6.63
Combined Service
Service Production and
GSM
VPN
6.64Centre
Assembly
*
Audio
6.65
DSL
Support
3G
Conferenc
Centre
6.66
e
SP Services
6.67
6.68
6.69
6.70
6.71
6.72 Source: Cisco IBSG Service Provider Practice, 2009
6.73
6.74
6.75
6.76
6.77
6.78
6.79
6.80
6.81
6.82
50

6.83 Third Party Ecosystem
6.84
6.85 An agile and scalable third-party partnership is achieved only

when interactions between the SP and third party are supported
by standardized, automated IT systems and business processes.
Standardization should be implemented at different levels of the
ecosystem and for the various needs of the SP, and should
include:
6.86
A win-win commercial model that requires low CapEx initially, and a
pay-per-use model;
Close collaboration with product marketing to align service roadmaps
and guarantee continued service innovation;
An automated business-to-business environment supported by a clear
set of operational-level agreements and key performance indicators to
measure ongoing business performance and efficiency.
6.87
6.88 In this instance, a Service Provider like I-Tel can benefit from payper-use third-party service packages, enabling them to limit
initial CapEx requirements without impacting service quality and
customer experience. As service sales ramp up, I-Tel can offer
volume-based packages at lower price points, thereby improving
margins.
6.89
6.90 Third-party suppliers already offer customers services similar to
those of SPs. In this situation, an arrangement should be
negotiated on how both companies will approach the market.
Such an arrangement could result in a combined strategy where,
for example, the SP targets large corporate customers and the
third-party supplier addresses small and medium-sized
businesses.
6.91
6.92 The commercial framework (overall ecosystem, including costs
that I-Tel would pay for delivering third-party services, penalties
to I-Tel if a service fails, partner agreements, and more) could
also include transitioning the existing customer base from the
third-party supplier to I-Tel. Such an approach would result in
immediate revenue for I-Tel. A binding agreement should form
the foundation for a successful ecosystem model, and should
cover:
6.93
Operational- and service-level agreements;
Service pricing and packaging strategies;
51
Joint service development strategies;

General roles and responsibilities.
6.94
6.95 Once a basic framework is in place, the parties involved can
collaborate more effectively and explore new revenue
opportunities. For the SP, the framework provides a vehicle for
extending the model to other third-party suppliers that can
deliver complementary services, further enriching their overall
offerings to the end customer.
6.96
6.97 Service-Operation Model
6.98
6.99 Service operation is the core of the I-Tels business. It is here

where technology and products are converted into services and
revenues. The ability of I-Tel to deliver highly qualitative services
at competitive prices and healthy margins is influenced largely
by its service-operation performance. The service-operation
model should focus on:
6.100
Limiting any impact on the service-operation workforce;
Minimizing IT integration requirements and changes in operational
processes;
Combining third-party services with services developed internally.
6.101
6.102 Third-party services will enable I-Tel to limit or reduce any
impacts on their service-operation workforce by out-tasking basic
activities to third parties. Trigger points for out-tasking activities
within service provisioning, quality assurance, and billing are
often related to costs, workload, and skills requirements. For
each SP, trigger points will differ, and a core-versus-context
analysis will reveal which activities could be supported by third
parties and which ones should remain internal.
6.103
6.104 By out-tasking certain activities, I-Tel can reduce the need for
additional resources and avoid dramatic changes to their
business processes and IT systems. Less time spent preparing
the business to deliver a new service equals faster TTM. For
instance, I-Tels order-management staff could be equipped with
third-party service provisioning and assurance tools that
eliminate the need for further IT development because the tools
are based on standard application programming interfaces
(APIs). In this way, certain process steps can be automated prior
52

to commercial launch, without running
development and implementation costs.
into
excessive
6.105
6.106 In terms of service assurance, the I-Tel helpdesk supports Tier 1
and the third-party supplier supports Tier 2. Here again, the
helpdesk staff is equipped with third-party tools that enable them
to diagnose root causes and initiate service resolution activities.
In situations where Tier 1 helpdesk support cannot solve the
problem, a standardized escalation process kicks in, ensuring
that the problem is handed over properly to Tier 2 for fast
resolution. With a stable SaaS web-based collaboration service
offered by a third party, service failures would result in a small
increase (+/-0.017) in trouble tickets per active user per month.
Considering that typically +/-95 percent4 of customer complaints
are solved by Tier 1 support and do not escalate to Tier 2, the
overall effort required to conduct qualitative service assurance is
minimal.
6.107
6.108 Billing integration, one of the most difficult areas to handle, is
influenced by different SP service-pricing packages, such as payper-use, flat fee, or a combination of the two. Also, I-Tel has
specific billing requirements, such as daily billing feeds (files),
100 percent accuracy of billing data, pre-rated service prices
from third parties, blended call data record, and consolidated
invoices, all of which can further complicate the billing-integration process. Therefore, it is strongly recommended that billing
requirements are well-drafted, communicated, and agreed on by
the third-party supplier in the early stages of the on-boarding
process. Only through early involvement will both companies be
able to align billing capabilities with business requirements and
implement a cost-efficient and standardized billing solution.
6.109
6.110 Service providers can allocate fewer resources to TTM processes
by collaborating with third-party suppliers when developing and
launching a next-generation managed service. Table 1 shows the
levels to which third-party collaboration can reduce standard TTM
processes.
6.111
6.112
Table 6: Time-to-Market Process Steps Reduced via
Third-Party Support
6.113
General
TTM
6.114
Level
of
Process Steps
Reduction via Third
Party Collaboration
53

6.115 Develop new service
6.116 High
6.117 Implement new service
6.118 Medium
6.119 Training
(sales,
ops,
6.120 Low
marketing)
6.121 Fulfillment readiness
6.122 Medium
6.123 Assurance readiness
6.124 High
6.125 Billing readiness
6.126 Low
6.127 Sales
and
marketing
6.128 Low
readiness
6.129
Source: Cisco IBSG Service Provider Practice, 2009.
Research for Table 6 was conducted over a number of
years.
6.130
6.131 Some of these processes can be reduced substantially, or
eliminated, by collaborating with third-party suppliers that
already service I-Tel customers; I-Tel can buy the third-party
service that best suits its business strategy rather than develop
it in-house. For example, a SaaS provider offers service modules
tailored to specific end-customer needs (such as high-quality,
interactive online training classes or large-event management)
and delivers them to the end customer using I-Tel as a channel.
Each service module has its own specific Service Level
Agreement (SLA) that defines service delivery, quality, and
support characteristics. From I-Tels perspective, these modules
can be combined with application or infrastructure service
modules developed internally.
6.132 Research shows that more than half of managed service
customers use or are interested in service bundles. I-Tels
strength lies in its ability to provide flexible and agile service
modules. By bundling these modules, I-Tel can tailor end-to-end
services to specific customer requirements and deliver
differentiated value. An end-to-end, bundled, web-based
collaboration service is illustrated in Figure 18.
6.133
6.134
Figure
18:
End-to-End,
Bundled,
Web-Based
Collaboration Service
Toll
6.135
6.136
Fixed
Toll-Free
6.137
Audio Conferencing
Mobile
Callback
6.138
Audio
VoIP
6.139
6.140
Web
App Sharing
6.141
End-To-End Web
6.142
Web Collaboration
Video
File Sharing
Collaboration Service
54
Recording
File Transfer

6.143
6.144
6.145
Mobile BB
6.146
xDSL
6.147
Connectivity
L3 VPN
6.148
LL
6.149
6.150 SaaS Supplied
6.151
Internally Developed
6.152
6.153
Source: Cisco IBSG Service Provider Practice, 2009
6.154
6.155 The hierarchical construct shown in Figure 18 allows SPs to
mass-customize services per customer profile or segment. By
using this construct, I-Tel can assemble one service for small and
medium-sized enterprises and another for large ones.
6.156 This construct can also enable I-Tel to expand its fixed and
mobile audio offerings and, over time, add other innovative
service modules. Once established, this modular service provides
a foundation for a more integrated service-operation model that
improves end-to-end service management and quality.
6.157
6.158
6.159
Go-to-Market Model
6.160
6.161 The GTM model, a key to the service offerings success, involves
many aspects of the SPs organization (for example, sales,
channels, marketing, and customer-facing portals) to allow
customers easy access to ordering and self-service management
capabilities. The GTM model is also critical to the customer
experience and helps increase customer acquisitions and
decrease related costs and customer churn. Following are major
points to consider when developing a GTM model:
6.162
Joint GTM and branding strategy, including customer segmentation and
value propositions;
Optimization of the channel organization to ramp up sales quickly;
Enhanced self-service management capability, allowing customers to
place orders, report service failures, and review service statistics
online.
6.163
6.164 Combining I-Tels brand recognition with that of a global thirdparty supplier is a recipe for success. Such a partnership blends
55

the strengths of both companies and assures customers that
they will receive highly reliable, high-quality services.
6.165
6.166 To adequately support third-party services, I-Tel sales and
channel partners must understand both the customers business
challenges and how a flexible services portfolio can deliver
opportunities to improve performance.
6.167 The strength of I-Tels GTM plan will lie in developing a flexible
approach to serve all sales channelsdirect or indirectcost
effectively. Figure 19 provides an overview of the typical
channels SPs use to acquire customers.
6.168
6.169 This rich environment requires a focus on optimizing the
performance of each channel,without generating overlaps or
conflicts of interest. Helping sales staff understand the value of a
web-based collaboration service so that they can articulate it to
customers is a common concern across these channels. Product
trainings and insight into the customers needs are essential.
Mature SaaS providers understand this andover time, through
customer feedback and researchhave successfully developed
web-based collaboration solutions. Service providers can benefit
from this approach not only by collecting customer feedback, but
also by co-developing GTM branding and marketing strategies
with third parties. In this way, I-Tel can minimize the cost and
time required to bring a service to market, and enhance current
features and offerings to increase market share.
6.170
6.171
6.172
Figure 19: Service Provider Channels
6.173
6.174 IT Equipment
6.175
Channels
Direct Channels
6.176
6.177
6.178
6.179
IT Distributor
6.180
6.181
6.182
IT
Telco
VAR
VAR
6.183
6.184
6.185
6.186
Independent Channels
SP
Service Provider
Telco
Reseller
SP
Indirect
Retail
End Customer/User
56
SP Web
SP
Retail
SP
Direct

6.187
6.188
6.189
6.190
6.191 As competition increases, so do customer requirements, such as

having access to online ordering, support, and billing. These
capabilities must be integrated with I-Tels back-end operation
and business support systems/processes that are automatically
linked to those of third-party suppliers. This optimized, end-toend orchestration of customer- and service-related activities
(referred to as self-service management) will give I-Tel further
competitive advantage.
6.192
6.193 Many third-party suppliers currently provide self-service
management portals that allow customers to report service
issues, change account profiles, and view service usage statistics
and bills. Service providers can do the same by linking their
portals to those of third parties, requiring only one username and
password for access to multiple sites.
6.194
6.195
Gearing Up for Success
6.196
6.197 Service providers can navigate todays challenging business

climate and stop revenues from deteriorating by collaborating
closely with third-party suppliers and integrating new offerings
into their existing portfolios. The potential for integration is great,
and web-based conferencing and collaboration tools are ideal
candidates.
6.198
6.199 Infrastructure as a Service (IaaS) is also ideal for third-party
integration because it offers SPs more opportunities to improve
revenues without wrestling with costly and time-consuming
service development and implementation processes. By
combining IaaS offerings from third parties with stable, secure,
and flexible network services, I-Tel can offer differentiated cloud
services that meet their customers needs. Such IaaS offerings
include developing and testing new applications, running
mission-critical applications cost effectively and securely, and
standardizing/migrating existing applications to reduce costs.
6.200
6.201 To benefit from these capabilities, I-Tel must revamp its current
business architectures to deal with the plethora of third-party
57

suppliers. Table 7 illustrates five key ingredients to consider
when reviewing current business models and their relative
business impacts.
6.202
6.203
Table 7: Key Ingredients for New Business Models
and Related Business Impact
6.204
6.205 Key
Ingredien
ts
6.206 Impacted Areas

6.209
6.210 C
Busi
u
s
t
o
m
e
r
6.208
Time
E
x
p
e
r
i
e
n
c
e
6.212 Develop a
replicable
win-win
commercial
framework
6.217 Define
billing
requirement
s up front
and
standardize
integration
6.222 Out-task
service
operations
wisely
6.227 Change the
mindset of
sales
people
so
6.211 V
a
l
u
e
D
i
f
f
e
r
e
n
t
i
a
t
i
o
n
6.213
6.214
6.215
6.216
6.218
6.219
6.220
6.221
6.223
6.224
6.225
6.226
6.228
6.229
6.230
6.231
58

they
can
easily
articulate
service
value
6.232 Implement
self-service
manageme
nt
capabilities
6.233
6.234
6.235
6.236
6.237
6.238 Relative Estimated Business Impact:
Low
High;
Medium;
6.239
6.240
6.241
6.242 I-Tel can successfully address these ingredients by establishing
an empowered governance structure and a team of crossfunctional contributors who can develop suitable business
architectures,
a
partner
ecosystem,
service-operation
requirements, and GTM strategies.
6.243
6.244 Identification of the right partners and services is based on
elements that drive the SPs business, ease the on-boarding
process for partners, and improve collaboration, brand
recognition, co-branding and GTM alignment capabilities, pricing,
and margins.
6.245 A gap analysis among partners to assess current capabilities and
challenges will lead to the development of a joint implementation
and execution plan that defines scope, objectives, milestones,
and deadlines.
6.246 The journey toward delivering next-generation managed services
is paved with challenges. By following the guidelines presented
in this Section, I-Tel now has a concise recipe for success.
6.247
6.248
6.249
6.250
6.251
6.252
6.253
6.254
6.255
6.256
6.257
6.258
59
7.0
6.259
6.260
6.261
6.262
6.263
6.264
6.265
6.266
6.267
6.268
6.269
6.270
6.271
6.272
6.273
6.274
6.275
6.276
FINANCIAL PLAN
7.1
7.2 The following sections outline the financial plan for I-Tel.
7.3
7.4 Funding Requirements
7.5
7.6 I-Tel is seeking a total of US$ 35 million in partnershipfunding
in order to implement its expansion plans for a GSM cellular
network and the laying of its own optic fibre cable in Uganda.
Due to the fact that infrastructure equipment costs have dropped
significantly in the past three years by a factor of 10, I-Tel will be
able to enter the market with a capital investment of US$ 100
per subscriber, which is significantly less than the average US$
472 per subscriber invested most of its competitors in
Uganda. The project will be implemented in five (5) phases,
starting with the first phase of funding consisting of US$ 6.12
million in May 2014. The term of each loan is 10 years at an
assumed interest rate of 10%. Table 8 below summarizes the
use of funds and when required.
7.7
7.8 Use of Investment Partnership Funds
7.9
7.10 I-Tel is currently seeking partnership funding in the amount of
US$ 35,000,000for the purpose of acquiring additional network
infrastructure to upgrade its GSM capabilities and expand its
optic fibre cable network, increasing market share, opening up
additional retail locations, hiring additional staff to develop a
60

competent management team, and effectively advertising and
promoting its services.
7.11
7.12 Use and distribution of proceeds: Integrate new services and
expand into other markets. Produce media relations package(s);
further build the brand name through marketing, advertising,
and promotion; and acquire additional products. Funding
proceeds will also be used to expand and upgrade I-Tels GSM
capabilities, install its own nation-wide optic fibre cable network,
enhance brand name, and extend I-Tels market area. Funds will
also be directed into business relations, television advertising,
press releases, print advertising, Internet advertising, and
website maintenance. The initial investment will be used as a
"kick off" marketing budget. It is expected that from this point on
the company will self-finance its expansion and marketing
programs.
7.13
7.14
7.15
7.16
7.17
7.18
7.19 Table 8: Use of Investment Partnership Funds (USD)
7.20 De
7.21
7.22
7.23
7.24
7.25
7.26
scr
M
Se
N
Fe
A
TO
ipti
on/
Da
te
7.27 Exp
7.28
7.29
7.30
7.31
7.32
7.33
7.34
7.41
ans
ion/
Upg
rad
e
Pro
gra
mm
e
Tele
com
equi
pme
nt
GSM
Net
7.35
4,2
7.36
4,2
7.37
1,2
7.38
12,
7.39
2,9
7.40
25
7.42
7.44
7.46
7.48
7.50
7.52
61
7.54
7.61
7.68
7.75
7.82
wor
k +
Opti
c
Fibr
e
Net
wor
k
Con
stru
ctio
n
Man
age
men
t
Tea
m
Cap
acit
y
Buil
ding
SetUp
Rem
ote
Offic
es
Sale
s &
Mar
keti
ng
Leg
al &
Con
sulti
ng
Fees
Clos
ing
Cost
s
7.89
7.96
Tot
al
Exp
ans
7.43
1,1
7.45
1,1
7.47
33
7.49
3,1
7.51
77
7.53
6,
7.55
10
7.56
80,
7.57
12
7.58
15
7.59
50,
7.60
50
7.62
24
7.63
24
7.64
18
7.65
90,
7.66
0
7.67
75
7.69
38
7.70
18
7.71
0
7.72
1,3
7.73
0
7.74
1,
7.76
50,
7.77
10,
7.78
0
7.79
80,
7.80
0
7.81
14
7.83
30,
7.84
30,
7.85
0
7.86
0
7.87
0
7.88
60
7.90
7.91
7.92
7.93
7.94
7.95
7.97
7.99
7.101
7.103
7.105
7.107
7.98
7.100
7.102
7.104
7.106
7.108
62

ion/
Upg
rad
e
Cos
ts
7.109
7.110
7.111
6,
5,
1,
17
3,
35
Table 9: Use of Medium-Term Loan Funds (USD)

Use
7.112
Amount
(US $)
7.113 Office Equipment, Furniture and

Fixtures
7.115 Marketing
7.117 Inventory
7.119 Miscellaneous
(Inventory
Control,
Service Centres, etc.)
7.114 100,000
7.116 200,000
7.118 50,000
7.120 150,000
7.122 100,000
7.121
Total
7.123
7.124
Important Assumptions
7.125
7.126 Basic assumptions are presented in the table below.
7.127
7.128 Medium-Term Loan Requisition: US$ 500,000
7.129
7.130 Medium-Term Loan Repayment: 5 Years
7.131
7.132 Corporate Tax: Figure is estimated at 30% of profits.
7.133
7.134 Interest: Figure is estimated at 10% annually.
7.135
7.136
7.137
7.138
Table 10: General Assumptions
7.139
7.140
7.141
7.142
7.143
7.144
20
20
20
20
20
7.145 MediumTerm
Loan
Repayment
(US$)
7.146
7.148
7.150
7.152
7.154
7.147
10
7.149
10
7.151
10
7.153
10
7.155
10
7.156 MediumTerm
Interest Rate
7.162 Corporate
Tax Rate
7.157
10.
7.158
10.
7.159
10.
7.160
10.
7.161
10.
7.163
30.
7.164
30.
7.165
30.
7.166
30.
7.167
30.
63

7.168 Other
7.169
0
7.170
0
7.171
0
7.172
0
7.173
0
7.174
7.175
Projected Profit and Loss
7.176
7.177 The financial projections present the company's expected
financial position, results of operations and cash flow for the five
years ending December 31, 2018. Accordingly, the forecast
reflects its judgment as of 26th July, 2013, the date of this
forecast, of the expected conditions and its expected course of
action. There will usually be differences between forecasted and
actual results, because events and circumstances frequently do
not occur as expected, and those differences may be material.
7.178
7.179 Financial projections are based on sales volume at the levels
described in the revenue section and presents, to the best of
management's knowledge and belief, the company's expected
assets, liabilities, capital, revenues, and expenses. Further, the
projections reflect management's judgement of the expected
conditions and its expected course of action given the
hypothetical assumptions.
7.180
7.181 Revenues are derived from sales of wireless communications
services, products, and accessories to businesses and
consumers.
7.182
7.183 Annual Growth: We expect growth to increase by an average
of174.53% per year on the basis that the company will be
stepping up marketing and sales efforts, as well as initiating new
partnerships and alliances that will foster growth and extensions
of our existing markets. These strategies are aimed to build
momentum and critical mass within the company and its overall
sales results.
7.184
7.185 Cost of Goods: I-Tel expects that its products will bear a
reasonably high markup, which translates to a relatively low cost
of goods. Our cost of goods includes consideration cost of
products, shipping charges (which may be passed along to the
consumer), and sales commissions.
7.186
7.187 Marketing/Promotion: We group advertising, promotions, and
retail outlet marketing under this category.
7.188
64

7.189 Retail Outlets: We estimate that each retail location will cost
US$30,000 to set up and we anticipate opening up 25 new
stores.
7.190
7.191 Other: We estimate that we may need additional funds for other
promotions and this is set aside in a special fund.
7.192
7.193 Rent: It is assumed that rent will be an average US$1,500 per
month per store.
7.194
7.195 Repairs and Maintenance: This is an estimated figure which is
expected to grow with the setup of service centers.
7.196
7.197 Salary: Figures are estimated based on the national average for
similar positions. They assume however, the hiring of a store
manager, a regional manager, a CFO, and acquiring the services
of a marketing company.
7.198
7.199 Utilities: Figures are estimated. Management estimates that
utilities will be at US$800 per month per store.
7.200
7.201 The following Table 11 provides the profit and loss financial
projections of I-Tel Limited for the next five years, which include
the proposed GSM expansion project for Uganda.
7.202
7.203
7.204
7.205
7.206
7.207
7.208
7.209
7.210
7.211
7.212
7.213
7.214
7.215
7.216
7.217
7.218
7.219
7.220 Table 11: Projected Profit and Loss: 2014 - 2018
7.222
20
7.223
20
7.221 Item/Year
65
7.224
20
7.225
20
7.226
20

7.227 Revenues
7.233 Direct
Cost of
Sales
7.239 Gross
Profit
7.245 Gross
Profit/Sale
s%
7.228
12,
7.229
31,
7.230
48,
7.231
71,
7.232
98,
7.234
8,8
7.235
14,
7.236
18,
7.237
27,
7.238
38,
7.240
3,3
7.241
17,
7.242
30,
7.243
44,
7.244
59,
7.246
27.
7.247
55.
7.248
61.
7.249
61.
7.250
60.
7.252
7.253
7.254
7.255
7.256
7.258
7.259
7.260
7.261
7.262
7.264
60
7.265
1,5
7.266
2,4
7.267
3,5
7.268
4,9
7.270
80
7.271
7,2
7.272
8,2
7.273
5,6
7.274
5,9
7.276
49
7.277
49
7.278
15
7.279
1,3
7.280
33
7.282
24
7.283
24
7.284
18
7.285
90,
7.288
14
7.289
28
7.290
32
7.291
71
7.292
80
7.294
12
7.295
31
7.296
48
7.297
71
7.298
98
7.300
56,
7.301
11
7.302
13
7.303
28
7.304
32
7.306
90,
7.307
18
7.308
27
7.309
36
7.310
45
7.312
91,
7.313
23
7.314
36
7.315
53
7.316
73
7.318
6,0
7.319
6,0
7.320
6,0
7.321
6,0
7.322
6,0
7.325
0
7.331
10,
7.326
0
7.332
12,
7.327
0
7.333
13,
7.328
0
7.334
14,
7.251
7.257 Expenses
7.263 Payroll
7.269 Marketing/
Promotion
7.275 Depreciati
on
7.281 Store Set
Up Costs
7.287 Repairs
and
Maintenan
ce
7.286
0
7.293 Utilities
7.299 Insurance
7.305 Rent
7.311 Payroll
Taxes
7.317 Legal/Con
sultants
7.323 Inventory
Control
Systems
7.329 Total
Operatin
7.324
20,
7.330
2,6
66

g
Expenses
7.335 Profit
Before
Interest &
7.336
7.337
7.338
7.339
7.340
7.342
62
7.343
6,6
7.344
17,
7.345
30,
7.346
44,
7.348
50,
7.349
40,
7.350
30,
7.351
20,
7.352
10,
7.354
18
7.355
2,0
7.356
5,2
7.357
9,2
7.358
13,
7.360
38
7.361
4,6
7.362
12,
7.363
21,
7.364
31,
7.366
3.2
7.367
14.
7.368
24.
7.369
30.
7.370
31.
7.341 Taxes
7.347 Interest
Expense
7.353 Taxes
Incurred
7.359 Net
Profit
7.365 Net
Profit/Sale
s%
7.371
7.372
7.373
7.374
7.375
7.376
7.377
7.378
7.379
7.380
7.381
7.382
7.383
67

I-Tel Business Plan

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I-TEL LTD BUSINESS PLAN & BUSINESS OPERATING MODEL

PART I: BUSINESS OVERVIEW

I-TEL LTD BUSINESS PLAN & BUSINESS OPERATING MODEL

I-TEL LTD BUSINESS PLAN & BUSINESS OPERATING MODEL

Building the complementary GSM network

Expanding our fibre-optic cable network

Developing a competent management team through dedicated

Sourcing for and coordinating with an international interconnect

Accessing international project finance on concessionary borrowing

PURPOSE AND VALUES (OUR PHILOSOPHY)

I-TEL LTD BUSINESS PLAN & BUSINESS OPERATING MODEL

INTEGRITY: We must conduct our business fairly, with honesty and

UNDERSTANDING: We must be caring, show respect, compassion and

EXCELLENCE: We must constantly strive to achieve the highest

UNITY: We must work cohesively with our colleagues across the

RESPONSIBILITY: We must continue to be responsible, sensitive to

I-TEL LTD BUSINESS PLAN & BUSINESS OPERATING MODEL

OUR COMPANY AND NETWORK

I-TEL LTD BUSINESS PLAN & BUSINESS OPERATING MODEL

Mr. Mulenga Augustus

Organization Structure of I-Tel

I-TEL LTD BUSINESS PLAN & BUSINESS OPERATING MODEL

I-TEL LTD BUSINESS PLAN & BUSINESS OPERATING MODEL

Values and commitments

Prevention of sexual harassment

Policy on insider trading

In I-Tels CDMA network, the functions of the international gateway are

I-TEL LTD BUSINESS PLAN & BUSINESS OPERATING MODEL

UMG8900 supports both narrowband and packet switching functions

I-Tel has three main sources of power, namely:

The billing system handles all aspects of customer billing.

The I-Telswitch supports a variety of core customer features such as:

I-TEL LTD BUSINESS PLAN & BUSINESS OPERATING MODEL

Figure 3: I-Tel Network Coverage

I-TEL LTD BUSINESS PLAN & BUSINESS OPERATING MODEL

CHALLENGES & CSR

The Companyschallenge has been lack of financial muscle to invest in

I-TEL LTD BUSINESS PLAN & BUSINESS OPERATING MODEL

Sponsored the roofing of health centres, schools and churches.

Made financial contributions towards various fundraising activities in

I-TEL LTD BUSINESS PLAN & BUSINESS OPERATING MODEL

Plot 9 Portal Avenue, Opposite

Plot 196, Block 29 Mulago, Along

TELECOM SECTOR IN UGANDA

Optical Fibre Capacity in East Africa

I-TEL LTD BUSINESS PLAN & BUSINESS OPERATING MODEL

Mobile Penetration, Dec 2011

Bandwidth Growth, 2010/11

I-TEL LTD BUSINESS PLAN & BUSINESS OPERATING MODEL

Mbps per 1,000,000 inhabitants

Quarterly Traffic 2011

Internet Subscription and Usage

I-TEL LTD BUSINESS PLAN & BUSINESS OPERATING MODEL

Mobile Internet Subscriptions

Figure 8: Estimated Internet Users, 2010/2011

Sector Financial Performance

I-TEL LTD BUSINESS PLAN & BUSINESS OPERATING MODEL

The mobile market accounted for 63% of the telecommunications

Cellular Operation &

I-TEL LTD BUSINESS PLAN & BUSINESS OPERATING MODEL

Ugandas Telecommunication Sector will peak at US$ 1 billion by

Uganda where I-Tel operates is part of the East African Community

I-TEL LTD BUSINESS PLAN & BUSINESS OPERATING MODEL

The discovery of oil and government intervention in alleviating poverty