May 19

Hulusport

2021
Agent
Service for
Telebirr
Afta Ecard VAS
Contents
Background ................................................................................................................................................... 2
Service description ........................................................................................................................................ 2
Registration via USSD: ................................................................................................................................... 3
Registration at authorized agent or Ethio telecom shop: ............................................................................. 3
Financial analysis ........................................................................................................................................... 4
Revenues targeted for one year ................................................................................................................ 4
Basic Assumptions ........................................................................................................................................ 4
Background

It is known that ethio telecom has passed through different reforms to get in and fit with rapidly changing
technological revolution & its decisive administrative approach offer the company to experience telecom
services and products in advance. Moreover, the partnership platform of the company gives us a lot of
appreciation to play our role in value addition of telecom service under air time sales & distribution. Ethio-
telecom has officially launched “tele birr”, an innovative mobile money solution for its customers. The
solution allows customers to deposit, receive and transfer money using their cell phones in areas where
mobile network is available. “tele birr” aims to extend mobile services to financially excluded sections of
the society. Successful mobile money services system can act as guide for Ethiopia and demonstrates it is
possible for the Ethiopian economy to transition to a cashless economy by moving away from cash
transactions.
The service allows Ethio Telecom customers to send, store and receive money using only their phone
number. It also aims to extend mobile services to financially excluded sections of society. The service
solution's development was undertaken by Chinese tech giant Huawei. the service is expected to minimize
the need to print and use paper money and it is created in consideration of low-income earners, those who
are living in the countryside as well as those who do not have any income. It is expected about 40 to 50
percent of Ethiopia's economic activity to be transacted on the 'Telebirr' platform within five years
So if it is the good will of telecom & its partners to work with E card, this new technology would boost
the market & enhance customer satisfaction.

Service description
Registration via telebirr app:
• Create a “New Account”
• Choose “Quick Create Account” or “Self-Create Account”
o Enter “Mobile Number” & click on “Get Code”
o Then you will get 6-digit code via SMS Enter the code in the verification code field and
click “Next”
o Then, you will get your personal editable data which holds:
▪ Title
▪ ID Type
▪ ID Card
▪ First, Middle and Last Name
▪ Gender
▪ Date of Birth
▪ Preferred Language
• After inserting or checking the personal information, click “Submit”
 • Then, you will receive default PIN via SMS
• Enter the default PIN and press login
• To activate the account, change the default PIN by a new one and click “Finish”
• Finally, you will receive SMS that your account has successfully been activated.

Registration via USSD:

• Dial *127#
• Select Register for telebirr and press “Ok/Send”
• Then choose “Self-registration” and press “Ok/Send”
• Enter First, Middle and Last Name consecutively and press “Ok/Send”
• Then select Gender type & press “Ok/Send”
• Enter Date of Birth and press “Ok/Send”
• Enter invitation code or select # to skip
• Then confirmation pop up will appear, select “Ok/Send”
• Then you will receive PIN code via SMS
• Again dial *127# to activate
• Select language and enter the default PIN
• Select “Ok/Send” to confirm the activation
• Then you will be notified that your account has been successfully activated.

Registration at authorized agent or Ethio telecom shop:

You can also get registered by:
• Visiting the nearby agent or Ethio telecom shop
• Providing active mobile number and proof of identity to the agent
Financial analysis
Note; - The table shows targeted revenues to be earned from telebirr agent service for one year using the
existing hulusport service points.

Revenues targeted for one year

Items
Number of Total price Commission Commission
registered/ registered calc@ 100%/day calc@100% 15days
POS/day users
Exist 180 pos 50 150,000 15birr 135,000 birr/day 2,250,000 birr/month
ing customers/ registered
POS day new users
= 9000
customers/
day
Oneti Bonus @ 5% Revenues from 2,250,000
me of the total - - registration
paym transaction
ent TYPS OF Total Target Estimated bill Cal. Total commission earn
PAYMENT market market amount commission@
S size size 9% Monthly Annual
Mont Electric and 2,200,000 22,000 150 birr/month 13,50birr 297,000 3,564,000
hly water utilities customers @ 1%
opera DSTV 10,000 @50% 437.50birr/mon 40birr 200,000 2,400,000
tion customers th
Ethiopian - - - - - -
airline tickets
497,000 5,964,000
Total revenues per 8,214,000
annum

Basic Assumptions
➢ Existing point of service = 180
➢ Expected direct user on the POS = 50
➢ Estimated plays from smartphone per year = 1200000
➢ Over all EEU USERS=2.7Milion
➢ HIGH POWER USERS= 50000
➢ PREPAID USERS = 500000
➢ REGSTERD BILL PAYEES THROUGH CBE= 40000
➢ Net potential users= 2.2 million
➢ Targeted customers @ 1% of the net potential users = 22000
➢ Minimum electric bill/month = 100 birr/user
➢ Minimum water bill/month = 50 birr/ user
➢ Total expected minimum bill/month/user= 150 birr/ user
➢ Total expected minimum bill payment /month/target users = 150 *22000 = 3300000
➢ Commission per bill is = 9% of the bill amount
➢ Estimated commission/bill = 150* 9% = 13.50 birr/user/ month
➢ Total estimated commission from target number = 13.50 *22000 = 297,000
➢ Annual target commission = 297000 * 12 = 3,564,000
➢ DSTV monthly service fee payments
➢ Total DSTV current service customers = 10000
Subscription types
➢ 750 birr/ month
➢ 500 birr/ month
➢ 350 birr/ month
➢ 250 birr/month
➢ Average payment made by users = 437.50 birr/ month / subscribers
➢ Commission estimated at 9% = 437.50 * 9% = 40birr/month/ subscriber
➢ Total payment made by users = 437.50 birr* 10000 = 4,375,000 birr.
➢ Target DSTV service fee payers = 3,000
➢ Targeted commission fee = 3000*40= 120,000 birr/ month
➢ Target commission per year from DSTV service collection = 1,440,000 birr/year.
Prepaid smart power meter EEU utility card recharging

Ethiopian Electric Power Corporation (EEPCO), state owned monopoly that generates, transmits, and
distributes and sales electric power nationwide, has been undergoing various continued utility
management practices. One of the major improvements, as part of the transformation, was the
introduction of Prepayment (Metering) System, over that of the conventional metering service, which
had been forcing the Corporation to follow lengthy service processes, in order to support the realization
of its long-term strategic vision of providing quality electric service and being competitive in an energy
export. However, despite the introduction of this new type of service-prepayment customer service, the
Corporation has not been able to attract more than only about five percent out of the two million total
customers .Under normal circumstances, the prepayment service system requires configuration of
vending station in each CSCs, trained and skilled sales people, electronic meters, smart cards, etc. The
vending station configuration includes vending server consisting of a data base, vending server
application, and one or more vending clients, which operate in an online, semi-online or off-line basis.
(EEPCO Prepayment Procedure, 2011)

Pre-paid utility card recharging and customer services management problems are posing an enormous
challenge that the Corporation needs to address urgently in order to acquire as many customers as
possible and at the same time retain them through the delivery of an adequate and quality customer
service right from the activities of initiating sales to the after sales services.

➢ Total EEU prepaid card current service customers = 500,000

➢ Average payment made by users = 200 birr/ month / prepaid card user
➢ Unit cost of EEU prepaid card reader = 150$/reader* 42.89 birr = 6,434 birr
➢ Total number of prepaid EEU utility card readers = 540 units *150$ =81,000$
➢ = 3,474,090 birr
➢ Fright and setup fee calculated @ 10$/ reader *42.89 birr = 429 birr/reader * 540 units
➢ =231,660 birr
➢ Total cost for 500EEU card readers= 3,705,696 birr
➢ Commission estimated at 9% = 200* 9% = 18birr/month/ prepaid customer
➢ Targeted customers number @ 60% = 500,000* 0.60 = 300,000 prepaid users/ month
➢ Estimated average service users per POS= 300,000/180 = 1,667prepaid users/ pos
➢ Total payment made by users/POS = 200birr* 1,667= 333,400 birr.
➢ Target commission /POS = 333,400*0.09= 30,006 birr/pos
➢ Total payment made by users/month= 300,000*200birr= 60,000,000 birr/month
➢ Total payment made by users/annum= 12*60,000,000 =720,000,000 birr/ annum
➢ Targeted commission fee = 60,000,000*0.09= 5,400,000 birr/ month
➢ Total commission fee collected/ annum= 5,400,000*12 = 64,800,000 birr/annum
➢ Sensitivity @ 50% success rate = 32,400,000 birr/ annum
➢ @ 45% success rate = 28,800,000 birr/ annum
➢ @ 40% success rate=25,920,000 birr/annum
➢ @35% success rate =22,780,000 birr/ annum
➢ @30% success rate =19,440,000 birr/ annum
➢ @25% success rate = 16,200,000 birr/ annum
➢ @ 20% success rate = 12,960,000/ annum
➢ @15% success rate = 9,720,000 birr/ annum
@ 10% success rate = 6,480,000 birr/ annum

@ 6% success rate = 3,888,000 birr/ annum

@ 5% success rate = 3,240,000 birr/ annum

omnikey-5422-read
er-ds-en.pdf

A new directive that will lay out the infrastructure for interoperability, a system that enables financial
and non-financial institutions to work with or use the parts or equipment of another system, is in the
making. The National Bank of Ethiopia (NBE) has drafted a directive dubbed the Payment System
Operators that aims at promoting financial inclusion. The regulatory bank also availed the draft directive
for public consultation on April 16, 2020.The bill, which has been in the making for the past year,
considers licensed financial institutions as payment system operators by default. In contrast, any other
non-financial institutions have to get authorization from the NBE to operate payment systems.

Payment system operators include non-bank automated teller machines (ATM), payment switch
operators other than the national switch, non-bank point of sale operators (PoS), non-bank mobile point
of sale (m-PoS) operators and online payment platform processors. The authorized payment system
operator has to be owned by Ethiopian nationals or a foreign national of Ethiopian origin, but no
individual can hold a stake of more than 40pc.

Eth-Switch S.C., an entity owned by a consortium of all banks established with 80 million Br in capital
seven years ago, is the national switch operator. Any financial institution other than the central bank
cannot own a stake of more than 20pc, whereas individuals cannot own more than one share in the
national switch operator at first entry or afterwards. The minimum paid-up capital to function as a
payment switch operator is 20 million Br, whereas a non-bank ATM operator has to cash in paid capital
of 15 million Br and should have no less than 15 ATMs.

In the case of non-bank PoS and m-PoS, one has to present a minimum paid capital of one million Birr
and at least 50 machines either owned outright or leased. Any payment system operator that juggles
more than one system has to issue a paid capital of the sum of the individual systems.

An applicant has to fulfill comprehensive documentation with detailed data that demonstrates the
operator’s knowledge of the subject, signed documents on the features and modalities of the system
and other documents requested by the national bank. Upon receiving the application, the central bank
has to give a response within 60 days. The pilot period of the system shall remain for three months after
a detailed pilot plan is given a green light by the central bank. The payment system operators are also
expected to write up rules on the governance, management and operation of the system with detailed
information on the risk, objective and disclosed criteria for participation.

Eth-Switch shall be the national switch for retail payment, ensure inter-connectivity with other switch
operators and payment service providers, and clear the way for all of the electronic transactions. Switch
operators will connect with the national switch operator. They have to report all of their transactions to
the national switch operator or financial institutions as set by the standards of the duo. They should also
have two network links, one for service providers and the second dedicated to the national switch.
The ATM operator should also denominate with local currency for withdrawals and deposits, whereas a
foreign exchange ATM shall show the status of the functionality. The terminal stalls of the ATM shall
have international and domestic card schemes with an updated version each time it is available. The
downtime of an ATM shall not be more than 24 hours, and, if not fixed, the operator shall post a notice
on the display of the ATM. International online payment processors are allowed to provide a service in
Ethiopia if they come after having an exclusive agreement with a financial institution and are approved
by the NBE.

Issuing PoS will open doors for a payment system at the small and micro-level and the online domestic
payment service gateway.