Building Africa’s Digital Future

Public Wi-Fi Proposition

April 2015

Which café would you choose?

Would in-store Wi-Fi influencewhere you shop?

Yes, 48%

Somewhat, 31%

No, 21%

Why Wi-Fi?• ‘Digital Divide’ replaced by ‘Data Divide’

Low cost smartphones mean that people have the hardware but cannot afford data

• Mobile data is expensive so widespread adoption is low, especially outside SA

• Internet bundles are cost effective but the upfront cost is prohibitive

• Fear of out-of-bundle rates

• Average website is 1.85MB so data can be consumed quickly, even faster on LTE

• Cell phone coverage inside malls can vary in quality and quantity

Free vs. FeeCharging for use or a revenue share from a ‘free’ installation initially looks appealing but…

Nobody buys it!1 in 2,000 users pay for Wi-Fi in Cape Town tourist areas

Free vs. FeeCharging for use or a revenue share from a ‘free’ installation initially looks appealing but…• User experience of purchasing Wi-Fi is typically clumsy• Time or volume based tariffs have poor perceived value for money

when they cannot be fully utilised• Many chargeable hotspots in Africa generate little or no revenue• Quality of service is demanded if a fee is charged therefore a support burden• Chargeable Wi-Fi works for a captive audience without a choice e.g. airports• Free public Wi-Fi has the greatest adoption and tangible financial benefits

Marketing Opportunity

Ideal Locations

• Cafes, bars, restaurants• Transport hubs • Retail stores & shopping malls• Banks – bank of the future,

bank the unbanked• Hotels & conference centres• Schools & universities• Development contractors• Business parks

PropositionIncludes: • Dedicated Internet access if required• Branded customer landing page• Hardware access points• User management software• Configuration & traffic shaping• Monitoring and reporting• Support and device swap-outs• Separate internal or staff

• No up-front cost• Easily scalable for the size of your location

Fixed Monthly Costper Access Point

Case Study

Fried Chicken Restaurant• Average sale of $4 per customer• Multiple sites categorised by size• Footfall around 24,000/site/month

Cost of providing free customer Wi-Fi• $0.07 per customer or…• 1.6% increase in footfall required

“They can quickly and easily access our mobile optimisedwebsite, or use our iPhone app. Customers are free to access

the whole of the web, including competitor sites to test our price commitment, however it primarily enables us to extend our

John Lewis online content and services into our physical shops in a way that is convenient for them”

Sean O’Connor, Head of Online Customer Experience, John Lewis Plc

Case Study