Dear Sir,

RE: AIRTEL COMMERCIAL OFFER FOR VIRTUAL AIRTIME DISTRIBUTION

Thank you for taking your interest in our logical business. Please find hereunder our commercial proposal regarding the distribution of airtime electronically through your distribution channels.

Our Product

Airtel/ Pactel e_Commerce platform is a system that has been installed taking the various dynamics of the market into consideration. It has integrated PacSoft into a portable hand-held terminal manufactured and supplied by ICL. The designed solution is one that will focus on the benefits of ensuring optimised transactions as opposed to a sole focus on just GSM airtime thereby increasing the value for the service providers and their partner’s revenue wise. The Pac Terminal is ideally deployed particularly for those locations where it is impractical to use a PC based system or the individual retailer is not happy to use PC’s.

The Terminal

Features:

• 20 character 4 line backlit LCD display
• Flexible communications that include PSTN, Swift net and GSM Data
• Low cost impact printer (operational cost)
• Portable, powered by rechargeable battery
• Light weight and robust
• 70-80 slip print capability per fully charged battery
• 300 voucher memory

This product is able to satisfy many diverse retail environments because it is portable, easy to use and currently the most cost effective terminal available in South Africa.

Our Strategy

It is our immediate focus to deploy this platform as aggressively as possible. Once the platform has been implemented, we will be able to deploy all available prepaid products in the market over the one terminal thereby ensuring a decent amount of transactions per volume of products traded. These products include: MTN, ECONET, NITEL, GLOBACOM, MULTILINKS, INTERCELLULAR, NEPA, WATER, DSTV to name a few.

Our Proposal

With regards to you, we would like to enter into an agreement with you for the purposes of distributing airtime electronically with a specific target at clients and staff.

Our Approach

• Airtel desires to engage you in a strategic partnership for the purposes of dispensing electronic PINS (airtime) tailored specifically at its staff and clients.
• Airtel has researched the business environment and has identified a high demand for telecommunication products specifically related to the GSM networks.
• Airtel would like to locate its terminals in your company’s premises.
• These terminals will be funded and owned by Airtel Nigeria Limited.
• The terminals will have the capacity to stock a variety of products. However, with a specific target at your clients and staff, we would only be offering MTN, ECONET and Globacom products only for now.
• Airtel will fund the purchase of all airtime required for the terminal. These products acquired will be stored as electronic PINS in the terminals and located in the various branches.
• The products will be available to primarily staff and visitors as applicable.
• All the payments for the sale of these products will be lodged within existing Airtel bank accounts.
• The system is very dynamic and as such will enable precise data collection and reconciliation of PINS traded on a daily basis.

As highlighted below, the Service provider responsibilities would lie with Airtel Nigeria Limited and the Merchant responsibilities would lie with your organisation.

Airtel Responsibilities

• Airtel will provide the POS terminal to you.
• Airtel will make available Point of Sale (POS) material at no cost to you.

Your Responsibilities

• You will make use of its existing human resource for the sale of airtime over the Point of Sale (POS) Terminal.
• You would also provide exclusivity to Airtel Nigeria Limited for the duration of the agreement as it relates to electronic distribution of airtime only.
• You will purchase the rolls required for the dispensing of the terminals.

Commercial Proposal

The commissions applicable are to be determined upon discussion between the two parties.

The success of the business is based on our marketing strengths with valuable input from your good selves to create demand and Airtel’s ability to take advantage of the policies as formulated by the networks.

Thank you, while we look forward to a mutually beneficial working relationship.

Yours faithfully,
FOR: Airtel Nigeria Limited

Ope George
Head, Virtual Airtime Distribution Executive

Ayomide Smith
Virtual Airtime Distribution

Please click to download the proposal for Virtual Airtime Distribution - Merchants (in Acrobat Reader Format).

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