STRATEGIC PERFORMANCE REVIEW

Efficiency & Asset Utilisation

The second year of the Strategy was based on improving efficiency and asset utilisation. We sought
to achieve more output with less resources; that is, to do more using what is available or what is
at our disposal. During the year, we have been able to do more with less by growing profitability
before tax by 8% as compared to the previous year.

Asset utilisation has improved during the year, as did turnaround times on installations and repairs
(measured through Mean Time to Install and Mean Time to Restore). These have had a direct and
positive impact on improving customer experience. Our customer experience was supported by
improving network efficiency and quality. Cable theft, however, continued to compromise network
availability and, consequently, our customer experience remained a challenge.

Growth
Several initiatives were undertaken in the year under review to drive growth. This has ensured
continued commercialisation of our extensive network investment over the last few years. The
growth plan, Green Explosion, is a commercial initiative for acquiring new customers and retaining
customers to drive flagship products. This includes Turn Up Bundles, beFREE+, BTC Pasela, BTC
Smega, Fast Connect and BTC Fixed Broadband.

Mobile Broadband (MBB)

We have invested in over 500 LTE (4.5G) sites which need to be used to provide Mobile Broadband
services to our customers. This is for them to continue to operate and be productive whilst on the
move. The roll out of the sites has proven to be very successful and has provided opportunity and
convenience for our customers, despite challenges in entrenching the 4G device in the market. This
is largely due to the high price points of 4G devices and the current market proliferation of affordable
3G devices. Through the Green Explosion project, we have increased 4G device penetration and 4G
SIM uptake, migrating our customers on 2G and 3G to 4G.

Fixed Broadband (FBB)

BTC continued to roll out Fibre-to-the-Cabinet (FTTC) and the existing copper as last mile connection
to customers. This was part of the Phase-2 of de-coppering and fibering up of the access network.
We have not only reduced CAPEX and OPEX through the deployment of Fibre to the Home (FTTH),
but we have also reduced active cabinets per locality while delivering speeds that were not possible
through copper. To date, fibre has been rolled out in Gaborone, Jwaneng, Orapa and many urban
villages around the country. Migration of customers to the fibre environment is still in progress.

Mobile Financial Services (MFS)

The use of our BTC mobile money prepaid cards has grown significantly in the market. Several
marketing and promotion initiatives are ongoing to promote growth and usage, including adverts,
branding, education campaigns, and activations with partners. We continue to engage in various
bank/card-to-wallet partnerships with various entities in the fintech ecosystem, including local
financial services institutions.

29 | BTC ANNUAL REPORT 2022