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Econoserv`s SMS solution implemented in Nigeria

Johannesburg, 11 Jun 2002

Econoserv has announced that its customer, MIS, has successfully implemented a business based on its SMS321 solution in Nigeria.

GeeSM, is a Nigerian business selling virtual airtime. It recruits agents who go into business with only their cellphones as equipment. The agents use SMS as a means of ordering virtual airtime from the GeeSM system, using technology developed by Econoserv. Using SMS the agent can order any combination of airtime vouchers, which is then delivered within 30 seconds back to the cellphone in the form of airtime and reference codes. The agent is able to instantly sell the stock of airtime at a profit.

Keith Levenstein, MD of Econoserv, explains: "We developed the technology for our client who used it initially in SA. Their business in SA has been operating for over a year and is operating successfully.

"Our software SMS321 forms the engine of the entire system. It has the ability to not only send, but also to receive SMS. We also customised the software extensively for MIS, to for example include a stock system, cashbook and help desk, all using SMS as the means of communication.

"GeeSM in Nigeria opened up for business in May 2002. In the first three weeks of operation they sold airtime worth N9.1million.

"In each country that the MIS business solution is installed, we are contracted to supplying and installing the software.

"The solution is driven extensively via SMS. The Nigerian business duplicates the already successfully implemented South African operation.

"Agents are recruited to join the business to sell airtime in their communities. They register by purchasing a starter pack for about R300. On registration their details are captured into the system we developed. They are also given a credit of about R160, which can instantly be used to purchase and then resell airtime."

They order airtime by sending an SMS using a simple coding method, eg 29 2 is the method to order two R29 Vodacom vouchers. This SMS is sent to the system. The software checks the validity of the order, whether there is sufficient stock, and the agent`s credit, and then sends him a relevant airtime code. This is written onto a voucher which is sold to the customer, who is able to recharge his mobile phone instantly.

The entire process of sending the SMS to receiving a valid recharge voucher is averages 30 seconds. The system allows the agents to order Vodacom, MTN, Cell C and Telkom prepaid virtual vouchers. The beauty of the system is that each agent is effectively able to go into his own business, and earn a good income. He needs no special equipment or office - only a cellphone, and can operate wherever there is GSM network coverage.

Helpdesk functionality was built into the software. The majority of calls are initiated by SMS and automatically routed to the help desk. In many cases the operators need reply via SMS to solve the problem and save expensive telephone calls.

The agent holds credit with the system by depositing money into a bank account. The system then automatically reads a bank statement downloaded via the Internet and automatically allocates credit to each individual agent and even sends him an SMS confirming the receipt of the deposit. Where the system cannot automatically allocate the deposit it flags it for an operator to allocate manually.

"The benefits of the concept is the ability to use SMS as a means of communication - it is low cost to use, reliable, and almost everyone has a cellphone to send to receive SMS."

Levenstein said: "What amazed us was the ease that individuals, the agents, had with using SMS, not only to read or reply to messages, but also to send SMS.

"We are also very pleased that our client MIS has become so successful with its implementations in SA and Nigeria, and Botswana and Zimbabwe are due to be installed in the near future."

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Editorial contacts

Keith Levenstein
EconoServ
(011) 483 1190