Frost & Sullivan Lauds Sasatel for Its Unique Services and Innovative Strategies in the Tanzanian Broadband Internet Markets

LONDON, May 4, 2010 - Based on its recent research on the Broadband Internet market, Frost &
Sullivan presents Sasatel (Dovetel Tanzania Limited) with the 2010 East
Africa Frost & Sullivan Award for Product Differentiation Excellence in
recognition of its high-quality yet low-cost network service, good customer
support services and innovative solutions that constantly exceed customer
expectation.

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Existing fixed-line networks in Tanzania do not offer sufficient
coverage. Poor funding from both public and private sectors aggravates the
lack of infrastructure. However, making large capital investments to roll-out
networks to cover the widely spread population will not offer sufficient
return on investments (ROI) since 75 per cent of population is engaged in
farming activities with low disposable incomes. Rising fuel and electricity
costs that put pressure on operational costs also lower the profitability of
network operators. Further, there is a lack of mobile data applications in
the market because the majority of operators prefer to compete fiercely on
popular voice and SMS services.

Since its commercial operation in June 2009, Sasatel has deployed
technologies like Code Division Multiple Access (CDMA), EV-DO to help it
realize quicker network and new service rollout to market than mobile and
fixed platforms.

"Sasatel's deployment of CDMA/EV-DO technologies to support its data
services, particularly for its fixed-wireless offerings, helps fill in the
gap of limited fixed-line network in Tanzania to support high-quality
triple-play services," says Frost & Sullivan Research Analyst Jiaqi Sun. "The
company also provides IP-based value-added services like email and
web-hosting in the data packages."

In January 2010, Sasatel again demonstrated its commitment to focus on
data services and introduced WiMAX, a wireless broadband technology that
provides transmission of data through a variety of modes, from
point-to-multipoint links to portable and fully mobile internet access. This
technology provides speeds up to 10 megabyte per second (mbps) through
wireless connectivity.

"Sasatel is unique in terms of its diversified product and service
portfolios with a special focus on fixed-wireless data services," notes Sun.
"Such versatility gives the company a competitive advantage in the broadband
internet services market, whereas its competitors still restrict their core
business to voice and SMS services."

Further, the company differentiates itself through providing customers
with higher quality of services and customer support services. For instance,
its customer support team helps customers to install routers and protect
internet connection. The company also offers a three-month warranty against
manufacturing defects on the EV-DO Wi-Fi router. The focus on fixed-wireless
and mobile broadband services generated higher average revenue per user
(ARPU) (US$100 and US$30 respectively) for Sasatel than the other
telecommunications services that its competitors were engaged in during 2009.

Sasatel combined its broadband internet services with fixed-wireless
voice services to low-end residential market in order to increase penetration
through offering limited mobility and higher quality of services at lower
prices than mobile Global System for Mobile Communications (GSM) network. The
company also offers fixed-wireless phones that have internet connectivity
capabilities as well as mobile phones at attractive prices. All its
fixed-wireless phones have data capabilities that are customized to suit the
consumer needs for high-quality voice and data services.

EV-DO offerings are based on the estimated usage of small-and-medium
sized enterprises (SME) customers while WiMAX is offered through a dedicated
bandwidth for corporate customers. The strategy is to increase company
profitability by targeting corporate customers, who are less price-sensitive
but demand higher quality services than residential ones. There are also
volume-based packages at 600 MB, 3 GB and 10 GB with a validity of 180 days
for the individual and household market. Plans are underway to launch
time-based bundles on the 1xdata for the mass market. Customers shall be able
to buy unlimited data (with abuse limit) at a speed of 153 kbps. This new
offering costs less than US$50 per month and allows customers to surf for an
hour at less than US$2. During 2009, the company developed new corporate
solutions that met the requirements of SMEs and corporate customers through
leveraging its various technologies and strategic partnerships with leading
vendors.

Overall, the company aims to consistently exceed customer expectation by
offering new, innovative and scalable product and services. In 2009, Sasatel
was the first network operator to offer prepaid voice tariff at 0.5 Tanzanian
Shilling. In addition, it provides scalable and cost-effective email solution
to its internet subscribers including domain hosting and operation, free of
charge, which enables customers to focus on their core businesses.

For these achievements and the vision behind its strategies, Sasatel is
the worthy recipient of the 2010 East Africa Frost & Sullivan Award for
Product Differentiation Excellence in the Broadband Internet market. Each
year, Frost & Sullivan presents this award to a company that has demonstrated
uniqueness in terms of features and functionality in its product/services.
The award recognizes the recipient for product quality, efforts to customize,
catering to the dynamic market and also the resulting brand perception of the
product.

Frost & Sullivan Best Practices Awards recognize companies in a variety
of regional and global markets for demonstrating outstanding achievement and
superior performance in areas such as leadership, technological innovation,
customer service, and strategic product development. Industry analysts
compare market participants and measure performance through in-depth
interviews, analysis, and extensive secondary research in order to identify
best practices in the industry.

About Sasatel

Sasatel was licensed to provide wireless telecommunication services in
June 2008, while it officially launched its CDMA technology for commercial
operation in June 2009, thereafter the company strived to focus on data
services by deploying EV-DO and WiMAX technologies. Sasatel successfully
enter the increasingly competitive mobile communications market through
filling in the gap of supply shortage in broadband data services by seizing
the opportunity of undersea cables and cost-effective fixed-wireless
technologies. Sasatel is financed by its majority shareholder PME
Infrastructure Fund listed on the AIM Stock Exchange in London.

About Frost & Sullivan

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    Contact:

    Catherine Brassell
    Best Practices
    Frost & Sullivan
    catherine.brassell@frost.com
    ----------------------------
    P: +44-207-915-7867

Catherine Brassell, Best Practices, of Frost & Sullivan, +44-207-915-7867, catherine.brassell at frost.com