Business Plan on New Innovations

TABLE OF CONTENTS

1.0. Executive Summary.................................................................2

2.0 Purpose of Business Case...........................................................2

3.0 Product Overview.....................................................................2

4.0 Opportunity Overview...............................................................2

5.0 Market & Sales Activities..........................................................3

5.1 Market & Competitive Analysis

5.2 Objectives

5.3 Customer Segmentation

5.4 Product Positioning

5.5 Service Detail

6.0 Financial Discussion................................................................8

6.1 Key Assumptions

6.2 Capital Requirements

6.3 Financial Summary

6.3.1 Revenue Opportunity

6.3.2 Profit & Loss

6.3.3 Cash flow statement

7.0 Appendix..................................................................

1.0 Executive Summary

The Storage Solution will be implemented to support the Information Service Department (IS) and the Internet Service Provider Department (ISP). In addition to this the aim is to offer Storage products and solutions to Uganda telecom customers as an added income generator.

Therefore, the objective of this project is to enable Uganda telecom to manage its own Disaster Recovery Platform, offer Storage Services to customers and achieve the status of offering "state of the art" diversified products for a better corporate image in the market.

2.0 Purpose of Business Case

This business case is intended to establish the feasibility of US$611,292 expenditure for a Storage Solution with IP Planet as our strategic partner. This case will address strategic considerations, margin and risk factors. This document will also examine the threshold price of US$10 to US$45 per Gigabyte per month.

3.0 Product Overview

Managed Storage solution is the product Uganda telecom wishes to launch. With the objective to assist corporate customers in their emerging businesses, Uganda telecom proposes a business system with its Managed Storage Solution with the setup of a Disaster Recovery (DR) site. This site will act as a storage unit for Uganda telecom and also offered to customers commercially.

The Storage Solution will include:

- Achieving and appliance

- Back up and retrieval

- Disaster Recovery

- Managed Storage

- Business Continuity

4.0 Opportunity Overview

Within the corporate sector, various clients have shown interest in the Storage solution and are keen to acquire the product on receiving our prices. These include:

* Uganda Revenue Authority

* DFCU Bank

* Allied Bank

* New Vision

* HIMA Cement

* Nile Bank

* Bank of Uganda

* UEDCL

* BAT

* CAA

* National Water & Sewage Corporation

With the right campaign and publicity the projected customer base is expected to increase by 37% per annum.

5.0 Market & Sales Activity

5.1 Market & Competitive Analysis

The projected customer demand for the storage solution is expected to grow an average 37% annually over the next three years. The current global market spending in Storage Solutions is US$1.1M per annum. The competition in the market for this product is limited to one IT office offering small storage units to small companies. The customer demand for storage in Uganda is projected to increase by 24% annually in the first 12 months of operation, with the current demand of 75% of potential clients with interest in disaster recover solutions.

The competition for Uganda telecom in the market is limited to a medium sized IT solutions firm Computer Frontier Ltd (www.cfi.co.ug) which provides hardware IT solution, however offer limited Storage solutions at a maximum of 800GB to sustain their customer base.

Market communication will focus on below the line activities:

* Direct sales presentations

* Direct mail - electronic brochures & print

* Include a Storage stunt at the AITEC 2004

* Technical breakfast: with a one hour presentation to key IT managers of potential corporate clients

* Golf tournament

Table 1. Projected Initial Marketing Expenses

Projected Marketing Expenses UShs.

Sales Support material 10,000,000

AITEC (Shared 50%) 15,000,000

Technical Breakfast - 150 people 5,000,000

Golf Tournament (shared with IP Planet) 15,000,000

Total Estimated Budget 45,000,000

5.2 Objectives

* Ensure Uganda maintains leadership by providing total solutions to fulfill key business customers

* Diversify into new product ranges to suit customer needs

* Create