Broadband Connectivity for Africa Bill Dale ExecutiveGlobal Capacity

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Broadband Connectivity (for) Africa Bill Dale Executive-Global Capacity International & Special Markets Telkom SA

Broadband Connectivity (for) Africa Bill Dale Executive-Global Capacity International & Special Markets Telkom SA

Outline • “Afrolinque” - Benefits to Africa • Capacity for Africa • Expanding Africa’s

Outline • “Afrolinque” - Benefits to Africa • Capacity for Africa • Expanding Africa’s Broadband Capacity 2

“AFROLINQUE” BENEFITS TO AFRICA

“AFROLINQUE” BENEFITS TO AFRICA

Africa’s Need for Global Connectivity • Liberalisation of African market. • Limitation on economic

Africa’s Need for Global Connectivity • Liberalisation of African market. • Limitation on economic growth & foreign investment. • High cost and lack of broadband, reliable connectivity. • Evolution of internet, VOIP, mobile market & integrated network solutions. • Africa’s dependence on others for transit of voice phone traffic. 4

Afrolinque (SAT-3/WASC/SAFE) Landing Points 1. Portugal 2. Alta Vista (Spain) 3. Senegal 4. Côte

Afrolinque (SAT-3/WASC/SAFE) Landing Points 1. Portugal 2. Alta Vista (Spain) 3. Senegal 4. Côte d'Ivoire * 5. Ghana * 6. Benin 7. Nigeria 8. Cameroon 9. Gabon 10. Angola 11. Melkbosstrand 12. Mtunzini 13. Reunion 14. Mauritius 15. India 16. Malaysia * : Regeneration station 5 1 2 15 3 4 5 6 SAT-3/WASC 7 16 8 9 10 14 13 SAT-2 11 12 SAFE

SAT-3/WASC/SAFE -Technical Specification • System length • System bandwidth : : 27850 km –

SAT-3/WASC/SAFE -Technical Specification • System length • System bandwidth : : 27850 km – SAT-3/WASC : – SAFE : 20 Gb/s initially 120 Gb/s ultimately 10 Gb/s initially : 130 Gb/s ultimately • Equivalent of 5. 8 m (SAT-3/WASC) & 6. 3 Million (SAFE) simultaneous telephone calls. • 34 major global operators invested $670 m • System design life of 25 years. • Telkom is the network administrator 6

Benefits for Africa • • Initiated, owned & operated by Africans. Retention of revenue

Benefits for Africa • • Initiated, owned & operated by Africans. Retention of revenue on the continent. Transfer of essential skills & technology. Global & regional positioning resulted in optimum funding portfolio. • Providing secure and reliable broadband connectivity. • Global state-of-the-art connectivity underlying key to foreign investment. 7

Capacity For Africa

Capacity For Africa

Telkom Satellite investments • • Intelsat – approximate 1. 16% holding Inmarsat – approximate

Telkom Satellite investments • • Intelsat – approximate 1. 16% holding Inmarsat – approximate 0. 3% holding New Skies – (value $5. 6 M) Satellite systems currently used by Telkom: – – 9 Intelsat New Skies Pan. Am. Sat Europe. Star

Correspondent relationship with international operators Global destinations 10 African destinations

Correspondent relationship with international operators Global destinations 10 African destinations

Carriers in the African market Direct links into Africa 11 Direct links into SADC

Carriers in the African market Direct links into Africa 11 Direct links into SADC

Vo. IP • Established Voice Over Internet Protocol (Vo. IP) Point of Presence (Po.

Vo. IP • Established Voice Over Internet Protocol (Vo. IP) Point of Presence (Po. P) in London – Attracting voice minutes destined for RSA and Africa from “Emerging” Carriers – Traffic Outgoing from RSA on “LCR” basis • Established Telkom SA as Vo. IP Clearinghouse • Deploying Vo. IP with African Carriers • More Global Vo. IP Po. Ps in plans • The Vo. IP Leader in Africa 12

Telkom’s Capacity Plan for Africa • Afrolinque • Satellite / Fibre solutions • Intelsat

Telkom’s Capacity Plan for Africa • Afrolinque • Satellite / Fibre solutions • Intelsat partnership – Wireless broadband – Network hubbing • IP roll-out • SAIX (Internet connectivity) 13

EXPANDING AFRICA’S BROADBAND CAPACITY

EXPANDING AFRICA’S BROADBAND CAPACITY

SAT-3/WASC/SAFE + EAST Landing Points 1 2 1. 2. 3. 4. 5. 6. 7.

SAT-3/WASC/SAFE + EAST Landing Points 1 2 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Portugal Alta Vista (Spain) Senegal Côte d'Ivoire Ghana Benin Nigeria Cameroon Gabon Angola Melkbosstrand Mtunzini Reunion Mauritius India Malaysia 2 3 15 4 5 6 7 16 8 EAST AFRICAN CABLE 9 10 SAT-3/WASC 14 11 12 SAFE 13 East: 15 Africa + Mozambique + Tanzania + Zanzibar + Kenya + Madagascar South

East Africa Cable Proposal? • 3 Primary route configurations are being considered. – Route

East Africa Cable Proposal? • 3 Primary route configurations are being considered. – Route 1 : South Africa to Kenya with landings at Mozambique, Madagascar, Tanzania & Zanzibar. – Route 2 : Same as Route 1 with extended termination in Djibouti instead of Kenya. – Route 3 : Same as Route 1 with extended end termination in India (Cochin) with intermediate landings in Seychelles & Maldives. 16

Project Status & Investment Interest • Project cost estimated to range from US$110 Million

Project Status & Investment Interest • Project cost estimated to range from US$110 Million (Kenya) up to US$200 Million (India). • Innovative financing solutions based on SAT 3/WASC/SAFE experience. • Telkom traffic forecast & feasibility study currently ongoing. • Telkom decision to further pursue the concept scheduled for 4 th Quarter 2002. • Significant interest expressed by potential investors and landing point operators. 17

Thank You

Thank You