Sentech Presentation to the Portfolio Committee on Communications

Sentech Presentation to the Portfolio Committee on Communications 8 November 2005

Sentech Team Dr Sebiletso Mokone-Matabane Chief Executive Officer Dingane Dube Executive, Government & Regulatory Affairs Marc D’Oliveira Manager, Office of CFO Johan Raath Executive, Office of COO

Agenda • Commitments made in 2004 • Multimedia Business – My. Wireless – Biz. Net – VSat • Broadcast Network – Digital Terrestrial Television – Regional TV • CSI • Financials • Year Ahead

Commitments made in 2004 • • Grow the Multimedia business Prepare the company for digitisation Enhance broadcasting Continue as the State’s delivery partner – Education, Health and e-Government – Development of the Second Economy

Multimedia Business

My. Wireless • Focus on customers and service delivery – My ADSL best Wireless Broadband service in SA – Stable network • Launched in Nelspruit • Launched My. Wireless Flexi – Bandwidth-capped • Launched bundled services

Biz. Net • Service launched – 1 November 2005 • Fixed Wireless service • Provides guaranteed throughput service to Government and business – 64 kb/s to 2 Mb/s – Ideal for the replacement/supplementing of leased lines • Vital element of delivery to State – Sita contract

Vsat • VStar still the service of choice – – MPCC’s Schools State Business • Launched Vmesh – Interconnection of offices and head offices without need to transmit through a central hub

Broadcasting

Digitisation • MTEF funding announced • Sentech commences digitisation of television network(DTT) from 2006 • Fast-track of network digitisation planned - 2010 • e-Services on DTT • Sentech as the multiplex operator – The State’s broadcasting assets at the hub

Regional TV • Possible to provide either analogue or digital network – Analogue will increase the burden for digitisation program • Full coverage of planned TV 4 and 5 areas very difficult if not impossible with analogue – Frequency spectrum issues • National Coverage for regional stations possible

Corporate Social Investment

Corporate Social Investment • BBQ Corporate Social Investment Award – Delivering services to communities and our people – Using the power of communications to uplift

Infrastructure

Infrastructure Projects • EASSy • SKA • National Broadband Network – Wireless Access – National Fibre Capacity

Financials

Cash Flows for the 2005 Financial Year • • Cash utilised in operation – Cash generated by operations – Net finance costs Cash utilised in investing activities – Assets acquired – Disposal of Assets Cash generated from financing activities – Interest bearing borrowings Net cash movement R 118 Mil R 148 Mil (R 32) Mil (R 19) Mil (R 35) Mil R 27 Mil R 2 Mil R 101 Mil

Financial highlights

The Year Ahead • Begin fast-track Digitisation of TV network • e-Government • Second economy • Social investment • Expand national broadband business • EASSy implementation • PSRCS

Thank you