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Sentech Presentation to the Select Committee on Labour and Public Enterprises 7 March 2006

Sentech Presentation to the Select Committee on Labour and Public Enterprises 7 March 2006. Sentech Team. Agenda. Commitments made in 2004 Multimedia Business MyWireless BizNet VSat Broadcast Network Digital Terrestrial Television Regional TV CSI Financials Year Ahead.

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Sentech Presentation to the Select Committee on Labour and Public Enterprises 7 March 2006

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  1. Sentech Presentation to the Select Committee on Labour and Public Enterprises7 March 2006

  2. Sentech Team

  3. Agenda • Commitments made in 2004 • Multimedia Business • MyWireless • BizNet • VSat • Broadcast Network • Digital Terrestrial Television • Regional TV • CSI • Financials • Year Ahead

  4. “The third world is under-developed mainly because it missed the industrial revolution, for whatever reason, slavery, colonisation etc. Unless it hops on the information superhighway and is part of the communication age, the 21st century will be a re-enactment of the 20th” Ron Bettig Professor of Communications 1990

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

  6. Multimedia Business ICT Africa Awards Most Innovative Company in Africa

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

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

  9. 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

  10. Broadcasting

  11. 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

  12. 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

  13. Corporate Social Investment

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

  15. Infrastructure

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

  17. EASSY Routing

  18. Financials

  19. Cash Flows for the 2005 Financial Year • Cash utilised in operation R 118 Mil • Cash generated by operations R148 Mil • Net finance costs (R 32) Mil • Cash utilised in investing activities (R 19) Mil • Assets acquired (R 35) Mil • Disposal of Assets R 27 Mil • Cash generated from financing activities R 2 Mil • Interest bearing borrowings R 2 Mil • Net cash movement R 101 Mil

  20. Financial highlights

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

  22. Media Briefings 6 February 2006 • The Honourable Deputy President • Accelerated and Shared Growth Initiative “…, ICT infrastructure which includes the strategy to rapidly grow South Africa’s broadband network; implementation of a plan to reduce telephony costs more rapidly; the completion of a submarine cable project that will provide competitive and reliable international access, especially to Africa and Asia; …”

  23. Media Briefings 6 February 2006 • Economic, Investment and Employment Cluster’s report following the January 2006 Lekgotla. Macro-Economy and Infrastructure Development: The Honourable Minister of Trade and Industries Mandisi Mpahlwa “ The final infrastructure spend that the Public Investment focus group of the Cluster will focus on will be the roll-out of the Sentech Wireless Broadband Network under the auspices of the DOC. During 2006/7, the cluster is hoping to achieve the delivery of universal access, providing cost-effective connectivity that supports e-health and e-education services.”

  24. Sentech is ready • Fast network rollout • Job creation • Rollout • Sales and support (ongoing and sustainable) • Stimulation of SMME’s • Universal access a priority • Every broadband connection stimulates a potential micro-enterprise • Bridging the digital divide • Bring our communities and our youth into the information age

  25. Requirements for broadband rollout • Funding • Direct full State funding • National Treasury and the budget • Partial State and partial loans • IDC, DBSA, or Private institution • Ring-fence the broadcasting national asset • Sentech will move fast once funding is available.

  26. National Budget Allocations • Digitisation funding – first tranche in 2006/7 budget • Sentech will begin the process • Insufficient MTEF allocation for full digitisation • Ongoing discussions • Time is of the essence to meet the obligations for 2010.

  27. The EASSy imperative • Our country needs the additional bandwidth if we are to be able to meet the requirements of the SKA • The EASSy cable will result in lower cost connectivity to the rest of the world • Lower communication costs • Sentech ideally placed to manage the EASSy connectivity for the country on an open access basis – fair prices for all. • Funding is now a priority to ensure SA is at forefront of process.

  28. Delivery partner of the State • National broadband rollout will broaden access to voice and data services • e-education • e-health • Sentech as an SOE committed to remain a catalyst and enabler for the State to meet delivery objectives on a national basis.

  29. Thank you

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