• Gladwin Marumo - Chief Operating Officer
• Dingane Dube - Executive, Regulatory & Government Affairs
• Johan Raath - Executive, Office of the COO
• Matime Nchabeleng - Specialist, Government Relations

• Sentech Licensed in terms of the Telecommunications Act of 1996 (as amended)
• Sentech awarded two Licences 7 May 2002
• Sentech has launched Carrier of Carriers service and broadband multimedia services
• Sentech cannot fully deliver as a State Enterprise due to restrictions contained in the Telecommunications Act.

• RFP&Q for purchase of Sentech network elements.
• Interconnection Agreements and Facilities Leasing Guidelines
• Implementation of international Gateway links on temporary basis
• VSAT
• Telecommunication Amendment Act 2004
• MyWireless launch

• Transparent process
• Audited (KPMG)
• Contracts awarded and systems delivered.
• Contractors all performing well

• Agreements negotiated with MTN, Vodacom and Cell C
• Carrying international traffic to and from SA
• Utilising satellite
• Access to submarine cable possible, but only at high Telkom rates.
• Telkom fully controls all submarine cable access to and from RSA
• Not regulated

• Sentech launched VStar services
• Provides high-speed connections between customer premises and through Sentech hub to the world
• Excellent for providing connectivity quickly
• Excellent for connectivity for remote areas

VStar Customer Equipment
[pictures not included]

PAS-10 Footprint VSAT and DTH
[map not included

Sentech and Telemedicine (1)

• Sentech provided the video-conferencing facilities for the demonstration of the impact of medical video-conferencing to the State President at Polokwane

MEDICAL VIDEO-CONFERENCING PRESIDENT OF RSA AT POLOKWANE (HPi community)
[pictures not included]

Sentech and Telemedicine

• Sentech provides the connectivity between hospitals in the Eastern Cape and a Clinix hospital in Soweto
• There are no radiologists in the hospitals in Eastern Cape
• Xray images transmitted via VSAT to Soweto, diagnosed and report sent to hospital – within a very short time
• Primary healthcare objectives being realised.

• Gauteng Government bridging digital divide at 1100 schools in phase 1 by providing internet laboratories
• Sentech - connectivity and services provider to the project
• Sentech will provide every learner at a Gauteng OnLine school with an eMail address
• VSAT used exclusively

Gauteng OnLine Images
[pictures not included]

Computer Laboratory; Veritas High School
[pictures not included]

• Powering MPCC’s and telecentres
• Siyabonga telecentre Orange Farm
• Sentech has provided the best broadband internet connectivity - free
• USA provided computers, office equipment
• Sentech provided free business and financial skills training
• Torque IT provided free software training

• Facilities Leasing Guidelines damaging to Sentech
• Sentech initiated court case against Minister, ICASA and Telkom
• Case withdrawn
• Telkom Amendment Bill 2004 solved the issue by declaring Sentech to be a Public Operator.

• Launched in
• Gauteng 28 Nov 2003
• Then Durban and Cape Town
• Sentech selling directly and through value-added partners

• Always on access
• 3 options
• 128, 256 or 512 kb/s
• No cap on data transfer
• Portable at no extra charge
• Self-installed – plug and play
• eMail account included in monthly price

MyWireless Phase 1
[map not included]

My Wireless Customer Equipment
[pictures not included]

An important and pressing issue Digitisation

• Digital terrestrial television (DTT) is a key component of digitisation for South Africa.
• Digital relates to the way programmes are processed and transmitted.
• Multiple channels.
• Broadcaster owns the channel, Signal distributor owns the frequency
• Set-top-box / decoder.

• Efficient use of frequency spectrum.
• Implementation of regional television
• More broadcasters can be licensed
• Lower transmission cost.
• Saving to broadcasters
• Industry growth through local receiver manufacturing.
• Job creation
• Multiple language channel capability.
• Cultural diversity
• Enhanced service offerings such as e-government adult education and health services

Coverage comparison

2 kW digital covers slightly more more than 20 KW analogue transmitter
[map not included]

Rollout Proposals

• South Africa has 9 million households
• 7 million households have television

• 50% of non-metropole areas plus Johannesburg (test site already there)
• Remaining 50% of non-metropole areas
• Metropoles
• This gives priority to regional television.
• Non-metropole covers estimated 24 million people
• Metropole covers estimated 20 million people

Costs of DTT (June 2004)

• 7 million set-top boxes @ R468 each
• 7 million antennae at R100 each (worst case as many will use existing antennae)
• Total R3.98 billion
• National transmitter network (5 services)
• Total R268 million
• Plus broadcasting costs, for example
• Studios
• Outside broadcasting units

• Commitment from policy makers
• A national digitisation policy
• A migration policy
• Support for viewers in respect of set-top boxes

Lifting restrictions on Sentech

• Increase competitiveness
• Reduced prices for customers
• All of our industries, our job creators, are faced with high costs of telecommunication
• Increased competitiveness of all industries
• Level the playing field
• State Assets such as Sentech are a better tool to achieve objectives
• Sentech grows revenue – better able to deploy in underserviced areas.
• Increased access to communication for communities
• Specific amendments required to Telecommunications Act

• Definition of Carrier of Carrier’s service in Section 1 (definition of Carrier of Carriers service) restricts Sentech from delivering international services to or from end-users in SA
• Sentech should be entitled to terminate and originate international services to/from end-users
• Lower prices
• Access to Submarine cable
• Direct access to USAL’s

• Internationally, multimedia communications encompasses all services, including voice.
• Sentech’s network is voice capable – you cannot purchase equipment that is voice restricted.
• Customers will use multimedia network for voice – impossible to police.
• Sentech should be entitled to carry voice.

• Enable Sentech to carry voice services to the benefit of consumers by:
• Amend the definition of multimedia services in section 1 of the Telecommunications Act.
• Amend or delete sections 32C(8), 36A(h)(vi).
• Amend section 40(2) to include Sentech as an operator that can provide facilities to VAN’s.

• Example – Gauteng OnLine
• Sentech - connectivity and services provider to the project
• Schools need to be able to access the call centre from the internet laboratory
• Sentech has broadband connection to schools
• Sentech prevented from providing the necessary voice access
• School has to spend extra money.

• Amend Section 30A and 30B of the Act
• Enable Sentech to access 1800 Mhz and 3G spectrum.
• Amend Sections 36A and 36B of Act
• Enable Sentech to provide:
• Circuits for Voice over IP
• Facilities required for Private Telecommunication Networks
• Fixed links for mobiles and WBS
• Facilities for interconnection with USALs
• Facilities for VANs
• Facilities for fixed-mobile services in 1800 MHz band

• As a state-owned company, Sentech is committed to delivery
• Bridging the digital divide
• Increased access for our people
• Increase information to our people
• Growing the South African base and moving into Africa
• Supporting NEPAD
• Lifting the restrictions as requested will bring significant benefits to our people.