ORBICOM (PTY) LTD. PRESENTATION ON PROPOSED TELECOMMS AMENDMENTS TO THE PPCC 27 SEPTEMBER 2001

1. ORBICOM (PTY) LTD.PRESENTATION ONPROPOSED TELECOMMSAMENDMENTS TO THE PPCC27 SEPTEMBER 2001 AN MCELL COMPANY

2. SECTION 1

3. Orbicom • Orbicom has long believed that it can play a leading role in the converging communications market place in Africa. • Based on competencies developed as a key digital satellite player Orbicom has entered the African market to provide:- • broader range of telecommunication services. • this strategy is in line with Millennium African Program (MAP). • Three key initiatives have been launched:- • 1)provide electronic funds transfer (EFT) systems to the banking community in Ghana • this venture has been approved by Ghana Central Bank 2) EFT - Uganda • provide electronic funds transfer (EFT) systems to the banking community in Uganda

4. Orbicom - (Continue) 3) Alliance agreement entered with Lockheed Martin Global Telecommunications (LMGT) • US Based Telecoms company Alliance focuses on provision of:- • Internet connectivity • Internet based services to the African continent The facilities are based in South Africa, Africa, Germany and United States of America, to ensure countries serviced will have global connectivity. Benefits:- • technical expertise • training for local personnel • Orbicom has introduced the following multiple channels:- • DTM (Direct-to-Home) Ku-Band transmissions for South Africa • C-Band transmissions for the African continent

5. Interactive Interactive video combined with remote & electronic channels Remote Home Banking On-Line Services Internet Electronic Branches Bank Machines EFT Telephone Smart Cards Branch Structure Face to Face Paper Based 1970’s 1980’s 1990’s 2000’s The Transformation of Banking

6. Building an EFT business across Africa Nigeria Ethiopia Ghana Uganda Kenya Tanzania Zimbabwe EXISTING BUSINESS PROJECTSIN PROGRESS TARGETED BUSINESS

7. The Solution... An EFT platform which provides banks with: Inter branch connectivity Inter-bank transactions Inter-bank clearing Large data volume & high value transaction capacity transaction audit trails High levels of security

8. Challenges: • To Change the MINDSETS of • Banking Institutions; and • Consumer Behaviour EFT Schematic

9. EFT Expansion Opportunities Value Added Services Loyalty Schemes, E-Procurement, Pre-Paid, Advertising, Email, Electronic Receipt Capture Green ATM’s Internet Banking E-Commerce Payments (B2B & B2C) Mobile Commerce Branch WAN Connectivity Interface to RTGS: Interbank EFT payments Access to existing EDI systems

10. Shaping the Industry: Challenges A long term view is required for realisation of strategy. Excessive levels of marketing and market education are required within the target market. Not much market information is available and market analysis may often prove irrelevant.

11. An Alliance to provide Internet Services & Corporate Connectivity in Africa

12. Architecture Overview

13. SuperPoP: Services and Applications • CORPORATE CONNECTIVITY • WANS • LANS • Web Hosting • VPN’s • PTN’s • VOICE • Trunking and routing • OTHER VALUE ADDED SERVICES • EFT • INTERNET • E-Commerce • E-Business • Vo IP • E-mail • Video • Audio • Other corporate data applications • Caching

14. SECTION 2

15. Comments on the Bill • General observations • Fixed - mobile • Multi-media licence • Spectrum issues • Hearings

16. General Observations • Bill does not distinguish between the various policy/regulatory instruments. • Several issues would be better dealt with in licensing conditions than in legislation • Bill attempts to legislate technology

17. Definition Fixed-mobile service • Recognise attempt to take convergence of broadcasting, computing and telecommunications services into account • Development of new technologies is making existing service definitions obsolete • Operators should be licensed to provide PSTS using any appropriate technology

18. Multi-media service Bill defines multi-media service as follows: Multi-media service means a digital broadcasting service that combines various forms of media to communicate information or content in an inter-active format

19. Multimedia Services: Proposal • Lack of clear definitions: What must we comment on? • Remove anomaly between policy and regulatory instruments • Consider historical investments in the industry • Fairness and competition • Refer issue to existing ICASA process

20. Hearings Deletion of Section 29(5) & 34(3)(c) a problem • Hearings in respect of proposed frequency plan only opportunity to comment on the submissions of other parties • Affords ICASA opportunity to interrogate stakeholders on their submissions

21. Hearings (CONTIN.) • Stakeholders must be given opportunity to make submissions to ICASA on the representations made by other parties. • Existing appointment process of Councillors to be retained. Expert panel to be resource group to PPCC. • Lack of transparency in decisionmaking may damage the credibility of the Regulator.

22. Spectrum Pricing • Spectrum pricing to be implemented in 1800 MHz in absence of National policy • Piecemeal approach will lead to problems in future • Consultants to DoC have completed recommendations on Spectrum Pricing Policy

23. Spectrum Pricing (CONTIN.) • Currently uncertainty as to operators spectrum fees • Negative impact on operators business plans as a result of unforeseen costs

24. THANK YOU!