Telkom Executive Summary - Program Updates March 2013

1. NGNECMarch 2013

2. LEGAL NOTICE Legal Notice This document, and the attachment/s thereto are intended strictly for the addressee(s), and should only be used for the purposes originally intended for. Any use of this document, or its attachments, by any one, and for any purpose other than for its original intent, is a violation of the confidentiality agreement stipulated by this statement. In such a case, Telkom reserves the right to claim direct, indirect, special or consequential damages, including, and  without limitation, any loss of profits, loss of revenue, loss of income, business interruption, loss of programs or data to the value as determined by Telkom. Telkom shall also not be liable to any third party for damages of whatever nature suffered, as a result of the usage of this document for any purpose or reason other than that intended for. For Telkom use only Proprietary and confidential company information

3. STATUS REPORT – EXECUTIVE SUMMARY Overdue Delayed At risk On track In progress Not started Area Project Status Key issues Next steps LXC & VM • T9/X17A1 & G23/G24 Cutover Completed on 13 Dec • ITBM blocks • 5K blocks Balance of Year 1 (1-12m) RRDG Randburg ph3 • Complete installation • Cutover – 4 May 2013 • Bothasig 12,691 Ports, 4 Remotes • Preparation work started • Orders placed • Milnerton 22,585 Ports, 22 Remotes • Preparation work started • Orders placed • Melkbosstrand 3,585 Ports, • Costing for Funding approval completed • Table View 16,810 Ports, 19 Remotes • Preparation work started • Orders placed • Remotes to be cut-over by 8 April 2013 • Exchange cutover – 8 May 2013 • Funding approval • Orders placed WTVW • Funding approval • Orders placed • Remotes to be cut-over by 30 April 2013 • Exchange cutover – 28 June 2013 • Funding approval • Part of Year 2 program • Funding approval • Orders placed • Remotes to be cut-over by 16 May 2013 • Exchange cutover – 3 Jun 2013 • Remotes to be cut-over by 8 April 2013 • Exchange cut-over 6 May 2013 NDNN • Umdloti Beach 858 Ports, 2 Remotes • Costing for Funding approval completed • Effingham 4,358 Ports, 2 Remotes • Costing for Funding approval completed • Sea Cow Lake 5,164 Ports, 1 Remote • Costing for Funding approval completed • Umhlanga Rocks 3,952 Ports • Costing for Funding approval completed • Embokodwe 1,063 Ports, 2 Remotes • Costing for Funding approval completed • La Lucia 7,213 Ports, 5 Remotes • Costing for Funding approval completed • Springfield 2,870 Ports • Costing for Funding approval completed • Gateway 6,646 Ports, 12 Remotes • Costing for Funding approval completed • Durban North 16,343 Ports, 10 Remotes • Orders placed • Funding approval • Orders placed • Remotes to be cut-over by 22 April 2013 • Exchange cut-over 20 May 2013 • Funding approval • Orders placed • Remotes to be cut-over by 9 April 2013 • Exchange cut-over 8 May 2013 • Funding approval • Orders placed • Exchange cut-over 13 May 2013 • Funding approval • Orders placed • Remotes to be cut-over by 16 April 2013 • Exchange cut-over 15 May 2013 • Funding approval • Orders placed • Remotes to be cut-over by 22 April 2013 • Exchange cut-over 21 May 2013 • Funding approval • Orders placed • Exchange cut-over 31 May 2013 • Funding approval • Orders placed • Remotes to be cut-over by 25 July 2013 • Exchange cut-over 23 Aug 2013 • Funding approval • Orders placed • Remotes to be cut-over by 25 April 2013 • Exchange cut-over 27 May 2013 • Funding approval • Orders placed

4. STATUS REPORT – EXECUTIVE SUMMARY Balance of Year 1 - Program

5. STATUS REPORT – EXECUTIVE SUMMARY Overdue Delayed At risk On track In progress Not started Reminder Slide Area Project Status Key issues Next steps • Network • 3562 remote sites (media release) • 603 exchanges (T600 scenario) • 3 year program @ 250 days per year • 5 remotes sites per day every day for 3 years • 1 exchange per day every day for next 3 years Months (13-24) Network Upgrade for Access & TDM • 121 exchanges to be migrated • 1,339 remotes to be deployed • GC 27/409 (exchanges/remotes) • NER 28/271 • CR 4/20 • ER 21/134 • SR 18/108 • WR 23/397 • ITS 2012 • Pilot • CES Upgrade • NG BSS/OSS • Support FMC • eChannel Dev. • ITS 2013 • Single customer view • Ph 1 next gen products • Ph 1NGN fulfilment automation • CRM SOC • Obtain final agreement between Networks and Marketing on plan • Motivate for multi-year funding • Develop resource plan based on roll-out plan • Develop program plan with roles and responsibilities • Develop training plan • Develop forecast schedule for vendors and third party equipment suppliers Months (25-36) • 152 exchanges to be migrated • 958 remotes to be deployed • GC 42/230 (exchanges/remotes) • NER 36/249 • CR 14/17 • ER 20/153 • SR 18/63 • WR 22/246 Year 2, 3, 4 are preliminary figures subject to change • ITS 2014 • Integrated real time • billing • Integrated problem • handling • NGN workforce transformation • Assurance & SLAs • Revamp CSM • Ph2 fulfilment auto • Ph 2 next gen prod • Turndown CMSS • ITS 2015 • Managed service & bill • NGN fulfilment • automation (ph3) • Ph3 next gen products • Media product dev. • Optimise assurance • Optimise workforce • Optimise customer & user experience • Continue to launch NGN products Months (37-48) • 305 exchanges to be migrated • 983 remotes to be deployed • GC 51/154 (exchanges/remotes) • NER 85/299 • CR 19/13 • ER 63/273 • SR 30/40 • WR 57/204

6. Under Construction NGNEC EXECUTIVE SUMMARY NGNEC Roll-out Plan on a Page for Periods month 13-24 – Under review Note : Quantities for Remotes and Exchanges are in terms of MSANs and Nodes respectively

7. Under Construction NGNEC EXECUTIVE SUMMARY NGNEC Roll-out Plan on a Page for Periods month 13-24 – Under review Note : Quantities for Remotes are in terms of MSANs and Exchanges are actual Exchanges quantities not nodes

8. Under Construction NGNEC EXECUTIVE SUMMARY NGNEC Regional Ramp-up on a Page for Periods month 13-30 (Yr2 to Y3 Q2) – Under review Note 1 : Excluding Balance of Year 1 Note 2 : Excluding possible year 3 impact assumed from Q3 of 2013

9. NGNEC Resource Model FTE External Capability OEM/OSP NFTE Overtime