© 2007 Smile Communications (Pty) Ltd, © 2007 Smile Communications (Pty) Ltd Presentation by Smile Communications to Portfolio Committee on Communications Lee-Ann Cassie Head of Regulatory Affairs

© 2007 Smile Communications (Pty) Ltd, 2 Licence Vision Track Record Geography Smile Overview Who we are? To be a low cost telecoms operator that will reduce the cost of communisations to provide affordable communications to BoP consumers Smile intends to operate in countries across Africa and the Middle East. In possession of a licence to provide Value- Added Network Services (VANS) A management team with a proven track record in establishing and managing successful international telecommunications, technology and media companies Shareholders Investor confidence - FDI Well funded - Group fully funded for 5 years Business Plan developed

© 2007 Smile Communications (Pty) Ltd, Submission on ECA Amendment Bill Introduction Broadly supportive of underlying intent of Bill Submission made in terms of Smile’s Business Plan Based on affordable & accessible communications Focus on addressing Bottom of the Pyramid customers Smile believes there is need for: Government intervention in policy implementation in a developmental state, SA Recognition of contribution to be made by Private Companies 3

© 2007 Smile Communications (Pty) Ltd, Submission on ECA Amendment Bill Govt Intervention in Developmental State Critical for Cabinet and Minister to identify strategic initiatives to increase universal service and access Where identified, ought to be facilitated with Cabinet approval and issue of Policy Directions by Minister Proposed amendment supportive of objects of ECA and within purport of ECA Icasa still to licence subject to provisions of ECA SA, despite 14 years of progress, still in developmental state Significant gaps between “haves” and “have nots” 4

© 2007 Smile Communications (Pty) Ltd, Submission on ECA Amendment Bill Contribution to be made by Private Companies Investments that will meet affordability, accessibility and availability goals of Government Strategic initiatives can exist not only with Government and Parastatals, but also with Private Companies Proposed amendments to be more goal focussed rather than entity focussed Should not be a restriction on Private Companies Government to look at Private Companies that will assist it in meeting developmental goals Identification of initiative – process to be underpinned by commitment and sound business and technical plans of potential licensee Commitments to be in licence conditions that will facilitate ICT infrastructure investment Review or sunset clause 5

© 2007 Smile Communications (Pty) Ltd, Submission on ECA Amendment Bill Proposed Amendments Smile suggests the following: “The Minister may, after having obtained Cabinet approval, issue a policy direction in order to- (a)Initiate and facilitate government intervention in order to ensure strategic ICT infrastructure investment; or (b)Provide for a framework for the licensing of a public entity by the Authority (c)With effect from a date to be determined by the Minister, but which shall not be more than 2 years after the commencement of this section, the provisions of section 5(13) shall lapse” 6

© 2007 Smile Communications (Pty) Ltd, Conclusion Smile supports proposed amendment to the extent that it allows for licensing of public and private entities Need for Governmental intervention in developmental states Ability of Private Companies to contribute towards development in SA is not an impossibility Proposed amendments to be goal focussed rather than entity specific 7