Broadband Service Operation Centre J van Dalen 3 October 2012

Cisco has issued results of the annual Visual Networking Index (VNI) Forecast 2012 The Forecast projects the following growth areas for the South African market: Internet Traffic Internet traffic will grow 10.5-fold from 2011 to 2016, a compound annual growth rate of 60%; Internet traffic will reach 425 petabytes per month in 2016, up from 40 petabytes per month in 2011; Internet traffic in 2016 will be equivalent to 1 billion DVDs per year, 106 million DVDs per month or 145,715 DVDs per hour. Internet Video Internet video traffic will be 79% of all consumer Internet traffic in 2016, up from 56% in 2011; 58 billion minutes of video content will cross the Internet each month in 2016, up from 4 billion in 2011; Video exceeded half of South Africa’s consumer Internet traffic by year-end 2011. Mobile data traffic Mobile data traffic will grow 49-fold from 2011 to 2016, a compound annual growth rate of 118%; Mobile data traffic in 2016 will be equivalent to 17x the volume of the entire South African Internet in 2005. Device Growth There will be 134 million networked devices in 2016, up from 83 million in 2011; There will be 2.6 networked devices per capita in 2016, up from 1.6 per capita in 2011. Broadband Speed Evolution The average broadband speed will grow 2.6-fold from 2011 to 2016, from 2.0 Mbps to 5 Mbps. Average Traffic per User and Household The average Internet user will generate 39.6 gigabytes of Internet traffic per month in 2016, up 754% from 4.6 gigabytes per month in 2011, a CAGR of 54%; The average Internet household will generate 128.4 gigabytes of Internet traffic per month in 2016, up 1,231% from 9.6 gigabytes per month in 2011, a CAGR of 68%. © Telkom 2011 | Presentation Title |

Global factors driving this growth An increasing number of devices: The proliferation of tablets, mobile phones and other smart devices as well as machine-to-machine (M2M) connections are driving up the demand for connectivity; More Internet users: By 2016 there will be 3.4 billion Internet users across the globe – about 45% of the world’s projected population according to United Nations estimates; Faster broadband speeds: The average global fixed broadband speed is expected to increase nearly 4-fold from 9 Mbps in 2011 to 35 Mbps in 2016; More video: By 2016, 1.2 million video minutes – the equivalent of 833 days (or over two years) – will travel the Internet every second; Wi-Fi growth: By 2016 over half of the world’s Internet traffic will come from Wi-Fi connections. Taken from an article on MyBroadband 31 May 2012 © Telkom 2011 | Presentation Title |

The Broadband ecosystem © Telkom 2011 | Presentation Title |

Broadband Focus in WS&N In line with WS&N long term plan W&N Aspiration We will lead the enablement of superior fixed line broadband and converged services in South Africa, while delivering best-in-class operational efficiency and customer service in defined value clusters. In line with NCO Business plan Service orientation – SOC NGNEC execution Support of Broadband Growth Assurance/ Fulfilment In line with NFS Business plan Deliver superior fixed BB and Converged services through operational excellence to specified customer segments © Telkom 2011 | Presentation Title |

Need for a Broadband Service Operation Centre Ever increasing ADSL speeds 384 to 1Mbs 1Mbs to 2Mbs Introduction of 20 Mbs and 40 Mbs services BB service now a part of your daily life More and more content More business applications Competition MTN to launch 4G before year-end – MTN will launch commercial 4G (Long Term Evolution) services in Johannesburg, Pretoria and Durban before the end of the year. The 4G network will be capable of download speeds of anywhere from 2Mbps to 66Mbps. © Telkom 2011 | Presentation Title |

SOC in NCO Based on the eTOM model Non voice SOC already established in NCO under Selby Khuzwayo Need for a BB SOC to drive service delivery across the value chain At a high level the purpose of the BB SOC will be to improve customer’s experience of the Telkom broadband offering. The BB SOC can be contrasted with the functions of the NOC that are primarily concerned with network operations; its secondary responsibilities are network provisioning and network installation and maintenance. The associated service operations are handled by a Service Operations Centre and customer relations management. Based on the eTOM model © Telkom 2011 | Presentation Title |

eTOM level 1 processes © Telkom 2011 | Presentation Title |

Functions of the SOC CPC design and Control DTAC To be established © Telkom 2011 | Presentation Title |

NFS Broadband functions grouped in the FAMC DTAC Functional Work Streams Network Faults (NFS BB interface to NCO & NIP) Back Haul (BW utilization) N Core Equ Slow access WS Ring Fenced (Q1 & Q2) Retail (Telkom SA ISP) Q1 & Q2 screening Field tech testing support Escalation and fallout management Service Management and Operations Support & Readiness Service Configuration & Activation Management Service Problem & Quality Management Service Inventory Management Service configuration and activation systems Service Problem Management systems Solution design Service Fault Management Service Quality Management systems Service Instance Rating Management Resource allocation Implementation, test and activation Work order tracking Service Quality Management CPC Control Functional Work Streams Handle Self Install Orders ( SIO) { Send SMS( Not Wholesale)/ Call Customers, Ensure Modem Synch} Handle failed SIO { CCD for TO Dispatch} Verify DTAC ref to match MDF for SIO and Un-manned MDF OR Final Ref for Tech Dispatch . Do Work Order Return to Commercial for order PIS. Handle Complete in Progress to close SIO Servact location. Handle Escalations to enable addition al product offering. CPC Design Functional Work Streams Analyze and verify all New orders to determine SIO Tech Dispatch or CPC -D responsibility. Handle fall-outs from commercial @ In-Active location. Ensure DSLAM and task to correct locations. Handle failed Automation cases and ensure matching of virtual ports to DSLAM on Technologies like iMax Combo / MSAN Handle upgrades/downgrades on spot and do Work Order Return on CPC task for Commercial PIS. Finalize Complete in Progress : CPC-D route task once Commercial have PIS’’d orders to close Servact. Handle Escalations / ARS cases.

Impact on staff No change at Operational level Senior Manager/ Manager reporting line changes Identified staff (CPC and DTAC) to move from NFS to NCO No geographical changes © Telkom 2011 | Presentation Title |

Possible staff affected © Telkom 2011 | Presentation Title |

Race and gender © Telkom 2011 | Presentation Title | Row Labels Count of GENDER % African 86 43.65% Female 43   Male Coloured 50 25.38% 26 24 Indian 9 4.57% 4 5 White 52 26.40% 17 35 Grand Total 197 45.69% © Telkom 2011 | Presentation Title |