Select Committee on Communications and Public Enterprises SENTECH’S READINESS FOR THE DIGITAL MIGRATION PROCESS AND SUPPORT TOWARDS COMMUNITY RADIO AND TELEVISION STATIONS Select Committee on Communications and Public Enterprises Wednesday, 8 Feb 2017 SENTECH LIMITED |

PURPOSE The purpose on this presentation is to appraise the Select Committee on the following: Support towards community radio and television stations Readiness for the digital migration process SENTECH LIMITED |

Community Radio Broadcasters SENTECH’s National Transmission Network supports: 121 FM community radio services, 5 community TV services, and 5 MW community services. 110 CRB Parliamentary Channel SENTECH LIMITED |

National Community Radios Coverage Map 11 CRB 14 CRB 11 CRB 8 CRB 27 CRB 13 CRB 4 CRB 20 CRB 13 CRB SENTECH LIMITED |

Community Radio Broadcasters Financial support SENTECH’s transmission network supports 110 CRB parliamentary channel and 121 community radio services across the country. The Company conducted a tariff review and implemented substantially discounted lower tariffs in line with the provisions of the ECA, which require differentiated tariffs in line with the transmission media size. SENTECH LIMITED |

Community TV Broadcasters Funding Policy 2015 Department of Communications issued a draft discussion on methodology to fund Community Television in a Digital Environment Industry Workshop SENTECH conducted a workshop in August 2015 which incorporated all Community TV broadcasters, MDDA, ICASA as well as the DOC Tariff Acceptance All Community TV Broadcasters signed a letter of acceptance on the new structure of the DTT Tariff model Way Forward Draft Funding Model Policy to be finalized by the Department of Communications SENTECH LIMITED |

Community TV Broadcasters   Cape TV Analogue DTT Mux 1 – minimum sites required Population Covered 3 194 922 3 974 835 % of Total Population 6.4% 7.95% % of Total RSA Area 0.17% 0.76% Number of sites 1 12 Tariff R496 872 R1 738 795 BSD Subsidy Net Tariff R474 567 R 1 738 795   Tshwane TV Analogue DTT Mux 1 – minimum sites required Population Covered 4 136 553 12 270 810 % of Total Population 8.27% 24.54% % of Total RSA Area 0.68% 2.44% Number of sites 1 10 Tariff R812 052 R1 688 622 BSD Subsidy Net Tariff R786 458   Soweto TV Analogue DTT Mux 1 – minimum sites required Population Covered 4 417 763 12 270 810 % of Total Population 7.85 24.54% % of Total RSA Area 0.29% 2.44% Number of sites 1 10 Tariff R470 640 R1 688 622 BSD Subsidy Net Tariff R449 507 The tariffs of the Cape TV, Soweto TV and Tshwane TV have increased significantly and this is in alignment with the increases in the number of transmitters and the increased geographic coverage, both of which are determined directly by the National Frequency Plan. SENTECH LIMITED |

Community TV Broadcasters   1 KZN Analogue DTT Mux 1 – minimum sites required Population Covered 987 384 8 170 479 % of Total Population 1.97% 16% % of Total RSA Area 0.2% 5,17% Number of sites 1 28 Tariff R556 278 R1 451 178 BSD Subsidy Net Tariff R449 507 R2 409 487   TBN Analogue DTT Mux 1 – Negotiated Sites Population Covered 1 027 541 3 197 562 % of Total Population 2.05% 6.39% % of Total RSA Area 0.5% 1.74% Number of sites 6 14 Tariff R2 022 884 R1 890 747 Subsidy Net Tariff SENTECH LIMITED |

DTT Migration Status Update Sentech successfully completed DTT Rollout to 178 migration sites across the country. Further to the 178 migration sites and to ensure maximized DTT coverage, Sentech is expanding DTT coverage to additional four sites. viz Flagstaff, Nqeleni, Burgersfort and Harrismith. With the exception of Burgersfort and mainly due to community unrest within the area, the other 3 sites have been completed. These terrestrial DTT sites covers about 88% of our population and remaining gap will be covered by the DTH Gap-filler as outlined in the coverage map and below table. SENTECH LIMITED |

DTT Migration Status Update DTT Optimization and service enhancement In order to improve customer and viewer experience, Sentech initiated various projects to enhance it network management capabilities and services support structure. These projects are underway and should be completed during the current year as outlined here below; SENTECH LIMITED |

DTT Migration Status Update Analogue Switch-Off (ASO) A phased approach is adopted for analogue services termination across South Africa, where ASO takes place in a given province or region at a time before moving onto the next province. The ASO strategy is largely influenced by the STB rollout plan, DTT awareness campaign and the analogue network configuration. The ASO plan prioritizes protection of services against cross border interference and ensures compliance with the Astronomy Geographic Advantage Act applicable to SKA area as tabled here below; Phase 1 : Northern Cape (including the SKA area) and the Free State province. Phase 2 : Mpumalanga and a portion of the Kwazulu Natal province. Phase 3 : Limpopo Province Phase 4 : North West province Phase 5 : Eastern Cape province Phase 6 : Kwazulu Natal province Phase 7 : Western Cape province Phase 8 : Gauteng province Phases one to five addresses the SKA ACT compliance and will mitigate against the risk of cross border interference. SENTECH LIMITED |

DTT Migration Status Update Analogue Switch-Off (ASO): South Africa Commenced with analogue switch-off during October 2016 in the Northern Cape. As at the end of January 2017 a total of 14 analogue sites had been switched-off as outlined in a table below. Expeditious ASO programme will assist in reducing the additional technical capacity and the dual illumination costs required by Sentech to manage both the analogue and digital television platforms. In order to ensure success below key dependencies should be managed in collaboration with all stakeholders; Availability of compelling content and viewer incentives DTT awareness campaigns Availability and distribution of STB’s Network readiness Call center and migration support centres SENTECH LIMITED |

SUBTITLE OF PRESENTATION THANK YOU SUBTITLE OF PRESENTATION SENTECH LIMITED |