Mr Veli Bhengu Product Manager: Broadband Services March 2015 1

Agenda Introduction Fixed vs Mobile Broadband Challenges to Implement ICT and Broadband Strategies Digitalisation of Government Services Conclusion

Introduction

Introduction cont... Over 2.7 billion people are using the Internet, which corresponds to 39% of the world’s population. In the developing world, 31% of the population is online, compared with 77% in the developed world. Europe is the region with the highest Internet penetration rate in the world (75%), followed by the Americas (61%). In Africa, 16% of people are using the Internet – only half the penetration rate of Asia and the Pacific.

Fixed vs Mobile Broadband Both Fixed and mobile show 6x growth in 5 years to 2018 Mobile usage remains substantially lower than fixed usage Bandwidth intensive applications (volume and latency) such as gaming, file sharing and storage dominates fixed Broadband Mobile broadband usage is driven by video content, ad hoc browsing and social media Average fixed usage in 2011 was 21GB across operators – this is expected to grow to 69GB pm in 2018 – dominated by Fixed services Comparably, LTE bundles are shown with much lower volumes Akamai suggests average usage of 9GB pm over mobile services Source: Armstrong (mybroadband :2013)

Fixed vs Mobile Cont...

Challenges to Implement ICT and Broadband Strategies Computer illiteracy and the lack of ICT infrastructure are widely recognized as an increasingly powerful obstacle to the economic, civic and political development of Africa. Growth is often hindered by the lack of infrastructure and skills the transition to the knowledge-based economy is accelerating, the gap between Africa and the rest of the world has continued to widen. Geographical challenges:

Challenges to Implement ICT: Economic vs Geographic

Challenges to Implement ICT: Impact of Changing Data Profiles Source: Telkom Internal

Digitalisation Digitalization megatrends such as internet, the internet of things and big data and digital innovations are creating development opportunities faster than ever. Digital is a crucial driver for decent work, growth and well-being, and is having a profound impact across all sectors. The internet and digital technologies can and will boost economic, social and political development. Information technology is a formidable enabler of freedoms. The ultimate goal of the SDGs is to enable individuals, organizations, communities and people to achieve their full potential. They do so by promoting their sustainable development and improving their quality of life. If we want people-centred, inclusive and development-oriented information societies, where all have access to digital technologies, where everyone can create, access, utilize and share information of their choice – Digitalisation is the Answer. Source: De Sousa: 2015

Digitization Cont... Citizens: Citizens need to be familiar with how government is organised before they know where to look for information and who to contact for assistance. Government: Every government puts a tremendous amount of effort into simplifying processes and better serving its citizens. Technologies or systems used by different government entities have different capabilities. This makes the adoption of new technologies such as digital difficult. Source: De Sousa: 2015

The Platform Approach Digital Platform provides the user with a simple, consistent, friendly 24/7 capability to engage with government, while government benefits from the ability to provide access to information and services from across government, Source: De Sousa: 2015

Conclusion Fixed (ADSL, VDSL & FTTH/B and Mobile (3G, LTE, Satellite) are complementary services Telkom’s strategy is to transform into a service centric operator enabling the whole ecosystem with converged solutions. Telkom Internet has accordingly adapted its operating model. Ability to tailor customer experience and performance commitment. Improved access speeds and ISP quality. Ultimately, Telkom is a One Stop Solution provider.

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