4th REGIONAL BROADBAND NGN & NEW TECHNOLOGIES WORKSHOP BROADBAND DEPLOYMENT EXPERIENCES & CASE STUDIES Khuthi Tshipani Capital Programme Manager 27 November 2014 Slide 1

OUTLINE Overview of Broadband Infraco’s Network International Connectivity National & Regional Connectivity Evolution of the Network (Case Studies) Legislative Mandate Solutions Northern Ring Network Upgrade International Gateways (SADC Regional Connectivity) Open Access POP Rollout Benefits Tracking Macro-Economic Analysis Key Considerations Q & A

Overview of Broadband Infraco Network Regional connectivity National connectivity Exclusive servitude access: Eskom & Transnet Maintenance teams in the field Network Operating Centre Very High service level records (managed fibre) Stable network functionality Above-average Mean Time To Respond standards. Expanded national footprint WACS investment International connectivity Interlinking East & West Coast international cables Slide 3

Broadband Infraco at a glance Network surveillance 24/7/365 24-hour callout for maintenance and faults restoration Customer support through call center/service desk Real-time Problem detection (Fiber management system, Elements managers, Environmental alarm management system) Service provisioning, SDH, IP. Tier 1,Tier 2 technical support Performance Management (Customer services) Trouble Ticketing(Remedy),Work order and Site Access Performance of services & Utilization Reports Installation, testing and commissioning Preventative maintenance Our capabilities include proficiency in all aspects of Network maintenance, Our technicians are experts in most technologies , through experience and exposure , e.g. Fibre( SDH, DWDM), RF (Microwave), IP, Power Systems( Rectifiers, Batteries, etc), Splicing, Installation, Commissioning, Network optimization, Jointing and Terminating Existing Office Planned Office Polokwane Nelspruit Mafikeng JHB New castle Kimberly Richards Bay Bloemfontein Upington Durban De Aar Umtata Vredendaal Beaufort West EL George Cape Town PE Slide 4

Legislative Mandate Infraco Mandate “….. The State intends to expand the availability and affordability of access to electronic communications networks and services, including but not limited to underdeveloped and underserviced areas; ……. The State wants to ensure that the bandwidth requirements for specific projects of national interests are met;” Penetration gap in South Africa (and SADC) Legacy Network & Capacity Constraints Robust and scalable network High Cost of Broadband Availability and access to infrastructure (Open Access, Rural) Legal and Regulatory Mandate Commercial

Examples (Case Studies) Solutions Converged Network Platform High Speed and High Capacity Resilient Network Diverse Footprint Low Cost Scalability Examples (Case Studies) Northern Ring Capacity Upgrade International Gateways Open Access POP Rollout

IPIP Northern Ring Network Capacity Upgrade Case Study 13 October 2014 STAFF BRAND BRIEF 04th May 2012 Marketing & Sales Department IPIP Northern Ring Network Capacity Upgrade Case Study 13 October 2014 Slide 7

Network Background Slide 8

Logical Network Diagram Slide 9

BACKGROUND Implemented as a 10Gbps line SDH network ring topology on a single fibre pair. Northern Ring core Network upgrade to DWDM was initiated to: Support projected bandwidth requirements for customers such as Liquid Telecoms, Seacom and Neotel: SADC mandate-The Northern Ring network was a potential bottleneck in addressing SADC capacity requirements flowing through the border posts: Demand from SADC countries increased mainly by connectivity requirement to the WACS, EASSy and SEACOM cable systems on the coasts of South Africa. Increase in traffic demands and projection to the main towns of the Limpopo and Mpumalanga provinces due to increased economic activities. Facilitate Broadband Infraco Network expansion initiatives from the Northern Ring Network. DWDM network upgrade enables Broadband Infraco’s IP/MPLS core layer expansion to the Northern Network. Enables further expansion into the Limpopo, Mpumalanga and neighbouring provinces therefore enabling universal broadband access Core network upgrade required to facilitate fulfilment of provincial requirements and I-ECNS license obligation Efficient use of fibre. Alignment to rest of the national DWDM network. Required for a high capacity automated Backbone network as BBI adds the OTN layer to its national network. Increase spares for end-of-life SDH equipment and increase useful life. Slide 10

THE DESIGN Slide 11 Design Principles Solution Solution had to be cost effective considering Broadband Infraco’s long term financial goals. Solution had to be scalable Solution had to address areas of network vulnerability Solution implemented had to be future proof Solution had to align with the Broadband Infraco network roadmap Solution addressed network capacity requirements from customers. Solution 40 channel Coherent detection DWDM System based on 40Gbps per channel transmission enabled for 100Gbps. Solution addressed: Current and future capacity demands Support for BBI’s strategic network expansion projects to support BBI’s strategic objectives Efficient use of fibre. Increase network resilience based on coherent DWDM technology: Higher tolerance on dispersion effects such as PMD, increasing useable life of fibre. Increasing useable life of existing SDH transmission network. Solution is scalable, initially deployed as an 80Gbps DWDM ring network with the required granularity: Channels are terminated on 40G Muxponders Implemented solution is capable of a maximum total capacity of 1.6Tbps (40ch x 40Gbps). This can rise to 4Tbps if 100Gbps per channels is enabled. Implementation Challenges Fibre Degradation between design and implementation due to fibre breaks. Integration into existing DCN. Migration of customer traffic without interruption Slide 11

PROPOSED SOLUTION Slide 12

IMPLEMENTED SOLUTION Slide 13

Project Lessons Learned Pre-Engineering must be afforded adequate budget. Prepare detailed designs to avoid/ eliminate major scope changes that may cause delays and require more funding. Plan adequately for resources (maintenance personnel) in case of simultaneous deployment. Incorporate network downtime and approvals thereof. Plan and budget for any overtime work and ensure operations are not hampered. Prepare in-depth specifications and acceptance protocols. Identify every possible Project dependencies and inter-dependencies. All approvals must be in place and incorporated in the plan. Contract well resourced service providers. Plan and agreed on firm delivery time lines for equipment (and services).

International Gateways Regional Connectivity to All Neighbouring countries, i.e.: Zimbabwe (Via Beitbridge) Mozambique (via Komatipoort) Swaziland (Via Mahamba) Lesotho (Via Maseru) Namibia ( Via Onseepkans & WACS) Botswana (Via Ramatlabama)

Open Access POP Rollout 14 209 km Data Centres Dark fibre Leased fibre Collaborations 158 PoPs 2014 2013 Upington Kimberly East London Bloemfontein Port Elizabeth Ulundi Stanger Randfontein 5137 km 2012 72 PoPs Bryanston (IS) Parklands (IS) Durban (Teraco) Innovation Hub Pretoria West Mafikeng Ramatlabama 2010/11 Yzerfontein Zimbabwe (Beitbridge) 37 Sites (Relocation) Isando (Teraco) Midrand (BCX) Rondebosch (Teraco) Umhlanga (IS)

Benefits Tracking Products and Service Offering Network Connectivity Wide Product Range SDH DWDM IP Colocation Scalable Ultra High Capacity Add/Drop capability National 24/7 support Secure and dedicated bandwidth Various SLAs Network Connectivity National Regional International 158 Sites 14209 Km fibre Economic Affordable and competitive solutions Macro-Economic benefits Socio-Economic benefits Projects of National Importance SKA CSIR

Macroeconomic Analysis Macroeconomic analysis was performed to determine the contribution of the rollout of broadband networks to GDP, job creation, household income and taxes. Outcome of Macroeconomic analysis Broadband has contributed over R870bn to the South African economy (in nominal terms) Broadband created a sum of 377 660 direct and indirect jobs Broadband contributed R84bn to taxes and R249bn to indirect household income

Broadband Infraco’s impact on the long distance market pricing has been significant The composition of the cost structure of providing comparable broadband connections to end users has already reduced significantly since the launch of Broadband Infraco. TOTAL $425k Total monthly cost (before 2009) $85k M&A = 20% Overall reduction of 62% $170k NLD = 40% NLD + ILD reduction of 76% TOTAL $162k Total current monthly cost 80% Just to show creating BBI had had an impact at NLD price reductions to date $82k M&A = 51% $170K ILD = 40% $25k NLD = 15% ILD = 34% 49% $55k

Impact of Broadband on Provincial Economies The South African economy has grown by 2.7% between 2004 and 2013 as a result of the adoption of broadband

Partnership Approach to Infrastructure roll-out As part of its Mandate Broadband Infraco works proactively with private and public stakeholders and engages openly on provincial telecommunications infrastructure partnerships. Identification of sites and site layout in respect of Broadband Infraco’s National Long Distance Network relative to the provincial plans and requirements. Detailed joint planning to facilitate the roll-out of the Limpopo Broadband Network in the Limpopo Province; Establishment of high capacity Point of Presence (PoP) sites in that province Facilitate construction of National Long Distance PoP sites in accordance with governance frameworks. Provision of affordable international connectivity as and when required by LEDA for the Limpopo Broadband Network; and Where possible, utilize the services of local suppliers and other SMMEs in the roll-out of the Limpopo Broadband Network in the Limpopo Province.

Stakeholder Management Key Considerations Infrastructure Rollout Stakeholder Management Collaborations (established MOUs) Infrastructure sharing Fibre Swaps Co-builds BOT Colocation PPP SHEQ Environmental (EIA, EMPs) Health and Safety Quality Legal and Regulatory Legal reform and alignment Licensing Open Access Establishment of norms and standards Alignment Other Proper planning and design Managing Dependencies None-Traditional approaches Funding solutions Prioritisation Strategic Procurement

Q&A Thank You!!

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