SAT3/WASC/SAFE – Public / Private Global Partnership ICT SUMMIT - JHB - Jun04 SAT3/WASC/SAFE – Public / Private Global Partnership TELKOM SA LTD

SAT-3/WASC/SAFE – what is it? ICT SUMMIT - JHB - Jun04 SAT-3/WASC/SAFE – what is it? 27,850 km submarine cable system The name: 3rd South Atlantic Telephone cable – SAT3 West Africa Submarine Cable - WASC South Africa – Far East - SAFE Acronym: SAT3/WASC/SAFE Commercial service since April 2002 Design capacity – 120Gb/s (6m tel. calls) TELKOM SA LTD

SAT-3/WASC/SAFE 1. Portugal 2. Spain 3. Senegal 4. Cote d’Ivoire ICT SUMMIT - JHB - Jun04 SAT-3/WASC/SAFE 1 1 2 1. Portugal 2. Spain 3. Senegal 2 3 15 6 4 5 7 16 8 4. Cote d’Ivoire 5. Ghana 6. Benin 7. Nigeria 8. Cameroon 9. Gabon 10. Angola 11. South Africa (1) 9 10 12. South Africa (2) 13. Reunion 14. Mauritius 15. India 16. Malaysia 14 13 11 12 TELKOM SA LTD

SAT-3/WASC/SAFE – the partnership ICT SUMMIT - JHB - Jun04 SAT-3/WASC/SAFE – the partnership The consortium co-owners: Africa: 12 investors (46%) America: 4 investors (14%) Asia: 8 investors (17%) Europe: 12 investors (23%) Construction & Maintenance Agreement Shareholders agreement depicting rights and liabilities Cable system construction, maintenance and operation SAT-3/WASC/SAFE serves as a shining example in demonstrating the ability of African and Global telecommunications companies to work together in harmony towards realizing an important building block in pursuit of the development and improvement of African infrastructure TELKOM SA LTD

THE PARTNERSHIP APPROACH ICT SUMMIT - JHB - Jun04 LEVERAGING GLOBAL ECONOMIES EUROPE SEA-ME-WE-3 (Phase 1) – RFS 1999 ASIA SAT-3/WASC (Phase 2) – RFS 2002 SAFE TELKOM SA LTD

Telkom View on AFRICAN Partnerships The RIGHT Partnership – A completed AFRICAN FIBRE RING SEA-ME-WE-2 SEA-ME-WE-3 PHASE 1 SAT-3/WASC/SAFE PHASE 2 EAST AFRICA PHASE 3

GLOBAL VIEW EASSy SAFE SAT-3/WASC SEA ME WE 3 1 2 3 4 16 23 7 8 5 6 17 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 SEA ME WE 3 SAFE SAT-3/WASC EASSy GLOBAL VIEW

CABLE ADVANTAGES FOR AFRICA ICT SUMMIT - JHB - Jun04 CABLE ADVANTAGES FOR AFRICA Ownership of the infrastructure Improves business applications and internet speed (less latency) Increases the available bandwidth for specific country / region Ability to access numerous regional / neighbouring countries Ability to access >150 countries globally Reduce the region’s dependency on satellite Lower network costs at higher bandwidth Cost reductions can be used to address domestic needs Facilitates cooperation – i.e. shared backhaul / cable stations TELKOM SA LTD

Consider existing gaps Position as a global system Co-operate ICT SUMMIT - JHB - Jun04 MACRO LESSONS Consider existing gaps Position as a global system Co-operate Expect to pay for it Operator involvement Flexibility Avoid oversupply or nice to have TELKOM SA LTD

Gain momentum with serious Parties ICT SUMMIT - JHB - Jun04 MACRO LESSONS (2) Gain momentum with serious Parties Establish a robust / redundant network Own / control strategic infrastructure Active participation Expect to work Make financial arrangements early If its commercially viable – do it – if not … TELKOM SA LTD

GLOBAL CAPACITY BUSINESS ICT SUMMIT - JHB - Jun04 THANK YOU JOHAN MEYER EXECUTIVE GLOBAL CAPACITY BUSINESS TELKOM SOUTH AFRICA TELKOM SA LTD