ORBICOM (PTY) LTD. PRESENTATION ON PROPOSED TELECOMMS AMENDMENTS TO THE PPCC 27 SEPTEMBER 2001 AN MCELL COMPANY

SECTION 1

Orbicom Orbicom has long believed that it can play a leading role in the converging communications market place in Africa. Based on competencies developed as a key digital satellite player Orbicom has entered the African market to provide:- –broader range of telecommunication services. –this strategy is in line with Millennium African Program (MAP). Three key initiatives have been launched:- –1)provide electronic funds transfer (EFT) systems to the banking community in Ghana this venture has been approved by Ghana Central Bank 2) EFT - Uganda provide electronic funds transfer (EFT) systems to the banking community in Uganda

Orbicom - (Continue) 3) Alliance agreement entered with Lockheed Martin Global Telecommunications (LMGT) US Based Telecoms company Alliance focuses on provision of:- –Internet connectivity –Internet based services to the African continent The facilities are based in South Africa, Africa, Germany and United States of America, to ensure countries serviced will have global connectivity. Benefits:- » technical expertise »training for local personnel Orbicom has introduced the following multiple channels:- – DTM (Direct-to-Home) Ku-Band transmissions for South Africa –C-Band transmissions for the African continent

The Transformation of Banking Interactive Branch Structure Face to Face Paper Based Bank Machines EFT Telephone Smart Cards Home Banking On-Line Services Internet Interactive video combined with remote & electronic channels Branches Remote Electronic 1970’s2000’s1990’s1980’s

Building an EFT business across Africa Ghana Kenya Tanzania Nigeria Uganda Ethiopia Zimbabwe EXISTING BUSINESS PROJECTS IN PROGRESS TARGETED BUSINESS

The Solution... An EFT platform which provides banks with: Inter branch connectivity Inter-bank transactions Inter-bank clearing Large data volume & high value transaction capacity transaction audit trails High levels of security

EFT Schematic Challenges: To Change the MINDSETS of Banking Institutions; and Consumer Behaviour

EFT Expansion Opportunities Value Added Services Loyalty Schemes, E-Procurement, Pre-Paid, Advertising, , Electronic Receipt Capture Green ATM’s Internet Banking E-Commerce Payments (B2B & B2C) Mobile Commerce Branch WAN Connectivity Interface to RTGS: Interbank EFT payments Access to existing EDI systems

Shaping the Industry: Challenges A long term view is required for realisation of strategy. Excessive levels of marketing and market education are required within the target market. Not much market information is available and market analysis may often prove irrelevant.

An Alliance to provide Internet Services & Corporate Connectivity in Africa

Architecture Overview

SuperPoP: Services and Applications !INTERNET –E-Commerce –E-Business –Vo IP – –Video –Audio –Other corporate data applications –Caching !CORPORATE CONNECTIVITY –WANS –LANS –Web Hosting –VPN’s –PTN’s !VOICE –Trunking and routing !OTHER VALUE ADDED SERVICES –EFT

SECTION 2

Comments on the Bill General observations Fixed - mobile Multi-media licence Spectrum issues Hearings

General Observations Bill does not distinguish between the various policy/regulatory instruments. Several issues would be better dealt with in licensing conditions than in legislation Bill attempts to legislate technology

Definition Fixed-mobile service Recognise attempt to take convergence of broadcasting, computing and telecommunications services into account Development of new technologies is making existing service definitions obsolete Operators should be licensed to provide PSTS using any appropriate technology

Multi-media service Bill defines multi-media service as follows: Multi-media service means a digital broadcasting service that combines various forms of media to communicate information or content in an inter- active format

Multimedia Services: Proposal Lack of clear definitions: What must we comment on? Remove anomaly between policy and regulatory instruments Consider historical investments in the industry Fairness and competition Refer issue to existing ICASA process

Hearings Deletion of Section 29(5) & 34(3)(c) a problem Hearings in respect of proposed frequency plan only opportunity to comment on the submissions of other parties Affords ICASA opportunity to interrogate stakeholders on their submissions

Hearings (CONTIN.) Stakeholders must be given opportunity to make submissions to ICASA on the representations made by other parties. Existing appointment process of Councillors to be retained. Expert panel to be resource group to PPCC. Lack of transparency in decision making may damage the credibility of the Regulator.

Spectrum Pricing Spectrum pricing to be implemented in 1800 MHz in absence of National policy Piecemeal approach will lead to problems in future Consultants to DoC have completed recommendations on Spectrum Pricing Policy

Spectrum Pricing (CONTIN.) Currently uncertainty as to operators spectrum fees Negative impact on operators business plans as a result of unforeseen costs

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