SABC’s STATE OF READINESS FOR DTT November Activity Charter 2.SABC Approach 3.SABC Overview 4.Channel Report 5.Summary 6.Project Plan (Annex)

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Project Approach Signal Generation Operating Model/ Standards Funding. Broadcast Infrastructure. Content Ancillary services System upgrades SABC/e-Tv Transmission Network control Signal support Sentech Reception STB Decoders Subsidized DOC (subsidized) Broadcasters (all compliant boxes) Customer Instruction SP ICASA SABS End Third Quarter 2012 (Illumination Phase)(tentatively)Post 3rd Quarter 2012 (Uptake Phase) (tentatively) DOC Project Sponsor Product Enhancement 3

SABC overview SNAP SHOT  Infrastructure to carry existing three channels on air (100%)  News channel trials, training and infrastructure near completion (90%).  Infrastructure to carry two additional channels part of launch near completion (70%).  Business cases completed for two additional channels that complete the targeted launch compliment of 6 channels  Sub projects initiated to manage internal broadcasting workflows  Funding request presented to DOC and treasury (Project Risk if declined)  Coverage of SABC DTT transmission as per SENTECH presentation GOING FORWARD  Finalize STB control requirements.  Complete additional channels play-out technical infrastructure preparations  Completion of UI with e-TV (complete, in final testing phase)  Complete development of MHEG related ancillary services for launch  Complete testing of multi lingual, subtitle, HD and over the air upgrade services. 4

SABC overview GOING FORWARD (cont..)  Adequate call center provision, for envisaged high volumes (excl signal)  Approval of business cases for the last pending two channels  Launch of DTH agreement with SENTECH  Signal Carriage Tariffs, conclusion with SENTECH  Clarify issue of DTT dual illumination costs and duration, release of budget thereof  Sign off on operating model and rules of operation  Finalizing feature tests with SENTECH (EPG Collation, Upgrade delivery method)  Resourcing DTT Laboratory for fast tracking DTT development CHALLENGES  Outstanding Final DTT regulations  Funding shortfall to implement DTT fully  Availability and take up of STB boxes 5

Channel Report Channel Preparation  Business plan makes provision for the launch with 1 archive channel, however this requires approval there of and funding to be approved at least 3 months before launch so that resources can be contracted and arc hive content packaged for broadcast. Regulations  Channel authorisation still needs to happen, which may require public hearings – this could lengthen the ti me before licences are granted  The draft Digital Terrestrial Television Regulations were issued on Friday 13th July These have huge implications on SABC’s ability to deliver on its business plan; such as the requirement that at least 50% ne w content is broadcast during Prime Time. SABC will not be able to provide new content on its incentive ch annel for a period not less than 12 months from funding approval. Resources  The Division has made submission to the MTEF for funding of its incentive channels, and awaits approval thereof;  Resource plan has been drafted and costed;  Technology has indicated the availability of an FCC for broadcast when we re ready. 6

Summary DTT PROJECT OBJECTIVE  Universal Access  Freeing up of frequency spectrum to enable more services  ITU compliance  International standards compatibility (equipment, content formats) KEY DRIVERS  Quality picture, sound, HD  More channels/choice  SABC National Broadcaster, most trusted and most viewed brand  E-TV, free to air KEY ISSUES  Funding model – regulatory – sustainability link  Multiparty project and interdependencies  Approval processes (observing governance whilst fast pacing projects)  DTT Regulations, tariffs SUCCESSES  DTT trials  Incentive channel infrastructure readiness  Co operation between free to air broadcasters  Co operation between DOC, USSASA, SAPO, SABC on subsidized STB distribution and activation model 7

High Level Project Plan 8

THANK YOU 9