1. SAPO STATE OF READINESS PRESENTATION ON THE DIGITAL MIGRATION PROJECT DATED 11 AUG 2015

2. Contents Progress status SAPO`s role as distribution partner
SAPO DTT distribution process
SAPO DTT proposed rollout
SAPO SKA area readiness
SAPO SA borderline footprint
Critical dependencies

3. Progress status
Presented SAPO`s state of readiness (R917m pricing structure included) on the DTT Project to the DOC`s PMO on 3 July DOC`s confirmed SAPO`s role as Distribution Partner for the DTT Project.
SAPO`s was requested by the DOC PMO on 9 July 2015 to align its Logistic and Distribution Plan to prioritize the Distribution Process for the SKA and Borderline areas for completion by 31 December 2015 and 30 June 2016, respectively.
SAPO`s role as Logistics & Distribution Partner for the DTT Project was confirmed at the DOC`s DTT Awareness Campaign Launch on 13 July 2015.
Presented SAPO `s SAPO`s draft DTT Distribution Plan to the DOC`s National DTT Technical forum on 16 July 2015. . 3 3

4. Progress status
SAPO`s was requested by the National DTT Technical Forum held on 16 July 2015 to align its DTT Distribution Plan to commence with the phased-in registration phase in the SKA Area on 1 September SAPO`s aligned draft DTT Distribution Plan was submitted to the DOC PMO on 24 July 2015.
SAPO`s DTT POS & Backend software is scheduled for delivery on 4 August Full System testing will commence on 5 August 2015 for completion by 31 Aug 2015.
SAPO`s official appointment as Logistic and Distribution Partner on USAASA`s system is scheduled to be approved by USAASA`s Board on 12 August 2015, where after SAPO`s invoicing process to USAASA will be activated.
Finalised additional information required by DTPS on SAPO`s R917m pricing model. Currently awaiting DTPS availability to complete preparation exercise for planned discussion with National Treasury on the funding of SAPO`s current shortfall amount of R771m. . 4 4

5. SAPO`s role as Distribution Partner

6. SAPO DTT Distribution Process

7. SAPO DTT proposed rollout
1. SKA Area (live pilot site for the registration and distribution phase) - 1st Priority
2. The rest of the Northern Cape Province, which will include the applicable borderline areas in the Province – 2nd Priority
3. Remaining Borderline areas– 3nd Priority
4. Inland areas of the following Provinces- 4th Priority:
4.1 Limpopo Province
4.2 Mpumalanga Province
4.3 North West
4.4 Free State
4.5 Eastern Cape
4.6 KZN
5. Western Cape
6. Gauteng

8. SAPO proposed phased-in
registration phase

9. SAPO proposed phased-in
Distribution phase

10. SAPO proposed phased-in
Distribution phase

11. SAPO SKA Area readiness

12. Projected number of qualifying households per SAPO Outlet in SKA area

13. SAPO State of Readiness for Registration phase in SKA Area

14. SAPO State of Readiness for Registration phase in SKA Area

15. SAPO SA Borderline footprint
Total number of SAPO Borderline outlets: 171
Total projected number of qualifying needy households:

16. Summarized STB distribution impact of borderline areas
Notes:
(1) Above projected number of SAPO branch areas and Needy House-holds based on USAASA`s stats and the Branch mapping exercise completed with Sentech`s signal areas
(2) Registration phase will verify accuracy of projected number of Needy Households

17. Critical dependencies.
Finalization & sign-off of SAPO`s DTT Distribution Plan (Business Rules document included). Awaiting final approved phased-in Registration & Distribution Rollout Plan from DOC.
The timeous availability of the following DTT Marketing material at Branch level:
STB Application & Installation Voucher forms
STB Customer Information brochure (Brochure to also highlight SAPO`s distribution process functionalities).
STB display Poster . 17 17

18. Critical dependencies
Timeous launch of pre- and mobilization awareness campaigns. DOC`s planned activation date to be confirmed.
The timeous activation of the DTT Call Centre. Due to distribution of Subsidized STB`s to all qualifying households in SKA area, DTT Call Centre will not be a critical dependency for SKA area. Timeous set-up and activation of DTT Call Centre critical when commence with STB distribution phase in SKA area and the registration phase for the next area.
Finalisation of STB Qualification Criteria (Valid TV-license requirement)
Finalization of SLA (SAPO DTT Pricing Structure included). Matter escalated to DOC and USAASA on 24 July Awaiting the DOC`s response on the way forward.
Although funds approved by NT for the distribution function only R146m, SAPO will commence with the DTT rollout until funds have been depleted or balance of R771m has been secured. . 18 18

19. Thank You