1. SENTECH SOC LIMITED DTT STATE OF READINESS PRESENTATION TO THE PORTFOLIO COMMITTEE ON TELECOMMUNICATIONS AND POSTAL SERVICES: 19 September 2014 1

2. ●The South African DTT network has been designed in accordance with ITU guidelines and international best practice, to provide national terrestrial coverage for fixed installations and portable reception. ●The network consist of 182 (178 migrations sites and 4 greenfield sites) terrestrial transmitters sites with a mix of High Power, Medium Power and Low Power solutions utilised to provide terrestrial coverage. ●ICASA has issued regulation for two MUX’s – MUX 1 for SABC and Community Broadcasters and MUX 2 for MNET and e-TV. ●The network will achieve 84% (85.1% with 182 sites) population coverage (178 sites) with the remainder of geographic locations being serviced by the Direct-to-Home satellite (DTH-S) service. DIGITAL TERRESTRIAL TELEVISION Introduction 2

3. 3 DIGITAL TERRESTRIAL TELEVISION Coverage Overview Number of sitesPopulation CoverageGeographic Coverage Target17884%58.9% Completed15482.13%45.43% Greenfield Sites40.1%0.33%

4. DIGITAL TERRESTRIAL TELEVISION Network Rollout Project Plan 4 ProvinceTotal SitesCompleted Sites Sites in Progress Percentage Completed Completion Date Eastern Cape3634297%10/2014 Free State14 0100%12/2012 Gauteng12 0100%03/2012 Kwazulu Natal28 0100%05/2014 Limpopo12 0100%07/2013 Mpumalanga1211192%10/2014 Northern Cape1551036%10/2014 North West1514194%10/2014 Western Cape3426885%12/2014 TOTAL1781562285% ProvinceTotal SitesCompleted Sites Sites in Progress Percentage Completed Completion Date Harrismith (FS)1010%Q3 14/15 Burgersfort (LP)1010%Q4 14/15 Ngqeleni (EC)1010%Q3 14/15 Holy Cross (EC)1010%Q4 14/15

5. ●The Head-end was upgraded for DTT. This included a new multiplexing equipment as well as DVB-T2 MI adaption equipment. The system supports Mux 1, Mux 2 and regionalised content. ●After laboratory Proof of Concept, a pilot DTH compatibility system was established for the Gauteng SFN, in order to prove stable operation in a live environment. The system will enable efficient use of transponder capacity for both DTT and DTH. ●This technology is currently under testing phase with completion planned by the end of the Financial Year, wherein the conventional DTT (DVB-T2 MI) system is fully established and operational. Continued testing is under evaluation with the technology partner. DIGITAL TERRESTRIAL TELEVISION Head-end and DTH Compatibility 5

6. DIGITAL TERRESTRIAL TELEVISION Operational Model – Functional Model

7. DIGITAL TERRESTRIAL TELEVISION Network Management System 7 o Central Inventory Management System- capability to maintain up-to- date records of the type, quantity, configuration and location of the devices and equipment in the Sentech network o Fault (Alarm) Management System - detect, isolate and resolve problems in the network and correlate and manage notifications whilst presenting critical information. o Performance Management - Performance data collection

8. ●It is critical and prudent to consider an ASO approach that will have low impact on viewers and Television broadcast services. ●The outline below details the possible ASO approaches: o National Approach o Protection of Services Approach o Phased Approach o Hybrid Model of Protection of Services and Phased Approach (Recommended ●It is our intention to implement the full Digital to Digital Migration Plan within 2 years of the Analogue Switch Off DIGITAL TERRESTRIAL TELEVISION Strategies and DTT to DTT Migration 8

9. DIGITAL TERRESTRIAL TELEVISION Call Centre – Eco-system and Timescales 9 DTPS

10. DIGITAL TERRESTRIAL TELEVISION Call Centre – Eco-system and Timescales 10 Activity09/1410/1411/1412/1401/1502/1503/15 Approval to proceed Funding confirmed Finalise requirements Tender and Purchase Process Delivery Lead Times Call Centre Launch

11. DIGITAL TERRESTRIAL TELEVISION Broadcaster Issues – Commercial and Legal 11 BROADCASTERSTATUS SABC An agreement was reached on the DTT rate card. Currently negotiating the Master Transmission Agreement (MTA). etv The negotiation on the rate card is at a mature stage. There is an agreement on the terms and conditions of Master Transmission Agreement. MNETNegotiations are ongoing. Community Broadcasters In the Analogue environment most Community Broadcaster are broadcasting on one transmitter. As a result of the Frequency Plan the DTT network has multiple transmitters for a Community Broadcaster. This will make the network unaffordable to the Community Broadcasters. Sentech has engaged with the DoC to seek funding for this.

12. THANK YOU 12