1. Broadband Service Operation Centre 3 October 2012 J van Dalen

2. CiscoCisco has issued results of the annual Visual Networking Index (VNI) Forecast 2012 © Telkom 2011 | Presentation Title | 2 The Forecast projects the following growth areas for the South African market: Internet Traffic Internet traffic will grow 10.5-fold from 2011 to 2016, a compound annual growth rate of 60%; Internet traffic will reach 425 petabytes per month in 2016, up from 40 petabytes per month in 2011; Internet traffic in 2016 will be equivalent to 1 billion DVDs per year, 106 million DVDs per month or 145,715 DVDs per hour. Internet Video Internet video traffic will be 79% of all consumer Internet traffic in 2016, up from 56% in 2011; 58 billion minutes of video content will cross the Internet each month in 2016, up from 4 billion in 2011; Video exceeded half of South Africa’s consumer Internet traffic by year-end 2011. Mobile data traffic Mobile data traffic will grow 49-fold from 2011 to 2016, a compound annual growth rate of 118%; Mobile data traffic in 2016 will be equivalent to 17x the volume of the entire South African Internet in 2005. Device Growth There will be 134 million networked devices in 2016, up from 83 million in 2011; There will be 2.6 networked devices per capita in 2016, up from 1.6 per capita in 2011. Broadband Speed Evolution The average broadband speed will grow 2.6-fold from 2011 to 2016, from 2.0 Mbps to 5 Mbps. Average Traffic per User and Household The average Internet user will generate 39.6 gigabytes of Internet traffic per month in 2016, up 754% from 4.6 gigabytes per month in 2011, a CAGR of 54%; The average Internet household will generate 128.4 gigabytes of Internet traffic per month in 2016, up 1,231% from 9.6 gigabytes per month in 2011, a CAGR of 68%.

3. Global factors driving this growth © Telkom 2011 | Presentation Title | 3 An increasing number of devices: The proliferation of tablets, mobile phones and other smart devices as well as machine-to-machine (M2M) connections are driving up the demand for connectivity; More Internet users: By 2016 there will be 3.4 billion Internet users across the globe – about 45% of the world’s projected population according to United Nations estimates; Faster broadband speeds: The average global fixed broadband speed is expected to increase nearly 4-fold from 9 Mbps in 2011 to 35 Mbps in 2016; More video: By 2016, 1.2 million video minutes – the equivalent of 833 days (or over two years) – will travel the Internet every second; Wi-Fi growth: By 2016 over half of the world’s Internet traffic will come from Wi-Fi connections. Taken from an article on MyBroadband 31 May 2012

4. The Broadband ecosystem © Telkom 2011 | Presentation Title | 4

5. Broadband Focus in WS&N © Telkom 2011 | Presentation Title | 5 In line with WS&N long term plan – W&N Aspiration We will lead the enablement of superior fixed line broadband and converged services in South Africa, while delivering best-in-class operational efficiency and customer service in defined value clusters. In line with NCO Business plan – Service orientation – SOC – NGNEC execution – Support of Broadband Growth – Assurance/ Fulfilment In line with NFS Business plan – Deliver superior fixed BB and Converged services through operational excellence to specified customer segments

6. Need for a Broadband Service Operation Centre © Telkom 2011 | Presentation Title | 6 Ever increasing ADSL speeds –384 to 1Mbs –1Mbs to 2Mbs –Introduction of 20 Mbs and 40 Mbs services BB service now a part of your daily life –More and more content –More business applications Competition –MTN to launch 4G before year-end – MTN will launch commercial 4G (Long Term Evolution) services in Johannesburg, Pretoria and Durban before the end of the year. The 4G network will be capable of download speeds of anywhere from 2Mbps to 66Mbps.

7. SOC in NCO © Telkom 2011 | Presentation Title | 7 Non voice SOC already established in NCO under Selby Khuzwayo Need for a BB SOC to drive service delivery across the value chain –At a high level the purpose of the BB SOC will be to improve customer’s experience of the Telkom broadband offering. The BB SOC can be contrasted with the functions of the NOC that are primarily concerned with network operations; its secondary responsibilities are network provisioning and network installation and maintenance. The associated service operations are handled by a Service Operations Centre and customer relations management. Based on the eTOM model

8. eTOM level 1 processes © Telkom 2011 | Presentation Title | 8

9. Functions of the SOC © Telkom 2011 | Presentation Title | 9 CPC design and Control DTACTo be established

10. NFS Broadband functions grouped in the FAMC 10 DTAC Functional Work Streams Network Faults (NFS BB interface to NCO & NIP) a.Back Haul (BW utilization) b.N Core Equ c.Slow access WS Ring Fenced (Q1 & Q2) Retail (Telkom SA ISP) Q1 & Q2 screening Field tech testing support Escalation and fallout management CPC Design Functional Work Streams Analyze and verify all New orders to determine SIO Tech Dispatch or CPC -D responsibility. Handle fall-outs from commercial @ In-Active location. Ensure DSLAM and task to correct locations. Handle failed Automation cases and ensure matching of virtual ports to DSLAM on Technologies like iMax Combo / MSAN Handle upgrades/downgrades on spot and do Work Order Return on CPC task for Commercial PIS. Finalize Complete in Progress : CPC-D route task once Commercial have PIS’’d orders to close Servact. Handle Escalations / ARS cases. CPC Control Functional Work Streams Handle Self Install Orders ( SIO) { Send SMS( Not Wholesale)/ Call Customers, Ensure Modem Synch} Handle failed SIO { CCD for TO Dispatch} Verify DTAC ref to match MDF for SIO and Un- manned MDF OR Final Ref for Tech Dispatch. Do Work Order Return to Commercial for order PIS. Handle Complete in Progress to close SIO Servact location. Handle Escalations to enable addition al product offering. Service Management and Operations Support & Readiness Service Configuration & Activation Management Service Problem & Quality Management Service Inventory Management Service configuration and activation systems Service Problem Management systems Solution design Service Fault Management Service Quality Management systems Service Instance Rating Management Resource allocation Implementation, test and activation Work order tracking Service Quality Management

11. Impact on staff © Telkom 2011 | Presentation Title | 11 No change at Operational level Senior Manager/ Manager reporting line changes Identified staff (CPC and DTAC) to move from NFS to NCO No geographical changes

12. Possible staff affected © Telkom 2011 | Presentation Title | 12

13. Race and gender © Telkom 2011 | Presentation Title | 13 Row LabelsCount of GENDER% African8643.65% Female43 Male43 Coloured5025.38% Female26 Male24 Indian94.57% Female4 Male5 White5226.40% Female17 Male35 Grand Total197 Female45.69%

14. NCO 5 year Strategy (2012 – 2017) NCO Core Purpose To embrace our Customers through the effective and efficient operations of the Core Network and Customer Services in defined value clusters W&N Core Purpose To lead and innovate in providing optimal communication solutions that enable our customers to thrive W&N Aspiration We will lead the enablement of superior fixed line broadband and converged services in South Africa, while delivering best-in- class operational efficiency and customer service in defined value clusters. Do the housekeeping well Perpetual effectiveness and efficiency focus Create an enabling platform for the future Focussed People Management Effective, sustainable financial management Improving operational Efficiencies and effectiveness Managing Networks, Converged Networks, Service Enablers & Services layers Improving Customer Service delivery Ensuring Operational Readiness (Network / Services) Supporting Telkom Group Strategic intent Ensure environmental sustainability Revenue Opex Capex Network and Services: Assurance Fulfillment Reliability and Sustainment Maintenance Refocus the NNOC Services Orientation (SOC) NGNEC execution Global Services delivery Telkom Mobile support Support of ICT services - adjacencies (LAN) Support of Broadband growth Manage Suppliers (TFMC, Cisco, NSN, ALU) Culture revitalisation Employee Engagement Leadership Development Skills development Improved Workforce Planning PEP BBBEE Index Compliance Reward and Recognition Ageing Workforce GROWTH CUSTOMER LOYALTY DEFENSE Telkom Consumer OLO`s Telkom Mobile Telkom Business Network and Services enablement in support of: NCO Frame of Reference 1.Do the housekeeping well 2.Perpetual Effectiveness & Efficiency 3.Create the enabling platform for the future Continuous improvement Honesty Accountability Respect Teamwork KFA`sInitiatives

15. Core Purpose Provide optimal network services that enable our Customers to thrive. Our Mission Deliver superior fixed BB and Converged services through operational excellence to specified customer segments Our Objectives 1.To improve the access network to enable converged service; 2. To refine our processes to enable effective & efficient work order delivery 3.To improve our capacity to ensure service delivery at the desired speed and quality levels Our Strategy Effectiveness & Efficiency Achieve targeted vehicle ratio Reduce rework Process compliance Improved upfront testing Improve customer communication Productivity improvement at all levels Appointment/Dispatch management Divert Control Port management Effectiveness & Efficiency Achieve targeted vehicle ratio Reduce rework Process compliance Improved upfront testing Improve customer communication Productivity improvement at all levels Appointment/Dispatch management Divert Control Port management Network sustainability Targeted preventive maintenance of Cables, Optic Fiber especially Prioritize High Revenue exchanges & GauT Optimise Access Network Security Improve data integrity NGNEC/BB E2E enablement Legacy technology replacement Network sustainability Targeted preventive maintenance of Cables, Optic Fiber especially Prioritize High Revenue exchanges & GauT Optimise Access Network Security Improve data integrity NGNEC/BB E2E enablement Legacy technology replacement Capacity management Achieve targeted daily productivity Implement a shared administrative support centre Optimise service provider list Improve attendance (reduce SALT) Advance NFS Training plan (ADSL proficiency & NGNEC capacity) Implement variable workforce - Rebalancing Adopt 1 st time right Capacity management Achieve targeted daily productivity Implement a shared administrative support centre Optimise service provider list Improve attendance (reduce SALT) Advance NFS Training plan (ADSL proficiency & NGNEC capacity) Implement variable workforce - Rebalancing Adopt 1 st time right The Year of Service Delivery – mind the (service) gap! Service Delivery F&A Indices = 1.00 - TSA 100 = TB/WS/CONS - ATTI/ATTR will apply BB - High priority - Assurance Improvement Speed & Quality Customer Communication Appointment management Product Knowledge Service Delivery F&A Indices = 1.00 - TSA 100 = TB/WS/CONS - ATTI/ATTR will apply BB - High priority - Assurance Improvement Speed & Quality Customer Communication Appointment management Product Knowledge Organizational renewal Reduce Limiting Values Live CHART Improve internal communication through: - Management & Ops forums - ME and Executive feedback reports Improve workplace health Reward individual/group performance (BU/CEO awards) Do not tolerate poor performance Ensure diversity in workplace Organizational renewal Reduce Limiting Values Live CHART Improve internal communication through: - Management & Ops forums - ME and Executive feedback reports Improve workplace health Reward individual/group performance (BU/CEO awards) Do not tolerate poor performance Ensure diversity in workplace Finances OPEX / CAPEX Budgetary Compliance Disciplined Spending Finances OPEX / CAPEX Budgetary Compliance Disciplined Spending Serv Delivery Finance Org Renew Cap ManEff &Eff Network Customer Our Frame of Reference 1.Do the housekeeping well 2.Perpetual Effectiveness & Efficiency 3.Create the enabling platform for the future NFS - Plan on a Page ….. !