1. 2014-2018 Cost to Communicate Programme Presentation to Select Committee 31 July 2013 1

2. 2 What is the concern? Source: RIA Policy Brief 2013

3. What Causes High Prices? High cost of communications? High costs to Industry: Infrastructure monopoly? Barriers to network deployment? Import duties? Volatile exchange rate? High costs to end-users High costs to industry Possible monopoly in retail markets? 3

4. Cost to Communicate Programme 4 GOAL – Stimulate public debate around the cost to communicate in South Africa – Establish regulatory needs to address concerns regarding the cost to communicate in South Africa. – Stimulate enhanced competition in the telecommunications sector Broadband Value chain Study ICT Industry Indicators Collection Call Termination Market Review Local Loop Unbundling Regulations Wholesale Transmission Services DTT Rate Card Cost to Communicate Programme in South Africa

5. Progress to Date 5 Broadband Value chain Study ICT Industry Indicators Collection Call Termination Market Review Local Loop Unbundling Regulations Wholesale Transmission Services DTT Rate Card Cost to Communicate Programme in South Africa Market Definition Report Request for Information Processing of responses to request for information Draft Regulations for public comment DTT Cost Model from Sentech

6. Thank you Dankie Re a leboha Re a leboga Siyabonga Inkomu Ro livhuwa Enkosi 6