Slide 1

PORTFOLIO COMMITTTEE:Briefing by Broadband Infraco on Progress made on issues emanating from the Annual Report 2011/2012

R 1.8 Billion Shareholder Funds

WACS connectivity

R504.2 M R36.7 M

Integrating SADC

R317.2 M

Broadband expansion

Operations Enabling Government through SITA

R89.9 M R444.5 M

Slide 3

.

Expanding Access

Slide 4

.

Expanding Access

Slide 5

Appointment of Key Personnel

.

Update on Key Performance Indicators 2011/2012

CompletedAll Executives positions filled

KPI STATUS COMMENT

Development of Product Portfolio

Debt Fund

Business Operations Strategy

Project put into commercial use

Carrier Ethernet Layer 2 developed

No debt funding sourced

Re-engineered and optimised Capital Project Management processes

This forms part of 2013/2014 programme

Completed

Work in Progress

Continuous monitoring

Work in Progress

Continuous monitoringProject Time Variance Instituted Capital Projects

governance structures

Slide 6

FIN

AN

CIA

L S

US

TA

INA

BIL

ITY

Funding is required to address the fundamental issues of the Broadband Infraco these include:

Expand the network to the broader market other than Neotel.Enhance the integrity of the network.Expand the network in rural area and other areas to address market inefficiencies.

MTEF application of R4.0b was made for increase access in all nine provinces over 5 years was made and for improving the integrity of the national backhaul.Over R530m is expected from DST on project of national interest including SKAA capital investment plan and funding plan have been developed

.

CU

ST

OM

ER

S

Critical to sustainability of the business

Network performance improvement

Increase capacity utilisation

Continuous engagement with customers:

Neotel MSA contract

Extension of Vodacom contract

MTC capacity expansion

MTN Trial

International Sales strategy developed

Priorities

Slide 7

MA

RK

ET

PO

SIT

ION

Expand footprint in district by connecting municipalities and extending to rural areas

Two Proof of Concepts (PoC) completed with MetroFibre Network and BXC for Carrier Ethernet services

WACS is connected to National Backhaul

Provision of International telecommunication services

.

CA

PIT

AL

EX

PE

DIT

UR

E

Optimised Network Master Plan addressing the integrity of the Network

Connecting with other operators

Addressing Network vulnerabilities

Capacity upgrade

Capital Build programme over 10 years

Programme for compliance with SHEQ regulations in place

Technology evolution and technology life cycle on existing old network equipment

Yzerfontein primary route to the WACS has been completed

.

Priorities

Slide 8

SU

PP

LY

CH

AIN

MA

GE

ME

NT

Supplier Development and Localisation : based on CSDP guideline issued by Executive Authority

Suppliers are evaluated on the following: BBBEE Black People Living with

Disabilities (BPLD) Black Youth Owned (BYO) Black Women Owned and Black

Owned Skills Development Electricians Engineers Project Management Local content Items such as fibre and related

accessories Target 100%

.

INT

ER

NA

L C

ON

TR

OL

EN

VIR

ON

ME

NT

This is a continuous process of ensuring adherence to policies, procedures and legislations.

Culture of compliance is being enhanced.

Where there are policy gaps, these are being addressed and new or revised policies are being developed.

Priorities

Slide 9

SH

AR

EH

OL

DE

RS

Performance management

As provider of capital, report on financial performance and overall sustainability of the company

Support on future plans and expansions

Regular sessions with both shareholders DPE and IDC at different levels.

Support from the Shareholder i.e. DPE on funding request and aligning the business to make government a key customer of Broadband Infraco

.

RE

GU

LA

TO

RS

Licence condition and compliance thereof

Continuous engagement on regulatory framework

Spectrum and access potentials

Submitted inputs to the amendments to the ECA

Submitted status on the roll out for obligations

Continuous engagement with the Regulator  

Priorities

Improvements on the HR

Slide 10

HR

PO

LIC

IES

ST

AF

F T

UR

NO

VE

R R

AT

E 2

01

2

Change Management Programme

Other interventions

Fostering organisational culture change

Improve employee competencies

Improve overall organisation performance

Continuous Staff Engagement

Senior management forum has been established for constructive and robust discussions with staff.

Significant improvement on staff morale and confidence

Security around PoP

Slide 11

Concerns

Wire Mesh is an old security technology and prone to cutting and break-ins.

Status

A programme is being developed to address security of the PoP’s.

Connect. Growth, UNLOCKED