ORBICOM (PTY) LTD.ORBICOM (PTY) LTD.

PRESENTATION ONPRESENTATION ONPROPOSED TELECOMMSPROPOSED TELECOMMS

AMENDMENTS TO THE PPCCAMENDMENTS TO THE PPCC

27 SEPTEMBER 200127 SEPTEMBER 2001

AN MCELL COMPANY

SECTION 1SECTION 1

OrbicomOrbicom

• Orbicom has long believed that it can play a leading role in the converging communications market place in Africa.

• Based on competencies developed as a key digital satellite player Orbicom has entered the African market to provide:-– broader range of telecommunication services.

– this strategy is in line with Millennium African Program (MAP).

• Three key initiatives have been launched:-– 1)provide electronic funds transfer (EFT) systems to the banking

community in Ghana

• this venture has been approved by Ghana Central Bank

2) EFT - Uganda

• provide electronic funds transfer (EFT) systems to the banking community in Uganda

Orbicom - Orbicom - (Continue)(Continue)

3) Alliance agreement entered with Lockheed Martin Global

Telecommunications (LMGT)

• US Based Telecoms company

Alliance focuses on provision of:-

– Internet connectivity

– Internet based services to the African continent

The facilities are based in South Africa, Africa, Germany and United States of America, to ensure countries serviced will have global connectivity.

Benefits:-

» technical expertise

» training for local personnel

• Orbicom has introduced the following multiple channels:-

– DTM (Direct-to-Home) Ku-Band transmissions for South Africa

– C-Band transmissions for the African continent

The Transformation of BankingThe Transformation of BankingInteractive

Branch Structure

Face to Face

Paper Based

Bank Machines

EFT

Telephone

Smart Cards

Home Banking

On-Line Services

Internet

Interactive video combined with remote & electronic channels

Branches

Remote

Electronic

1970’s 2000’s1990’s1980’s

Building an EFT business Building an EFT business across Africaacross Africa

Ghana

Kenya

Tanzania

Nigeria

Uganda

Ethiopia

Zimbabwe

EXISTING BUSINESS

PROJECTS IN PROGRESS

TARGETED BUSINESS

The Solution...The Solution...

An EFT platform which provides banks with:

Inter branch connectivity

Inter-bank transactions

Inter-bank clearing

Large data volume & high value transaction

capacity transaction audit trails

High levels of security

EFT SchematicEFT Schematic

Challenges:

To Change the MINDSETS of

•Banking Institutions; and

•Consumer Behaviour

EFT Expansion OpportunitiesEFT Expansion Opportunities

Value Added Services

Loyalty Schemes, E-Procurement, Pre-Paid, Advertising,

Email, Electronic Receipt Capture

Green ATM’s

Internet Banking

E-Commerce Payments (B2B & B2C)

Mobile Commerce

Branch WAN Connectivity

Interface to RTGS: Interbank EFT payments

Access to existing EDI systems

Shaping the Industry: Shaping the Industry: ChallengesChallenges

A long term view is required for realisation of strategy.

Excessive levels of marketing and market education are required within the target market.

Not much market information is available and market analysis may often prove irrelevant.

An Alliance to provide Internet Services &

Corporate Connectivity in Africa

Architecture OverviewArchitecture Overview

SuperPoP: Services and SuperPoP: Services and ApplicationsApplications

INTERNET

– E-Commerce

– E-Business

– Vo IP

– E-mail

– Video

– Audio

– Other corporate data applications

– Caching

CORPORATE CONNECTIVITY

– WANS

– LANS

– Web Hosting

– VPN’s

– PTN’s VOICE

– Trunking and routing OTHER VALUE ADDED

SERVICES

– EFT

SECTION 2SECTION 2

Comments on the BillComments on the Bill

• General observations• Fixed - mobile• Multi-media licence• Spectrum issues• Hearings

General ObservationsGeneral Observations

• Bill does not distinguish between the various policy/regulatory instruments.

• Several issues would be better dealt with in licensing conditions than in legislation

• Bill attempts to legislate technology

Definition Fixed-mobile Definition Fixed-mobile serviceservice

• Recognise attempt to take convergence of broadcasting, computing and telecommunications services into account

• Development of new technologies is making existing service definitions obsolete

• Operators should be licensed to provide PSTS using any appropriate technology

Multi-media serviceMulti-media service

Bill defines multi-media service as follows:

Multi-media service means a digital broadcasting service that combines various forms of media to communicate information or content in an inter-

active format

Multimedia Services: Multimedia Services: ProposalProposal

• Lack of clear definitions: What must we comment on?

• Remove anomaly between policy and regulatory instruments

• Consider historical investments in the industry• Fairness and competition • Refer issue to existing ICASA process

HearingsHearings

Deletion of Section 29(5) & 34(3)(c) a problem

• Hearings in respect of proposed frequency plan only opportunity to comment on the submissions of other parties

• Affords ICASA opportunity to interrogate stakeholders on their submissions

Hearings Hearings (CONTIN.)(CONTIN.)

• Stakeholders must be given opportunity to make submissions to ICASA on the representations made by other parties.

• Existing appointment process of Councillors to be retained. Expert panel to be resource group to PPCC.

• Lack of transparency in decision making may damage the credibility of the Regulator.

Spectrum PricingSpectrum Pricing

• Spectrum pricing to be implemented in 1800 MHz in absence of National policy

• Piecemeal approach will lead to problems in future

• Consultants to DoC have completed recommendations on Spectrum Pricing Policy

Spectrum Pricing Spectrum Pricing (CONTIN.)(CONTIN.)

• Currently uncertainty as to operators spectrum fees

• Negative impact on operators business plans as a result of unforeseen costs

THANK YOU!THANK YOU!