- COMPANY CONFIDENTIAL -

SAT3/WASC/SAFE –

Public / Private Global

Partnership

- COMPANY CONFIDENTIAL -

SAT-3/WASC/SAFE – what is it?

• 27,850 km submarine cable system

• The name:

– 3rd South Atlantic Telephone cable – SAT3

– West Africa Submarine Cable - WASC

– South Africa – Far East - SAFE

– Acronym: SAT3/WASC/SAFE

• Commercial service since April 2002

• Design capacity – 120Gb/s (6m tel. calls)

- COMPANY CONFIDENTIAL -

SAT-3/WASC/SAFE

1

3

4 5 67

8

9

10

11 12

13

14

15

16

2

21

1. Portugal

2. Spain

3. Senegal

4. Cote d’Ivoire

5. Ghana

6. Benin

7. Nigeria

8. Cameroon

9. Gabon

10. Angola

11. South Africa (1)

12. South Africa (2)

13. Reunion

14. Mauritius

15. India

16. Malaysia

- COMPANY CONFIDENTIAL -

SAT-3/WASC/SAFE – the partnership

• The consortium co-owners:

– Africa: 12 investors (46%)

– America: 4 investors (14%)

– Asia: 8 investors (17%)

– Europe: 12 investors (23%)

• Construction & Maintenance Agreement

– Shareholders agreement depicting rights and liabilities

– Cable system construction, maintenance and operation

SAT-3/WASC/SAFE serves as a shining example in demonstrating the ability of African and Global telecommunications companies to work together in harmony towards realizing an important building block in pursuit of the development and improvement of African infrastructure

- COMPANY CONFIDENTIAL -

THE PARTNERSHIP APPROACH

LEVERAGING GLOBAL ECONOMIES

SEA-ME-WE-3

(Phase 1) – RFS 1999

SAT-3/WASC

(Phase 2) – RFS 2002SAFE

ASIA

EUROPE

- COMPANY CONFIDENTIAL -

Telkom View on AFRICAN Partnerships

The RIGHT Partnership – A completed AFRICAN FIBRE RING

SEA-ME-WE-3 PHASE 1

EAST AFRICA PHASE 3

SAT-3/WASC/SAFE PHASE 2

SEA-ME-WE-2

77- COMPANY CONFIDENTIAL -

12

3

4

5 67 8

9

10

11

1213

14

15

16

17

18

19

2021

22

23

SEA ME WE 3

SAFESAT-3/WASC

EASSy

GLOBAL VIEW

- COMPANY CONFIDENTIAL -

CABLE ADVANTAGES FOR AFRICA

• Ownership of the infrastructure

• Improves business applications and internet speed (less latency)

• Increases the available bandwidth for specific country / region

• Ability to access numerous regional / neighbouring countries

• Ability to access >150 countries globally

• Reduce the region’s dependency on satellite

• Lower network costs at higher bandwidth

• Cost reductions can be used to address domestic needs

• Facilitates cooperation – i.e. shared backhaul / cable stations

- COMPANY CONFIDENTIAL -

MACRO LESSONS

• Consider existing gaps

• Position as a global system

• Co-operate

• Expect to pay for it

• Operator involvement

• Flexibility

• Avoid oversupply or nice to have

- COMPANY CONFIDENTIAL -

MACRO LESSONS (2)

• Gain momentum with serious Parties

• Establish a robust / redundant network

• Own / control strategic infrastructure

• Active participation

• Expect to work

• Make financial arrangements early

• If its commercially viable – do it – if not …

- COMPANY CONFIDENTIAL -

THANK YOU

JOHAN MEYER

EXECUTIVE

GLOBAL CAPACITY BUSINESS

TELKOM SOUTH AFRICA