ORBICOM (PTY) LTD.

PRESENTATION ONPROPOSED TELECOMMSAMENDMENTS TO THE PPCC

27 SEPTEMBER 2001AN MCELL COMPANY

SECTION 1

OrbicomOrbicom 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 Ghanathis venture has been approved by Ghana Central Bank2) EFT - Ugandaprovide electronic funds transfer (EFT) systems to the banking community in Uganda

Orbicom - (Continue)3)Alliance agreement entered with Lockheed Martin GlobalTelecommunications (LMGT) US Based Telecoms companyAlliance focuses on provision of:-Internet connectivityInternet based services to the African continentThe 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 personnelOrbicom has introduced the following multiple channels:- DTM (Direct-to-Home) Ku-Band transmissions for South AfricaC-Band transmissions for the African continent

The Transformation of Banking

Building an EFT business across AfricaEXISTING BUSINESSPROJECTS IN PROGRESSTARGETED BUSINESS

The Solution...An EFT platform which provides banks with:

Inter branch connectivityInter-bank transactionsInter-bank clearingLarge data volume & high value transaction capacity transaction audit trailsHigh levels of security

EFT Schematic

EFT Expansion OpportunitiesValue Added ServicesLoyalty Schemes, E-Procurement, Pre-Paid, Advertising, Email, Electronic Receipt CaptureGreen ATMsInternet BankingE-Commerce Payments (B2B & B2C)Mobile CommerceBranch WAN ConnectivityInterface to RTGS: Interbank EFT paymentsAccess to existing EDI systems

Shaping the Industry: Challenges

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 Overview

SuperPoP: Services and ApplicationsINTERNETE-CommerceE-BusinessVo IPE-mailVideoAudioOther corporate data applicationsCaching

CORPORATE CONNECTIVITYWANSLANSWeb HostingVPNsPTNsVOICETrunking and routingOTHER VALUE ADDED SERVICESEFT

SECTION 2

Comments on the BillGeneral observationsFixed - mobileMulti-media licenceSpectrum issuesHearings

General ObservationsBill does not distinguish between the various policy/regulatory instruments.Several issues would be better dealt with in licensing conditions than in legislationBill attempts to legislate technology

Definition Fixed-mobile serviceRecognise attempt to take convergence of broadcasting, computing and telecommunications services into accountDevelopment of new technologies is making existing service definitions obsoleteOperators should be licensed to provide PSTS using any appropriate technology

Multi-media serviceBill 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: ProposalLack of clear definitions: What must we comment on?Remove anomaly between policy and regulatory instrumentsConsider historical investments in the industryFairness and competition Refer issue to existing ICASA process

HearingsDeletion 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 partiesAffords ICASA opportunity to interrogate stakeholders on their submissions

Hearings (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 to be implemented in 1800 MHz in absence of National policyPiecemeal approach will lead to problems in futureConsultants to DoC have completed recommendations on Spectrum Pricing Policy

Spectrum Pricing (CONTIN.)Currently uncertainty as to operators spectrum feesNegative impact on operators business plans as a result of unforeseen costs

THANK YOU!