Vodacom. A new era in the history of Broadband communications. Ermano Quartero. Vodacom Business

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1 Vodacom A new era in the history of Broadband communications Ermano Quartero

2 Broadband access for all Wireline voice in the early 20 th century The Internet revolution Content fuels appetite for on line access Arrival of Broadband access technologies and services 1 Billion people will be connected by 2010 Nomadic Broadband will drive the next revolution

3 A new era in Broadband access Nomadic and fixed line BB access will fuel a new generation of connected communities Inteligent communities, connected homes, vertical industry communities, intelligent work Mobile Access speeds will continue to grow and drive new developments in hosted content and application HSPA (28meg), LTE (100 meg, 10 ms), Femtocell Backhaul considerations BB access is revolutionising all aspects of our lives like the mobile phone did Voice, data, content, applications (OTT players) Vodacom understands the impact of BB and the changing landscape left in its wake

4 Focus on convergence fixed, mobile and applications Broadband bundle Converging fixed and mobile access Converging GSM and IP A new opportunity in converged applications Blurring customer base consumer, SME, corporate Must span end to end Effective support and sales channels Nomadic bundle is key Application and content

5 What will the Broadband market look like in 2010? FMC will dominate the broadband landscape Dominated by 2 or 3 big new age Telco s Next tier consolidation focused in niche market segments VOIP traffic will account for 25% of all voice revenues Net based apps will be the next revolution Nomadic and Fixed broadband will exceed 2 million users Vodacom data cards growing per month International capacity demand will outstrip current cable capacity Data services and connectivity will be the ticket to the game

6 VODACOM BUSINESS During the first Q of 2008 Vodacom SA will officially launch to the South African Business Market Segment. Positioned to be the leading provider of converged communication solutions to the enterprise, business and SME market segments. The company will launch a comprehensive set of converged solutions. The solutions will be delivered across a set of self provided access services.

7 Strategic Intent created as a vehicle for Vodacom to pursue opportunities in the broadband and ICT market without diverting attention from core business. The organization will expand horizontally within the South African ICT Market, competing as a: Managed Service Provider Corporate Access Provider Broadband access provider Connectivity (Wholesale) Provider International Connectivity Provider

8 Strategic Direction Vodacom Converged Solutions

9 Managed Services Provider Vodacom Converged Services will compete as a managed services provider into the corporate, business and SME segments. Primary business includes: Nomadic Broadband access provider Tier 1 Internet Service Provider Managed Virtual Private Networks Managed voice solutions Hosting, data center, storage and security services Resale of access, Internet and International products

10 Corporate Access Provider will build, develop and operate leased line and broadband internet products. Wireless access services HSDPA/HSPA 3.6 WIMAX BB and assured rate Microwave VSAT Fixed access fibre services: Metro Ethernet VPL

11 Converged Infrastructure Converged self provisioned IP core Self provisioned last mile access services Fixed & mobile access Self provisioned international capacity (end 2009) 1200sqm to 4000sqm of T4 carrier grade data centers Application delivery infrastructure & Tier 1 storage 26 points of presence in SA International pops in London and NY Global data and VOIP interconnects

12 Solutions for a changing world

13 Broadband Solutions for a changing world PDA PC Conferencing Instant messaging Mobile Telephony Any device Any application Telephone Presence Anywhere ERP Any Person At your desk At home On the road

14 Thank you

15

16 Thank You

17 The next era of broadband consumption Converged network and application solutions FM convergence and converged applications Hosted solutions Single source supplier Voice, data and mobility Local and international Self provided Infrastructure Single point of contact Understand the Broadband landscape Common engagement interface Single point of support and escalation

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