1. February 2011 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland www.itu.int/itu-d/EUR/NLP-BBI International Telecommunication Union 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland Broadband Development in South Africa Note: Presented material has been developed based on the desktop research for the purposes of the NLP-BBI Project only. See References. South African approch to the development of broadband infrastructure

2. February 2011 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland www.itu.int/itu-d/EUR/NLP-BBI 2 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland Main goals pointed out by the SA Government: According to a statement issued by government communications, the broadband policy aims to facilitate the provision of affordable, accessible, universal access to broadband infrastructure to citizens, business and the three spheres of government. The policy also emphasises the role that government must play in investing in vital infrastructure. Broadband Policy in South Africa

3. February 2011 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland www.itu.int/itu-d/EUR/NLP-BBI Coverage map current fibre optic network topology Source: Broadband Infraco

4. February 2011 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland www.itu.int/itu-d/EUR/NLP-BBI 4 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland Legislation concerning the broadband infrastructure The Broadband Infraco Act, No 33 of 2007- was published on the 8 January 2008 and came into force on the 1 February 2008, main responsibilities covered in the act: the transfer of shares, loan accounts, liabilities and guarantees in Broadband Infraco from Eskom Holdings Limited to the State. Electronic Communications Amendment Act, No 37 of 2007, was published on the 8 January 2008 and came into effect on the 2 February 2008 which provides: the legal background for infrastructure investments and encouragement for developing the innovative telecommunication sector.

5. February 2011 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland www.itu.int/itu-d/EUR/NLP-BBI 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland What is Infraco? Broadband Infraco (Proprietary) Limited (Broadband Infraco) is a new state owned enterprise (SOE) in the telecommunications sector, intended to improve market efficiency in the long distance connectivity segment by increasing available long distance network infrastructure and capacity to stimulate private sector development and innovation in telecommunications services and content offerings, as well as to provide long distance national and international connectivity to previously underserviced areas.

6. February 2011 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland www.itu.int/itu-d/EUR/NLP-BBI 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland Main objectives and powers of INFACO To provide affordable access to long-distance telecommunications network infrastructure connectivity services in South Africa and in particular: Expend the availability and affordability of access to electronic communications including but not limited to underdeveloped and underserviced areas and commensurate with international best practice and pricing, through the provision of the following. Electronic communications network services and Electronic communications services.

7. February 2011 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland www.itu.int/itu-d/EUR/NLP-BBI Structure of the Infraco Broadband Infraco is owned by the Government of the Republic of South Africa as represented by the Department of Public Enterprises (74%) and by the Industrial Development Corporation of South Africa (26%).

8. February 2011 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland www.itu.int/itu-d/EUR/NLP-BBI Reason for establishment of the Infraco Broadband Infraco is operating within a specific strategic focus area of the telecommunications sector in South Africa. The focus is characterised at present by limited competition and relative barriers to entry because of rights of way, and high capital expenditure considerations.Broadband Infraco will not participate in those areas of the Southern African telecommunications market or value chain that are efficient and experience high levels of competition in terms of available services and pricing options. The Broadband Infraco business comprises two key elements, namely: A National Long Distance fibre optic network -providing high capacity telecommunication services between all major metropolitan centers and being expanded to extend connectivity to identified smaller cities and rural areas, and; An International Marine Cable network- comprising a marine cable that is being manufactured and that will be deployed between South Africa and the United Kingdom.

9. February 2011 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland www.itu.int/itu-d/EUR/NLP-BBI National Connectivity The Broadband Infraco fibre optic network: comprises of approximately 12 100 km of optical transmission routes. The backbone network utilises the latest generation Dense Wavelength Division Multiplexin (DWDM) equipment, providing a number of 2.5 Gbit/s and 10 Gbit/s capicity connections along the majority of fibre routes. Network extensions have also been implemented to provide fibre connectivity to the neighbouring countries of Botswana, Lesotho, Mozambique, Namibia, Swaziland, and Zimbabwe. Broadband Infraco is also well positioned to link west coast and east coast international cable systems.

10. February 2011 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland www.itu.int/itu-d/EUR/NLP-BBI 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland National Connectivity Map

11. February 2011 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland www.itu.int/itu-d/EUR/NLP-BBI International Connectivity Broadband Infraco is a significant investor in the 5.1Tbits/s West Africa Cable System (WACS) Project. The cable will connect South Africa (SA) to the United Kingdom (UK), with landing stations in Portugal and along the west coast of Africa. WACS will provide: Lower cost, sustainable and efficient international bandwidth; and Position SA for future economic growth as it will connect SA to key global knowledge economies of the world. The landing station in South Africa will be at Yzerfontein and the system is expected to go live during the third quarter of 2011.

12. February 2011 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland www.itu.int/itu-d/EUR/NLP-BBI 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland International Connectivity Map

13. February 2011 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland www.itu.int/itu-d/EUR/NLP-BBI 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland Conclusions Broadband Infraco legislation stipulates Broadband Infracos mandate as being the expansion of the availability and affordability of electronic communications including but not limited to under serviced areas. Based on the above mandate and within the best practices Broadband Infraco will focus on leveraging its current assets by enabling more market participants to gain access to long distance managed connectivity services.

14. February 2011 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland www.itu.int/itu-d/EUR/NLP-BBI 2010-2011 Joint Project of the ITU Telecommunication Development Bureau and Ministry of Infrastructure, Republic of Poland References 1. http://www.infraco.co.za http://www.infraco.co.za 2. Broadband Infraco Act 3. Broadband Infraco Annual Report 2010 4. www.info.gov.za www.info.gov.za 5. South African Broadband Policy