1. Third Party Retail Channels Company Forum 5 March 2012 Namhla Dabula

2. Objectives Grow broadband – Existing customer base & new customers Grow into existing capacity – Existing Telkom infrastructure Improve customer experience – Convenience of one-stop-shop Grow profitability – Reducing operational costs

3. 3 rd Party Channel Advantages Generate little / no fixed costs Greater market coverage Opportunity for greater Telkom brand presence in the market Faster time to market Retail remains predominant channel for customer purchases Retail has been successful in growing customers for mobile service providers Access to the retail partner customer base Convenience for customers - One-stop shop

4. Sales and/or marketing activities Take / Generate orders Provide product/service information Gathering market information and providing feedback to Telkom Roles & Responsibilities of 3 rd Party Retail Channels

5. - Incredible Connection - pilot in Durban, Cape Town, Pretoria, Johannesburg - Telkom Counter manned by Telkom - DionWired - pilot in Durban, Cape Town, Johannesburg - Telkom Counter manned by Telkom - Altech Autopage - pilot (sites still to be decided) - No Telkom Counter - PostNet - Pilot (sites still to be decided) - No Telkom Counter 3 month pilot : from 1 April 2012

6. Desired Customer Experience 6 Customer will visit a retail store and requests to order a Telkom service The agent will capture the order on a Telkom web-based system The order will immediately be processed at the Telkom back-end while the customer is in the store - ID and address verification - Credit vetting - Availability of Telkom infrastructure RICA will be done in-store

7. Desired Customer Experience cont… 7 The agent will provide customer with: - Order number - Installation Voucher The installation voucher will contain - Customer’s Details - Order number - Telephone number for scheduling appointment - 10117 - Service applied for and - List of items which the technician will bring on the day of installation

8. Staff Requirements for pilot 8 Telkom staff to assist at the Telkom counters during the pilot -DionWired -ncredible Connection TDS and/or Call Centre agents will be requested to assist All sales in these stores during the pilot will accrue to the agent

9. Telkom Readiness for the pilot 9 ItemStatus Application Process Design web-based system for order capturing and processing (Telkom OMS Lite) Completed and ready for pilot Access to Telkom OMS Lite web-based systemCompleted: Access will be activated when pilot starts IT Support Completed: Hardware and software will be supported via the Telkom IT Service Desk Products to be offered Completed Consumer - Simple Basic SMBS - OfficeLink 5 Installation voucher Completed: Installation voucher designed and tested and ready for pilot Call Centre for scheduling of appointments Completed: Separate Call Centre has been established, agents have been trained and are ready to start. Performance Tracking and Reporting Systems Completed: Processes and systems for tracking and reporting have been developed Training Completed: Training material for products, business processes and OMS Lite system has been developed Marketing Material Completed: Simple and OfficeLink 5 leaflets are available. Simple is also supported by the current Simple campaign Commercial agreement Pending Commercial agreements between Telkom and retailers are subject to ongoing negotiations Install ADSL lines and PCs for pilotPending Installation will take place as soon as the Commercial agreement has been finalised

10. Thank you.