Alan Bacher Access Product Manager

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internet solutions
ADSL Current Status Future Prospects
Alan Bacher Access Product Manager
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Agenda

• Current Status of ADSL
• Growth
• Solutions
• Performance
• IS ADSL Offering
• Future Prospect of ADSL
• Regulatory Environment
• Dial Up/Leased Line Replacement
• Triple Play

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Industry Background South African ADSL Growth

• First introduced end of 2002
• 50 000 by 1st quarter of 2005
• Telkom reduced prices by 11 early March 2005 -
  20 000 new subscribers by June 2005 (40 growth
  in 4 months)
• Telkom reduced prices by 31 early September 2005
  - 30 000 new subscribers by October 2005
• Telkom /- 105 000 DSL subscribers currently
  19 000 in the backlog
• 1 million ADSL expected by December 2010

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ESR Breakdown

• 9000 IS Active Users
• Pretoria 16.9
• Broomberg 19.4
• Barrack Street 26.3
• Bellville 22.6
• New Germany 26.1
• Durban 24.2
• New Doornfontein 37.8
• Rosebank 44.5

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SME Ideal Target Market

• Preferred internet access method
• Greater choice
• Efficiency
• Availability
• SME ADSL Breakdown
• Pretoria 37 (Telkom Headquarters)
• Cape Town 33
• Johannesburg 27
• Free State 6 (Low Availability)

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SME ADSL Sector Growth

• Advertising Marketing (15 - 30)
• Communication Broadcasting (5 - 27)
• Construction (7 - 27)
• Hotels Accommodation (0 - 24)
• IT Software Services (14 - 36)

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Telkom Hard Cap / Per Gig Billing

• 1 November 2005 D-Day
• End of uncapped local bandwidth Bar Dotco till
  December 5th ?
• Per Gig billing or hard cap on local
  international
• No more 30 Gig _at_ R269 - now
• R1620 (shaped)
• R2860(unshaped).

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Solutions On Offer
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Performance Inhibitors

• Distance from the Dslam
• Congestion in the Dslam
• Congestion in the ESR
• Congestion on Telkom ATM cloud
• Congestion on IPC links
• Congestion on ISP backbone

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IS ADSL Solutions

• Capped ADSL
• 2 , 3 ,5, 7, 10 Gig
• Per Gig Service
• Business ADSL
• 512 / 1024
• Uncapped Bandwidth
• Static IP Addresses
• Cisco 837 Router
• MPLS ADSL VPN
• Secure connectivity between various branches
  head office
• Cisco 837 Router
• QoS across IS MPLS VPN Backbone

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Regulatory Environment

• "We are looking at unbundling the local loop and
  we are looking at other ways to cut the cost of
  telephony and develop broadband internet," said
  Mthobeli Tengimfene, the head of internet access
  and software development at the department of
  communications
• Communications department director-general
  Lyndall Shope-Mafole says telecommunications is
  one of the factors hindering governments target
  of 6 growth

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Dial Up Replacement

• Dial Up 56k
• ISP Charge R59 R145
• Telkom Phone Line Rental R81.00
• Telkom Charge Per Call (Standard Rate) 52c
  (R312 for 10 hours)
• R495
• ADSL 192k
• 2 Gig ISP Charge R175.00
• Telkom Phone Line Rental R81.00 R236.00
• R492

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Leased Line Replacement

• Leased Line 64k Multiplexed Bandwidth
• ISP Charge R3000.00
• Diginet Line R1800
• R3800
• 512 Uncapped ADSL
• ISP Charge R1350
• Telkom Line Rental R81.00 R236.00
• R1667

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Telkom Triple Play Voice,Video,Data

• 4 Meg into homes next year
• Only for Triple Play subscription not internet
  connectivity!
• MNET Multichoice Video / Music On Demand
• Initially limited to gated communities new
  infrastructure developments

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ADSL - Entertainment

• Music Worldwide radio, streaming etc..
• Movies Video On Demand.
• Television global TV, interactive camera for
  sporting. events, streaming etc..
• Gaming Multiple user games, Microsoft Xbox,
  Play Station 2 -play with multiple players, USB
  headsets discuss strategy.
• Online events live concerts, sporting events.

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ADSL Family Friends

• Communication video conferencing, VoIP, instant
  messaging etc..
• Security Home security Webcam monitor
  property from any location etc..

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ADSL - Business

• Cost Productivity all day communication at
  fixed price, transmit large files, access
  multimedia applications faster etc..
• VPN Secure Remote Access Connect to head
  office via WAN, LAN etc..
• VoIP or Internet Telephony make telephone
  calls, receive faxes, integrate voice and data
  into one system reduce equipment costs..

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ADSL Business Continued

• Reduction of Travel Costs online conferencing
• Staff Training training via video conferencing,
  online material.

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Home Automation

• Home automation has been available for a number
  of years.
• Most people have made use of the automation by
  turning off their lights using a remote control
  or by closing their blinds.
• Sprinklers.
• Lights.
• Cameras.
• Security System.
• Heaters.
• Under floor Heating.
• Air conditioning.
• Electronic Gates / Garages.

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Questions

• Questions ??