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Sentech Presentation to the Portfolio Committee on Communications 2 November 2004

Sentech Presentation to the Portfolio Committee on Communications 2 November 2004. Sentech team. Dr Sebiletso Mokone-Matabane Gladwin Marumo AK Mohamed Johan Raath Dingane Dube Matime Nchabaleng Thabo Komane Marc D’Oliveira. Sentech Highlights. Broadcasting International Business

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Sentech Presentation to the Portfolio Committee on Communications 2 November 2004

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  1. Sentech Presentation to the Portfolio Committee on Communications2 November 2004

  2. Sentech team • Dr Sebiletso Mokone-Matabane • Gladwin Marumo • AK Mohamed • Johan Raath • Dingane Dube • Matime Nchabaleng • Thabo Komane • Marc D’Oliveira

  3. Sentech Highlights • Broadcasting • International Business • Multimedia

  4. Spreading the footprint • Sentech’s broadcasting signal distribution network remains a valuable national asset • Very high service levels • 5 new television transmitters (SABC 1 & 2) • Cala 4 April 03 • Tolwe 16 May 03 • Straalhoek 25 May 03 • Hectorspruit 26 March 04 • Sterkspruit 26 March 04 • Sentech installs transmitters on customer request.

  5. Regional Broadcasting • Sentech ready to support regional television

  6. Towards digitisation • Test television transmissions in Johannesburg successful • Test radio transmission in Pretoria successful • Plans ready (spectrum utilisation) • Multiple sources for decoders (set-top-boxes) achieved. • Local manufacture of set top boxes • UEC already locally manufactured • Korean manufacturer ready to start a factory here. • South Africa will pay the best possible prices for the units.

  7. International business objectives achieved • Carrying international traffic for the mobile operators • Low margin, high volume business • Developing business relationships in a number of African countries • Loveworld and Spirit Word African channels to over 500,000 viewers • 94 TV Transmitters installed for Nigerian Television Authority • NEPAD • NEPAD channel operational • Trained broadcasting technicians and engineers from Botswana, Kenya, Lesotho, Namibia, Nigeria, Swaziland and Tanzania • Taking active role in East African Submarine Cable initiative

  8. Multimedia business objectives achieved • My Wireless launched in three regions • Connectivity partner for Gauteng OnLine • Increased teleradiology connectivity for Eastern Cape • First phase of MyWireless completed • Deployment of a leading-edge technology • Ongoing system and network improvements

  9. Multimedia milestones • Gauteng OnLine • Phase 1/2 1100 schools • Computer laboratory per school • Sentech is connectivity provider as well as long-term strategic partner • Sentech provides email addresses to each learner • Sentech committed to ensuring that every Province is able to bridge the digital divide

  10. Multimedia milestones • Teleradiology successes still continuing • Sentech provides the connectivity between the radiologists in the Clinix hospital in Dobsonville and the following hospitals in the Eastern Cape • Frontier • SS Guido • Cecile Makiwane • Keiskamma • Patients Xrays diagnosed in real-time • Sentech ready to increase the coverage at the request of the Provincial DOH’s.

  11. Multimedia Milestones • Sentech is the primary connectivity provider for Mindset • Carrying educational content to teachers and learners • Strategic relationship will continue as part of Sentech’s commitment to being the delivery partner for education • Sentech is the primary connectivity provider for Mindset for health • Sentech provides the delivery mechanisms for the health channel

  12. Multimedia Milestones • Working with the USA to bridge the digital divide at schools and through community centres • Still providing the fastest Email in Gauteng to Siyabonga telecentre in Orange Farm

  13. The year ahead • Grow the Multimedia business • Prepare the company for digitisation • Enhance broadcasting • Continue as the State’s delivery partner • Education, Health and e-Government

  14. Sentech’s Integrated Platform Transport Access Applications VSAT High Speed Internet Sentech Core Networks Content Streaming Video / Audio & Enhanced Services TDMA / Docsis DVB Decoder / DAB Decoder DVB Platform TV & Radio Distribution Video &IP Streaming DVB PCI Card Video Backhaul Multicast IP Video & Audio streaming GSM & DVB-H / DAB VoIP (voice) Gateway Video & Audio streaming IP Decoder NSN Core Internet High Speed Internet 3G modem Internet & VoIP Application Services 3G Mobile High Speed Internet Other Pt to M-Pt High Speed Internet WiFI

  15. Sentech and Convergence • Sentech welcomes the Ministers determination of 3 September 2004 • Some changes to Act required to turn restrictions into enablers. • VANS should not provide own facilities or provide switched voice (total deregulation) • Review Sentech licence conditions • Review position of PTN’s eg SITA • Sentech is the first fully converged communication company in South Africa • Sentech needs unrestricted voice. • Sentech will be seamlessly carrying and integrating voice, data, image and delivering solutions to South Africa

  16. Job Creation and Poverty Alleviation • Sentech has fully restructured to embrace a converged future • Training • Re-skilling • Recruiting • Sentech is not retrenching to reskill • Building the skills of our people • Employment equity focus • Sentech School of Technology • Building Sentech skills • Building Africa’s skills

  17. ISSET-SETA • Signed agreement with ISSET-SETA • 48 learners to start January 2005 • 85% African/Coloured/Indian • 60% Female • 4% People with disabilities

  18. My Wireless brings Real Empowerment Opportunities. • Network roll-out • Site acquisition • Site/network build • BEE paramount • Job creation

  19. The Marketing Empowerment Opportunities • Sentech expects to directly sell about 20% of services • 80% will be through channel partners • Value Added Partners • Solution partners • Value Added Resellers • Major BEE opportunities • Already involved with BEE companies • Lasting and significant job creation in ICT • Grow the cake through empowerment

  20. Cash Flows for the 2004 Financial Year • Cash utilised in operation -R 20 Mil • Cash generated by operations R34 Mil • Net finance costs -R54 Mil • Cash utilised in investing activities -R148 Mil • Assets acquired -R94 Mil • Intangible asset acquired -R50 Mil • Cash generated from financing activities R156 Mil • Interest bearing borrowings R106 Mil • Non interest bearing borrowings R 50 Mil • Net cash movement -R 12 Mil

  21. Financial highlights

  22. Thank you

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