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internet solutions. ADSL: Current Status & Future Prospects. Alan Bacher – Access Product Manager. 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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Alan Bacher – Access Product Manager


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    1. internet solutions ADSL: Current Status & Future Prospects Alan Bacher – Access Product Manager

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

    3. 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

    4. 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%

    5. 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)

    6. SME ADSL Sector Growth • Advertising & Marketing (15% - 30%) • Communication & Broadcasting (5% - 27%) • Construction (7% - 27%) • Hotels & Accommodation (0% - 24%) • IT Software & Services (14% - 36%)

    7. 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 @ R269 - now: • R1620 (shaped) • R2860(unshaped).

    8. Solutions On Offer

    9. 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

    10. 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

    11. Regulatory Environment • "We are looking at unbundling the local loop and we are looking at other ways to cut the cost of telephony anddevelop 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 government’s target of 6% growth

    12. 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

    13. 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

    14. 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

    15. 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.

    16. ADSL – Family & Friends • Communication – video conferencing, VoIP, instant messaging etc.. • Security – Home security – Webcam – monitor property from any location etc..

    17. 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..

    18. ADSL – Business Continued • Reduction of Travel Costs – online conferencing • Staff Training – training via video conferencing, online material.

    19. 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.

    20. Questions Questions ??