SAPO's State of Readiness on the Digital Migration Project

1. Presentation to Portfolio Committee on Communications on SAPO`s State of Readiness on the Digital Migration Project

2. Agenda SAPO TEAM • Mr George Mothema Chairperson • Mr Christopher Hlekane Group Chief Executive Officer • Ms Marietjie Lancaster Group Executive Strategy & Chief Information Officer (Acting)

3. Agenda DTT PROJECT MAP Frequency Plan Platform Management DTT Regulations Service Information for EPG Channel Licensing TV Channels Playout Coding and Multiplexing Contribution Linking Transmitter Network Radio Stations Interactive Content Customer Contracts STB Control System Revise MHEG Profile Go-Live BDM Policy DVB-T2 Standard Approval Revise STB Standard for DVB-T2 Conformance Testing Manufacture STBs Trademark Certification Wholesale Distribution EPG User Interface DoC Direct On-ground support FTA Platform Brand Award STB RFP All Broadcasters FTA Broadcasters ICASA SENTECH USAASA STB subsidy Consumer Messaging Marketing Channels Retail Installations SAPO SABS STB Manufacturers CPE Installers Retailers All Acknowledgement: SABC

4. Agenda SAPO ACTIVITIES Frequency Plan Platform Management DTT Regulations Service Information for EPG Channel Licensing TV Channels Playout Coding and Multiplexing Contribution Linking Transmitter Network Radio Stations Interactive Content Customer Contracts STB Control System Revise MHEG Profile Go-Live BDM Policy DVB-T2 Standard Approval Revise STB Standard for DVB-T2 Conformance Testing Manufacture STBs Trademark Certification Wholesale Distribution EPG User Interface DoC Direct On-ground support FTA Platform Brand Award STB RFP USAASA STB subsidy Consumer Messaging Marketing Channels Retail Installations SAPO STB Manufacturers CPE Installers Acknowledgement: SABC

5. Agenda Background • The following projected numbers and dates were indicated for the planned STB rollout by the DOC/USAASA during the meetings held to date: • Projected number of needy households: 5 000 000 • The following two types of decoders will be installed: • 2.1 DTT decoder with standard grid antenna – Projected number 3.5m • 2.2 DTH decoder with satellite dish – Projected number 1,5m • The rollout will take place in a phased-in manner per Province and SAPO will prepare its • distribution plan accordingly.

6. Agenda Background • A high level process flow working document for the Set-Top -box distribution has been designed covering the following broad areas: • 1. Qualification criteria • 2. Business rules • 3. Television licence requirements • 4. Application process • 5. Communication and Marketing • 6. Voucher/payment • 7. Distribution • 8. Delivery • 9. Installation and support services • 10. Exchange/replacement of faulty equipment

7. Agenda Main obligations in MOU • Against the back ground of the discussions held on the high level process flow document, the parties agreed in principle that the main obligations of the DOC/USAASA and the Post Office will be the following, which have been included in the MOU: • 1. The Doc shall in conjunction with USAASA- • 1.1 finalize the qualification criteria and business rules for the rendering of the Services by the Post Office as part of the Service Level Agreement; • 1.2 ensure that all materials and services relevant to the STB will be provided to the Post Office on consignment in line with the terms and conditions to be agreed to in the Service Level Agreement; and • 1.3 Be responsible to pay to the Post Office the agreed remuneration for the rendering of the Services.

8. Agenda Main obligations in MOU, continue • 2. The Post Office shall subject to the development of the required system changes, interfaces, databases and final business rules being agreed to by the Parties:- • 2.1 capture and process applications for the registration phase; • 2.2 set-up and manage the qualification criteria database; • 2.3 facilitate the distribution, voucher/payment and delivery process of the STB and standard antenna/satellite dish; • 2.4 facilitate the following with regard to the Installation and Support Services: • 2.4.1 Application process • 2.4.2 Set-up and management of the installation service database • 2.4.3 Notification to the registered Installer to go and complete the installation • 2.4.4 Payment of installation fees on receipt of the signed-off and verified Installation voucher; • 2.4.5 Exchange/replace faulty decoders

9. Agenda Main obligations in MOU, continue • 2.5 Submit daily the applicable data and payment files to the SABC and/ USAASA, respectively; • 2.6 Transfer daily and electronically funds collected on behalf of the DOC into a specified bank account within an agreed period. • The MOU was signed-off on 26 July 2012. • An SLA with final commercial details based on the agreed upon processes will be completed by the respective parties

10. Agenda SAPO Business Rules • After the sign-off of the MOU, the SAPO Business Rules workshop was held with the DOC, USAASA and SABC to discuss and formulate the SAPO Business Rules working document for the Set-Top -box project covering the following areas in detail: • Set-up of qualification data base on behalf of USAASA • Mapping of SAPO branch network with Radio stations, satellite areas, type of signal and location of needy households per municipality area to determine the number of needy households, number and type of STB`s and marketing material to be distributed per post office outlet • Design registration application and Installation voucher form required for application and installation process (Fica on addresses- final criteria to apply) • Order and distribution process for STB boxes and related equipment (Warehousing and distribution to SAPO outlets, etc.) • Communication and marketing of the STB Box campaign (Co-branding and display of marketing material at SAPO branches, etc.) • Processing application form for STB boxes in accordance with qualification criteria • Payments and issuing of STB box to qualifying applicants • Set-up of Installer database on behalf of USAASA • Notification process to Installers to arrange for installation of STB boxes • Verification of installations via Installation voucher • Payment of installation fees to Installers • Replacement/exchange of equipment • Daily processing of data and payment files for transmission to USAASA and SABC, respectively. • Transfer of collected funds to USAASA and SABC. • The Process Flow Document was updated and aligned with the outcome of the discussions held at the SAPO Business Rules workshop .

11. Agenda SABC Television licence requirements • The SABC informed the Post Office that the following Television Licence requirements will apply for the needy house holds: • When taking out a licence for the first time, the full annual tariff is payable (i.e. R250.00). • Where a person qualify for a concessionary TV licence , the current license fee is payable. In accordance with the TV Licence Regulations, the following persons will qualify for a concessionary TV licence: • A receiver of a social grant from the State, on the basis of being an aged or disabled person as defined in the Social Assistance Act of 1992; • A person of 70 years or older, as from the beginning of the first licence year after turning 70, provided that such person does not share residential premises with anyone (other than a spouse or life partner) who is younger than 70 and who is not a family member of the holder of a domestic licence.  • In order to apply for a concessionary TV licence the person will have to apply to the SABC for such licence. • The current process for the payment of a TV licence on a monthly instalment basis. • SAPO currently provides for the processing of normal TV licenses (i.e. applications and renewals) as well as for the renewal of existing concessionary TV licenses through its normal 3rd Party Payment system at SAPO outlets.  • SAPO will charge the SABC for the issuing of new TV licence applications and payments in accordance with the standing SLA.

12. Agenda Status on implementation process

13. Agenda