Transcript Sentech Presentation to the Portfolio Committee on

Sentech Presentation to the Portfolio
Committee on Communications
2 November 2004
Sentech team
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Dr Sebiletso Mokone-Matabane
Gladwin Marumo
AK Mohamed
Johan Raath
Dingane Dube
Matime Nchabaleng
Thabo Komane
Marc D’Oliveira
Sentech Highlights
• Broadcasting
• International Business
• Multimedia
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)
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Cala
Tolwe
Straalhoek
Hectorspruit
Sterkspruit
4 April 03
16 May 03
25 May 03
26 March 04
26 March 04
• Sentech installs transmitters on customer request.
Regional Broadcasting
• Sentech ready to support regional television
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.
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
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
Multimedia milestones
• Gauteng OnLine
– Phase 1/2 1100 schools
– Computer laboratory per school
– Sentech is connectivity provider as well as longterm strategic partner
– Sentech provides email addresses to each
learner
• Sentech committed to ensuring that every
Province is able to bridge the digital divide
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
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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.
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
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
The year ahead
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Grow the Multimedia business
Prepare the company for digitisation
Enhance broadcasting
Continue as the State’s delivery partner
– Education, Health and e-Government
Sentech’s Integrated Platform
Transport
Applications
Access
VSAT
High Speed
Internet
Sentech Core Networks
Content
Streaming
Video / Audio &
Enhanced Services
TDMA / Docsis
DVB Decoder / DAB Decoder
TV & Radio
Distribution
DVB Platform
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
High Speed
Internet
Internet
3G modem
Application
Services
3G Mobile
High Speed
Internet
WiFI
Other Pt to
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High Speed Internet
Internet &
VoIP
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
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
ISSET-SETA
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Signed agreement with ISSET-SETA
48 learners to start January 2005
85% African/Coloured/Indian
60% Female
4% People with disabilities
My Wireless brings Real Empowerment
Opportunities.
• Network roll-out
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Site acquisition
Site/network build
BEE paramount
Job creation
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
Cash Flows for the 2004 Financial Year
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Cash utilised in operation
– Cash generated by operations
– Net finance costs
Cash utilised in investing activities
– Assets acquired
– Intangible asset acquired
Cash generated from financing activities
– Interest bearing borrowings
– Non interest bearing borrowings
Net cash movement
-R 20 Mil
R34 Mil
-R54 Mil
-R148 Mil
-R94 Mil
-R50 Mil
R156 Mil
R106 Mil
R 50 Mil
-R 12 Mil
Financial highlights
Financial results R mil
600
500
400
300
200
100
-100
Revenue
1999
Gross profit
2001
2002
Operating profit
2003
2004
Profit after
taxation
Thank you