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May 29th 2012




Newtec proprietary and confidential
Primary Distribution of DTTB
              Fiber, Satellite, Microwave




                           What Is Best?
2    Newtec proprietary and confidential
Terrestrial/Mobile TV Primary Distribution: Why Satellite?




  Newtec proprietary and confidential
What is uptime, What are Nines (9’s) ???
                                                                            Unplanned
                                                                         outage/downtime
                                                                             per week

         # of Nines                        Availability %   Downtime/week
         1 Nine                            90%              16.8 hours
         2 Nines                           99%              1.68 hours
         3 Nines                           99.9%            10.1 mins
         4 Nines                           99.99%           1.01 mins
         5 Nines                           99.999%          6.05 secs
         6 Nines                           99.9999%         0.605 secs




4    Newtec proprietary and confidential
Stories you might hear with Fiber

                           Dual-ring Fiber =

                                           ✗
                         100% QoS end-to-end




 Newtec proprietary and confidential
Submarine optical cables: Damage happens
     Optical fiber submarine cable big outages

     •2008, 3 separate disruptions
      •SEA-ME-WE 3, SEA-ME-WE 4, FALCON and FLAG
      •70% disruption in Egypt, 60% in India, millions in MENA no
       Internet
      •Services restored approx 24 hours
     •2011 Tōhoku earthquake and tsunami:
      •APCN-2, Pacific Crossing West, Pacific Crossing North, East Asia
       Crossing , Japan-U.S. Cable Network, PC-1
     •2012: Epic net outage in Africa as FOUR undersea cables chopped
     •The list goes on & on. Google ‘submarine cable outage’

     Average: 50 repairs per year in Atlantic alone


     Cable cuts happen "on average once every three
     days."


     Causes:

     •Fishing trawlers, anchors, earthquakes, undersea avalanches
     •Includes sabotage and even shark bites!


 Newtec proprietary and confidential
Not just submarine fiber, terrestrial too …
                                          ABOUT US        OUR COMMUNITY            BRAND ORANGE            MEDIA CENTRE          CUSTOMER CENTER              SERVICES         CAREERS          CONTACT US




• Construction contractor negligence
                                          YOU ARE HERE : HOME      NEWS & EVENTS       TWO TELECOMMUNICATION CABLE VANDALS ARRESTED IN INDUSTRIAL AREA
                                           HOT NEWS
                                          ORANGE ENHANCES ITS LOYALTY PROGRAMME FOR ITS CUSTOMERS TWO TELECOMMUNICATION CABLE VANDALS ARRESTED IN INDUSTR...                                                search...




• Cable theft (thinking it’s copper)
• Competitive sabotage
  – Digital turf wars between rival companies
                                                                                           Two Telecommunication Cable vandals
                                                                                           arrested in Industrial Area
                                                                                                                     February 15, 2012... Two suspected cable vandals were Tuesday night arrested in the Industrial
                                                                                                                     area - Nairobi. The two men were caught red-handed cutting Telkom Kenya cables along the
                                                                                                                     Bunyala road round-about while a third one managed to escape on a motor bike.

                                                                                                                     Telkom Kenya technicians as well as contracted guards handed them over to the Industrial Area
                                                                                                                     Police Station.

                                                                                                                     Commenting on the incident, Chief Corporate Communications Officer at Orange, Angela Nganga-
                                                                                                                     Mumo said that the company loses up to KSh2 Billion shillings annually, due to cuts on the
                                                                                                                     company’s copper and fibre cables as a result of vandalism.

                                                                                                                     She added that it was particularly worrying that the majority of cuts affected the optic fibre cables
                                                                                                                     which cannot be reused after they are cut. “As opposed to copper which can be re-sold and
                                                                                                                     smelted, the fibre optic cable is of no use when it is cut. This therefore points at malicious damage
                                                                                                                     to the communications infrastructure and we believe that this could be a scheme orchestrated by
                                               JOSHUA MURIMI (LEFT) AND MUSA KIPSAT (FAR RIGHT) OF THE               some of our competitors”, she said.
                                                INFORMATION TECHNOLOGY & NETWORKS DEPARTMENT AT
                                                ORANGE LEAD A SUSPECTED CABLE VANDAL TO A COMPANY                    The integrated telecommunications company has called upon the Kenyan Parliament to fast track
                                                  PICK UP, TO HAND HIM OVER TO THE POLICE, AFTER THE                 legislation to curb cable vandalism and sabotage.
                                              SUSPECT AND TWO OTHER MEN WERE CAUGHT CUTTING FIBRE
                                                                                                                     “The passing and implementation of laws that introduce stiffer penalties for those found guilty of
                                                 OPTIC CABLING NEAR THE BUNYALA ROUNDABOUT IN THE

                                                                    “As opposed to copper which can be the country billions of shillings lost through this illegal
                                              INDUSTRIAL AREA OF NAIROBI ON TUESDAY THIS WEEK. ORANGE
                                              HAS BEEN LOSING UP TO KSH 2 BILLION ANNUALLY DUE TO CUTS
                                                                                                        cable vandalism and sabotage could save
                                                                                                        practice,” she concluded.
                                                                                                                                                re-sold and smelted,
                                              ON THE COMPANY’S COPPER AND FIBRE CABLES AS A RESULT OF is of no use when it is cut. This therefore
                                                                the fibre optic cable 2012 (last 6 weeks)
                                                                       VANDALISM.
                                                                         points at maliciouscuts = 56 ( copper = 10to the= communications
                                                                                                        Total damage + Optic fiber 42)
                                             Optic Fiber cuts = 80%
                                                                     infrastructure and we believe that this could be a scheme
                                             NATURE: Cause /motives
                                             Sabotage: = 9       18%              orchestrated by some of our competitors”
                                             Theft:   = 19     36%
                                             Contractor = 24   46 %


                                             Main cause = Contractors working with impunity.

                                             Optical Fiber Cables also damaged by vandals looking for copper to sell to scrap dealers.

    Newtec proprietary and confidential      Speed up the enactment of law on Vandalism & scrap metals dealership

                                             CASES
Satellite and fiber networks complement each other
                                                           Satellite Net



         IP                                                                IP

                                               Fiber Net


    • A satellite infrastructure that is inherently built upon an IP core,
      can seamlessly work together with terrestrial IP networks

    • Hybrid satellite and terrestrial bring together best of both worlds
        QoS, last mile connectivity, multi-lateral reach, scalabilty, resilence
       to sabostage, resilence to disasters, etc…


    • Achieve uptime of > 99,999

8        Newtec proprietary and confidential
DTTB is more than just channel distribution
    Example of local content ‘stickiness’
    • from Africa: Citizen TV in Kenya
    • Now most watched channel because of compelling content
    ‘Smart digital transition’:
    • Don’t want to fill up all those extra channels with more cheap
      Telenovelas
    • Support local content: languages, community TV
    • Support local journalism, production & media skills
    • Capacity building that supports local languages, local issues,
      local news, local cultures

    Local Targeted Ads
    • This is also where the ‘ad’ money is: targeted customers,
      engaging messages, reaching right demographics in their own
      languages
                                            But it has to be affordable!
9     Newtec proprietary and confidential
Integrated Broadcast Transmission

            Contribution

            • Occasional Use e.g. Satellite News Gathering (SNG)
            • Permanent feeds
            • Unilateral & multilateral

            Exchange (programs & assets, not channels)
                                                                                  SECONDARY
            Distribution (of channels, multiplexes, etc)

            • Primary Distribution (to towers/broadcaster)
                                                                                  DISTRIBUTION
            • Secondary Distribution (to consumers) DTT, DTH
                                                                                      (B2C)




                                                                     PRIMARY
                                                                   DISTRIBUTION
                                                                       (B2B)




 Newtec proprietary and confidential
MOCI Saudi Arabia
Start: HDTV Exchange
Add DVB-T
Add FM Radio
Add SCADA (Tower M&C)



                                                                DVB-T
                                                                FM Radio
                                                       MOCI, Riyadh




                                          M&C of TV & Radio towers
                                          Primary DTT distribution
                                          Primary FM Radio distribution
                                          HDTV/Radio exchange


 Newtec proprietary and confidential
Example: Integrated FM Radio Primary
         Distribution     FM Radio Station Feed
                          Dynamic RDS, Multi-Region Ads


                        FM Radio Broadcaster


FM Radio Broadcaster                                                                      News
                                                                                          Traffic
                                                                                          Music
                                                                                          Culture
                                                          FM Radio Primary Distribution   Information
FM Radio Broadcaster                                      Static/Dynamic RDS              Education
                                                          National/Local Ads Insertion




                                 MENOS Hub




                                                          National FM Radio
          FM Radio Broadcaster                            Regionalized Ads

12          Newtec proprietary and confidential
Questions?
Thank you for your attention

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DTT Revenue Opportunities, Local Content & Advertising

  • 1. May 29th 2012 Newtec proprietary and confidential
  • 2. Primary Distribution of DTTB Fiber, Satellite, Microwave What Is Best? 2 Newtec proprietary and confidential
  • 3. Terrestrial/Mobile TV Primary Distribution: Why Satellite? Newtec proprietary and confidential
  • 4. What is uptime, What are Nines (9’s) ??? Unplanned outage/downtime per week # of Nines Availability % Downtime/week 1 Nine 90% 16.8 hours 2 Nines 99% 1.68 hours 3 Nines 99.9% 10.1 mins 4 Nines 99.99% 1.01 mins 5 Nines 99.999% 6.05 secs 6 Nines 99.9999% 0.605 secs 4 Newtec proprietary and confidential
  • 5. Stories you might hear with Fiber Dual-ring Fiber = ✗ 100% QoS end-to-end Newtec proprietary and confidential
  • 6. Submarine optical cables: Damage happens Optical fiber submarine cable big outages •2008, 3 separate disruptions •SEA-ME-WE 3, SEA-ME-WE 4, FALCON and FLAG •70% disruption in Egypt, 60% in India, millions in MENA no Internet •Services restored approx 24 hours •2011 Tōhoku earthquake and tsunami: •APCN-2, Pacific Crossing West, Pacific Crossing North, East Asia Crossing , Japan-U.S. Cable Network, PC-1 •2012: Epic net outage in Africa as FOUR undersea cables chopped •The list goes on & on. Google ‘submarine cable outage’ Average: 50 repairs per year in Atlantic alone Cable cuts happen "on average once every three days." Causes: •Fishing trawlers, anchors, earthquakes, undersea avalanches •Includes sabotage and even shark bites! Newtec proprietary and confidential
  • 7. Not just submarine fiber, terrestrial too … ABOUT US OUR COMMUNITY BRAND ORANGE MEDIA CENTRE CUSTOMER CENTER SERVICES CAREERS CONTACT US • Construction contractor negligence YOU ARE HERE : HOME NEWS & EVENTS TWO TELECOMMUNICATION CABLE VANDALS ARRESTED IN INDUSTRIAL AREA HOT NEWS ORANGE ENHANCES ITS LOYALTY PROGRAMME FOR ITS CUSTOMERS TWO TELECOMMUNICATION CABLE VANDALS ARRESTED IN INDUSTR... search... • Cable theft (thinking it’s copper) • Competitive sabotage – Digital turf wars between rival companies Two Telecommunication Cable vandals arrested in Industrial Area February 15, 2012... Two suspected cable vandals were Tuesday night arrested in the Industrial area - Nairobi. The two men were caught red-handed cutting Telkom Kenya cables along the Bunyala road round-about while a third one managed to escape on a motor bike. Telkom Kenya technicians as well as contracted guards handed them over to the Industrial Area Police Station. Commenting on the incident, Chief Corporate Communications Officer at Orange, Angela Nganga- Mumo said that the company loses up to KSh2 Billion shillings annually, due to cuts on the company’s copper and fibre cables as a result of vandalism. She added that it was particularly worrying that the majority of cuts affected the optic fibre cables which cannot be reused after they are cut. “As opposed to copper which can be re-sold and smelted, the fibre optic cable is of no use when it is cut. This therefore points at malicious damage to the communications infrastructure and we believe that this could be a scheme orchestrated by JOSHUA MURIMI (LEFT) AND MUSA KIPSAT (FAR RIGHT) OF THE some of our competitors”, she said. INFORMATION TECHNOLOGY & NETWORKS DEPARTMENT AT ORANGE LEAD A SUSPECTED CABLE VANDAL TO A COMPANY The integrated telecommunications company has called upon the Kenyan Parliament to fast track PICK UP, TO HAND HIM OVER TO THE POLICE, AFTER THE legislation to curb cable vandalism and sabotage. SUSPECT AND TWO OTHER MEN WERE CAUGHT CUTTING FIBRE “The passing and implementation of laws that introduce stiffer penalties for those found guilty of OPTIC CABLING NEAR THE BUNYALA ROUNDABOUT IN THE “As opposed to copper which can be the country billions of shillings lost through this illegal INDUSTRIAL AREA OF NAIROBI ON TUESDAY THIS WEEK. ORANGE HAS BEEN LOSING UP TO KSH 2 BILLION ANNUALLY DUE TO CUTS cable vandalism and sabotage could save practice,” she concluded. re-sold and smelted, ON THE COMPANY’S COPPER AND FIBRE CABLES AS A RESULT OF is of no use when it is cut. This therefore the fibre optic cable 2012 (last 6 weeks) VANDALISM. points at maliciouscuts = 56 ( copper = 10to the= communications Total damage + Optic fiber 42) Optic Fiber cuts = 80% infrastructure and we believe that this could be a scheme NATURE: Cause /motives Sabotage: = 9 18% orchestrated by some of our competitors” Theft: = 19 36% Contractor = 24 46 % Main cause = Contractors working with impunity. Optical Fiber Cables also damaged by vandals looking for copper to sell to scrap dealers. Newtec proprietary and confidential Speed up the enactment of law on Vandalism & scrap metals dealership CASES
  • 8. Satellite and fiber networks complement each other Satellite Net IP IP Fiber Net • A satellite infrastructure that is inherently built upon an IP core, can seamlessly work together with terrestrial IP networks • Hybrid satellite and terrestrial bring together best of both worlds  QoS, last mile connectivity, multi-lateral reach, scalabilty, resilence to sabostage, resilence to disasters, etc… • Achieve uptime of > 99,999 8 Newtec proprietary and confidential
  • 9. DTTB is more than just channel distribution Example of local content ‘stickiness’ • from Africa: Citizen TV in Kenya • Now most watched channel because of compelling content ‘Smart digital transition’: • Don’t want to fill up all those extra channels with more cheap Telenovelas • Support local content: languages, community TV • Support local journalism, production & media skills • Capacity building that supports local languages, local issues, local news, local cultures Local Targeted Ads • This is also where the ‘ad’ money is: targeted customers, engaging messages, reaching right demographics in their own languages But it has to be affordable! 9 Newtec proprietary and confidential
  • 10. Integrated Broadcast Transmission Contribution • Occasional Use e.g. Satellite News Gathering (SNG) • Permanent feeds • Unilateral & multilateral Exchange (programs & assets, not channels) SECONDARY Distribution (of channels, multiplexes, etc) • Primary Distribution (to towers/broadcaster) DISTRIBUTION • Secondary Distribution (to consumers) DTT, DTH (B2C) PRIMARY DISTRIBUTION (B2B) Newtec proprietary and confidential
  • 11. MOCI Saudi Arabia Start: HDTV Exchange Add DVB-T Add FM Radio Add SCADA (Tower M&C) DVB-T FM Radio MOCI, Riyadh  M&C of TV & Radio towers  Primary DTT distribution  Primary FM Radio distribution  HDTV/Radio exchange Newtec proprietary and confidential
  • 12. Example: Integrated FM Radio Primary Distribution FM Radio Station Feed Dynamic RDS, Multi-Region Ads FM Radio Broadcaster FM Radio Broadcaster News Traffic Music Culture FM Radio Primary Distribution Information FM Radio Broadcaster Static/Dynamic RDS Education National/Local Ads Insertion MENOS Hub National FM Radio FM Radio Broadcaster Regionalized Ads 12 Newtec proprietary and confidential
  • 13. Questions? Thank you for your attention