Presentation delivered by Broadband Infraco CEO, Mr. Andrew Matseke at the Annual SMMEs in ICT SUmmit and Expo on 02 April, 2019 - How Partnerships Between Industry Players And SMMEs Can Be Used To Transform The ICT Industry.

1. HOW PARTNERSHIPS BETWEEN
INDUSTRY PLAYERS AND SMMES
CAN BE USED TO TRANSFORM THE
ICT INDUSTRY
Andrew Matseke
Broadband Infraco CEO
2 April 2019
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2. 1 SA Connect
2 Key Challenges
Process we embarked on
4 Key Outcomes
5 Lessons Learnt
6 Future Roadmap
CONTENT
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3. In the first quarter of 2018, the SMME
sector provided employment to nearly
8.9 million South Africans. Of these,
only 2.44 million jobs were for the SMME
owners themselves while the balance of
6.4 million jobs (73%) were for SMME
employees (SMME Quarterly Update, Q1
of 2018 SEDA)
FOOD FOR THOUGHT
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4. THE PURPOSE OF BROADBAND INFRACO: SA CONNECT
Vision 2030
100% of South Africans will have access to broadband services at 2.5% less of the populations
average monthly income
SA Connect
Broadband Infraco’s roll-out of long distance backhaul fibre to underserviced areas will enable provincial governments
to leverage such broadband infrastructure and services for economic growth, job creation initiatives and poverty
reduction efforts.
Outcome 1 Quality basic education
A long and healthy life for all
An efficient, competitive and responsive
economic infrastructure network
Outcome 2
Outcome 6
Expansion, modernisation, access and affordability of our
Information and communication infrastructure
MTSF OUTCOMES
SIP 15: SUB-OUTCOME 5
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5. SA CONNECT: TOPOLOGY
SIP 15: SUB-OUTCOME 5
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3rd
Party Access Network
Initial phase: VSAT & Fibre
Final Phase: Fibre
Broadband Infraco
Customer
Premises Equipment (CPE)
Access Network
Aggregation
Network
Backhaul Network
(Core)
SITA NGN Cloud
SITA NGN
(IP/MPLS)
Broadband Infraco:
Transmission Equipment
3rd
party: Router
Customer: Router

6. 1 SA Connect
Key Challenges2
Process we embarked on
4 Key Outcomes
5 Lessons Learnt
6 Future Roadmap
CONTENT
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3

7. ContentKEY CHALLENGES
Brand Reputation:
Corporate image/identity
associated with the
success/failure of the
Project
Empowerment Objective: A
strategic Project that needed
to truly represent visible and
tangible empowerment
Historical Perception
Perception that this will be
yet another failure
Capacity: New capacity
planning and sourcing for
delivering on Project
First experience of a
Project of this scale:
o National Significance
o Social Impact
o Project magnitude
Challenges We Had
To Overcome
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8. 1 SA Connect
2 Key Challenges
3 Process we embarked on
4 Key Outcomes
5 Lessons Learnt
6 Future Roadmap
Content
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9. PROCUREMENT STRATEGY EMPLOYED
Planned Core
Participation
Increase participation of
SMMEs in the industry
Create meaningful SMME
participation in the Core
business
Where feasible, source
directly from SMMEs
Transmission
Equipment to be
installed by accredited
Black SMME Installers.
Encourage collaboration
between Large business and
SMMEs
Ensure Training and Skills
developments is fast-tracked
in the underserviced areas
Engage OEMs to accredit
SMMEs for distribution of their
equipment
SMME Participation
Planned core
participation
Value chain
integration
Expand
Participation Cross
Learning
Enforce
development
Applied
Development
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10. 1 SA Connect
2 Key Challenges
Process we embarked on
Key Outcomes
5 Lessons Learnt
6 Future Roadmap
Content
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4
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11. ContentPHASE 1 SITE ALLOCATION &
BUDGET
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Total Number of
Participants on SA
Connect
8
SMMEs
SMME Participants
67% of the total
Participants57%
Site Allocations
to SMMEs
24
Teaming
Agreements
signed
4
Large Business
Participation
R45m
Paid to SMMEs
for Phase 1 of SA
Connect
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12. RECOMMENDED ANPs
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13. ContentPHASE 1 SITE ALLOCATION
& BUDGET
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Note:
SMME 1 = Black SMME
SMME 2 = White SMME
SOC’s = State Owned Companies
MNO = Mobile Network Operators
Phases SMME1 SMME2 SOC MNO Total
1a 185 71 35 22 313
1b 294 47 59 0 400
1a 59% 23% 11% 7% 100%
1b 74% 12% 15% 0% 100%
No. of
Sites
% Split
SA Connect Phase 1 Allocation

14. Content
1 SA Connect
2 Key Challenges
Process we embarked on
Key Outcomes
Lessons Learnt
6 Future Roadmap
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5
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15. Planned Core
Participation
Lessons Learnt
Challenges Interventions
• Shortage of Skills within the ICT
sector;
• Lack of certification or
accreditations to distribute, install
and support/maintain technical
equipment/s;
• Failure to meet required
specifications on bids;
• Funding
ShadowingNon
Financial
support
BBI
Support
OEM
support *Local Distribution
Accreditation
*Training and
certif. for Local
installations
*Pre & Post bid
meetings
*Supplier forums
*Fostering Large
Business to adopt
SMME in every
project.
*Business skills
training
*SHEQ training
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16. Planned Core
Participation
Improved
Subsequent
phases
Contracting
Enforcing prioritization of SMME allocation
Monitoring
Implementation mirrors Bid response
Enforcement
Punitive measures for non-compliance
Facilitate options for cash strapped
Lessons Learnt
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Funding Models

17. Content
1 SA Connect
2 Key Challenges
Process we embarked on
4 Key Outcomes
5 Lessons Learnt
Future Roadmap
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18. Planned Core
Participation
SMME Roadmap 2019 – 2020
Where opportunities
exist and for specific
’Channel’ segmented
opportunities
Joint Go
to Market
Encourage innovation
whilst providing
opportunities of access
to markets
Product
Development
Identification of key
areas for strategic
collaboration
Strategic
Partners Focused development,
providing opportunities
for growth
Value Chain
Development
(4IR)
Enable a platform for
Africa opportunities
Co Partners
for Africa
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19. THANK YOU! 19