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Siemens switches on Lesotho fixed line network

Johannesburg, 24 Sep 2002

Siemens Information and Communications Group said today that the first subscriber connection for a Wireless Local Loop network in Lesotho, has gone live. This follows the company's recent selection as the preferred supplier for Lesotho's largest ever telecommunications contract. In terms of the R211 million contract with privatised telecoms operator, Telecom Lesotho, Siemens will rollout a turnkey Wireless Local Loop solution.

Just one month down the line, Siemens has seen the first of its subscriber connections up and running. At present, three of the sixteen base stations have been installed, covering up to a third of the projected 24 000 subscriber capacity. The geographical area covered includes areas in the vicinity of Maseru, such as Berea Plateau, Abia and Thaba Bosiu. An additional thirteen central base stations will be rolled out by December.

Siemens says it is well on target to meet its deadline of connecting all 24 000 voice subscribers before the end of the year. Based on a demand survey undertaken by Telecom Lesotho, the estimated number of customers in Lesotho who require new telephones currently stands at 150 000.

Fernando Goncalves, the Divisional Director of Business Development at Siemens Telecommunications (Pty) Ltd, said: "Through the deployment of a Wireless Local Loop the extension of basic telephone services to many areas of Lesotho has been made possible. The roll-out thus far has been enormously successful due to good planning, excellent project management and the rapid procurement of needed equipment."

Goncalves said the Wireless Local Loop solution has the added benefits of making rapid roll-out possible, and also of reducing the risk of copper theft, often a major problem with the roll-out of telecoms networks, particularly in rural areas.

Adri van der Veer, the Chief Executive Officer of Telecom Lesotho, said Siemens was to be commended on the rapid roll-out of the network, and the professionalism with which the project was being undertaken. He said plans to connect areas of Lesotho, to the telecommunications backbone of the rest of the country were well on track, with new phones already being connected at a rate of between 200 and 300 residential customers per day, or over 1000 per week.''

"The waiting list of paid customers currently stands at over 18 000 and we expect demand to escalate in areas where there is Wireless Local Loop coverage, as the first subscriber goes live today and as further installations take place," van der Veer added.

Van der Veer said the Wireless Local Loop project was expected to roll into 2003, depending on demand. Goncalves affirmed Siemens' commitment to meeting the project deadline, and said Siemens was proud to number among its Fixed Networks portfolio, a project of such significance for the Fixed Networks market in Africa

Siemens operates Fixed Networks in South Africa, Malawi, Namibia, Botswana, Mauritius and Swaziland. It has a technology presence in 34 African countries and provides turnkey solutions.

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Siemens Information and Communications Group (Siemens Telecommunications Pty Ltd)

Siemens Information and Communications Group in South Africa is a leading provider of voice and data networks with a comprehensive portfolio of IP-based products and solutions for enterprises, carriers and service providers. It is an integral part of the Information and Communications (I and C) business segment of Siemens AG, which also comprises Information and Communication Mobile and Siemens Business Services. The I and C Group is divided into Carrier and Fixed Networks, which focus on providing customised solutions, including the integration of products, systems and technology, to suit both business and individual needs. With a strong foundation in the mobile networks arena, which includes established GSM infrastructure, products, solutions and services for the Next Generation Internet, and electronic business solutions, Siemens provides the full spectrum of mobile business solutions, allowing users to communicate and be connected to information and services any time and any place.

Further information about Information and Communications is available at: http://www.ic.siemens.com/networks/index.htm

Editorial contacts

Lynette Lambert
Beachhead Media and Investor Relations
(011) 214 2404
lynette@bmsa.co.za
Tobey Matlaisane
Siemens Telecommunications
(012) 345 5483
tobey.matlaisane@siemens.co.za