delivering on long-term value creation.

Overview PresentationApril 2007

Telkom SA Limited

2

Cautionary statement on forward looking statementsAll of the statements included in this presentation, as well as oral statements that may be made by us or by officers, directors or employees acting on behalf of us, that are not statements of historical facts constitute or are based on forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995, specifically Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as amended. These forward-looking statements involve a number of known and unknown risks, uncertainties and other factors that could cause our actual results and outcomes to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Among the factors that could cause our actual results or outcomes to differ materially from our expectations are those risks identified in Item 3. “Key Information-Risk Factors,” of Telkom’s most recent Annual Report on Form 20-F filed with the US Securities and Exchange Commission (SEC) and its other filings and submissions with the SEC which are available on Telkom’s website at www.telkom.co.za/ir, including, but not limited to, increased competition in the South African telecommunications markets; developments in the regulatory environment; continued mobile growth and reductions in Vodacom’s and Telkom’s net interconnect margins; Vodacom’s and Telkom’s ability to expand their operations and make investments and acquisitions in other African and other countries and the general economic, political, social and legal conditions in South Africa and in other countries where Vodacom and Telkom invest; our ability to attract and retain key personnel; our inability to appoint a majority of Vodacom’s directors and the consensus approval rights at Vodacom that may limit our flexibility and ability to implement our preferred strategies; Vodacom’s continued payment of dividends or distributions to us; our ability to improve and maintain our management information and other systems; our negative working capital; changes in technology and delays in the implementation of new technologies; our ability to reduce theft, vandalism, network and payphone fraud and lost revenue to non-licensed operators; our ability to improve our internal control over financial reporting; health risks related to mobile handsets, base stations and associated equipment; risks related to our control by the Government of the Republic of South Africa and major shareholders and the South African Government’s other positions in the telecommunications industry; the outcome of regulatory, legal and arbitration proceedings, including tariff approvals, and the outcome of Telkom’s hearing before the Competition Commission; its proceedings with Telcordia Technologies Incorporated and others; our ability to negotiate favourable terms, rates and conditions for the provision of interconnection services and facilities; our ability to implement and recover the substantial capital and operational costs associated with carrier pre-selection, Number Portability and the monitoring, interception and customer registration requirements contained in the South African Regulation of Interception of Communication and Provision of Communication – Related Information Act; Telkom’s ability to comply with the South African Public Finance Management Act and South African Public Audit Act and the impact of the Municipal Property Rates Act; fluctuations in the value of the Rand; the impact of unemployment, poverty, crime and HIV infection, labour laws and exchange control restrictions in South Africa; and other matters not yet known to us or not currently considered material by us.We caution you not to place undue reliance on these forward-looking statements. All written and oral forward-looking statements attributable to us, or persons acting on our behalf, are qualified in their entirety by these cautionary statements. Moreover, unless we are required by law to update these statements, we will not necessarily update any of these statements after the date hereof, either to conform them to actual results or to changes in our expectation.

Introduction

Market Positioning

Strategy

Key Progress

Conclusions

Agenda

Introduction

5

Key Facts

Africa’s largest integrated communications company

• South African Fixed Line incumbent • 4.7 million lines• R25.2bn revenues (for 6 months to 30th September 2006)

• R7.7bn operating profit (for 6 months to 30th September 2006)

• Vodacom – 50/50 JV with Vodafone• 25.8 million customers• R9.7 billion revenues (for 6 months to 30th September 2006)

• R5.0 billion operating profit (for 6 months to 30th September 2006)

6

Financial Performance (for 6 months to 30th September 2006)

• Group operating revenue 7.3 % to R25.2 billion

• EBITDA margin to 40.7% from 44.5% in Sept 05

• Operating profit 0.8% to R7.7 billion

• Net debt to equity to 41.6% from 23.2% in March 06

• EBITDA 2.0% to R10.2 billion

• HEPS 10.6% to 874.7 cents per share

7

Fixed-line74%

Mobile26%

Segmental Contribution30 September, 2006

Fixed-line64%

Mobile36%

after inter-segmental eliminations

Operating revenue Operating profit Profit attributable to equity holders

Fixed-line 72%

Mobile28%

Market Positioning

9

Regulatory updates

Electronic Communications Act (ECA)• Came into effect on July 19, 2006 with the following impact on Telkom

– Licenses to be converted to network licenses and service licenses

– All existing licensed rights will be preserved

– Impact on price controls, terms and conditions of access and interconnection and facilities leasing

Interconnection and facilities leasing• FAC Regulatory Financial Statements filed in September 2005 and updates in

September 2006

• LRIC Regulatory Financial Statements filed on September 29, 2006

• Continuous negotiations with Neotel for facilities including interconnection and shared access; VANS agreements concluded

• New ICASA mobile interconnection discussion paper

10

Regulatory updatesTa

riff

regu

latio

nR

ICA

Act

• Since June 2006

• Requires service providers to obtain and keep customer details

• Telkom is in consultation with the Office of Interception Centres and DOC to adopt this in the first quarter of 2007

Num

ber

Por

tabi

lity • Block portability is currently implementable; individual geographic number

portability expected from April 2008

• Functional specification regulations in place during November for mobile operators. Not yet for fixed-line operators

• Tariff regime approved by Regulator in July 2005, effective August 1, 2005

• August 2006 filing saw a decrease of 2.1% in the overall price of the basket of products

• The basket of products includes ADSL which saw price decreases of up to 24%

• In excess of 65% of Telkom revenue are in the regulated basket

11

Strong revenue generated across all geographical regions

Vodacom

34.2 million estimated customers in SA Other African operations contributed 9.7%

59.0%

8.4%

32.5%

0.1%

Vodacom MTN Cell C Virgin Mobile

Market share in South Africa increased from 57% to 59%

4.0%

3.8%

0.5%

91.7%

South Africa Tanzania DRC Mozambique

Data for 6 months to 30th September 2006 Data for 6 months to 30th September 2006

12

Neotel

• SNO was granted the PST licence in September 2004

• Awaiting commercial launch – April 2007

• Utilizing Transtel’s network infrastructure

• Expected to pursue large Corporate and Government markets

• Not expected to primarily ‘compete on price’

• Anticipated 10-15% market share loss

Strategy

14

Vision and Strategy• Enhancing customer satisfaction through customer centricity

• Retaining revenue and generating growth

• Engaging Telkom’s people to maintain competitive advantage

• Evolving to a NGN– profitable growth– prudent cost management

• Repositioning Telkom stakeholder management– healthy external relationships

To be a leading customer and employee centred ICT solutions service provider

15

Evolution

Revolution Turn off the PSTN by a final date e.g. BT, Telecom Italia

Customers gradually migrate from the PSTN to the NGN e.g. Telkom

Speed of migration depends on business drivers and market demands

Transformation Strategy Options

16

Evolutionary Strategy - Delivers Real Advantages

Limits future Opex

Rationalisation of multiple legacy technologies to NGN platforms

Protects against impact of disruptive technologies

Through increased speed to market flexibility afforded by common platform

Allows converged

service offerings

i.e. Telco’s now compete in the media domain

17

Managing Risk whilst Moving with Market• Evolutionary development and deployment

– Ongoing need • Automation• Business process improvement• Customer support

– Will integrate with current solutions

• The transition plan– Modular subsystems releases (typically bi-annually)

• deliver business benefits in regular intervals– Mixture of replacement & migration

• keeping legacy solutions where appropriate – Pre-determined integration points with existing systems

Create a future-proof environment

18

Convergence: Driving Change

At home

In businessOn the move

In leisure

For our customers’ customers

Empowering our customers and their customers for their benefit to connect with whomever and whatever they want, whenever, however and wherever they want.

Seamless control and access across devices

• Product centric• Organisation stovepipes• Technology led• Product stovepipes• Old portfolio• Telco

FROM

• Customer centric• One team• Business partners• Holistic solutions• New wave services• IT and network services Co

TO

19

Creating Efficiency - Complete View of Customers & Assets

Customer Centricity and

efficiency

Optimisation of Asset

Utilisation

• Customer Relationship Management– Unified view of the customer

• Order Management– Unified fulfilment capability

• Fault Management– Fault resolution, quality management and control

• Network and Service performance management

– Service Level Agreement management and transparency

• Network inventory

– Control over physical and logical repositories

– Integrated with procurement system

– Coupled with automated asset acquisition and deployment process

20

2002 2006 20082004

CostContainment

CustomerCentricity

ServicesExpansion

Telkom’s Evolution (Mapping to international trends)

Source: The Yankee Group, 2003

Serv

ice

offe

rings

Business focus

Infrastructure Rationalization

Dramatic drop in Capex, shifting to Opex in later stages

Services BundlingCustomer Centricity

Gradual introduction of new services and offers focused on retention and

wallet share

Services ExpansionApplications Integration

Accelerated expansion of services/content/

mobility

21

RSA Revenue Forecast – Fixed Line ResurrectionTotal internet access

revenues

Source: BMI-T, 2005

0

2,000

4,000

6,000

8,000

10,000

12,000

2004

2005

2006

2007

2008

2009

BroadbandBusiness dial-upConsumer dial-upLeased lines

0

2,000

4,000

6,000

8,000

10,000

12,000

Reta

il le

ased

line

s

MDN

S

Inte

rnet

Acc

ess

VA

S

WA

N

Who

lesa

le

Mob

ile d

ata

serv

ices

2005 2010

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2004

2005

2006

2007

2008

2009

2010

Retail leased lines (discrete)Other MDNSIP VPN

Total data market revenues 2005 & 2010

RSA revenues from MDNS and retail leased lines

22

Revenue Growth – Strict Acquisition Strategy

Capturing the ICT Value Chain in South Africa

Geographic Expansion

• Opportunities individually assessed:

– WACC + 3%• Increasing with risk factors

– Extensive due diligence• Legal• Financial• Commercial

Telkom will establish asset’s fair value – and not pay more

• Focus on target areas with:

– High populations

– High potential penetration

– Fixed line, Mobile and Data Licenses

Key Progress

24

• Broadband Access

• WAN and LAN Services

• Voice over IP (VoIP)

• Content and Video

• Convergence collaboration

• International Wholesale

• National Wholesale

• Enhanced Voice and Messaging Services

• Personalised Services

• Fixed Mobile Convergence

• Billing Convergence

• Essential Facilities - EC Act

Key NGN Enabled Products and Services

Each product developed according to market demand, competitive drivers and internal financial criteria

25

Large Corporate Customers’ Voice – Defend and Grow

• Strategic Objectives

– Volume and term value based pricing plans and bundles– Unique value propositions to each sub-segment portfolio– Extensive R&D focus on NGN products– Integrate Legacy & NGN products - hybrid solution

Strategic Competitive Advantage for Core Market

26

Retail Customers’ Voice – Defend and Grow• Telkom Closer

– 200,000 customers end October 2006– Enhanced with per second billing on Mobile

1 November 2006– Bundles with DSL to improve value prop

• SupremeCall– 2,227 business accounts end October 2006– Discounted preferential rates and true per

second billing

• Bundled packages– Term and volume discount plans targeted at

large business customers

Exploit the need for fixed lines with bundles

like Telkom Closer and SupremeCall

27

To remain the leading Broadband provider in South Africa

Broadband - Strategic Objectives for Retail Market

• Differentiate on quality and speed

• Develop innovative pricing and bundling options – reduce barrier to entry – increase value proposition rather than reducing price

• Bundling of broadband access – provide lifestyle solutions

• Aggressive communication– educate, create top of mind awareness and demand

• Improve customer experience and satisfaction– “gateway to the broadband experience”

28

2011 Broadband Vision

Up to 4Meg

Today

Legacy TDM network

Stand alone access, voice and internet value propositions

Limited content

Complex installation

Up to 10Meg

3rd Generation IP network

Integrated communication and entertainment

Interactive IPTV and HDTV• “Better than” content strategy

Simplicity of use – plug and play broadband in a box

2011

ADSL – 6% penetration of fixed access lines

ADSL – 15-20% penetration of fixed access lines

29

Broadband Portal

30

WiMAX - Fixed Broadband Wireless Access

• Complimentary to the DSL footprint in peri-urban and ruralareas (DSL “Up to 512 kbps” look-alike)

• High speed Internet access

• Backhaul from T-Zone Hot Spots

• Access to VPN services

• Access for special events

• Best effort Leased Line replacement

• Campus environment customer specific solutions

31

VPN Supreme – Unit Growth

• 355% unit growth over the past 18 months

• Expected growth to continue in 2007 / 2008

• Fully managed solution

• Availability SLA

• Performance SLA

• Managed Services Portal (MSP) – Live online reporting

• Monthly performance reports

• Only IP-VPN product in South Africa to be QoS Certified by Cisco Systems

18 Months Growth since March 05

4,846

7,336

4,143

2,625

1,382

1,554

4,467

6,716

3,457

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Sites

Apr

-05

Jun-

05

Aug-

05

Oct

-05

Dec

-05

Feb-

06

Apr

-06

Jun-

06

Aug-

06

Cus

tom

er e

nd p

oint

s

32

Acquisition progress

BCX (South Africa)

•Offer to acquire entire share capital for R2.4bn (~US$339m)

•Brings significant IT skills and strong client base

•Referred to Competition Commission and the Competition Tribunal

•Fulfilment of conditions by 31st May 2007 (extended from 15 March 2007)

Africa Online(Kenya)

•Acquired Africa Online for a total cost of R125m (US$20.1m)

•An Internet Services Provider in Kenya, Tanzania, Uganda, Ghana, Cote d’Ivoire, Namibia, Swaziland, Zambia and Zimbabwe

•Widening Telkom’s footprint to East; West and Southern Africa

•John Joseph appointed CEO

33

Expanding Revenue - Acquisitions

Multi-Links

•Acquired 75% for R1.8bn (US$280m)

•Unified Access licence enabling countrywide provision of fixed; mobile; other data services, long-distance and international services

•Has coverage in 4 major cities including Lagos, and launching Abuja in April

•162,000 subscribers; 380,000 current capacity; and 1500km of fibre optic cable

•Justin Ramayia appointed CEO

Other Opportunities

•Focus on Algeria, Ghana, Kenya, Uganda, Botswana, DRC and Angola

•Convergence opportunities locally and globally

•Commercial agreements for technology utilisation

Conclusions

35

Protect Current Revenue Streams Pursuing New Growth Opportunities

• NGN is the enabler to grow new wave products and enter new markets

• BT Case Study (11 October 2006)

– New wave turnover 38.1%

– Generates 32% of turnover

– New wave is 2.6 x decline in traditional revenues

• Vigorously defend the traditional revenues with value based calling plans and bundles

Defend the old – Grow the new

36

Predicted “NGN-ised” services by 2011

• Based on planned Capex programme– New Service Growth– Migration of Legacy Services (Data and partial Voice )

0%

5%

10%

15%

20%

25%

30%

35%

2006 2007 2008 2009 2010 2011

37

Time2006 2010/20112007/2008

Significant Voice Service Migration - Telkom

PSTN

VoIP

Portability & nomadicity

Next generation

voice

0

0

38

2006 2010/20112007/2008

Significant Data Service Migration - Telkom

Diginet

ATM

Ethernet

DSL

FR

0

WiMAX 0

Time

Investor Relations:Nicola WhiteTel: +27 12 311 5720Fax: +27 12 311 5721E-Mail: whitenh@telkom.co.za