Frank Hermans Business Development Multimedia & Systems Integration The New Individual TV Experience

Ericsson TV market segments (incl.Tandberg) SATELLITE CABLE IPTV TELCO C&D* TERRESTRIAL PROGRAMMER BROADCASTER * Contribution and Distribution MaltaCom

Nearly 2,000 global customers

TV Industry Trends

Digital TV evolution – 3 phases Ericsson’s Vision is about the New Individual TV Experience Digital TVolution New Individual TV Experience 1 st Generation IPTV (Me too TV)

The Vision

IPTV Leaders and Differentiation Source: Ericsson Consumer Lab Nov 2007, based on studies in Sweden, UK and HongKong IPTV – the only efficient way for differentiated TV services Effect Differentiators Content & channel offering Subscribers can book movie tickets, from Now shop channel, order food, control subscription using their TV remote, restrict access using parental control, and offer a stock service Exclusive content offering Offers digital recording and ‘Time Control’ feature (digital recorder with 160 GB storage space) in high definition Offering more for less. Extremely rich feature set compared to the market. Innovative services incl. ’TV Perso’ (UGC) Very targeted advertizing & promotions strategy. NFL Network Game – 4 camera angles plus Chat, Game Statistics, Highlights and More Widgets, photos, slideshows, weather PCCW ended 2007 with 882 thousand IPTV subscribers up from 758 thousand at the end of 2006. PCCW's IPTV ARPU grew from $18US at the end of 2006 to $US26 at the end of 2007. * Orange estimated it acquired 20% of its IP TV subs because of its exclusive content offering in 2005/2006. Free is the leading IPTV operator in the Europe. 168 million videos had been viewed on TV Perso since Dec 07 Verizon has been adding 2,200 net subs per day (Q2 2007). 750 per day more than in Q4 2006. 1.5 million subscribers had access to NFL Network Game Extra 100 + 150 1 000 VoD films à la carte 110 pay & 21 FTA channels 200 channels VoD: 2,500 films, 5000 programs 300 channels 2,300 on-demand titles incl. Free films

Subscribers can book movie tickets, from Now shop channel, order food, control subscription using their TV remote, restrict access using parental control, and offer a stock service

Exclusive content offering

Offers digital recording and ‘Time Control’ feature (digital recorder with 160 GB storage space) in high definition

Offering more for less. Extremely rich feature set compared to the market.

Innovative services incl. ’TV Perso’ (UGC)

Very targeted advertizing & promotions strategy.

NFL Network Game – 4 camera angles plus Chat, Game Statistics, Highlights and More

Widgets, photos, slideshows, weather

PCCW ended 2007 with 882 thousand IPTV subscribers up from 758 thousand at the end of 2006.

PCCW's IPTV ARPU grew from $18US at the end of 2006 to $US26 at the end of 2007. *

Orange estimated it acquired 20% of its IP TV subs because of its exclusive content offering in 2005/2006.

Free is the leading IPTV operator in the Europe.

168 million videos had been viewed on TV Perso since Dec 07

Verizon has been adding 2,200 net subs per day (Q2 2007). 750 per day more than in Q4 2006.

1.5 million subscribers had access to NFL Network Game Extra

100 + 150

1 000 VoD films

à la carte

110 pay & 21 FTA channels

200 channels

VoD: 2,500 films, 5000 programs

300 channels

2,300 on-demand titles incl. Free films

Ericsson TV - Deployment 15 of Top 20 IPTV & Over 200 Operators use Ericsson for TV 85% of the US cable operators use Openstream VoD Middleware 225+ Head End Contracts with 15K+ IPTV channels 12+ End-to-End IPTV Contracts 60+ Mobile TV End-to-End >48 Use Ericsson Access 4 Top Tier 1 Telcos with Ericsson GPON/VDSL2 Access 5 of 10 largest IPTV deployments use Ericsson IP Optical Platform for IPTV

TV - Ecosystem IP Set-top Boxes DRM BSS/OSS TV center GSDC Professional services, SI, Advice, BC, CS QoE Monitoring Browser Gaming Content Home Gateways IPTV Middleware IPTV Head End Asset Management Ad-Insert Workflow AdPoint MediaPath AMS WatchPoint Ericsson Multi-Mediation Ericsson Multi-Activation OSS-RC VoD

End-User Features HD Broadcast TV Time Shift TV Re-start TV Catch Up TV Local PVR Network PVR (user and operator based) Hybrid PVR HD Video on Demand Pay-Per-View EPG and mini-EPG Picture in Picture Picture in EPG Common Search (Broadcast and VoD) Multi language choice Standard services Presence Instant messaging Communication services

HD Broadcast TV

Time Shift TV

Re-start TV

Catch Up TV

Local PVR

Network PVR (user and operator based)

Hybrid PVR

HD Video on Demand

Pay-Per-View

EPG and mini-EPG

Picture in Picture

Picture in EPG

Common Search (Broadcast and VoD)

Multi language choice

Presence

Instant messaging

End-User Features What’s on TV Extended parental control via mobile Broadcast reminder and initiate recording via mobile Mobile Controlled services Weather info on TV (Accuweather) Traffic info on TV (Walled garden internet) News RSS feeds Web Information services* Screen savers (Accedo Broadband) Multi-player gaming (Accedo Broadband) Access pictures stored on internet (Flickr) Entertainment services* Remotely upload content from mobile to Home Server / TV Remotely stream / download content on mobile from Home Server Connected Home services* * Not Commercial in 2008

What’s on TV

Extended parental control via mobile

Broadcast reminder and initiate recording via mobile

Weather info on TV (Accuweather)

Traffic info on TV (Walled garden internet)

News RSS feeds

Screen savers (Accedo Broadband)

Multi-player gaming (Accedo Broadband)

Access pictures stored on internet (Flickr)

Remotely upload content from mobile to Home Server / TV

Remotely stream / download content on mobile from Home Server

Operator & System Features Multi-content provider support Hybrid DVB-T / IP support Fault Management Support Configuration Management Support Common EPG Server for Mobile TV / IPTV Integration ready for VoD Ad Insertion System Characteristics SDK for TV Portal customization SDK for Application Integration SDK for Backoffice Integration Integration ready for VoD Ad Insertion Integration ready for Content Ingestion Integration ready for multiple VoD vendors Customization and Integration Open APIs Align with Open IPTV Forum architecture Pre-integration and verification of e2e IPTV Solution for both IMS and non-IMS configuration Interfaces & Standards

Multi-content provider support

Hybrid DVB-T / IP support

Fault Management Support

Configuration Management Support

Common EPG Server for Mobile TV / IPTV

Integration ready for VoD Ad Insertion

SDK for TV Portal customization

SDK for Application Integration

SDK for Backoffice Integration

Integration ready for VoD Ad Insertion

Integration ready for Content Ingestion

Integration ready for multiple VoD vendors

Open APIs

Align with Open IPTV Forum architecture

Pre-integration and verification of e2e IPTV Solution for both IMS and non-IMS configuration

Standardization a success factor for IPTV mass market Standardization landscape fragmentation Market dominated by proprietary solutions Interoperable specifications needed to establish IPTV market growth Open IPTV Forum works towards an interoperable IPTV solution IPTV CPE - Home Devices IMS - Control Layer e2e Service Layer Transport

Standardization landscape fragmentation

Market dominated by proprietary solutions

Interoperable specifications needed to establish IPTV market growth

Open IPTV Forum works towards an interoperable IPTV solution

Operators CE vendors Network vendors Set-top box Middle Ware/other 37 strong members today, and growing

Strong track record of Firsts in television technology And in 2008, we are First with IMS IPTV!

Comcast – On-demand advertising Largest cable MSO with over 24 million subscribers Free on-demand content (95% of total) supported by advertising AdPoint ® Advanced Advertising Platform enables daily updating of ads and geographic targeting OpenStream running VOD back office 70% of Comcast's digital subscribers watching On Demand monthly. VoD, and it is rapidly approaching 6.5 billion views since launching the service in 2003 Largest VoD deployment in the world Customer/offering Solution Benefits

Largest cable MSO with over 24 million subscribers

Free on-demand content (95% of total) supported by advertising

AdPoint ® Advanced Advertising Platform enables daily updating of ads and geographic targeting

OpenStream running VOD back office

70% of Comcast's digital subscribers watching On Demand monthly.

VoD, and it is rapidly approaching 6.5 billion views since launching the service in 2003

Customer Case : End to end IPTV Strong competition from a number of new alternative & mobile operators FMS offering of Vodafone Greece, WIND & Tellas Triple play offerings by ON Telecoms & Vivodi – flat rate unlimited calls Full Service Broadband Vision with Ericsson Full Service Layer and Network Layer End to End Integration with 3 rd party Speed and Customization of delivery Risk Sharing with Ericsson Path to Personalized Television Challenges Solution Benefits

Strong competition from a number of new alternative & mobile operators

FMS offering of Vodafone Greece, WIND & Tellas

Triple play offerings by ON Telecoms & Vivodi – flat rate unlimited calls

Full Service Broadband Vision with Ericsson

Full Service Layer and Network Layer

End to End Integration with 3 rd party

Speed and Customization of delivery

Risk Sharing with Ericsson

Path to Personalized Television

Customer Case : End to end IPTV 2nd largest operator in Iceland Front edge technology market IPTV bundled with broadband access and voice 70 SD Channels and 2 HD Channels Commercial launch December 2007 Attractive User Interface design Flexibility of EPG Innovative features: Vertical & Horizontal EPG Mini EPG menu Favourite channels with personalised UI Competitors do not have such flexibility of EPG Customer Offering Benefits - User Interface Preference Background

2nd largest operator in Iceland

Front edge technology market

IPTV bundled with broadband access and voice

70 SD Channels and 2 HD Channels

Commercial launch December 2007

Attractive User Interface design

Flexibility of EPG

Innovative features:

Vertical & Horizontal EPG

Mini EPG menu

Favourite channels with personalised UI

Competitors do not have such flexibility of EPG

IPTV Ecosystem for all strategic solution elements Lead the introduction of a new TV experience Open value chain leveraging open standards Service creativity & business cooperation Architectural flexibility enabling cost-effective growth IPTV Succes factors