Examining Broadband Services’
                            Services’
         Future Potential in Asia




                                                        Carriers World
                                   Anke Gill, VP of Marketing, BNS Ltd
                                                         17 March 2009




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    BNS Ltd, all rights reserved
BNS Ltd: Industry-leading IPTV-based
  Content & Technology Solutions




Part ofBNS Ltd, all rights Exchange-listed Auston International Group Pte Ltd
     © Singapore
                           reserved
Broadband in Asia
• Asia-Pacific is contributing the greatest increase to consumer
  broadband penetration worldwide. Source: Point Topic
• More than 40 million individuals, businesses and families in
  Asia will begin using broadband internet connections this year
• By the end of 2013, one third of Asia-Pacific households will
  have broadband.
• 31.5% growth is forecasted for the region overall from 129.7
  million subscribers 2007, to 171 million 2009. Source: Frost & Sullivan




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        BNS Ltd, all rights reserved
Access Technology Trends


     Technology                     Connection speed      Total WW
                                         limit           Connections
     DSL                                40 Mb/sec          65%
     technologies


     Cable Modems                       30Mb/sec           21%

     FTTx                           200 - 1,000 Mb/sec     12%



                                                           Source: Point Topic

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     BNS Ltd, all rights reserved
Asia Leads the World in FTTH

                                    Source: Point Topic




                                                          Asia-Pacific   SE Asia
                                                           43.50%        40.04%




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     BNS Ltd, all rights reserved
Market Drivers


 • The “Wild Web World” 2.0

 • Shift in entertainment
   consumption patterns

 • IPTV


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     BNS Ltd, all rights reserved
Market Drivers


 • The Digital Home


 • Housing Density in Asia


 • Clear public policies



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     BNS Ltd, all rights reserved
Asia Leads Global Entertainment
Consumption

• Set to become the global leader in the online
  entertainment industry (In-Stat)

• Willingness to pay for it:




                                       Source: KPMG International, 2007


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     BNS Ltd, all rights reserved
Example 1: Japan

      • More new FTTH/B subscribers than new DSL
        subscribers since April 2005

      • Nearly 60% of the 29 million broadband connections
        are via FFTx; 40% of residential broadband connections
        are via FTTH.

      • At 2Q08 total Broadband subscribers reached 29.33
        Million with DSL counting now less subscribers (12.29
        M) than FTTH/B

      • Attractive prices, closing the gap with ADSL tariffs

      • Average broadband speed of over 90 Mb/sec – 100
        Mb/sec are the norm.
      • Government’s proactive approach to FTTH deployments
        with a goal of 20 Million FTTH subscribers in 2010


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     BNS Ltd, all rights reserved
Example 2: Hong Kong Broadband
• HK BB as market challenger has launched FTTH to differentiate
  itself against incumbent PCCW
• Set to expand its network from 1.4m to 2m homes by 2010
  (90% of HK SAR population)
• Objective is to “Commoditize” bandwidth, i.e make its 25-100
  Mbps the mass market industry standard for HK
• A 1 Gbps offer was launched in April 2005 and is available
  throughout the network
• ARPU increased over 60% in 18 months, while churn rate was
  reduced to 1%
• HK BB took advantage of HK’s dense urban environment to
  deploy FTTB+Cat5e to guarantee future services and continue
  to differentiate itself in the market
(Source: iDate)

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      BNS Ltd, all rights reserved
Broadband Activities now…
• Downloading TV programs, watching online videos
  and making online phone calls posted the biggest
  year-to-year percent increase among adult Internet
  users in the U.S.
• Downloading a TV program in the previous 30 days
  has grown 141.4% YoY.
• The number of adults who watched online video
  increased by 35.4%
• Respondents who visited online blogs increased by
  17.0%, those who wrote a blog increased by 16.3%
     Source: Mediamark Research & Intelligence.




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     BNS Ltd, all rights reserved
…and in the future
• Convergence of the TV and
  online worlds
      – Web TV widgets (Yahoo!): showing
        Internet info like stock quotes,
        sports scores, photos from Flickr etc
        while watching TV


• Convergence of platforms
      – The need for add-on boxes is
        starting to disappear completely with
        HDTVs already beginning to absorb
        hard drives and Wi-Fi.
      – Intuitive applications that marry “the
        best of both worlds”
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     BNS Ltd, all rights reserved
For Example: Shopping on Demand
 • An amalgamation of all exiting home-
   shopping platforms into a new revenue
   generating on-demand shopping
   application
 • Easy integration with existing IPTV
   systems
 • Ideal for shopping, VoD, Karaoke, food
   delivery, education….
                                    $

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     BNS Ltd, all rights reserved
IPTV 3.0 Example: Platform and Content convergence with
BNS Touch & The Wiz
 Online service and entertainment system that marries the familiarity of
        printed catalogues with the information-rich online world

• Comprises a pen-like device which connects to the IPTV
  STB for seamless connectivity between printed
  catalogues and online information
• The pen reads invisible dot-code printing and triggers
  information on the TV screen
• Applications: online shopping, food ordering, Karaoke,
  education, VoD selection…




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      BNS Ltd, all rights reserved
The Shape of Things to Come

 • More on-demand
 • More original web series
 • Ad-supported content
 • Free internet video interlaced with user-generated and
   commercial content
 • More personalized programming with share and interact
   options
 • Any content to be watchable on screens of any size at
   anytime.
 • Plus, Asia is set to become the global leader in the online
   entertainment industry (Source: In-Stat)
        These types of connections require high speed
        upload and download capability with a rich user
        experience.
        Operators should consider to future-proofing their
        networks

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     BNS Ltd, all rights reserved
Thank You




www.bnsltd.com
©
    BNS Ltd, all rights reserved

BNS: Broadband Future in Asia

  • 1.
    Examining Broadband Services’ Services’ Future Potential in Asia Carriers World Anke Gill, VP of Marketing, BNS Ltd 17 March 2009 © BNS Ltd, all rights reserved
  • 2.
    BNS Ltd: Industry-leadingIPTV-based Content & Technology Solutions Part ofBNS Ltd, all rights Exchange-listed Auston International Group Pte Ltd © Singapore reserved
  • 3.
    Broadband in Asia •Asia-Pacific is contributing the greatest increase to consumer broadband penetration worldwide. Source: Point Topic • More than 40 million individuals, businesses and families in Asia will begin using broadband internet connections this year • By the end of 2013, one third of Asia-Pacific households will have broadband. • 31.5% growth is forecasted for the region overall from 129.7 million subscribers 2007, to 171 million 2009. Source: Frost & Sullivan © BNS Ltd, all rights reserved
  • 4.
    Access Technology Trends Technology Connection speed Total WW limit Connections DSL 40 Mb/sec 65% technologies Cable Modems 30Mb/sec 21% FTTx 200 - 1,000 Mb/sec 12% Source: Point Topic © BNS Ltd, all rights reserved
  • 5.
    Asia Leads theWorld in FTTH Source: Point Topic Asia-Pacific SE Asia 43.50% 40.04% © BNS Ltd, all rights reserved
  • 6.
    Market Drivers •The “Wild Web World” 2.0 • Shift in entertainment consumption patterns • IPTV © BNS Ltd, all rights reserved
  • 7.
    Market Drivers •The Digital Home • Housing Density in Asia • Clear public policies © BNS Ltd, all rights reserved
  • 8.
    Asia Leads GlobalEntertainment Consumption • Set to become the global leader in the online entertainment industry (In-Stat) • Willingness to pay for it: Source: KPMG International, 2007 © BNS Ltd, all rights reserved
  • 9.
    Example 1: Japan • More new FTTH/B subscribers than new DSL subscribers since April 2005 • Nearly 60% of the 29 million broadband connections are via FFTx; 40% of residential broadband connections are via FTTH. • At 2Q08 total Broadband subscribers reached 29.33 Million with DSL counting now less subscribers (12.29 M) than FTTH/B • Attractive prices, closing the gap with ADSL tariffs • Average broadband speed of over 90 Mb/sec – 100 Mb/sec are the norm. • Government’s proactive approach to FTTH deployments with a goal of 20 Million FTTH subscribers in 2010 © BNS Ltd, all rights reserved
  • 10.
    Example 2: HongKong Broadband • HK BB as market challenger has launched FTTH to differentiate itself against incumbent PCCW • Set to expand its network from 1.4m to 2m homes by 2010 (90% of HK SAR population) • Objective is to “Commoditize” bandwidth, i.e make its 25-100 Mbps the mass market industry standard for HK • A 1 Gbps offer was launched in April 2005 and is available throughout the network • ARPU increased over 60% in 18 months, while churn rate was reduced to 1% • HK BB took advantage of HK’s dense urban environment to deploy FTTB+Cat5e to guarantee future services and continue to differentiate itself in the market (Source: iDate) © BNS Ltd, all rights reserved
  • 11.
    Broadband Activities now… •Downloading TV programs, watching online videos and making online phone calls posted the biggest year-to-year percent increase among adult Internet users in the U.S. • Downloading a TV program in the previous 30 days has grown 141.4% YoY. • The number of adults who watched online video increased by 35.4% • Respondents who visited online blogs increased by 17.0%, those who wrote a blog increased by 16.3% Source: Mediamark Research & Intelligence. © BNS Ltd, all rights reserved
  • 12.
    …and in thefuture • Convergence of the TV and online worlds – Web TV widgets (Yahoo!): showing Internet info like stock quotes, sports scores, photos from Flickr etc while watching TV • Convergence of platforms – The need for add-on boxes is starting to disappear completely with HDTVs already beginning to absorb hard drives and Wi-Fi. – Intuitive applications that marry “the best of both worlds” © BNS Ltd, all rights reserved
  • 13.
    For Example: Shoppingon Demand • An amalgamation of all exiting home- shopping platforms into a new revenue generating on-demand shopping application • Easy integration with existing IPTV systems • Ideal for shopping, VoD, Karaoke, food delivery, education…. $ © BNS Ltd, all rights reserved
  • 14.
    IPTV 3.0 Example:Platform and Content convergence with BNS Touch & The Wiz Online service and entertainment system that marries the familiarity of printed catalogues with the information-rich online world • Comprises a pen-like device which connects to the IPTV STB for seamless connectivity between printed catalogues and online information • The pen reads invisible dot-code printing and triggers information on the TV screen • Applications: online shopping, food ordering, Karaoke, education, VoD selection… © BNS Ltd, all rights reserved
  • 15.
    The Shape ofThings to Come • More on-demand • More original web series • Ad-supported content • Free internet video interlaced with user-generated and commercial content • More personalized programming with share and interact options • Any content to be watchable on screens of any size at anytime. • Plus, Asia is set to become the global leader in the online entertainment industry (Source: In-Stat) These types of connections require high speed upload and download capability with a rich user experience. Operators should consider to future-proofing their networks © BNS Ltd, all rights reserved
  • 16.
    Thank You www.bnsltd.com © BNS Ltd, all rights reserved