DVB-T is a technical standard for digital terrestrial television broadcasting that specifies framing, channel coding, and modulation. It is used in over 40 countries with nearly 200 million receivers sold, mostly in Europe. Benefits of DVB-T include better quality TV, improved population coverage, spectrum efficiency allowing more channels, and enabling HDTV and reception on mobile devices. Key issues in deploying DVB-T networks include establishing appropriate legal and regulatory frameworks, network planning, and content distribution infrastructure.

2. DVB-T is a technical standard, developed by the DVB Project, that specifies the framing structure, channel coding
and modulation for digital terrestrial television (DTT) broadcasting. DVB-T services are on air in more than 40
countries and nearly 200 million receivers have been sold, of which 150 million in Europe alone*
History of the standard:
1997 - First version was published
2009 – DVB-T2 specification was published
Benefits of DVB-T deployment:
• Better quality television service
• Enables better coverage of population in cost effective manner
• Spectrum efficiency (up to 10-12 programme** on one channel, instead of one by analogue)
• Enables HDTV
• Reception on mobile and portative devices (DVB-H)
• Organization of local programming
* DVB Fact Sheet - May 2010
* * Depends on the chosen modulation type and channels’ bit-rate.

3. Channels DTT DTT Pay TV
Distribution
and network platform operator
network
Content operator operator and retail

4. The following issues to be addressed
Legal issues:
• New broadcasting legislation needed - appropriate regulatory frameworks
• Piracy and rights’ acquisition
Technical issues:
• Broadcasting network planning
• Delivering of content to transmitters – distribution network (to carry HD)
Marketing issues:
• Content and products
• Right revenue generation model
• Appropriate pricing strategy
• Distribution channels

5. # Terrestrial Satellite Cable IPTV
Capacity 100 200 More than 300
Reach National wide National wide Dense urban Dense urban
Capex/Subscriber
Low; Low; High; High;
Convenience of bundling
Video/ Data Video/Data/Voice Video/ Data/Voice Video/ Data/Voice
Analog Globally phasing out Globally phased out Globally phasing out Not available
Unless Pay TV market has Lack of attractive
Providing quite large Providing ubiquitous FTTH
Time to market high penetration and offerings and other
subscriber base infrastructure
adopted DP capable DP
STB availability

6. Breakdown of customer base between DP
100%
90%
60.8
58.2 65.2
85.8 100.0
80%
91.0 84.1 100.0
70%
93.5
DTV
60% Pay TV
100.0
IPTV
50% 62.2 68.2
68.9 DTH
83.9
55.0 36.0
Cable
40% 55.9
11.0 DTT
2.7 3.0
6.0 7.8 ATT
30% 2.0 10.2
19.3 26.7 37.0 14.6 2.0
20% 36.5 75.0
14.0
4.1 58.6
18.4 53.2 42.9 43.9
10.8
10%
14.5 27.0 13.3
2.0 10.7 0.2
7.0 11.0 16.2 10.0 14.0
0% 1.1
0.0 0.0 0.0 0.0 1.8
0.0 0.0
UK Italy Spain France Germany Sweden Finland Denmark Netherlands

7. Country Launch Business model Operator Content HH (m) MP % of HH
18,700 73,2
Q4 2002 Free Freeview 50 FTA
(Q2 2010) (Q2 2010)
UK
50 FTA + 3 0,5 2,0
Q1 2004 Free+Pay TV Top Up TV
Packs/VoD (Q2 2010) (Q2 2010)
17,746 72,0
Q1 2004 Free Tivùsat 40 FTA
(Q2 2010) (Q2 2010)
Italy
3,3* 14,0
Q1 2006 Free+Pay TV Mediaset 4 FTA + VoD, PpV
(Q2 2010) (Q2 2010)
15, 3 89,3
Free TDT 30 FTA
(Q1 2010) (Q1 2010)
Spain Q4 2005
Gol TV, AXN, Canal 0,19 1,11
Free+Pay TV TDT Premium
Plus 2 (Q2 2010) (Q2 2010)
15,3 56,8
France Q1 2005 Free TNT 20 FTA
(Q1 2010) (Q1 2010)
4,2 11,3
Germany Q1 2003 Free 24 FTA
(Q3 2009) (Q3 2009)

8. Country Launch Business model Operator Content HH (mln) MP % of HH
Boxer 0,66 16,2
Sweden 1997 Free+Pay TV 8 FTA + 30 Pay TV
(Teracom) (Q4 2009) (Q4 2009)
PlusTV 0,25 10,0
Finland Q3 2006 Free+Pay TV 18 Pay TV
(Teracom) (Q4 2009) (Q4 2009)
Boxer 0,045 1,76
Denmark Q4 2009 Free+Pay TV 8 FTA + 30 Pay TV
(Teracom) (Q4 2009) (Q4 2009)
0,34 15,7
Norway Q4 2007 Free+Pay TV Riks TV 4 FTA + 18 Pay TV
(Q4 2009) (Q4 2009)
ZUUMtv 0,04 7,3
Estonia 2006 Free+Pay TV 5 FTA + 23 Pay TV
(Starman) (2008) (2008)
0,022 2,6
Latvia Q3 2009 Free+Pay TV Lattelcom 5 FTA + 38 Pay TV
(Q4 2009) (Q4 2009)
Digitenne 0,89 14,0
Netherlands 2010 Free+Pay TV 3 FTA + 20 Pay TV
(KPN) (Q3 2010) (Q3 2010)

9. Experience in DVB-T network deployment
Name Origin country
DTT network operator
Levira (Estonia)
Media Broadcast (Germany)
RTÉNL (Ireland)
Rohde & Schwarz Germany Elettronica Industriale (Italy)
Norkring (Norway)
KPN(Netherlands)
Teracom (Sweden)
Квант-Эфир Ukraine UDTVN (Ukraine)
Harris Corporation USA Arqiva (UK)
Grass Valley USA LVRTC (Latvia)
Broadcast Service Denmark (Denmark)
TDF Group (France )
NEC Corporation Japan
Arqiva (UK)
Digea (Greece)

10. Key points in transmitter’s selection:
• Operating cost efficiency — best-in-class power consumption
• The size of a transmitter
• Compact footprint
• Maintenance cost
• Fully compliant with regulations
Key considerations when picking out technology partner:
• Financial stability
• Commission and system deployment aid
• Support service availability
• Training facilities

11. Conax NDS Nagravision Irdeto
Country Operator Platform Country Operator Platform Country Operator Platform Country Operator Platform
Estonia ZUUMtv DTT Finland Canal Digital DTH Italy Mediaset DTT Spain TDT Premium DTT
Antenna
Hungary DTT France CanalSat DTH Spain TDT premium DTT Czech Skylink DTH
Hungária
Sky
Finland Plus TV DTT Germany DTH UK TopUp TV DTT UK BSkyB DTH
Deutschland
Latvia Lattelecom DTT Italy Sky Italia DTH France CanalSat DTH Middle East Orbit Showtime DTH
Sky
Lithuania TEO DTT Sweden Viasat DTH Germany DTH
Deutschland
Netherlands KPN DTT Turkey D-Smart DTH Poland Cyfra+ DTH
Norway Norkring DTT Spain ONO Cable Spain Digital+ DTH
Kabel
Finland Canal Digital DTH Germany Cable Turkey Digitürk DTH
Deutschland
Estonia Starman Cable Netherlands UPC Nederland Cable France Numéricâble Cable
Kabel
Latvia Baltkom Cable Poland Aster Cable Germany Cable
Deutschland
Turkey Turksat Cable Russia Sistema IPTV Netherlands UPC Nederland Cable
Germany T-Entertain IPTV Germany Arcor IPTV UK Virgin Media Cable

12. TV HH – 1.000.000
Penetration of Pay TV (% of HH) – 18.6 %
Market from delivery platform and business model perspective
900,000
814,000
800,000
700,000
600,000
500,000
500,000
Free
400,000 Pay TV
314,000
300,000
186,000
200,000 150,000
100,000 28,000 5,000
0 3,000 0 0 0
0
Terrestrial Satelitte Cable MMDS/MITRIS IPTV Overall

13. TV HH – 1.000.000
Penetration of DTV (% of HH) – 54.11 %
Market from delivery platform and broadcasting format perspective
600,000
503,000 541,000
500,000 459,000
400,000
314,000
300,000 Analogue
Digital
200,000 145,000
100,000
5,000 28,000 5,000
0 0 0 0
0
Terrestrial Satelitte Cable MMDS/MITRIS IPTV Overall
Market from business model and broadcasting format perspective
600,000 541,000
500,000
500,000 459,000
400,000
314,000
300,000 Analogue
Digital
200,000 145,000
100,000 41,000
0
Free Pay TV Overall

14. CAPEX – 12,000 mln. AZN
OPEX – 8,000 mln. AZN
Number of subscribers – 170,000
Generation of profit – As of 3 year