Telekom Srbija IPTV insights and perspectives

1. Telekom SrbijaIPTV insights and perspectives New Media Summit, Digital Agenda Belgrade, September 2011

2. Group Total Number of Subscribers: Fixed line: 3,482 Mobile: 7,821 Internet and Multimedia: 672 Telekom Srpske Number of Subscribers: Fixed line: 355 Mobile: 1,344 Internet and Multimedia: 96 Telekom Srbija Number of Subscribers: Fixed line: 3,037 Mobile: 5,916 Internet and Multimedia: 576 m:tel Number of Subscribers: Fixed line: 9 Mobile: 561

3. Introduction • Open IPTV (Internet Protocol Television) group of interactive multimedia services, which consists of several basic services, like: Live TV package, VoD service /Video on Demand/, sVoD /subscription Video on Demand/, nPVR /network Personal Video Recorder/, EPG /Electronic Program Guide/ and other. • Introduced at Serbian market at 2008, as a first IPTV operator in our territory. • Gives high level of QoS – Quality of Service and QoE – Quality of Experience, compared to standard terrestrial and cable television.

4. Open IPTV • Introduced in Oct. 2008; • First IPTV operator in the country. • At the moment, 152 TV channels (foreign, national, regional, local TVs, with different kind of content – sports, music, movie, documentaries, news...) and 8 radio channels (national stations). • Video on Demand library consists over 600 titles in every moment. • Several packages in Live TV; Basic, Fun, Arena, Pink Cinema, HBO with HBO On Demand, Cinemax, Adult, and from Nov 2010, HD package. • Radio channels are in Basic package, and we covered the most popular stations in country (Radio S, Roadstar, B92, AS, RTS all three programs). • From just a few thousands at the end of 2008, today we have over 105.000 subs, so Telekom Srbija in short period of time became one of top 3 operators in the market.

5. Open IPTV also in Bosnia and Herzegovina • Introduced in May 2010; • Consists of three services: Live TV package, VoD and EPG • At the moment 60 TV channels • Video on Demand library consists over several hundred titles in every moment. • Comparative advantage on the BiH market: HBO and Arena Sport package • Future plans: more local content especially TV channels and introducing HDTV package

6. Open IPTV services • Live TV package /TV and radio stations/ • Video on demand / subscription Video on Demand • Electronic Program Guide • nPVR • Others to be introduced

7. live TV • Number of channels in the offer theoretically can be unlimited – high scalability and flexibility • Detailed statistics of channels viewing by users • Possibility of direct marketing – personalized marketing content based on the interest of viewers • National televisions can broadcast local advertising content • Marketing more focused on the viewer itself, with more feedback information from the viewers

8. VoD/sVoD • Electronic video store • Userchooseswhichmovie or other content (series, tv shows, concerts, documentary...) wants to see • Content can be viewed several times in 24 hours in case of VoD. In case of sVoD, content can be viewed numerous times in defined period /weekly, monthly/ as long as it stands continuously in offer. • Database search by name, genre, actor, director... • Completely new service on our market, first introduced in Open IPTV offer.

9. nPVR • Simultaneously recording one or more programs • User defines the time, channel, length, frequency of recording • Easily going through recorded material (pausing, rewindingforward/backwardsin different speeds, jumping on content sections...) • Completely new service on our market, also firstly introduced through Open IPTV offer

10. EPG • Electronic Programming Guide • Overview of current program scheme • Detailed information about programs and shows • Browsing the programs on different criteria (sport, music, movie ...) • Personalization (of your own list of channels ...) • Locking and hiding certain channels from the package • Easy changing betweenpackages • Defining more system users – parental locks

11. Cable TV & IPTVmarket in Serbia

12. Cable TV & IPTVmarket in Serbia Source: RATEL

13. IPTV service key issues • Content as key factor for IPTV success • “Try and buy” campaigns for overriding technologically barrier for customer acquisition • IPTV as revenue generation stream

14. Latest development • Acquisition of Arena sport • Web and Mobile TV

15. IPTV global forecasts • “Global subscribers of IPTV services delivered by wireline communication service provider reached 36 million in 2010, and are forecast to grow to 74 million by the end of 2014. • 9,2 % of world, noncable, consumer-fixed broadband households in 2010” • Source: Gartner Inc

16. Telekom Srbija IPTV perspectives • Premium content • Bundling of IPTV with other services • Increase number of TV channels and Video on Demand content, and further development of Pay-TV

17. Telekom Srbija IPTV perspectives • Digital advertising and marketing solutions • IPTV will be a major retention tool in DSL market • Sufficient bandwidth for reliable, high quality content • Switch from analog to digital TV broadcast • "three-screen strategy”

18. Thank you!