Bill Dodd President & COO HEAnet, Kilkenny, Ireland November 10, 2006

2. IPTV and the Triple Play: Challenges and Opportunities Bill Dodd President & COO HEAnet, Kilkenny, Ireland November 10, 2006

3. What is Internet Protocol TV (IPTV)? • Video delivered to a device using IP data packets as the transport stream • It is not TV delivered over the Internet in a manner similar to cable or satellitebecause it is a switched network • Point to point connection to the multicast source, whether it is using the public Internet or private fiber transport • Can be viewed on most any device capable of displaying a video signal • Can be a highly secure, operator controlled network – end to end

4. Why is IPTV Relevant? YouTube sells to Google for $1.6 Billion IPTV market emerging at very rapid pace • 72 million IPTV subscribers worldwide in 2010 - nearly 25 times the 2005 figure • Representing over $200B in market value at today’s cable multiples • Most all major worldwide telcos to deploy IPTV over next 12-36 months • Telcos must deliver on their promises to the investment community, which translates to a very big need for innovation

5. Many Approaches to Delivering IPTV • Public Internet or private fiber networks • TVs, Computers, PDAs, Cell Phones • Linear or VOD or both • Fiber or Satellite • MPEG-2 or MPEG-4 • STB choices • Many middleware choices • DRM/Encryption options

6. Service Provider Model

7. The Network

8. Student Housing Platform

9. The Promise of IPTV • More programming • Hundreds of channels from major content providers • More applications unrelated to entertainment • Healthcare • Education • Productivity enhancements • Switched network • Theoretically infinite channel capacity – both for linear and VOD offerings • A la carte in the near future • Get ready to Google your TV • Better picture quality • Digital from the head-end to the STB • Significantly lower costs for bundled IP services • Content encryption • DRM to the satisfaction of the studios

10. The Reality • Today - equal programming • Same as cable or satellite • Switched network • Promise not yet realized • Not enough content available . . . yet • Better picture quality • True for standard def • BUT, no HD available • Significantly lower costs for bundled IP services • BUT, RBOCs can (and will) subsidize pricing of traditional offerings • Content encryption • Still not much content available for IP-based transmission

11. Legal Overview • Types of Service Contracts • Bulk Agreements • Residents can opt to subscribe independently to other services and premium programming • Student Housing and Hotels typically Bulk Triple Play • Installation and equipment covered by owner • Hotels: exclusive voice/video/data for rooms and common areas • Right of Entry (“ROE”) Agreements • Typically includes exclusive marketing for life of contract • IPTV Programming Agreements • Need for Large Cooperative to be Competitive (i.e. NCTC) • VOD content agreement aggregation required as well

12. Business Overview - I • What you need to operate an IP based TV service • Network (long haul, last mile, in building) • Head-end • STBs • Middleware • DRM • Content • Buildings/Service Agreements • Customer Care And make it all work!!!!!!!!!!

13. Business Overview - II • What you need to be relevant and cost effective • Scale • Concentration of subscribers • Bundled offerings • Appropriately priced service agreements • Efficient hardware/software purchases • Effective and efficient network architecture • The right price for content • The right price for labor

14. Lessons Learned • It’s all about the bundle • Bandwidth, bandwidth, bandwidth • Computer illiteracy rates • Low demand for phone service • HD and multi-stream PVR quickly becoming must haves

15. Beyond the Triple Play:The Edge of the Future IP-based Controls Product

16. The FutureInnovation: Key to Extending the “Reach” of IPTV • A glimpse offered from the past • IPTV will ultimately use the public Internet for VOD and private IP networks for live and real time streaming of high quality video in an open architecture • PVRs more disruptive than you might imagine • IPTV’s future is far beyond that of just entertainment…healthcare, distance learning, logistics, security… • The applications that will drive IPTV usage is anyone’s guess and everyone’s opportunity

17. Thoughts/Questions • Meaningful deployment of real bandwidth is still a ways off • Will broadband-over-powerline (BPL) ever be relevant • Wireless multicasting very, very costly • IP applications will drive value – can’t just be a 3rd wire • Content is king – Hollywood quickly embracing IP delivery, but still far to go • When will TV quality video be available via the Internet in a usable fashion? • Keep your eye on WiFi/Cellular dual mode phones—The 3rd Screen • VOD business models will transform the economics of entertainment • Microsoft is coming – but when? And with what?

18. A Closing Thought “Technology is only one of many forces driving human history, and seldom the most important. . . . Technology only gives us tools. Human desires and institutions decide how we use them.” • Freeman Dyson, The Sun, The Genome and The Internet The real opportunity before Ireland is to discover, not determine, how humans and institutions desire for IPTV to be used.