New Media Platforms and Sports Right

1. New Media Platforms and Sports Right Introduction of Latest new media April 2006 Eclat Entertainment Inc.

2. AGENDA • New Media Platforms • Sports Broadcasting Business in Korea • Media Platform Market Data • Media Platform • License Spillover due to Device Convergence • Mobile • IP-TV • DMB • Wireless Broadband • HSDPA New Media Platforms and Sports Right

3. Service Operator Platform mobility Static Mobile Phone enable TV TV Broadcaster T-DMB Free CableSatelliteIPTV Charged Radio T-DMB Terrestrial Radio Free Satellite Radio Charged Internet Radio Mobile Telecom (WAP,ME,JAVA) Charged S-DMB/HSDPA Internet Various Internet Site Wibro Free 1. New Media Platforms New Media Platforms and Sports Right

4. 2. Sports Broadcasting Business in Korea • Available platforms in Korea New Media Platforms and Sports Right

5. TV (Unit: 1,000 Household) Satellite Terrestrial Cable 16,300 15,450 14,400 13,300 • Source: South Korea Key Statistics Telecom Market Overview and Analysis • Total number of household : 17,000,000 • Terrestrial is estimated number and 3 million households plus to cable subscribers are watching by terrestrial wave 12,450 11,400 2,140 1,510 1,030 Mobile & Internet (Unit: 1,000 people) Mobile Internet 38,732 36,220 33,592 32,570 31,580 • Source: Ministry of Information and Communication • Popularizing rate of total population Mobile : 79 % Internet : 72% 29,220 3. Media Platform Market Data • Media platform subscribing data New Media Platforms and Sports Right

6. 4. Media Platform: Mobile • Mobile Users in Korea ※ source : MIC 2006.3 • 2005 Sports Contents on Mobile Platform New Media Platforms and Sports Right

7. 4. Media Platform: IP-TV • Introduction of IPTV in Korea • Launching is delayed due to legislative issues between Communications and Broadcasting laws • Only restricted services are allowed to launch ( Only VOD) • Prediction of IPTV users (Unit : 1,000 household) Assuming… • Widely available High speed Internet (VDSL) • IPTV Service launched by Mid-2006 • Free Set-top box supplied Year New Media Platforms and Sports Right

8. 4. Media Platform: DMB • Comparison between Satellite-DMBandTerrestrial-DMB Satellite-based DMB Terrestrial-based DMB Network : Satellite & Gap Fillers Network : Terrestrial network Frequency : 25 MHz Frequency : 60MHz (ch. 12), possible additional frequency :ch.8 and 10 Channel : Audio, Data and Video - 13 possible TV channels for 25MHz ex) for SKT DMB service - 11 Video channels - 25 audio channels - 3 data channels Channel : Audio, Data and Video - three blocks possible for one channel - Each block has 6 audio channels or one video, three audio and one data Advantage Advantage • Free Service - Commercial Advertisement • Smaller investment - 50 M USD per channel (nationwide) • Abundance of quality contents - operated by TV broadcasters • Marketed by Telco - Utilize Mobile phone users - Embedded in Mobile device • Various channels • Easily Expandable to nationwide Disadvantage Disadvantage • Limited marketing - difficult for device development and distribution • Strict regulation - simultaneous transmission prohibited • Limiting number of channels - Only five channels available • Charged service (Monthly fee $12/mo.) • Large-scale investment - 400 Million USD ~800 Million USD • Limited contents - Difficult for securing quality contents New Media Platforms and Sports Right

9. 4. Media Platform: DMB • Comparison between Terrestrial-DMB and Satellite-DMB New Media Platforms and Sports Right

10. 4. Media Platform: DMB • DMB Broadcasting in Korea New Media Platforms and Sports Right

11. “Wireless Broadband” • Maximize advantages of both, High mobility (60km/h) & high transfer speed(512Kbps~3Mpbs) - Seamless service • In mid-2006, Wireless Broadband (Wibro) will be commercialized in Korea. • Estimated 10 Million users by 2010 and will generate USD 15 B 4. Media Platform: Wireless Broadband • Positioning of Wibro Service WiFi Service Mobile Phone based Advantages Advantages • High Data Rate Range (11~54 Mbps) • Low subscription fee • High Mobility (More than 250km/h) • Wide Coverage Area (1 ~3 Km) More Speed More Mobility Disadvantages Disadvantages • Limited coverage area (Less than 100m) • Restricted mobility (Less than 4km/h) • Low Data Rate Range • (few hundred ~ 2 Mbps) • High subcription fee New Media Platforms and Sports Right

12. 4. Media Platform: HSDPA • Introduction of HSDPA • HSDPA (High speed downlink packet access) will be launched in Mid-2006 / Hand set will launch in June 2006 • Subscriber forecast : 50~100 million until Dec. 2006 (Source : Ministry of Information and Communication) • 2006 SKT coverage : 84 Cities / 2006 KTF coverage : 45 cities Available service: Real time broadcasting service 30 frame/s, Video phone service… • Plan of 2 Major Carriers • SKT : Wibro is complimentary of HSDPA. SKT will concentrate on HSDPA in 2006 • KTF : KTF will concentrate on Synergic service of KT’s Wibro and HSDPA New Media Platforms and Sports Right

13. 5. License Spillover due to Device Convergence • Devices convergence between Platforms Possible overlap between platforms. May cause possible conflicts between licensees. Do not segregate too much!!! New Media Platforms and Sports Right