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

2. Telekom Srpske Number of Subscribers: Fixed line: 355 Mobile: 1,344 Internet and Multimedia: 96 Group Total Number of Subscribers: Fixed line: 3,482 Mobile: 7,821 Internet and Multimedia: 672 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 User chooses which movie 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. Simultaneously recording one or more programs User defines the time, channel, length, frequency of recording Easily going through recorded material (pausing, rewinding forward/backwards in different speeds, jumping on content sections...) Completely new service on our market, also firstly introduced through Open IPTV offer nPVR

10. 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 between packages Defining more system users – parental locks EPG

11. Cable TV & IPTV market in Serbia

12. 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. “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 IPTV global forecasts

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

17. 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!