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

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 satellite because 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? 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 YouTube sells to Google for $1.6 Billion

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 Future Innovation: 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 3 rd 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 3 rd 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.