X-Play Services: The Way to Consumers Heart Sofia April 19 th, 2006

Dates to Remember 2003 January. The formal beginning of the liberalization of the telecom market in Bulgaria October. The largest cable operator in Bulgaria is acquired by group of American investors. December. The first independent F/O network starts operation between Sofia & Plovdiv. CableTEL gets publicly presented as the new company & brand name September. CableTEL and few other alternative telecoms finally reach agreements to interconnect with the incumbent. November. Launch of CableTELs Triple Play service in Sofia. The NEW CABLE is born A complete alternative national F/O backbone network is completed in a joint project of CableTEL & Mtel Begins the consolidation of the cable industry after CableTEL acquires several operators 2006 March. A new terrestrial fiber link to the telecom hub of Frankfurt is launched by CableTEL offering IP & Voice access to the residential & business customers

The Bigger Picture Source: IDATE, 2005 Broadband density (subscribers par 100 inhabitants) 1. Broadband has become mass market TV over IP: a reality or not quite yet ? New internet competition! Source: Alcatel 2005

Whats next for cable & telecom operators ?

The NEW CABLE … Better, more personal, yet more sociable TV experience Bundled services – cheaper, simpler, more reliable Better TV Performance High-quality Towards HDTV Personal TV my my time finally made simple Community TV view together community-specific content

FACTS The Average Revenue per Subscriber (ARPU) for 3-play enabled networks is 40% higher on average compared with non-3play networks Cable in the US market is gaining market share from satellite operators for a first time in the last 10 years thanks to bundling Churn is reduced dramatically when more then one service is used by the customer The newly –acquired technological capabilities of the cable operators open to them the corporate business market for voice & data services The NEW CABLE … VOD in US US households (millions) My content Source : Forrester, technographics DVR in the US US households (millions) My time

The New Challengers – THE BATTLE FOR THE BUNDLE Fixed & Mobile telecoms are rushing to offer bundled data, voice & video services BUT: IP-TV is still in its infancy as a technology – QoS & costs are hard to control No expertise in content acquisitions Multimillion network upgrades required Bandwidth barriers to going HDTV Mobile content – a whole new format – unavailable and customers unwilling to pay for it Urban coverage National coverage Typically 18 channels Typically channels Access to home video libraries Remote PVR programming TV at home TV on the GO 3G DVB-H+ Discovery Immersion ADSL

CableTEL Company Facts The only alternative operator with sizable national access to the last mile: presence in 20 cities network coverage of over 600,000 households Broadband services in 10 cities - 256kbps to 2Mbps service plans providing direct internet access to Frankfurt and the major national IP peers Investment program worth over 100 million leva since km national optical infrastructure Metropolitan F/O networks in different stages of construction in 17 cities Carrier - class voice exchange with next-generation convergence capabilities In-house call centre 650 experienced employees throughout the country International management team Plans for consolidation of the last cable mile Direct terrestrial connectivity with Greece, Turkey, Romania and Macedonia Strategy for broad expansion in newly-liberalized telecom markets in the region

The backbone of the Bulgarian alternative telecom market

CableTELs product solutions for residential and corporate customers National Fiber Ring Internet Other Telecom Operators International Interconnect Global Switching Solution Residential triple Play Customers Business Customers VoIP TDM ADM Router Additional Data Services HFC Network FTTP PBX POTS FTTP

Products Customer type TelevisionInternetTelephonyCapacity / Hosting Residential Basic Cable TV Pay TV (Near) VOD TV Shopping / EPS Local Info Channels 24/7 Unlimited Access Server Online Gaming Webcam services Online bill check 1-2 lines with own numbering plan Local, National, International calls Conferencing МА N services IP Transit National leased lines International leased lines International transit circuits Broadcast video transfer Collocation Backup / Disaster Recovery services Dark Fiber Lease Wholesale voice/data services for operators Turn key infrastructure projects SOHO Basic Cable TV Pay TV (Near) VOD EPS 24/7 Internet access Integrated e-Fax + Online billcheck 2+ lines with one number Voice mail Unified Messaging Corporate Info TV Services Pay TV EPS Video conferencing Public TV services 24/7 Internet Integrated Fax + e- mail IP-VPN services Leased lines Unified number Audio text Services Centrex Call Centre Total messaging Product Portfolio

CableTEL vision for convergence of services Premiere of Triple play services in Bulgaria Cable TV – basic package and premium channels Broadband Symmetric Internet Access from 256kbs to 2Mbs Fixed telephony service, based on next generation convergence platform for IP & TDM signaling Value Added services CATV – prepaid digital packages, (near)on demand video applications, electronic programming guide (EPG), local information channels Internet – web hosting, servers, game servers, Р 2 Р, antivirus services, chat services Telephony – online bill check information ; online payment, call hold, call transfer, call waiting and call restraint; caller identification, specialized numbers for access to services; phone support for clients; fax number; voice mail, wireless applications

Bundle Advantages for customer and operators For the end user Telephone service – easy to use and without the need for new equipment Options for more than one fixed line, fax, etc. The best prices on the market. Attractive package price for the three services One bill, one operator, one contact point for support For the operator Platform for generating new income streams based on the existing infrastructure = better return Virus Marketing Effect Expanding the client base by telephone service offers Access to corporate clients as a new segment of the cable business Building loyalty and decreasing churn rate of customers Two-way connectivity with clients enables development of new services: teleshopping, interactive applications, games, stakes Closing the circle of communication services for household needs by one single operator Better understanding of the clients needs and interests = winning business

Thank you for your attention !