1. Mobile TV Mike Short Vice President, Research & Development - Group Technology, O2 plc mike.short@o2.com

2. Transmission network End-to-end system Content Research data Identify/recruit 375 customers who reside and roam in trial area Supply handsets Provide customer care Research data ARQIVA O2 Roles of Arqiva and O2 Commercial Confidential

3. Korea – Commercial Service –300K subscribers forecast to grow to 6.6M by 2010 – TU Media USA –Spectrum allocated for two networks - commercial services in 2006 Italy –Commercial service 2007, TIM and Mediaset Finland –License tender issued by Finnish Government to be awarded in early 2006 Worldwide Developments Commercial Confidential

4. Pre-Trial research showed strong consumer interest - 56% said good/really good idea 23% said they would take up service within 12 months Mobile phones are no longer just phones –Creating content - cameras –Being entertained – games, music, tv –Multimedia devices UK market for mobile content was £600m (2005) Global Interest – evidenced by many trials worldwide and commercial service announcements (20+) By 2010 there will be 3 billion users of mobile devices and a good proportion with TV viewers [125millions (Informa); 250millions (ABI)] Why trial Mobile Broadcast TV?

5. Recruitment Network Build Testing Trial Triallist rollout 29/30 th Sept Launch event 22 nd Sept Testing & recruitment began 5 th Sept Mid-term update early 2006 Trial end Spring 2006 Results Spring 2006 Analysis Began May Timeline – Mid-term update

6. One or Two-way radio Media Rich Interactive Services –Web-links –Interactive content –Mobile Commerce Regional Services or Targetted Advertising More than 16 channels or made for mobile content Advanced features such as Catch-up TV and See Me TV But … we also knew what the cellular demand was This could all add up to a Personal TV experience What we couldnt trial

7. Participating channels

8. Usage of service –Where, when, how often, how long TV services appeal & acceptance –Number & type of channels Adequacy of the trial services –Quality (picture and sound), reliability, coverage, enhancements Take-up intentions –Likelihood and any barriers Value and payment preferences –Explore subscription/pay as you go/pay per view etc Market research

9. Current TV Service Received of Triallists Commercial Confidential

10. Usage Levels – How Much (%) Weekly Viewing Over 3 hours per week Viewing Durations Average 23 minutes per session Wide range of viewing durations Includes short and long-form programmes *How long on average do you watch the mobile tv service at any one time?

11. Usage Levels – Where (%) *Q Where do you use the service most often (%)?

12. Usage Levels – Time of Day 9am 6 pm *Q When do you use the service most often?

13. Usage Levels – Time of Day Viewing Peaks Breakfast/Morning Commute Lunchtime Early Evening *At what time of day do you watch the mobile tv service most often?

14. Category Champions (%) 16 channel line-up Proving very popular Evidenced by 83% satisfaction level Channel Branding Important Made for Mobile content needs more development Most Popular Genres News, Soaps, Music, Docs, Sports Lunchbreak - favourite daytime soaps

15. Other Feedback High Satisfaction Levels 83% satisfied or better with the service Satisfaction Drivers Choice of channels High Picture and Sound Quality Electronic Services Guide (ESG) High Take-up Intentions 76% of triallists would take up service within 12 months at an acceptable price This demonstrates that the majority of triallists are prepared to pay for a service

16. Other Feedback Consumers also interested in: Digital radio channels PVR type functionality Interactive services Web links to broadcaster/other content Number of Channels 16 channels is felt to be adequate choice

17. Next Steps Trial Results Release more results as the trial progresses Government Keep Government informed of our findings Make spectrum issues clear to Government Delivery partnership Explore collaborative UK cross-industry co-operation

18. Conclusions High satisfaction and clear consumer demand Home usage has exceeded our expectations Channel choice is a clear driver of usage Today channel brands offer the strongest category champions Mobile TV alone does not convey the demand we have seen in Oxford so far Personal TV will take us beyond broadcasting as we know it today