1. Future for next generation networks nad media services in Maceodnia Vladislav Bidikov, CTO, NEXT-EM

2. Telecommunication and Media Sectors Convergence: Implications for Policy Makers and Regulators 14-16 December, Skopje, Macedonia AGENDA Past … Past … Present … Present … The real situation in Macedonia The real situation in Macedonia What to (Providers, Regulators, Customers) do ??? What to (Providers, Regulators, Customers) do ??? Future … Future …

3. Telecommunication and Media Sectors Convergence: Implications for Policy Makers and Regulators 14-16 December, Skopje, Macedonia PAST Developing market Developing market Limited broadband Limited broadband Low speeds (avg. 64 – 2048 kbits/sec) Low speeds (avg. 64 – 2048 kbits/sec) Small market Small market Gray or no legislation Gray or no legislation Few big players few starters Few big players few starters High prices / low quality High prices / low quality

4. Telecommunication and Media Sectors Convergence: Implications for Policy Makers and Regulators 14-16 December, Skopje, Macedonia PRESENT Developing market Developing market Less limited broadband Less limited broadband Medium speeds (avg. 2-8 Mbit/s) Medium speeds (avg. 2-8 Mbit/s) Diversity of access technologies Diversity of access technologies Good legislation and regulation Good legislation and regulation No distinct difference between old and new players No distinct difference between old and new players Medium prices / Medium quality Medium prices / Medium quality

5. Telecommunication and Media Sectors Convergence: Implications for Policy Makers and Regulators 14-16 December, Skopje, Macedonia PRESENT (2) Market overview Market overview Single Play: PSTN, ISDN, WIFI, xDSL, CATV, GRPS, EDGE, 3G, WDSL, WIMAX, FTTH, FixedGSM … - every technology is well adapted and there is significant competition Single Play: PSTN, ISDN, WIFI, xDSL, CATV, GRPS, EDGE, 3G, WDSL, WIMAX, FTTH, FixedGSM … - every technology is well adapted and there is significant competition Double Play: Voice + Data (xDSL), CATV + Data (DOCSIS), Data + Voice (WiMAX) Double Play: Voice + Data (xDSL), CATV + Data (DOCSIS), Data + Voice (WiMAX) Triple play: Voice + Data + IPTV (xDSL), CATV + Data + Voice (DOCSIS/Packet cable) Triple play: Voice + Data + IPTV (xDSL), CATV + Data + Voice (DOCSIS/Packet cable) 4 - Play : ??? ??? 4 - Play : ??? ???

6. Telecommunication and Media Sectors Convergence: Implications for Policy Makers and Regulators 14-16 December, Skopje, Macedonia The real situation  Broadband which is capped Broadband which is capped After capacity is reached there are 2 options – pay for additional MB as you go or get “upgraded” to 64/64 or 32/32 After capacity is reached there are 2 options – pay for additional MB as you go or get “upgraded” to 64/64 or 32/32 Major service interruptions are never announced even if they are planed Major service interruptions are never announced even if they are planed Massive overselling of services Massive overselling of services Infrastructure is in bad shape Little on no cooperation between competing operators Legal setbacks (Civil engineering, unclear or long negotiations, …) Non-loyal competition Service saturation

7. What to do

8. Telecommunication and Media Sectors Convergence: Implications for Policy Makers and Regulators 14-16 December, Skopje, Macedonia CONVERGENCE! Upgrade and convergent the networks – find the best technology for NGNA Upgrade and convergent the networks – find the best technology for NGNA Improve customer satisfaction and care - the customer is the main asset for the operator Improve customer satisfaction and care - the customer is the main asset for the operator Increase service portfolio – bring multimedia everywhere Increase service portfolio – bring multimedia everywhere Choose the right moment Choose the right moment

9. Telecommunication and Media Sectors Convergence: Implications for Policy Makers and Regulators 14-16 December, Skopje, Macedonia Who needs to take the responsibilities The Operators The Operators Build the NGN, Develop products and services, Create a momentum to bring multimedia to customers, Evolve in Telco 2.0 … Build the NGN, Develop products and services, Create a momentum to bring multimedia to customers, Evolve in Telco 2.0 … The Government with its legislation and regulation bodies The Government with its legislation and regulation bodies Create the climate for operators, Find the balance between no regulation and over regulation, Adapt legislation, Education (Telcos and Customers) Create the climate for operators, Find the balance between no regulation and over regulation, Adapt legislation, Education (Telcos and Customers) The customers The customers Enjoy the right to chose how and when multimedia is brought to them no matter their location and no matter their choice of technology, Enjoy the cloud Enjoy the right to chose how and when multimedia is brought to them no matter their location and no matter their choice of technology, Enjoy the cloud

10. Telecommunication and Media Sectors Convergence: Implications for Policy Makers and Regulators 14-16 December, Skopje, Macedonia WHAT CUSTOMERS EXPECT

11. THANK YOU Q/A: bidikov@next-em.com.mk