1. Fulfilling the Promise of Interactive IP Video Communication Presentation for TERENA

2. 2 The Video Conferencing Industry  HOT but still, the Slowest Emerging Market!  Why? - User Experience  It needs to look real to feel real …That means HIGH QUALITY and very low delay  It needs to be affordable …That means PENNIES/minute  It needs “universal connectivity” …That means calling from anywhere to anywhere

3. 3 Layered Media Value Proposition  Dramatically Lower Cost with Software based H.264 SVC (G) solution  10X price/performance improvement  Resilience and performance  Extensive intellectual property  Significant Quality Improvement (HD/Telepresence)  Resilience  Delay  Scalable Service provider deployment possible including Multipoint  Unified communication: from Tele-presence to Mobile device in one conference

4. 4 Video Conferencing Market Revolution 101000 1,000,000 Low Definition Standard Definition High Definition 10,000 Number of End Points Resolution L a y e r d M e d i a e Quality Interactivity Cisco, HP, Polycom Tandberg, LifeSize $10K-$300K Endpoint Cisco, Microsoft, Nortel, Avaya, Skype, Yahoo, AOL, Adobe Price-Performances -Interactivity Existing Technology All Vendors

5. 5 Low Reliability Channel High Reliability Channel Conventional vs. Scalable Coding Significant Impact Conventional Coding Scalable Coding Minor or No Impact

6. 6 Compare H.264 SVC with conventional H.26X

7. 7 Native Rate Matching SVCS LMI Server SDK High Resolution High Frame Rate Low Resolution Low Frame Rate 1.5Mbps 512Kbps 128Kbps Medium Resolution Medium Frame Rate 256Kbps Medium Resolution High Frame Rate High Resolution High Frame Rate

8. Delivers Real Time Interactive Video Even With Packet Loss Eliminates MCU hardware cost and transmission delay End-User 1 End-User 2 X SVC Traditional Solution Software Video Router replacing MCUs DECODE ENCODE COMPOSE ENCODE MCU DECODE End-User 3 High Cost High Delay Packet Loss Sensitivity Requires Dedicated Network Requires Dedicated Hardware Costly Solution. User Experience Can Be Frustrating. ROUTE LMI SVC Server

9. 9 LMI vs. Traditional Technology TraditionalLayered Media Packet loss usability threshold <3%>50% Conferencing delay: End-to-end delay: Result: >200ms >400ms Non Interactive =20ms <150-200ms Interactive MCU Cost$3,000-$8,000/port$300-$800/port HDTV Endpoint$8,000K-$300,000 Specific HW PC + HD camera

10. 10 Affordable, High Quality IP Video…At Last! Layered Media HD quality, transmitted over 1.1Mbps, using a lap-top computer

11. 11 Business & interactive Video…the Postcard  Fixed - Mobile networks are converging  Data, voice and Video applications are converging to deliver Unified Communications  Web 2.0 and Business Applications are converging to create more interaction and real time communication  H.264 (AVC) is the video standard  Video is HOT  Great!! Soon interactive video is available everywhere and will be part of the day to day communication

12. 12 Business and Interactive video… the Reality  Customer expectations in terms of quality and ubiquity are jumping :  SD is the minimum,  HD is the wish  Everywhere is the rule  An H.264 AVC infrastructure is not scalable or flexible enough to deliver HD or even SD over shared fixed and mobile networks, how to connect Telepresence with CIF Mobile?  There is a disconnection between what the industry is pitching and what it can deliver using existing standard  Pressure is big enough for a new standard to emerge: H.264 SVC

13. 13 Consumer market is facing the same challenge  Broadband internet is available on PCs and Mobiles  TV and internet are merging, raising the bar in terms of Real Time Video Quality expectations  Web 2.0 social interaction model is the rule  Web 2.0 + TV over the internet makes Real Time, High Quality Video interaction from any device the KILLER APPLICATION  This means Interactive HD or SD video must be made widely available ASAP  H.264 AVC can’t do it  Pressure and timing is right for H.264 SVC to emerge

14. 14 H.264 (G) The Unified Video Communication Standard Executive Desks HD conferencing HD/HD Telepresence Rooms HD/HD Regular PCs 3G+/HSDPA Mobiles HD-SD/CIF PUBLIC INTERNET Including wifi PRIVATE IP / BUSINESS Including wireless MOBILE NETWORKS 3G+, HSDPA ONE conference H.264 SVC (G) Nomad PCs HD/SD IP VideoPhones HD/SD Corporate PCs HD/SD

15. 15 Intellectual Property  Extensive – 25 patents  Encoder patents  MCU patents  Hard to circumvent  First team of experts in scalable coding, VoIP and video conferencing to bring these disciplines together to deal with the problem  Cover all the essential functions need to replace traditional MCU in the scalable coding domain  Enforceable  Heavily dependant on client / server interaction – exposed to network element

16. 16 LMI SDK Architecture

17. 17 Market Feedback  80 leading companies in  IP PBX  IM  Video conferencing  Web conferencing  Different aspects of the technology evaluated  100% agreed SVC is a great plan  1/3 have an immediate interest and are in evaluation process  No competition identified

18. 18 Technical Team  The team includes  12 Ph.D video compression and IP communication  4 former and current editors of MPEG and ITU-T standards  Track record of 70 pending and issued patents in the video compression and communication space  Brought to market the most widely deployed IP video conferencing solution  Research team:  Alex Eleftheriadis, Chief Scientist, former editor of the MPEG-4 Systems  Thomas Wiegand, Advisory Council, Editor of the H.264/AVC/SVC video coding standard, Associate Chair of MPEG Video  Henning Schulzrinne, SIP inventor  Michael Horowitz, first to implement H.264 real time codec

19. 19 Conclusion  Layered Media provides a definitive solution for internet based video communication and conferencing  Results go beyond anything possible with traditional solutions in all measures of price / performance  Technology is provided as easy to integrate SDK  Layered Media developed a wide IPR portfolio for SVC- based video communication  LMI’s team include the world’s leading experts in video coding and communication  We are committed to apply SVC into any communication network and device

20. 20 If you remember only one thing… Layered Media developed a novel, unique and standard- based technology with strong intellectual property. Layered Media is transforming video conferencing by delivering very high quality at significantly lower cost. “The future is here. It is just not widely distributed yet.” - William Gibson

21. THANK YOU! LAYERED MEDIA EMEA emea.sales@layeredmedia.com