1. Telcos versus Cable! Kevin Baughan Head of Technical Strategy ntl:Telewest Making convergence pay 26 th September 2006

2. 2 Telco versus Cable?

3. 3 Source: Ofcom, The Communications Market 2006 UK Market

4. 4 Source: Ofcom, The Communications Market 2006 UK Household Spend

5. 5 Source: Ofcom, The Communications Market 2006 Service Bundling in the UK

6. 6 Customers, Experiences & Networks Entertainment Communications Networks

7. 7 The Entertainment Experience

8. 8 Quality, Flexibility, Convenience Alternative Content Alternative Broadcasters Mainstream Content Mainstream Broadcasters Television Broadband Mobility Delivery Network

9. 9 Source: Ofcom, The Communications Market 2006 UK TV Revenues

10. 10 Quality: DTV, VOD, HDTV Cable TV Network Television Head End Servers High Capacity Coax Deep Fibre Access Network Robustness Digital Rights Simplicity Mainstream Content Mainstream Broadcasters

11. 11 Source: Ofcom, The Communications Market 2006 UK Market Share of the Main Set

12. 12 A Challenge to Replicate over IP Broadband Network Robustness Digital Rights Simplicity DTT Network IP STB A great deal of experience gained but limited deployments An interesting area also for ntl:Telewest - to reach the rest of the UK Mainstream Content Mainstream Broadcasters

13. 13 Source: Ofcom, The Communications Market 2006 Viewers seek Choice

14. 14 The Entertainment Experience Alternative Content Alternative Broadcasters Mainstream Content Mainstream Broadcasters Television Broadband Mobility DAB – IP Network Broadband Network Cable TV Network DTT Network

15. 15 Source: Ofcom, The Communications Market 2006 The Cost of a DTT Channel Rises

16. 16 Flexibility: PC & Media Centres Broadband Network Alternative Content Alternative Broadcasters Mainstream Content Mainstream Broadcasters Streaming Multi-cast P2P Downloads

17. 17 Covenience: Mobiles & Portables DAB – IP Network Mainstream Broadcasters Alternative Content Mainstream Content Broadband Network Sideload

18. 18 The Communications Experience

19. 19 Source: Ofcom, The Communications Market 2006 Mobile & Broadband Drive Growth

20. 20 Source: Ofcom, The Communications Market 2006 UK Prices Continue to Fall

21. 21 Deep Fibre and High Capacity Coax Fixed Broadband ntl:Telewest network In the Future DOCSIS 3.0 100Mb/s Today DOCSIS 1.0 2Mb/s 4Mb/s 10Mb/s Wherever you are on our network Trial in Ashford 1H 06

22. 22 coax 500 to 600 MHz > 3Gb/s Broadcast VOD Download Internet 2.2MHz 1 to 20Mb/s copper pair Internet Download & & Broadcast & VOD Copper versus Coax

23. 23 Source: Ofcom, The Communications Market 2006 Cable is the Biggest UK ISP

24. 24 POTS VDSL2 Deep Fibre and also Short Copper ntl:Telewest network BT’s copper POTs ADSL2, ADSL2+ DOCSIS Fixed Broadband & Voice Successful VDSL2 Trial in Guildford 1H 06 50Mb/s down 25Mb/s up

25. 25 Source: Ofcom, The Communications Market 2006 It’s a Fixed & Mobile World

26. 26 Source: Ofcom, The Communications Market 2006 Fixed Voice Usage is Level

27. 27 Source: Ofcom, The Communications Market 2006 Mobile Voice Usage has Leveled

28. 28 Next Step: Fixed + Mobile Fixed Broadband Mobile Convergence T-Mobile network ntl:Telewest network Broadband integrated with Mobile Mobile integrated with Broadband Handsets 3G + WiFi

29. 29 Source: Ofcom, The Communications Market 2006 The Arrival of LLU in the UK

30. 30 Fixed On net Next Step: Expanding our Reach Fixed Broadband Mobile ntl:Telewest T-Mobile network BT’s copper Fixed Off net Convergence

31. 31 Customers, Experiences & Networks Entertainment Communications Networks

32. 32 Making Convergence Pay A great entertainment experience across TV, PC, Mobile A great communications experience across Fixed & Mobile Deep fibre, high capacity coax and short copper A fresh focus on customer satisfaction A great UK brand