1. IPTV Market Trends Triple Play Symposium Tuesday, June 13 | Dallas Presented by Michael Howard Co-Founder and Principal Analyst Infonetics Research, Inc. +1 408.583.3351 michael@infonetics.com www.infonetics.com

2. Copyright © 2006 by Infonetics Research, Inc.2 Worldwide IPTV Capex Forecast Transport infrastructure includes PON, xDSL, edge, routers, optical, etc. Content infrastructure includes encoders, VOD servers, other headend devices, set top boxes © 2006 Infonetics Research, IPTV Equipment, Services, and Subscribers

3. Copyright © 2006 by Infonetics Research, Inc.3 Worldwide IPTV Subscriber Forecast © 2006 Infonetics Research, IPTV Equipment, Services, and Subscribers

4. Copyright © 2006 by Infonetics Research, Inc.4 Broadband Subscriber Forecast Strong competition: −NA: cable vs DSL vs PON −AP: PON vs DSL −EMEA: DSL vs cable IPTV subscribers WW −2009 54M With permission: Copyright © 2006 by Infonetics Research, Inc., DSL Aggregation Hardware Quarterly Worldwide Market Share and Forecasts

5. Copyright © 2006 by Infonetics Research, Inc.5 Worldwide IPTV Revenue Forecast Includes monthly subscriptions plus add-ons like VOD and PVR Does not include advertising revenue Multi-year payback period for larger telcos @ 2006 Infonetics Research, IPTV Equipment, Services, and Subscribers

6. Copyright © 2006 by Infonetics Research, Inc.6 IP Triple Play Respondent Overview May06 study: Service Provider Plans for IP Triple Play: North America, Europe, and Asia Pacific 2006 Respondents must offer IP triple play services by 2007 83% of respondents are primary decision-makers or have a lot of influence Triple play is defined as the combination and bundling of voice over broadband/VoIP, video (IPTV, broadcast TV, video on demand, etc.), and high speed data (Internet)

7. Copyright © 2006 by Infonetics Research, Inc.7 Respondent Types IPTV Business Drivers

8. Copyright © 2006 by Infonetics Research, Inc.8 Respondent Types Technical Challenges Carrier Ethernet solves challenges CE reduces interoperability problems CE has multiple QoS options to deliver quality subscriber experience CE is scalable

9. Copyright © 2006 by Infonetics Research, Inc.9 Questions?

10. Copyright © 2006 by Infonetics Research, Inc.10 References PON, FTTH, EADs Market Size and Forecasts, 2006 DSL Aggregation Equipment Market Size and Forecasts, 2006 IPTV Market Outlook, 2006 Service Provider Plans for IP Triple Play: North America, Europe, and Asia Pacific 2006

11. Thank You Presented by Michael Howard Co-Founder and Principal Analyst Infonetics Research, Inc. +1 408.583.3351 michael@infonetics.com www.infonetics.com