Telekom SrbijaIPTV insights and perspectives

New Media Summit, Digital Agenda

Belgrade, September 2011

Telekom SrpskeNumber of

Subscribers:Fixed line: 355Mobile: 1,344Internet and Multimedia:

96

Group Total Number of Subscribers:Fixed line: 3,482Mobile: 7,821Internet and Multimedia: 672

Telekom SrbijaNumber of Subscribers:Fixed line: 3,037Mobile: 5,916Internet and Multimedia: 576

m:telNumber of Subscribers:Fixed line: 9Mobile: 561

Introduction

• Open IPTV (Internet Protocol Television) group of interactive multimedia services, which consists of several basic services, like: Live TV package, VoD service /Video on Demand/, sVoD /subscription Video on Demand/, nPVR /network Personal Video Recorder/, EPG /Electronic Program Guide/ and other.

• Introduced at Serbian market at 2008, as a first IPTV operator in our territory.

• Gives high level of QoS – Quality of Service and QoE – Quality of Experience, compared to standard terrestrial and cable television.

Open IPTV

• Introduced in Oct. 2008; • First IPTV operator in the country.• At the moment, 152 TV channels (foreign, national, regional,

local TVs, with different kind of content – sports, music, movie, documentaries, news...) and 8 radio channels (national stations).

• Video on Demand library consists over 600 titles in every moment.

• Several packages in Live TV; Basic, Fun, Arena, Pink Cinema, HBO with HBO On Demand, Cinemax, Adult, and from Nov 2010, HD package.

• Radio channels are in Basic package, and we covered the most popular stations in country (Radio S, Roadstar, B92, AS, RTS all three programs).

• From just a few thousands at the end of 2008, today we have over 105.000 subs, so Telekom Srbija in short period of time became one of top 3 operators in the market.

Open IPTV also in Bosnia and Herzegovina

• Introduced in May 2010;• Consists of three services: Live TV package, VoD and EPG• At the moment 60 TV channels• Video on Demand library consists over several hundred titles in every

moment.• Comparative advantage on the BiH market: HBO and Arena Sport package• Future plans: more local content especially TV channels and introducing

HDTV package

Open IPTV services

• Live TV package /TV and radio stations/• Video on demand / subscription Video on

Demand• Electronic Program Guide• nPVR • Others to be introduced

live TV

• Number of channels in the offer theoretically can be unlimited – high scalability and flexibility

• Detailed statistics of channels viewing by users• Possibility of direct marketing – personalized marketing content

based on the interest of viewers • National televisions can broadcast local advertising content• Marketing more focused on the viewer itself, with more feedback

information from the viewers

VoD/sVoD

• Electronic video store • User chooses which movie or other content (series, tv shows,

concerts, documentary...) wants to see• Content can be viewed several times in 24 hours in case of VoD. In

case of sVoD, content can be viewed numerous times in defined period /weekly, monthly/ as long as it stands continuously in offer.

• Database search by name, genre, actor, director...• Completely new service on our market, first introduced in Open IPTV

offer.

• Simultaneously recording one or more programs• User defines the time, channel, length, frequency of recording• Easily going through recorded material (pausing, rewinding

forward/backwards in different speeds, jumping on content sections...)

• Completely new service on our market, also firstly introduced through Open IPTV offer

nPVR

• Electronic Programming Guide• Overview of current program scheme• Detailed information about programs and shows • Browsing the programs on different criteria (sport, music, movie ...)• Personalization (of your own list of channels ...)• Locking and hiding certain channels from the package • Easy changing between packages• Defining more system users – parental locks

EPG

2008 2009 2010

922 1,081 1,247

5,633

7,220

8,901

Source: RATELCustomers (thousands) Revenue (millions RSD)

Cable TV & IPTV market in Serbia

Cable TV & IPTV market in Serbia

Source: RATEL

IPTV service key issues

• Content as key factor for IPTV success

• “Try and buy” campaigns for overriding technologically barrier for customer acquisition

• IPTV as revenue generation stream

Latest development

• Acquisition of Arena sport

• Web and Mobile TV

• “Global subscribers of IPTV services delivered by wireline communication service provider reached 36 million in 2010, and are forecast to grow to 74 million by the end of 2014.

• 9,2 % of world, noncable, consumer-fixed broadband households in 2010”

Source: Gartner Inc

IPTV global forecasts

• Premium content

• Bundling of IPTV with other services

• Increase number of TV channels and Video on Demand content, and further development of Pay-TV

Telekom Srbija IPTV perspectives

Telekom Srbija IPTV perspectives

• Digital advertising and marketing solutions

• IPTV will be a major retention tool in DSL market

• Sufficient bandwidth for reliable, high quality content

• Switch from analog to digital TV broadcast

• "three-screen strategy”

Thank you!