X-Play Services The Way to Consumer s Heart Sofia

X-Play Services: The Way to Consumer’s Heart Sofia April 19 th , 2006

The Bigger Picture 1. Broadband has become mass market TV over IP: a reality or not quite yet ? Broadband density (subscribers par 100 inhabitants) New internet competition! Source: IDATE, 2005 Source: Alcatel 2005

What’s next for cable & telecom operators ?

The NEW CABLE … Better, more personal, yet more sociable TV experience Bundled services – cheaper, simpler, more reliable Personal TV Community TV Better TV Performance High-quality Towards HDTV “my content @ my time“ finally made simple “view together” community-specific content

The NEW CABLE … FACTS The Average Revenue per Subscriber (ARPU) for 3 -play enabled networks is 40% higher on average compared with non-3 play networks Cable in the US market is gaining market share from satellite operators for a first time in the last 10 years thanks to bundling Churn is reduced dramatically when more then one service is used by the customer The newly –acquired technological capabilities of the cable operators open to them the corporate business market for voice & data services “My content” VOD in US US households (millions) Source : Forrester, technographics “My time” DVR in the US US households (millions)

The New Challengers – THE BATTLE FOR THE BUNDLE Fixed & Mobile telecoms are rushing to offer bundled data, voice & video services BUT: IP-TV is still in its infancy as a technology – Qo. S & costs are hard to control No expertise in content acquisitions Multimillion network upgrades required Bandwidth barriers to going HDTV Mobile content – a whole new format – unavailable and customers unwilling to pay for it TV on the GO TV at home Remote PVR programming ADSL Discovery 3 G DVB-H+ Access to home video libraries Immersion National coverage Typically 18 channels Urban coverage Typically 18 -36 channels

Cable. TEL Company Facts The only alternative operator with sizable national access to the last mile: presence in 20 cities network coverage of over 600, 000 households Broadband services in 10 cities - 256 kbps to 2 Mbps service plans providing direct internet access to Frankfurt and the major national IP peers Investment program worth over 100 million leva since 2004 2600 km national optical infrastructure Metropolitan F/O networks in different stages of construction in 17 cities Carrier - class voice exchange with next-generation convergence capabilities In-house call centre 650 experienced employees throughout the country International management team Plans for consolidation of the last cable mile Direct terrestrial connectivity with Greece, Turkey, Romania and Macedonia Strategy for broad expansion in newly-liberalized telecom markets in the region

The backbone of the Bulgarian alternative telecom market

Cable. TEL’s product solutions for residential and corporate customers Router Additional Data Services International Interconnect Vo. IP Internet TDM ADM Global Switching Solution PBX POTS National Fiber Ring HFC Network Residential triple Play Customers FTTP POTS FTTP Other Telecom Operators Business Customers

Product Portfolio Products Customer type Residential SOHO Corporate Television Internet Telephony Basic Cable TV Pay TV (Near) VOD TV Shopping / EPS Local Info Channels 24/7 Unlimited Access E-mail Server Online Gaming Webcam services Online bill check 1 -2 lines with own numbering plan Local, National, International calls Conferencing Basic Cable TV Pay TV (Near) VOD EPS 24/7 Internet access Integrated e-Fax + e-mail Online billcheck 2+ lines with one number Voice mail Unified Messaging Info TV Services Pay TV EPS Video conferencing Public TV services 24/7 Internet Integrated Fax + email IP-VPN services Leased lines Unified number Audio text Services Centrex Call Centre Total messaging Capacity / Hosting МАN services IP Transit National leased lines International transit circuits Broadcast video transfer Collocation Backup / Disaster Recovery services Dark Fiber Lease Wholesale voice/data services for operators Turn key infrastructure projects

Cable. TEL vision for convergence of services Premiere of Triple play services in Bulgaria Cable TV – basic package and premium channels Broadband Symmetric Internet Access from 256 kbs to 2 Mbs Fixed telephony service, based on next generation convergence platform for IP & TDM signaling Value Added services CATV – prepaid digital packages, (near)on demand video applications, electronic programming guide (EPG), local information channels Internet – web hosting, e-mail servers, game servers, Р 2 Р, antivirus services, chat services Telephony – online bill check information ; online payment, call hold, call transfer, call waiting and call restraint; caller identification, specialized numbers for access to services; phone support for clients; fax number; voice mail, wireless applications

Bundle Advantages for customer and operators For the end user Telephone service – easy to use and without the need for new equipment Options for more than one fixed line, fax, etc. The best prices on the market. Attractive package price for the three services One bill, one operator, one contact point for support For the operator Platform for generating new income streams based on the existing infrastructure = better return Virus Marketing Effect Expanding the client base by telephone service offers Access to corporate clients as a new segment of the cable business Building loyalty and decreasing churn rate of customers Two-way connectivity with clients enables development of new services: teleshopping, interactive applications, games, stakes Closing the circle of communication services for household needs by one single operator Better understanding of the clients’ needs and interests = winning business

Thank you for your attention !