Telekom Srbija IPTV insights and perspectivesNew Media Summit, Digital AgendaBelgrade, September 2011

Telekom SrpskeNumber of Subscribers:Fixed line: 355Mobile: 1,344Internet and Multimedia: 96Group Total Number of Subscribers:Fixed line: 3,482Mobile: 7,821Internet and Multimedia: 672Telekom SrbijaNumber of Subscribers:Fixed line: 3,037Mobile: 5,916Internet and Multimedia: 576m: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 IPTVIntroduced 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 HerzegovinaIntroduced in May 2010;Consists of three services: Live TV package, VoD and EPGAt the moment 60 TV channelsVideo on Demand library consists over several hundred titles in every moment.Comparative advantage on the BiH market: HBO and Arena Sport packageFuture plans: more local content especially TV channels and introducing HDTV package

Open IPTV servicesLive TV package /TV and radio stations/Video on demand / subscription Video on DemandElectronic Program GuidenPVR Others to be introduced

live TVNumber of channels in the offer theoretically can be unlimited high scalability and flexibility Detailed statistics of channels viewing by usersPossibility of direct marketing personalized marketing content based on the interest of viewers National televisions can broadcast local advertising contentMarketing 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 seeContent 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 programsUser defines the time, channel, length, frequency of recordingEasily 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 GuideOverview of current program schemeDetailed 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 packagesDefining more system users parental locks

EPG

Cable TV & IPTV market in Serbia

Chart15

9225633

10817220

12478901

Customers (thousands)

Revenue (millions RSD)

Source: RATEL

922

1,081

1,247

5,633

7,220

8,901

Struktura prihoda

Struktura prihoda po uslugama

200820092010

Fiksna telefonija25.00%28.95%28.87%

Mobilna telefonija61.00%54.82%52.69%

Internet7.00%7.79%8.95%

Struktura prihoda

Fiksna telefonija

Mobilna telefonija

Internet

Struktura prihoda po uslugama

Ostvareni prihodi

Ostvareni prihodi (DIN)Ostvareni prihodi (DIN)

200820092010200820092010

Fiksna telefonija33,800,000,00033,900,000,00035,000,000,00033,80033,90035,000

Mobilna telefonija------------

Internet8,763,000,00011,108,000,00013,527,000,0008,76311,10813,527

Kurs89.543695.9679106.015689.543695.9679106.0156

Ostvareni prihodi (EUR)Ostvareni prihodi (u mil. EUR)

200820092010200820092010

Fiksna telefonija377,469,747353,243,116330,140,093377.47353.24330.14

Mobilna telefonija913,430,000826,740,000769,200,000913.43826.74769.20

Internet97,862,941115,747,036127,594,42997.86115.75127.59

Ostvareni prihodi

Fiksna telefonija

Mobilna telefonija

Internet

Ostvareni prihodi (u mil. EUR)

Broj pretplatnika

Broj korisnika (u hiljadama)

200820092010

Fiksna telefonija3,084.903,105.703,110.30

Mobilna telefonija9,618.809,912.309,915.30

Internet1,619.701,705.702,407.40

Broj pretplatnika

Fiksna telefonija

Mobilna telefonija

Internet

Broj pretplatnika (u hiljadama)

Broadband pretplatnici

Broj broadband internet korisnika

200820092010

Internet464,535468,702590,586

Broadband pretplatnici

Internet

Broj broadband korisnika

Internet po tipu konekcije

Broj broadband Internet pretplatnika po tipu konekcije

200820092010

ADSL267,876351,252536,796

Kablovski modem151,154187,923260,474

Beini pristup48,13045,86458,305

Internet po tipu konekcije

ADSL

Kablovski modem

Beini pristup

Broadband Internet korisnici po tipu konekcije

Mobilna po operatoru

Uee operatora u ukupnom ostvarenom prihodu od mobilne telefonije

200820092010

Telekom Srbija52.15%50.70%43.70%

Telenor41.83%40.50%42.40%

VIP6.02%8.80%13.90%

Mobilna po operatoru

Telekom Srbija

Telenor

VIP

Uee operatora u prihodu od mobilne telefonije

Mobile C&R

Mobile

200820092010

Customers (thousands)9,618.809,912.309,915.30

Revenue (milions EUR)913.43826.74769.20

Mobile C&R

Customers (thousands)

Revenue (milions EUR)

Source: RATEL

9,618.80

9,912.30

9,915.30

913.43

826.74

769.20

Fixed C&R

Fixed

200820092010

Customers (thousands)3,084.903,105.703,110.30

Revenue (billions RSD)338.00339.00350.00

Fixed C&R

Customers (thousands)

Revenue (billions RSD)

Source: RATEL

3,084.90

3,105.70

3,110.30

33.8

33.9

35.0

Broadband C&R

Broadband

200820092010

Customers (thousands)464,535468,702590,586

Revenue (millions RSD)87,630.00111,080.00135,270.00

Broadband C&R

Customers (thousands)

Revenue (millions RSD)

Source: RATEL

464,535

468,702

590,586

8,763

11,108

13,527

CaTV-IPTV C&R (2)

Broadband

200820092010

Customers (thousands)9221,0811,247

Revenue (millions RSD)5,633.007,220.008,901.00

CaTV-IPTV C&R (2)

Customers (thousands)

Revenue (millions RSD)

Source: RATEL

922

1,081

1,247

5,633

7,220

8,901

Sheet8

Telekom Srbija43.743.70%

Telenor42.442.40%

VIP13.913.90%

Telekom Srbija9999.00%

Others11.00%

SBB48.54748.55%

JPPTT8.1988.20%

Koperikus7.4827.48%

Telekom Srbija6.9336.93%

IKOM5.8145.81%

Others23.02623.03%

Telekom Srbija6767.00%

Others (198 operators)3333.00%

Sheet8

Telekom Srbija

Telenor

VIP

Telekom Srbija

SBB

Others

JPPTT

Kopernicus

Telekom Srbija

IKOM

Cable TV & IPTV market in Serbia Source: RATEL

IPTV service key issuesContent as key factor for IPTV successTry and buy campaigns for overriding technologically barrier for customer acquisition IPTV as revenue generation stream

Latest developmentAcquisition of Arena sportWeb 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 2010Source: Gartner Inc

IPTV global forecasts

Premium contentBundling of IPTV with other servicesIncrease 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 solutionsIPTV will be a major retention tool in DSL marketSufficient bandwidth for reliable, high quality contentSwitch from analog to digital TV broadcast"three-screen strategy

Thank you!

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