2009 OCTA Annual Meeting General Session: “Staying Upbeat In An Economic Downturn” Jimmy Schaeffler, Chairman & CSO jimmy@carmelgroup.com

U.S. Multichannel Video Subscriber Projections

U.S. DBS Subscriber Projections

U.S. Telco Subscriber Projections

U.S. Cable Subscriber Projections

ADVANCED SERVICES DVR, HDTV, iTV, Broadband Cable’s Long-term Advantage: Subscribers Are Starting To Be More Driven By Service Offerings and Advanced Features, and Less By Service and Price VoIP is a Key Cable Advantage: Comcast Is 3rd Largest U.S. Residential Phone Service Provider, Reaching More Than 6.5 Million Customers Cable and DBS: Investing Heavily In HDTV, DVR, and On-Demand Services (Result Is Commoditization) Net/Net: Consumers Benefit, But The Competitive Dynamic May Favor Cable in the Long-term, If Cable Can Drive More Consumer Choice

Cable vs. Satellite vs. Telco THE U.S. MCV PLAYERS Cable vs. Satellite vs. Telco Satellite ’09: Maintains Focus on DVR and HD; Sling? Sirius XM? ’09: Problem for DISH: Piracy? ’10: Estimated Lower Annual Sub Growth, Due To More Effective Competition from Cable and Telcos Cable Endured the mid-’80s Economic Crisis, By Growing Sub Base 5% Annually; Yet Can’t Be Slow Again to React Continue Sub Growth by Upselling Digital, Broadband, DVR, VoIP, iTV, etc. Telco Wildcard, With Potential Sub Growth Exceeding 10 mil. by 2014 ROI Is Still Questionable, Considering Massive Capital Expenditure

Key MCV Points Satellite May Be Stalling; Cable Looks Much Stronger; Telcos Stay Long-term Threat Long-term Advantage Favors Cable, With Its Big Pipe, Infrastructure, and Product Choices, Plus Great Flex Landscape Is Expanding: To Voice, Internet/Broadband, Audio/Video, Robust 2-Way Services, Personalized Content Growth Still Building on DVRs, VOD, iTV, HDTV, Gaming, Mobile, Broadband, Voice

MCV Notables/Some Watch Fors Theme : Video Everywhere Theme: Personalized Content RS-DVR ZillionTV iTV

Cable/Sat/Telco/Bdctg. Strategic Bandwidth Positioning Return Path Performance - HIGH Digital Cable Telco Digital Broadcasters Scalability - LOW Scalability - HIGH Satellite TV Analog Cable Return Path Performance - LOW

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Jimmy Schaeffler Email: jimmy@carmelgroup.com Tel: 831-622-1111 www.carmelgroup.com