Enabling Triple Play Services Martin Cullum General Manager, Video Networks Bell Canada Entertainment Track - Wednesday October 5 th, 2005 Conference

2 Bell Canada - Nation’s Leader in Communications  $19B revenue  26M client connections  56K employees  1.6 Million subscribers nationwide  VDSL deployment to MDUs  2.5 Million Internet subscribers  1.8 Million high speed  Local and long distance services  13 Million local lines  19 Billion long distance minutes  4.7 Million subscribers Voice Mobility ExpressVu Sympatico

3 Triple Play Principles Build customer loyalty with superior products and service experiences –Increasing bandwidth alone will not be enough Build the broadband access to enable triple play –More capable and reliable –Pursue improved compression Understand the business model –Offer compelling services to customers –Video is a key service component to the service bundle –IPTV will enable personalized media that can be leveraged if business case works for everyone Build customer loyalty with superior products and service experiences –Increasing bandwidth alone will not be enough Build the broadband access to enable triple play –More capable and reliable –Pursue improved compression Understand the business model –Offer compelling services to customers –Video is a key service component to the service bundle –IPTV will enable personalized media that can be leveraged if business case works for everyone

4 Building new skills to roll out the best services to our customers Redefining the Purpose of the Network by… …and focusing on integration Bell responds with new services that integrate voice, video and data Broadband Applications IPTV Enhanced Voice …gathering deep insight into customer needs… Customers want: 1.Easier integrated connections 2.Improved on-line safety 3.Better tools to communicate 4.Interactive entertainment and education

5 Access Bandwidth Evolution Deploy an integrated network –Increasing Internet speed –Continue video roll-out to MDUs –Start wireline video to SFUs Enough bandwidth to provide a compelling video offering –HDTV + 2 SDTV Compression technology improvements will further enhance offering 1.5 Mbps 6 – 8 Mbps Evolve from ADSL, ADSL2+, VDSL2 Bell is ramping up speeds... Up to 4 Mbps Up to 14 Mbps Up to 26 Mbps Meeting Customer Demand for Bandwidth (Mbps)...to be the best provider of key broadband home services

6 Bell Access Strategy OLT ADSL2+ and VDSL2 GPON DSLAM FTTN FTTP OLT DSLAM ONU 3 – 5 km 1 – 1.2 km 20 km Mbps Mbps 50+ Mbps FTTN bridges the gap between ADSL and fiberFTTN bridges the gap between ADSL and fiber VDSL2 will increase FTTN speed to 26 Mbps in 2006VDSL2 will increase FTTN speed to 26 Mbps in 2006 ONU Remote DC Power Distribution Cross Box Fibre Copper

7 The service: 4 streams of digital TV, with VOD, fast channel change, and enhanced program guide Features: greater ability to offer interactive content, services and advertising, ability to share music and videos Integrated: with VoIP early on, and other services later All this in a package that is easy to understand and even easier to use IPTV: The future of television here and now Live TV VOD Self-serve IPTV: The ultimate television experience

8 IPTV Target Services Consumer Benefits –Simplify: Better EPG, fast channel change, improved search, PIP –Consumer control: PVR, Video on demand –ITV: A two-way, personalized and targeted interactive services. Leverage the Internet for content and services –Broadband Home: Connecting the TV to the broadband home (Customization, Personal Video, IM, Photos) Bell IPTV – Better tomorrow –SD, HD, HS Internet, VoIP & Other IP Applications –Switched Digital Network –More secure business rules in network –Web based Self-Serve and PVR control –Network PVR –BB Home IP connectivity between STB and PC

9 Summary IP Applications will be a key growth vector for Bell 2005 is a landmark year for IP applications: –Commercial launch of VoIP –First technical trials of IPTV Power of One –A renewed customer experience: more control, simpler, and better –Simpler and fewer internal processes –Lower costs…enabling more growth Common sense approach –Put the customer first and minimize adoption challenges IP Applications will be a key growth vector for Bell 2005 is a landmark year for IP applications: –Commercial launch of VoIP –First technical trials of IPTV Power of One –A renewed customer experience: more control, simpler, and better –Simpler and fewer internal processes –Lower costs…enabling more growth Common sense approach –Put the customer first and minimize adoption challenges

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