1. Triple Play Symposium Industry Panel Session Jon Arnold J Arnold & Associates June 15, 2006

2. Triple Play Symposium Telephony and Television Setting the Stage Conventional Offerings – Many Similarities POTS and Cable TV Next Generation Offerings – Many Differences VoIP and IPTV Implications

3. Triple Play Symposium Conventional Offerings – POTS and Cable Key Similarities Ubiquitous usage – market is saturated – growth challenges ahead Well-established end user habits – positive and negative implications High expectations from end users – real time service, high quality, reliable service, easy to use, easy to access Comparable business models – basic service unmetered, pay for extras IP versions offer more choice, and a different/better user experience Conventional usage starting to be impacted by IP, but new offerings basically replicate the tried and true Success of IP versions not proven yet and demand is still uncertain Consolidation occurring among the operators – fewer players, and the stakes are getting higher

4. Triple Play Symposium Next Gen Offerings – VoIP and IPTV Key Differences – IPTV… Operator pays for content – higher operating costs and barriers to entry for new competitors IPTV is not a cheaper alternative to cable as VoIP is for POTS More costly to deploy in the network – more bandwidth, backhaul, etc. More complex to deploy – provisioning, billing, support, etc. Endpoints more complex and expensive – still evolving Focus has only been on residential market to date – VoIP is being used in both the residential and enterprise markets

5. Triple Play Symposium Implications Many basic similarities between voice and video, but with IP there are important differences IPTV can apply lessons learned from VoIP to shorten the learning curve IPTV and VoIP are still works-in-progress – the market will not change overnight Conventional offerings will be with us for years to come