1. The role of innovation and research for the European ICT Industry Manuel Kohnstamm, ECCA The regulatory framework for electronic communications: The current state of implementation and steps towards a possible review Brussels, European Parliament, 30 May 2005

2. 2 The Triple Play Gloves are off Border crossing competition emerging between Europes communications networks on triple play of video, data en telephony on fixed DSL, Cable, Satellite, DTT, Mobile, WiFi Europe will see more infrastructure competition than many other areas in the world Markets fragment in smaller niches, intense competition for eye-balls, bundling becomes vital Triple play services become independent of infrastructure and of time and place in daily life Only those infrastructures that continue to innovate and invest will survive

3. 3 Network Competition Infrastructure competition delivers tangible real additional benefits Erkki Liikanen, 26th January 2004 Malta UK Finland Sweden Belgium Denmark Netherlands Austria Portugal France Italy Germany Spain Luxembourg Ireland Greece y = 0.1863x + 0.0217 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 0%10%20%30%40%50%60%70% LLU & non-DSL platforms as percentage of subscribers Broadband subscribers as % of population Competitive network investment has helped drive broadband adoption across Europe Where the broadband market is served by competing platforms, penetration tends to be higher where DSL and non- DSL platforms have similar market shares. Where market shares are skewed towards one particular platform [usually DSL], penetration tends to be lower. DotEcon and Criterion Economics, October 2003 Source: DotEcon

4. 4 TelcosVideoCableVoiceSatellite2-WayMobileContent Compound Annual Growth Rate- The year over year growth rate of an investment over a specified period of time. Business strategies are colliding

5. 5 No state support for new generation networks State investments in FTTH or DTT run the risk of causing market distortions and lessening total investment appetite Aid for particular technologies or in competitive urban areas is dangerous Targeted, well-structured aid such as that recently approved in Spain and the UK will deliver the best outcomes Competitive markets deliver the widest range of technologies and services to customers Private investments continue to deliver solutions to the needs of European consumers European cable operators launched 20 Mbp/s commercial services launched and are trialling 30 to 50 Mbp/s Unlike the first days of analogue tv, DTT today competes with private investments in digital satellite, cable and dsl

6. 6 Broadband Home Cable Media Server Powerline Adapter Powerline Adapter Internet Distribution Coax Network Gaming MTA Phon e Wireless Access Point Wireless Adapter Coaxial Adapter Powerline Adapter IPTV In-Home Coax Powerline Wireless Coax Coaxial Adapter CM HPNA Wireless DSL Sateli

7. 7 ECCA Innovation - EuroCableLabs ECL supports the industry by providing professional technical services such as Emerging Technology Research: focus on upcoming technologies such as new generation broadband cable networks, advanced broadband access systems, enhancement of cable communication techniques (Euro-DOCSIS, Euro-PacketCable, etc.) enrichment of TV systems by incorporation of new capabilities such as personal recording and protocols for TV over IP. Technology Standards Development: Cooperation with all major European and international standardisation bodies such as ETSI, CENELEC, ITU, IEC as well as organisations such as DVB, CableLabs, and tComLabs. Vendor Certification: Enabling a broad market of reliable, interoperable cable products applies to techniques such as Euro- DOCSIS, and Euro-PacketCable and is being extended to other technologies like set-top boxes in the coming years.

8. 8 ECCA Innovation – Future Technology Trends Future Technology Trends in Cable TV over IP Personalized TV services via IP Integration of TV in IP platform VOD encapsulated in IP Support of interactive TV systems based on broadcasting techniques IP only STBs based on eDOCSIS Home networking CableHome: Management of customers in-home network components Cable wireless convergence Wireless services acceptance is growing: PDA, phones, hot spots,etc. Wireless cable extension to bridge regions being unattractive for cables WiMAX as a complement to broadband cable

9. 9 Conclusions Infrastructure competition guarantees innovation and consumer benefit. Services become platform independent, new bundling will be needed to structure fragmenting markets We will see major inroads by the telco incumbents into new areas such as content and broadcasting State financing can do more harm than good unless targeted at truly remote regions Cable is one of Europes leading innovative forces in communications, and is determined to be the preferred quality provider of choice for triple play services to our customers In order to stay competitive, you will see the cable industry accelerating its deployment of digital interactive television, high definition television, high speed data, in-home networking and fixed to mobile convergence Thank you