1. Next Generation TV and customers loyaltywww.comarch.com Next Generation TV and its way of increasing customers loyalty Next Generation TV and its way of increasing customers loyalty Gregory Kot, Lukasz Luzar Nassau, Bahamas 13-16 July 2008 Nassau, Bahamas 13-16 July 2008

2. Next Generation TV and customers loyalty COMARCH AT A GLANCE

3. Next Generation TV and customers loyalty Comarch basic facts Est. 1993, and growing 25-40% p.a. since Listed on Warsaw Stock Exchange since 1999 Capitalization $520m, 3000 employees Market Diversification –Telecommunications –Finance, Banking and Insurance –Trade, Manufacturing and Services –Public Administration –Small & Medium Enterprises

4. Next Generation TV and customers loyalty Comarch global presence

5. Next Generation TV and customers loyalty Activity in the Americas Miami – IT hub for CALA countries Panama provides technical support in both Americas Operations also in Mexico, Seattle and Chicago

6. Next Generation TV and customers loyalty

7. Find out more in conference suite Eros III

8. Next Generation TV and customers loyalty NEXT GENERATION TV

9. Next Generation TV and customers loyalty Whats on the mind of a CEO? Stable and sustained revenue growth Increasing market share Building stronger brand Increasing cost efficiency Retaining satisfied and loyal customers

10. Next Generation TV and customers loyalty What are Value-Added Services? All non-core services such as SMS, MMS, voice mail, CLIP/CLIR, ringtones, etc.? Horoscopes, weather forecasts, sports news, traffic info, etc.? Driving up ARPU Often delivered in cooperation with 3 rd -party Service Providers or non-telco businesses

11. Next Generation TV and customers loyalty Why SMS? Pros –Very easy to use –Services can be easily promoted via radio or TV commercials –Can be premium charged –Easy to integrate with existing services –Cross-operator services Cons –Text-based –Poor interactivity

12. Next Generation TV and customers loyalty Why MMS? Pros –Relatively easy to use –Can contain text, images and short video contents –Can be premium charged –Easy to integrate with existing services Cons –Poor interactivity –Not compatibile with all handsets available on market

13. Next Generation TV and customers loyalty Why IPTV?

14. Next Generation TV and customers loyalty Convergence of TV terminals The displays are becoming similar... … and the controllers too The era of personal TV terminals is coming!

15. Next Generation TV and customers loyalty What is Next Generation TV (NGTV)? -Building interactive TV Services -Interactive advertising -User interface customization -Hosting of 3rd-party TV services -Delivering user-generated content Digital quality PVR EPG VoD Parental control IPTVAdded Value NGTV terminals + +

16. Next Generation TV and customers loyalty Unification of TV services Mobile phoneTV Palmtop PC Design once, deliver everywhere TV Services Unified TV Platform Telco/IPTV subsystems

17. Next Generation TV and customers loyalty Examples of services

18. Next Generation TV and customers loyalty Video-on-Demand

19. Next Generation TV and customers loyalty Googles PicasaWeb access on NGTV

20. Next Generation TV and customers loyalty TV-banking services

21. Next Generation TV and customers loyalty Edutainment & e-learning services

22. Next Generation TV and customers loyalty Online gambling services Source: www.gambling-hall-online.com

23. Next Generation TV and customers loyalty Interactive TV programmes EURO 2012 is trademark of UEFA, used only for illustration purpose

24. Next Generation TV and customers loyalty E-tourism Source: www.secondlife.com, used only for demonstration purposes

25. Next Generation TV and customers loyalty Multiplayer games online Source: www.secondlife.com, used only for demonstration purposes

26. Next Generation TV and customers loyalty Video-calls on TV

27. Next Generation TV and customers loyalty Content annotation concept Source: Casino Royale, used only for illustration purposes $1999 $2999 $99 Buy now >> MOVIE PAUSED (II)

28. Next Generation TV and customers loyalty Cross-media linking concept Source: Casino Royale, used only for illustration purposes MOVIE PAUSED (II) Browse map >>

29. Next Generation TV and customers loyalty TV 2.0 concept User-generated content –Photos –Recorded home-videos –Documents (ppt, doc, xls,...) –Live users video input Premium/Hollywood content –Movies –Audio –Audiobooks –E-learning materials TV 2.0

30. Next Generation TV and customers loyalty Interactive TV advertising

31. Next Generation TV and customers loyalty Personalization leads to loyalty Web 1.0 services – dissemination of information Web 2.0 services – co-creation of information, personalization, contribution Internet TV -> IPTV transition TV 1.0 -> TV 2.0 transition Interactivity + usability = personalization

32. Next Generation TV and customers loyalty Who can offer Next Generation TV? Network operators –DSL –Ethernet-to-the-Home (ETTH) –Fiber-to-the-Home (FTTH) Cable operators –Migration to IPTV –DVB-C & IPTV Hybrids 3G Mobile operators MVNO, internet portals, DTH (satellite)

33. Next Generation TV and customers loyalty Connect the Caribbean context NGTV falls into the Services and applications pillar of the program Can be used to transfer the knowledge and experience from global markets The architecture and infrastructure can be reused by many operators, increasing liberty of information exchange, especially in communication and e-Learning areas, and effectively building the cross-country Caribbean community

34. Next Generation TV and customers loyalty Next Generation TV - Summary Delivering interactive TV services to PC, mobile and TV Hosting of 3rd party interactive TV services Targeted & interactive advertising Full customization and branding of user interface Building of user-generated TV channels Supports IPTV-VNO & IPTV-VNE busines model Personalization is the key to subscribers loyalty Relevant to goals of the Connect the Caribbean program

35. Next Generation TV and customers loyaltywww.comarch.com Visit us at Conference Suite Eros III Thank you! Visit us at Conference Suite Eros III Thank you! Grzegorz.Kot@comarch.com +48 691 464 353 Grzegorz.Kot@comarch.com +48 691 464 353