1. Broadband: Triple Play in Europe IECP, January 28, 2004 Adam Peake Executive Research Fellow GLOCOM

2. Defining Broadband What do we mean by “Broadband” From point of view of consumers From point of view of policymakers

3. Broadband Triple Play Fast Internet (IP) + Voice + Interactive Video, over 1 connection Integrated, not add-ons e.Biscom (Italy) – the first integrated broadband provider B2 (Sweden) – nearly there! 1SEK = ¥14.5, 1Euro = ¥132

4. Bredbandsbolaget / Bredband / B2 B2 ( ブレーバンスボラーゲット ) Established 1998 – 10Mbps to the apartment Target: 1 million apartments @ 200 Swedish Kroner/Month by 2005 Internet - - - then Video and Voice 2.5Gbps backbone (upgrade to 10Gbps), metro area 1Gbps rings, multiple rings in large cities: future proof B2 standard throughout Built heavily on Stokab and other municipal fiber

5. Bredbandsbolaget / Bredband / B2 10Mbps anywhere on B2 network Live Ethernet in all apartments in the connected building Anchor deal with HSB: access to 400,000 apartments in 51 cities

6. No IPO – Change of Plans October 2000 – IPO called-off Cancelled international plans Scaled-back and slowed-down in Sweden Raised prices from 200SEK to 400SEK/month

7. B2 Target Household Type / Homes Installed & Subscribers (10Mbps service)

8. No IPO – Change of Plans New business plan Business customers DSL (city-by-city rollout) February 2003: Video-on-Demand, but PC oriented PAL-Quality TV and MPEG2 Video: Summer 2004 (focus on the TV) Challenge: Cheap and popular cable Other broadband IP providers

9. No IPO – Change of Plans February 2003: Nationwide IP telephony Non-PC customers on the socket 20,000 first 3 months 99SEK/month (advantage: 20% under Telia) Full service, ordinary telephone number March 2003: DSL launched (0.5Million new homes) 8Mbps and 12Mbps: carry all current and planned services Big city focus: Stockholm, Gottenberg and Malmo Triple play on the way

10. Selected Swedish broadband packages by speed and price (source DotEcon, Oct 2003)

11. e.Biscom – First in Broadband? Established in 1999: Silvio Scaglia Broadband services over Internet Protocol, a network of routers: “a single IP network for all services to both business and residential customers.” A new utility serving the home enabling: Voice Video Internet And services over IP

12. e.Biscom – Vertical Integration Building on Omnitel’s success: control vertically Metroweb: dark fiber Fastweb: local network and services Cites served: Milan, Rome, Genoa, Turin, Bologna, Naples and Reggio Emilia e.Bismedia: content RaiClick

13. Models : NETWORK (Backbone and Access) CONTENT PHISICAL INFRASTRUCTURE (Dark Fiber) e.Biscom – Vertical Integration Municipality Service Provider Stokab Municipality

14. e.Biscom – Reasons for Success Integrated from launch First mover advantage Successful IPO: $1.5 billion (March 2000) Big city focus Limited competition Business customers bring revenues (and sometimes new services) DSL carries all services and is an upgrade path to fiber when available

15. Technology - Fastweb in the apartment Broadband Fiber 10Mbps DSL up to 6Mbps (4Mpbs) Simultaneous connection Telephone Internet TV/Movie Interactive video-comms Streaming Video Unicast - MPEG2@4Mbps Multicast - MPEG2@2-4Mbps

16. e.Biscom – Services Fast Internet TV (2Mbps stream) Movies on Demand (4Mbps stream) Universal, Fox, DreamWorks, MTV, Discovery, BBC, etc. Voice Telephony Video Telephone (to the TV, 1.5Mbps stream) Show My Video Recording and storage IP home services (security to lights)

17. Fastweb services: subscription packages and fees

18. Fastweb TV Interface 26 Satellite Channels 2 VoD Channels Program Guide 7 Free Channels Preview

20. Customers & Revenues 3q ‘024q ‘021q ‘032q ‘033q ‘03 Subscribers (thousands) 131.5176.1213.0249.0290.2 Fiber76.699.7115.6127.8141.7 DSL54.976.497.4121.8148.5 Revenues (million Euro) 61.763.375.0108.1118.7 EBITDA 6.28.315.624.534.5

21. Future Customer growth steady Financial targets being met and money to build $865 ARPU vs. $385 for Telecom Italia copper Additional $140 ARPU from video-on-demand customers Still innovating

22. http://www.ebiscom.it/ (e.Biscom) http://www.ebiscom.it/ http://www.fastweb.it/ (Fastweb) http://www.fastweb.it/ http://www.casacomoda.it/ (Cisco Internet Home) http://www.casacomoda.it/ http://www.bredband.com (B2) http://www.bredband.com Thank You!