1. IDATE Internet: Act II ‘ Patterns for the Digital Household’ Ghislain Lescuyer Executive Vice President Broadband Access Products Thomson

2. 7 Main Disruptions are Taking Place Value Add Services CPE Network Content Digitalization Multi-access/ Multi-service Devices (Fixed/Mobile) Ubiquitous Broadband based on IP Bundled Service (voice, data, video) Vs sum of individual services Headend Content Services Network Edge More sophisticated media management Wireless evolution : 3G, WIFI, WIMAX,... HW/SW Delayering and open architecture 12 3 5 4 6 7

3. Incumbents & New Entrants Can Benefit From Disruptions Through Innovation Value Add Services CPE Network Incumbents Deluxe Ascent Media Cinram … Incumbents. Siemens. Motorola. Westel. Philips Linksys New entrants and niche players 2wire Kreatel Telsey … Incumbents : Tandberg Harmonic Scopus New entrants and niche players: Seachange N2 Broadband Bigband... Headend Content Services Network Edge Microsoft, IBM global services, Accenture, Cap Gemini, Alcatel, Minerva, Thales, … Integration Services Incumbents : Ericsson Siemens Nortel Alcatel Lucent Cisco... New entrants and niche players: Sonus Netcentrex Cirpack Maipu Huawei ZTE … Content Consumers Incumbents : France Telecom SBC Telefonica BT … New entrants and niche players: Free Fastweb Skype Vonage Apple … New entrants and niche players:

4. Disruptions are Rewriting the Rules of the Industry VoiceDataVideo Telcos Satellite Operators Cable Operators ISPs Ubiquitous broadband enables Cable, Satellite & Telco players to compete with one another to offer triple play of voice, video & data

5. Services Evolution: Pushed and Pulled Telephony Broadcast TV Chatting e-mail Websurfing Gaming Instant Messaging Video telephony Video on Demand PayTV Personal Video Recorder (PVR) Electronic Program Guide (EPG) Video conferencing Video streaming and downloads Audio streaming and downloads Multiplayer online gaming Home security Telelearning, telemedicine, … Remote security surveillance Interactive video Internet broadcasting Content storage Web cam Karaoke … Choice of services is expanding all the time

6. What Are End Users Looking For?  Ease of use (UPnP)  Security (parental control, firewall, data storage)  Seamless interconnectivity of devices  Mobility  COMPELLING CONTENT

7. Thomson Vision of the Connected Household Broadband, Entertainment, e-business, services Broadcast Services, Entertainmen t Mobile Multimedia Entertainment, Personal pictures & video, Services Mobile Multimedia Entertainment, Personal pictures & video, Services Media Pre-recorded content Personal media Media Centre PDA Bluetooth and Wi-Fi Phones Game Console Wireless Lyra Web Tablet Laptop Users want their devices to work together and share content Printer IP STB and PVR

8. Theatre Production / Post-production Media asset management Capture Digital Content Solutions Video Network Solutions CREATION DISTRIBUTION ACCESS Industry & Consumer Solutions From Content Creation to the Consumer Thomson Provides Solutions Across Entire Length of Value Chain Content creators End consumers Traditional / Digital cinema Home Convergence PC, TV +…, phone Content management Office Professional solutions Out of home Mobility Electronic / physical distribution DVD distribution Film print DVD replication Broadcast Network services Broadband Cable Satellite Terrestrial Telcos (internet, 3G, WIFI, VDSL)