1. DVB-T Development in Austria

2. Overview  About ORS  DVB-T in Austria  Cost of Distribution  Digital Roll out  Reaching the People  Change of TV Landscape 01.04.2008DVB-T Development in AustriaSeite 1

3. ATO Phases & Coverage 01.04.2008DVB-T Development in AustriaSeite 2 phase 2 ATO 7.5.2007 Tirol phase 1 ATO 5.3.2007 Vorarlberg phase 3 ATO 4.6.2007 Upper Austria Salzburg phase 4 ATO 24.9.2007 Carinthia Styria Conditions of DVB-T reception Roof antenna Exterior antenna Indoor aerial phase 5 ATO 22.10.2007 Vienna Lower Austria Burgenland Now: 92% coverage for MUX A and 74% coverage for MUX B About ORS

4. Österreichische Rundfunksender Austrian Broadcasting Services 3 We are the technical service provider for end to end solutions for analog and digital media: BROADCASTER to CONSUMERS. SHAREHOLDER ORF 60% & Medicur 40% (Raiffeisen group) DVB-T Development in Austria01.04.2008 SatelliteTerrestrialInnovation

5. Facts & Figures ORS - Austrian Broadcasting Services4 Terrestrial TV 473 transmitter stations 986 transmitting units 58 cable connected transmitters 18 transmitters with radio relay system 18 transmitter feed via satellite 892 repeaters Radio 262 transmitter stations 865 transmitting units 88 cable connected transmitters 28 transmitters with radio link system 749 repeaters Satellite 38 tv channels 15 radio channels 2,4 mio subscribers Austria 0,4 mio subscribers Arena (German Football) >10 encryption systems 3 uplinks DTH ASTRA 19,2 B2B: Arena, Premiere Tirol Patscherkofel Salzburg Gaisberg Styria Schöckl Uplink Vienna

6. Customers & Partners Seite 501.04.2008DVB-T Development in Austria

7. ATO Phases & Coverage 01.04.2008DVB-T Development in AustriaSeite 6 phase 2 ATO 7.5.2007 Tirol phase 1 ATO 5.3.2007 Vorarlberg phase 3 ATO 4.6.2007 Upper Austria Salzburg phase 4 ATO 24.9.2007 Carinthia Styria Conditions of DVB-T reception Roof antenna Exterior antenna Indoor aerial phase 5 ATO 22.10.2007 Vienna Lower Austria Burgenland Now: 92% coverage for MUX A and 74% coverage for MUX B DVB-T in Austria

8. Rational of Introdution of DVB-T 7 Quality of TV- Signal Renewal of Infrastructure Resource Efficiency  Analog: one frequency = one program  Digital: one frequency = eight programs 01.04.2008DVB-T Development in Austria  Analog: in many areas instable quality of video and audio signal  Digital: Once reception established clear pictures and clear sound  Improve competiveness of European Countries  Create new services and business opportunities

9. TV Distribution Now 16.09.2008Seite 8 DVB-T Development in Austria Contribution network Transmitter TV Program Analogue TV ORS Services

10. Future TV Distribution 16.09.2008Seite 901.04.2008Seite 9DVB-T Development in Austria Multiplexer Program 1 Program 2 Program 3... Program n Compression of video and audio contents Signal contribution to each transmitter station Signal transmission Digital TV – DVB-T Contribution network Transmitter Typical ORS Services

11. DVB-T - technical facts  DVB-T is a technical standard, that specifies the framing structure, channel coding and modulation  uses OFDM  very flexible system: 3 modulation options (QPSK, 16QAM, 64QAM) 5 different FEC (forward error correction) rates 4 Guard Interval options a choice of 2k or 8k carriers can operate in 6, 7 or 8MHz channel bandwidths  In principle all variants are available DVB-T Development in AustriaSeite 1001.04.2008 QPSK Modulation vs. location probability - an example

12. DVB-T - technical facts  DVB-T is a technical standard, that specifies the framing structure, channel coding and modulation  uses OFDM  very flexible system:  3 modulation options (QPSK, 16QAM, 64QAM)  5 different FEC (forward error correction) rates  4 Guard Interval options  a choice of 2k or 8k carriers  can operate in 6, 7 or 8MHz channel bandwidths  In principle all variants are available DVB-T Development in AustriaSeite 1101.04.2008 16QAM Modulation vs. location probability - an example

13. DVB-T - technical facts  DVB-T is a technical standard, that specifies the framing structure, channel coding and modulation  uses OFDM  very flexible system:  3 modulation options (QPSK, 16QAM, 64QAM)  5 different FEC (forward error correction) rates  4 Guard Interval options  a choice of 2k or 8k carriers  can operate in 6, 7 or 8MHz channel bandwidths  In principle all variants are available DVB-T Development in AustriaSeite 1201.04.2008 Modulation vs. location probability - an example 64QAM

14. Issues Based on Technical Specifications 16.09.2008Seite 1301.04.2008Seite 13DVB-T Development in Austria Network providerBroadcasterConsumer Compression standard  MPEG-2 vs. MPEG-4  No impact  MPEG-2: 3-5 programs  MPEG-4: 6-10 programs  MPEG-2: cheap set top boxes available  MPEG-4: ? Signal specification  System variants  Number of sites increases  Network more complex  necessary transmitter power increases  Cost for DVB-T network based on technical specification  Number of possible programs vary  Realization of nationwide coverage of DVB-T Signal/ transmission polarization  New antenna system needed  Much higher of network services costs for vertical polarization  New roof top antennas for vertical polarization neded

15. DVB-T more 95 % coverage Conditions of DVB-T reception Roof antenna Exterior antenna Indoor aerial Austria End of 2008

16. ATO Phases & Coverage 01.04.2008DVB-T Development in AustriaSeite 15 phase 2 ATO 7.5.2007 Tirol phase 1 ATO 5.3.2007 Vorarlberg phase 3 ATO 4.6.2007 Upper Austria Salzburg phase 4 ATO 24.9.2007 Carinthia Styria Conditions of DVB-T reception Roof antenna Exterior antenna Indoor aerial phase 5 ATO 22.10.2007 Vienna Lower Austria Burgenland Now: 92% coverage for MUX A and 74% coverage for MUX B Distribution Costs

17. Possible Cost-Saving for Broadcasters 01.04.2008DVB-T Development in AustriaSeite 16 Total Distribution Costs Costs per Program Number of distributed Programs -20% vs analog distribution

18. ATO Phases & Coverage 01.04.2008DVB-T Development in AustriaSeite 17 phase 2 ATO 7.5.2007 Tirol phase 1 ATO 5.3.2007 Vorarlberg phase 3 ATO 4.6.2007 Upper Austria Salzburg phase 4 ATO 24.9.2007 Carinthia Styria Conditions of DVB-T reception Roof antenna Exterior antenna Indoor aerial phase 5 ATO 22.10.2007 Vienna Lower Austria Burgenland Now: 92% coverage for MUX A and 74% coverage for MUX B Digital Roll out

19. Strategy of Terrestrial Digitization  Efficient rollout in order to reach high coverage  Excellent technical quality  Consumer-friendly concept  Broad DVB-T subsidy programmes  Short Simulcast Phase  Service for industry and consumers  Broad information campaign for consumers 18Austrian Broadcasting Services GmbH & Co KG

20. TV Digitalisation in Austria 19 Timeline 2001 Introduction of regulatory framework (Private Television Act / PrTV-G) and regulation authorities RTR-GmbH & KommAustria Set up of „Digital Platform Austria“ workgroup to facilitate the launch of digital television in Austria Announcement of the digitization concept for implementation of DVB-T Establishment of a digitization fund and trial in Graz (DVB-T & interactive services) Multiplex tender and preparation for regular operation of DVB-T Start of regular operation of DVB-T start of DVB-H pilot „mobile tv austria“ Definite switch-over of first analogue frequencies and preparation of Regular DVB-H Operation 2002 2003 2004 2005 2006 2007 Start of 2 more DVB-T Multiplexers and regular DVB-H operation 2008 2000 Start of Sat-Digital 01.04.2008DVB-T Development in Austria

21. More than 600.000 DVB-T Tuners sold 01.04.2008DVB-T Development in AustriaSeite 20 Number of DVB-T Tuner sold in Austria Source: GfK; Mobile devices and computer plug-ins not included

22. ATO Phases & Coverage 01.04.2008DVB-T Development in AustriaSeite 21 phase 2 ATO 7.5.2007 Tirol phase 1 ATO 5.3.2007 Vorarlberg phase 3 ATO 4.6.2007 Upper Austria Salzburg phase 4 ATO 24.9.2007 Carinthia Styria Conditions of DVB-T reception Roof antenna Exterior antenna Indoor aerial phase 5 ATO 22.10.2007 Vienna Lower Austria Burgenland Now: 92% coverage for MUX A and 74% coverage for MUX B Reaching People

23. Colaboraation of All Relevant Players Electronics Industry/Retailers Regulation Authority RTR Public TVPrivate TV NGOs (workers chamber, chamber of commerce) Government 22Austrian Broadcasting Services GmbH & Co KG

24. 2 kinds of vouchers Supported by the Austrian Digitalization Fund, installed by the RTR-GmbH In compliance with EU-law  Early adopters  Households extempted from radio and tv license fee based on social criteria  ~ 70 k Vouchers deployed > 30 to 40 EUR for DVB-T devices with mhp MultiText function Terminal Subsidies 01.04.2008Seite 23DVB-T Development in Austria

25. DVB-T Campaigns infotour, TV Spots, TV insert & media cooperations (print, ombudsman) 01.04.2008Seite 24DVB-T Development in Austria

26. Seite 25Titel Changing TV Landscape 01.04.2008

27. Significance of Terrestrial Distribution 01.04.2008DVB-T Development in AustriaSeite 26 % of Audiance Share generated via DVB-T (age 12 to 49) Big benefit!

28. Increasing ways of DVB-T reception 16.09.2008Seite 27 DVB-T mobile phone Flatscreen with integrated DVB-T receiver Car-Multimedia with DVB-T DVB-T Portable (7‘‘) DVB-T gadgets for PC- and notebooks Sony PlayTV (for PS3) incl. DVB-T 01.04.2008Seite 27DVB-T Development in Austria

29. Summary – How to make DVB-T an success  DVB-T: a great opportunity to make the TV- experience even better in every sense  Success is only secured by close cooperation of all partners – private and public  Only optimal use of infrastructure allows efficient solution for the broadcasters  Customers need to be convinced of the benefits DVB-T can create – Communication is crucial! Austrian Broadcasting Services GmbH & Co KGSeite 28

30. Slide 29Austrian Broadcasting Services GmbH & Co KG