1. Everything 2.0 2 or zero? Triple Play Symposium Gary Kim www.voipweekly.com gary@dagdamor.com

2. Nobody has 10 Years In Western Europe and in North America, broadband revenues exceed PSTN voice by 2009 --Informa

3. Huge Shift Coming

4. A Strategic Investment … Not Necessarily the “ Best ” Use of Reinvested Cash … Without FTTH, no business left Invest, trade market share with cable Platform then in place for other stuff not invented yet

5. No Business Case? Gross revenue 40-$100/month? – Provider “net” is 50% of gross ($20-$50) Stranded assets – Cost per passing = cost per sub? No! FTTH $1000/passing At 33% penetration, $3000/customer Install $700/customer CPE $700/customer (3 set top boxes)

6. The “ Mah Margin ” Problem Basic cable 40% Premium (“pay”) 20% or less Pay per View 10% or less Long tail IPTV? (what would you guess, based on all the other numbers?)

7. Change from the Outside Buying Controlled Here User Need Determined Here Fax migrates to home. But Email, cheap broadband, cellphone, SMS, Web, Instant Messaging migrate into the enterprise. “ Analog ” executives “ Digital ” employees Digital executives Digital employees

8. How to Build a $500 Billion Annual Revenues Business Start with a $1 trillion annual revenues business Lose 7% a year In 10 years, you have a $500 billion annual revenues business Telcos are losing lines at 5-6% a year Wireless, downsizing has saved them so far

9. How to Build a $2 Trillion Annual Revenues Business Create new applications – Cable TV$50 Billion – Movies, Games, Music$157+ Incorporate, embed in new segments – System integration/support $284 – Oracle$66 – SAP$64

10. If You ’ re Going to Do It …. Remember what the cable execs say: – “In a competitive market, the lowest cost provider wins.”

11. IPTV Isn ’ t the Solution: But it ’ s a Start … Thanks!