1. www.idc.com IPTV: Finally, a Profitable Video Service? Jan Hein Bakkers Research Manager European Broadband Markets and Technologies

2. IPTV is Hot! France Telecom – launched 2004 Telefonica – launched 2004 Belgacom – launched 2005 TDC – launched 2005 Telecom Italia – launched 2005 TeliaSonera – launched 2005 British Telecom – to be launched 2006 Deutsche Telekom – to be launched 2006 KPN – to be launched 2006 Swisscom – to be launched 2006 Telekom Austria – to be launched 2006 PTTs across Europe are deploying IPTV

3. IPTV - Why Now? Traditional fixed line revenues under pressure Broadband access is becoming commodity Competitive pressure Technology is ready Content industry is starting to open up for digital distribution

4. IPTV – Market Opportunity 2006 is key year: major operators are expanding or launching service Market environment is very different from country to country 10 Million subscribers in Western Europe by 2009 Subscriptions will be main source of revenue Differentiation is key Western European opportunity for IPTV subscriptions is almost $2.5B by 2009

5. Successfully Deploying IPTV – Issues Network transformation Marketing strategy Organization/human resources Scale Customer support Partnerships

6. Please email me at jbakkers@idc.com Questions?