IDATEInternet: Act II

‘Patterns for the Digital Household’

Ghislain LescuyerExecutive Vice President

Broadband Access ProductsThomson

7 Main Disruptions are Taking PlaceValue Add Services

CPENetwork

Content Digitalization

Multi-access/Multi-serviceDevices (Fixed/Mobile)

Ubiquitous Broadband based on IPBundled Service (voice, data, video)Vs sum of individual services

Headend ContentServices

Network Edge

Network Edge

More sophisticated media management

Wireless evolution : 3G , WIFI , WIMAX,...

HW/SW Delayering and open architecture

1 2 3

5

4

6

7

Incumbents & New Entrants Can Benefit From Disruptions Through Innovation

Value Add Services

CPENetwork

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 ContentServices

Network Edge

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• …

Cont

ent

Consumers

Incumbents :• France Telecom• SBC• Telefonica• BT• …New entrants and niche players: •Free

•Fastweb

•Skype

•Vonage

•Apple• …

New entrants and niche players:

Disruptions are Rewriting the Rules of the Industry

Voice Data Video

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

Services Evolution: Pushed and Pulled

TelephonyBroadcast TVChattinge-mailWebsurfingGaming

Instant MessagingVideo telephonyVideo on DemandPayTVPersonal Video Recorder (PVR)Electronic Program Guide (EPG)Video conferencingVideo streaming and downloadsAudio streaming and downloadsMultiplayer online gaming Home securityTelelearning, telemedicine, …Remote security surveillanceInteractive videoInternet broadcastingContent storageWeb camKaraoke…

Choice of services is expanding all the time

What Are End Users Looking For?

Ease of use (UPnP)

Security (parental control, firewall, data storage)

Seamless interconnectivity of devices

Mobility

COMPELLING CONTENT

Thomson Vision of the Connected HouseholdBroadband, Entertainment, e-business, services

Broadcast Services, Entertainment

Mobile MultimediaEntertainment, Personal pictures & video, Services

MediaPre-recorded contentPersonal media

Media Centre

PDABluetooth andWi-Fi Phones

Game Console

Wireless LyraWeb Tablet

Laptop

Users want their devices to work togetherand share content

PrinterIP STB and PVR

TheatreProduction / Post-production

Mediaasset

management

Capture

Digital Content Solutions

Video Network Solutions

CREATION DISTRIBUTION ACCESS

Industry & Consumer Solutions

From Content Creation to the ConsumerThomson Provides Solutions Across Entire Length of Value Chain

Content creator

sEnd

consumersTraditional /

Digital cinema

Home• Convergence• PC, TV +…, phone• Content management

Office• Professional solutions

Out of home• Mobility

Electronic / physical

distribution

DVDdistributio

n

Film print

DVDreplicatio

n

Broadcast

Networkservices

Broadband

• Cable • Satellite • Terrestrial • Telcos (internet, 3G, WIFI, VDSL)