Q3 20071

Fixed Mobile TV ConvergenceFranklin Selgert

Q3 20072

KPN Royal Dutch Telecom

Telephony, Internet and

Television in The Netherlands

Mobile communication in The

Netherlands, Belgium (BASE)

and Germany (E-Plus)

24.890 employees (fte’s)

(18.071 in The

Netherlands)

Listed in Amsterdam.

Q3 20073

A changing world corporate presentation 2005

• From traditional phone company to multimedia concern

• Innovations which are of real use to our customers, instead of just technical products and services

Q3 20074

A changing world 2008

• From traditional phone company to multimedia distribution company

• Innovations which are of real use to our customers, instead of just technical products and services

• Mobile TV is “just” another screen next to the traditional TV and the PC

• Technology issues will be solved. In the end it’s IP based

• TV is an interaction model not a technology issue

KEY POINTS

Predicting the third screen

TV broadcast

Interactive

Video on demand

View programs that you missed

Digital video recorderPersonalTV services

Digital TVpackages

Wifi

DVB-HUMTS

Digital TV by KPN

DVB-T IP-TV

PC zapper

KPN interactieve TV

The results of consumer trials

• Freedom and Privacy are the key words here.

• Interactivity (not yet a big issue)

• Content formats (short and big)

• People watch in-house! (>50%)

willingness to pay

Requirements to standards

Open standards suitable for convergence

Transparent content and service protection

Facilitating personal and home networks ideas

Interactivity build into the standard system.

Allowing flexible business models

Combination of personal and mass-market services

Technology issues

• Multiple bearer technologies for broadcast type of services

• No exchangeable protection standards

• No convergence of technology behind one interface.

• “Battle” between different standards

Our problem

7 juli 2006 versie 1.110

Number of persons that watch tv program at the same time

euro DVB-HCosts per person

MBMSCosts per person

UMTS/hsdpa Costs per person

Customer value estimation

UniCast MultiCast BroadCast

Event subscription

Delivery cost vs. value for customer mobile bearers

The challenge

7 juli 2006 versie 1.111

euro

UniCast MultiCast BroadCast

70 % interactive 30 % lean back 50 % interactive 50 % lean back 10 % interactive 90 % lean back

Mobile TV a killer APP?

No it is just one of thethree surviving interaction typologies people are looking for

Communication

Interaction

Watching

TV is an interface

• TV is one choice of consumers on how they want to interact with “video” content.

• The mix of this choice is different across demographics.

• Convergence means facilitate this choice across the three basic screens.

•Service layer on top of the bearer!

•Protection mechanism!

• If not solved no mass market no success!

Main identified botle neck