Telcos versus Cable!Kevin Baughan

Head of Technical Strategyntl:Telewest

Making convergence pay26th September 2006

2

Telco versus Cable?

3Source:Ofcom, The Communications Market 2006

UK Market

4Source:Ofcom, The Communications Market 2006

UK Household Spend

5Source:Ofcom, The Communications Market 2006

Service Bundling in the UK

6

Customers, Experiences & Networks

Entertainment Communications

Networks

7

The Entertainment Experience

8

Quality, Flexibility, Convenience

AlternativeContent

AlternativeBroadcasters

MainstreamContent

MainstreamBroadcasters

Television Broadband Mobility

DeliveryNetwork

9Source:Ofcom, The Communications Market 2006

UK TV Revenues

10

Quality: DTV, VOD, HDTV

Cable TVNetwork

Television

Head End Servers

High Capacity Coax

Deep Fibre Access NetworkRobustness

Digital RightsSimplicity

MainstreamContent

MainstreamBroadcasters

11Source:Ofcom, The Communications Market 2006

UK Market Share of the Main Set

12

A Challenge to Replicate over IP

BroadbandNetwork

RobustnessDigital Rights

Simplicity

DTTNetwork

IP STB

A great deal ofexperience gained

but limited deployments

An interesting area also for ntl:Telewest - to reach the rest of the UK

MainstreamContent

MainstreamBroadcasters

13Source:Ofcom, The Communications Market 2006

Viewers seek Choice

14

The Entertainment Experience

AlternativeContent

AlternativeBroadcasters

MainstreamContent

MainstreamBroadcasters

Television Broadband Mobility

DAB – IPNetwork

BroadbandNetwork

Cable TVNetwork

DTTNetwork

15Source:Ofcom, The Communications Market 2006

The Cost of a DTT Channel Rises

16

Flexibility: PC & Media Centres

Broadband

BroadbandNetwork

AlternativeContent

AlternativeBroadcasters

MainstreamContent

MainstreamBroadcasters

Streaming

Multi-cast

P2P

Downloads

17

Covenience: Mobiles & Portables

DAB – IPNetwork

MainstreamBroadcasters

AlternativeContent

MainstreamContent

BroadbandNetwork

Sideload

18

The Communications Experience

19Source:Ofcom, The Communications Market 2006

Mobile & Broadband Drive Growth

20Source:Ofcom, The Communications Market 2006

UK Prices Continue to Fall

21

Deep Fibre and High Capacity Coax Fixed

Broadband

ntl:Telewestnetwork

In the FutureDOCSIS 3.0

100Mb/s

TodayDOCSIS 1.0

2Mb/s4Mb/s

10Mb/s

Wherever youare on ournetwork

Trial inAshford

1H 06

22

coax

500 to 600 MHz > 3Gb/s

Broadcast

VOD

Download

Internet

2.2MHz1 to 20Mb/s

copper pair

Internet Download& & Broadcast & VOD

Copper versus Coax

23Source:Ofcom, The Communications Market 2006

Cable is the Biggest UK ISP

24

POTSVDSL2

Deep Fibre and also Short Copper

ntl:Telewestnetwork

BT’scopper

POTsADSL2, ADSL2+

DOCSIS

FixedBroadband & Voice

Successful VDSL2Trial in Guildford

1H 0650Mb/s down

25Mb/s up

25Source:Ofcom, The Communications Market 2006

It’s a Fixed & Mobile World

26Source:Ofcom, The Communications Market 2006

Fixed Voice Usage is Level

27Source:Ofcom, The Communications Market 2006

Mobile Voice Usage has Leveled

28

Next Step: Fixed + Mobile

FixedBroadband MobileConvergence

T-Mobilenetwork

ntl:Telewestnetwork

Broadbandintegrated

withMobile

Mobileintegrated

withBroadband

Handsets3G + WiFi

29Source:Ofcom, The Communications Market 2006

The Arrival of LLU in the UK

30

Fixed On net

Next Step: Expanding our Reach

FixedBroadband Mobile

ntl:Telewest T-Mobilenetwork

BT’scopper

Fixed Off net

Convergence

31

Customers, Experiences & Networks

Entertainment Communications

Networks

32

Making Convergence Pay

A great entertainment experienceacross TV, PC, Mobile

A great communications experienceacross Fixed & Mobile

Deep fibre, high capacity coax and short copper

A fresh focus on customer satisfaction

A great UK brand