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JR Kalvot RESULT Q2 2012

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JR Kalvot RESULT Q2 2012 Teleste Capital Markets Day 13.9.2012 Hanno Narjus Video and Broadband Solutions Teleste is the leader in European Cable industry Avenues for growth Technologies and products Evolution to FttLA Cable Access Intelligent Network Elements + NMS/EMS Passives and Indoors Over The Over The Top / Multiscreen solutions Top Service Management SW GPON / EPON + Data over Coax FttB + Coax Telecom and Cable Operators Teleste network solutions TV distribution industry FTTH Luminato HDO Network management VoIP Gateway Telephony services New services VOD etc. Internet services Headend Fibre Optical Network House Network Local video Services Service management Main Headend Deep Fibre / FTTx Luminato HDO IP Backbone O E CXE Fibre Optical Network RT1000 House Network Headend Luminato HDO HFC TV Phone Internet services Network Element Management Local video Services CATVisor O Set Top Box PC Fibre 1310 / 1550 nm E Regional Headend CXE ACX ACX ACX Cable modem BK BK Fibre Optical Network Coax Network House Network Subscriber Intelligent network concept – what is it? • Auto alignment: At the touch of a button the network elements are optimally aligned • Automated on-going alignment functions in the network elements keeps the network optimally aligned • Automatic Ingress block: Ingress noise can automatically be blocked preventing entire segments being affected. Management system is alerted and location is shown where the noise is introduced. Intermittent Ingress can be temporarily isolated without engineering actions. • Signal monitoring for upstream and downstream both locally and remotely enabling fast fault finding and corrections. • Network management: Network elements can be monitored and configured via central management system. All adjustment are electrically controlled in the nodes/amps. Network element settings are automatically backed-up. Less truck- roll. Intelligent networks concept Total cost case study • Breakeven in 2-3 years • Network availability improvements • Total savings of 50% over 15 years Avenues for growth Technologies and products Evolution to FttLA Cable Access Intelligent Network Elements + NMS/EMS Passives and Indoors Over The Over The Top / Multiscreen solutions Top Service Management SW GPON / EPON + Data over Coax FttB + Coax Telecom and Cable Operators Disruption in TV services distribution: OTT Threat or opportunity for Cable / Telco operators? Over the top (OTT, Over the top video) Noun - def.: premium video services delivered over the Internet to televisions and other connected devices Disruption in TV services distribution DVB to DVB/IP hybrid to OTT/cloud ”Summer cottage” OTT Next Gen Advanced searches SmartTV Android Recommendations iOS NPVR Social Media Second screen Enhanced EPG @ home Broadband TV Home Catch-up for VoIP Gateway premium content More Digital PVR VOD Channels Time shifting Yesterday Today Tomorrow OTT / on-demand TV services is gathering momentum in Europe right now! Balan Nair, UPC CTO on OTT services: “If you don’t have it today, start it now! It’s not easy, takes you at least 6-12 months to launch something” Virgin Media: 1 billion on-demand views in 2011 Comcast: 400+ million on-demand views / month Cable operator launched OTT services in Europe Country Operator Launch Brands Belgium Telenet 2011 Yelo Denmark Stofa 2010 WebTV Denmark YouSee 2010 WebTV Netherlands UPC 2010 UPC Live Netherlands Ziggo 2011 ZiggoTV UK Virgin Media 2010 VM Player Poland Toya 2011 ToyaTV GER, SUI, UPC 3Q2012 Horizon BEL, NED, ... Pre-integrated solution for OTT services OSS / BSS Luminato Headend Platform Broadcast TV Live TV Optimo Transcoding Platform nPVR HLS, Smooth Streaming, DASH Timeshift Orbit video streaming VoD VoD VoD VoD Applications … Billing MyCast & On-Demand Manager SMS CRM ... Customer approach Core focus is on providing OTT solutions & system integration – with Teleste Ubique SW as key differentiator Core capabilities • Consumer service innovation • Solution architecture • Focused own SW assets • Integration capabilities Market roadmap • FIN, POL (existing) • Selected new markets Target both Tier1 and Tier2 service providers • Tier2: full solution + possible hosting • Tier1: best of breed innovative components + integration capabilities Avenues for growth Technologies and products Evolution to FttLA Cable Access Intelligent Network Elements + NMS/EMS Passives and Indoors Over The Over The Top / Multiscreen solutions Top Service Management SW GPON / EPON + Data over Coax FttB + Coax Telecom and Cable Operators Data over Coax Background TV ARPU is attractive => Telco’s are hungry to win market share Video distribution over IP is driving subscriber line speeds towards 100 Mbps, with peak-hour average line speeds towards 20 Mbps Incumbent Telco’s are seriously planning FttB roll-outs FTTH makes no business sense Operators are looking for alternative FTTB/FTTLA/FTTP scenarios where the last meters are implemented with different technologies (VDSL, Ethernet Cat5/6, Data over Coax) VDSL has scaling problems now, Docsis CMTS will have scaling problems later on Data over Coax Background The main hurdle and opportunity is the in-building network Coax is a truly attractive medium - Is in place (vs. Cat5/6) - Has potentially more capacity compared to twisted pair In most European countries, the in-building networks are owned and ultimately controlled by the building owner – not the incumbent network operators (telco or cable) Hence, FttB using Ethernet access (GPON / EPON / p2p / …) + Data over Coax (various technologies) for in-building distribution is attractive option for incumbent telecom operators - Winning housing associations business from cable operators - Adopting the best technologies from cable market Data over Coax What’s the status? Several incumbent operators are targeting housing associations for their triple play services Data over Coax is in early market stage • Some telecom operators are conducting a field trial during 2012 • Hospitality market is ready adopt new technologies quickly Teleste is perfectly positioned to provide Data over Coax solutions • The skills & experience for optimal product implementation are there • Currently we are at high-level conceptualization phase • Selection of right technologies • E2e provisioning and IP connectivity model, including security aspects • Level of integration: Master Modem & ONU; consumer gateway Teleste is the leader in European Cable Access and well positioned to win market share TV services disruption to Over the Top delivery is opening new opportunities for solutions business Data over Coax is attractive technology for incumbent telecom operators; we are now experiencing early market phase Q & A .
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