DVB-T is a technical standard, developed by the DVB Project, that specifies the framing structure, channel coding and

modulation for digital terrestrial television (DTT) broadcasting. DVB-T services are on air in more than 40 countries and nearly 200 million receivers have been sold, of which 150 million in Europe alone* History of the standard: 1997 - First version was published 2009 DVB-T2 specification was published Benefits of DVB-T deployment:

Better quality television service Enables better coverage of population in cost effective manner Spectrum efficiency (up to 10-12 programme** on one channel, instead of one by analogue) Enables HDTV Reception on mobile and portative devices (DVB-H) Organization of local programming

* DVB Fact Sheet - May 2010 * * Depends on the chosen modulation type and channels bit-rate.

Channels and Content

DTT network operator

DTT platform operator

Distribution network

Pay TV operator and retail

The following issues to be addressed Legal issues:

New broadcasting legislation needed - appropriate regulatory frameworks Piracy and rights acquisition

Technical issues: Broadcasting network planning Delivering of content to transmitters distribution network (to carry HD)

Marketing issues: Content and products Right revenue generation model Appropriate pricing strategy Distribution channels

#
Capacity

Terrestrial
100

Satellite
200

Cable
More than 300

IPTV

Reach

National wide

National wide

Dense urban

Dense urban

Capex/Subscriber Low; Video/ Data Globally phasing out Unless Pay TV market has high penetration and adopted DP Low; Video/Data/Voice Globally phased out High; Video/ Data/Voice Globally phasing out Lack of attractive offerings and other capable DP High; Video/ Data/Voice Not available

Convenience of bundling

Analog

Time to market

Providing quite large subscriber base

Providing ubiquitous FTTH infrastructure

STB availability

Breakdown of customer base between DP

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 55.0 36.0 2.7 2.0 36.5 19.3 14.0 27.0 Italy 26.7 4.1 10.8 14.5 2.0 7.0 UK 10.7 1.1 0.0 Spain 37.0 3.0 6.0 68.9 62.2 83.9 55.9 10.2 14.6 42.9 16.2 0.0 Sweden 7.8 2.0 75.0 18.4 13.3 0.2 11.0 France 53.2 43.9 58.6 11.0 68.2 85.8 84.1 93.5 100.0 58.2 100.0 100.0 65.2

60.8 91.0

DTV Pay TV IPTV DTH Cable DTT ATT

0.0 Germany

10.0 0.0 Finland

1.8 0.0 Denmark

14.0 0.0 Netherlands

Country

Launch
Q4 2002

Business model
Free Free+Pay TV Free Free+Pay TV Free

Operator
Freeview Top Up TV Tivsat Mediaset TDT TDT Premium

Content
50 FTA 50 FTA + 3 Packs/VoD 40 FTA 4 FTA + VoD, PpV 30 FTA Gol TV, AXN, Canal Plus 2 20 FTA

HH (m)
18,700 (Q2 2010) 0,5 (Q2 2010) 17,746 (Q2 2010) 3,3* (Q2 2010) 15, 3 (Q1 2010) 0,19 (Q2 2010) 15,3 (Q1 2010)

MP % of HH
73,2 (Q2 2010) 2,0 (Q2 2010) 72,0 (Q2 2010) 14,0 (Q2 2010) 89,3 (Q1 2010) 1,11 (Q2 2010) 56,8 (Q1 2010)

UK Q1 2004 Q1 2004 Italy Q1 2006

Spain

Q4 2005 Free+Pay TV

France

Q1 2005

Free

TNT

Germany

Q1 2003

Free

24 FTA

4,2 (Q3 2009)

11,3 (Q3 2009)

Country
Sweden

Launch
1997

Business model
Free+Pay TV

Operator
Boxer (Teracom) PlusTV (Teracom) Boxer (Teracom) Riks TV ZUUMtv (Starman) Lattelcom Digitenne (KPN)

Content
8 FTA + 30 Pay TV

HH (mln)
0,66 (Q4 2009) 0,25 (Q4 2009) 0,045 (Q4 2009) 0,34 (Q4 2009) 0,04 (2008) 0,022 (Q4 2009) 0,89 (Q3 2010)

MP % of HH
16,2 (Q4 2009) 10,0 (Q4 2009) 1,76 (Q4 2009) 15,7 (Q4 2009) 7,3 (2008) 2,6 (Q4 2009) 14,0 (Q3 2010)

Finland

Q3 2006

Free+Pay TV

18 Pay TV

Denmark

Q4 2009

Free+Pay TV

8 FTA + 30 Pay TV

Norway

Q4 2007

Free+Pay TV

4 FTA + 18 Pay TV

Estonia

2006

Free+Pay TV

5 FTA + 23 Pay TV

Latvia

Q3 2009

Free+Pay TV

5 FTA + 38 Pay TV

Netherlands

2010

Free+Pay TV

3 FTA + 20 Pay TV

Name

Origin country

Experience in DVB-T network deployment DTT network operator Levira (Estonia) Media Broadcast (Germany) RTNL (Ireland)

Rohde & Schwarz

Germany

Elettronica Industriale (Italy) Norkring (Norway) KPN(Netherlands) Teracom (Sweden)

- Harris Corporation Grass Valley

Ukraine USA USA

UDTVN (Ukraine) Arqiva (UK) LVRTC (Latvia) Broadcast Service Denmark (Denmark) TDF Group (France ) Arqiva (UK) Digea (Greece)

NEC Corporation

Japan

Key points in transmitters selection: Operating cost efficiency best-in-class power consumption The size of a transmitter Compact footprint Maintenance cost Fully compliant with regulations

Key considerations when picking out technology partner: Financial stability Commission and system deployment aid Support service availability Training facilities

Conax
Country
Estonia Hungary Finland Latvia Lithuania Netherlands Norway Finland Estonia Latvia Turkey Germany

NDS
Platform
DTT DTT DTT DTT DTT DTT DTT DTH Cable Cable Cable IPTV

Nagravision
Platform
DTH DTH DTH DTH DTH DTH Cable Cable Cable Cable IPTV IPTV

Irdeto
Country
Spain Czech UK

Operator
ZUUMtv Antenna Hungria Plus TV Lattelecom TEO KPN Norkring Canal Digital Starman Baltkom Turksat T-Entertain

Country
Finland France Germany Italy Sweden Turkey Spain Germany

Operator
Canal Digital CanalSat Sky Deutschland Sky Italia Viasat D-Smart ONO Kabel Deutschland

Country
Italy Spain UK France Germany Poland Spain Turkey France Germany

Operator
Mediaset TDT premium TopUp TV CanalSat Sky Deutschland Cyfra+ Digital+ Digitrk Numricble Kabel Deutschland

Platform
DTT DTT DTT DTH DTH DTH DTH DTH Cable Cable Cable Cable

Operator
TDT Premium Skylink BSkyB

Platform
DTT DTH DTH DTH

Middle East Orbit Showtime

Netherlands UPC Nederland Poland Russia Germany Aster Sistema Arcor

Netherlands UPC Nederland UK Virgin Media

TV HH 1.000.000 Penetration of Pay TV (% of HH) 18.6 %

900,000 800,000 700,000 600,000 500,000 400,000 314,000 300,000 200,000 100,000 0 0 Terrestrial

Market from delivery platform and business model perspective

814,000

500,000 Free Pay TV

150,000 28,000 3,000 Satelitte 0 Cable 0 MMDS/MITRIS 0 IPTV 5,000

186,000

Overall

TV HH 1.000.000 Penetration of DTV (% of HH) 54.11 % 600,000 500,000 400,000 300,000 200,000 100,000 0 0 Terrestrial 600,000 500,000 400,000 300,000 200,000 100,000 0 Free Pay TV Overall 145,000 41,000 314,000 0 Satelitte 145,000 5,000 Cable 0 28,000 0 5,000 Overall 541,000 459,000 314,000

Market from delivery platform and broadcasting format perspective

503,000 541,000 459,000

Analogue Digital

MMDS/MITRIS

IPTV

Market from business model and broadcasting format perspective

500,000

Analogue Digital

CAPEX 12,000 mln. AZN OPEX 8,000 mln. AZN Number of subscribers 170,000 Generation of profit As of 3 year