Cebit, Istanbul

1
Cebit, Istanbul 23rd, November 2007 Yann
Courqueux
2
Key Figures
5,747 M Core Business revenues 2006
26,250 Employees worldwide
2,684 M
27 M
547 M
2,489 M
3
Thomson Video Leader in Broadcast, Networking,
Home Solutions
The largest vendor of broadband and broadcast
Premises equipment and solutions in the world
HD Acquisition Production HD Multi-format
Servers Storage Systems HD News Comprehensive
IPTV Offering
Leader in MPEG video networking Largest IPTV
installed base Unique end to end mobility
solution for content providers, broadcasters and
Mobile Network operators
Thomson End-to-End Integration
4
Mobile TV A high potential opportunity

• Many different mobile TV opportunities for
  operators
• Additional revenue sources
• Subscriptions
• Advertising
• Interactive communications
• Content cross selling
• Churn improvement
• Customer recruitment
• Offer differentiation

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validated by ongoing market trials
European trials usually measure a MoTV potential
penetration of more than 50-60
Users are watching mobile TV between 10 30
minutes per day
Users are ready to pay as much as 10 per month
for this service
Users are mainly watching Mobile TV at home
Sources Mobile TV, TeleAnalytics, July 2006,
Arqiva, NewMediaAge, "One to watch", March 2006,
ZDNet-Feb 06
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4 evolution scenarios for the Mobile TV market
Implementation needs to address the multiplicity
of evolution scenarios
Uncertainty around interactivity and
personalization
Customized active viewing (Interactivity,
delinearization, personalization, made for mobile
content)
New media Mobile TV internetization
Niche Personal TV
?

Traditional passive viewing
?
Limited extension of traditional TV
Seamless TV TV everywhere
Uncertainty about the penetration of mobile TV
Niche penetration
Mass penetration
?
?
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4 success factors for your mobile TV project

• Smooth operational launch
• Superior customer experience
• Market evolutions mastery
• Cost-effective solutions

1
2
3
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Key success factor 3 A smooth operational
launch
KSF1 - Smooth operational launch
1

• A successful operational launch is key for the
  customer adoption of a mobile TV offer
• The First time right golden rule
• Thomson can guarantee you a fast and reliable
  launch
• Thomsons experience in mobileTV deployments
• Thomson has developed an Easy to deploy solution
• A truly open architecture which integrate all
  technical environments
• Thomson has the ability to operate the solution
  on your behalf (if required)

1.1
1.2
1.3
1.4
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Thomson is involved in 7 out of the 10 Mobile TV
technical and commercial deployments
KSF1 - Smooth operational launch
1.1
National wide coverage with 51 outdoor shelters
T04 months
151 statmux for multi-MNO and Multi-regional
service platform TO3 months
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A complete pre-packaged solution
KSF1 - Smooth operational launch
1.2
A unique feature-rich service Platform
One head-end for multiple mobile networks
Thomson offers you a full range of transmitters
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A truly open architecture which integrate all
technical environments
KSF1 - Smooth operational launch
1.3

• Interface with existing scheduler and OSS/BSS
• Interop with CAS/DRM
• Interop with devices

12
Thomson has the ability to operate the solution
on your behalf (if required)
KSF1 - Smooth operational launch
1.4
Chiswick playout facility, UK
Atlanta control center, USA
Technicolor Network Services provides managed
services that facilitate the preparation,
management and distribution of content for
customers that include media companies, content
owners, channel and telecom operators around the
world.
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Key success factor 2 A superior customer
experience
KSF2 - Superior customer experience
2

• Customer experience is key to the mass adoption
  of new technologies, media or services and the
  main differentiation lever
• Two essential components of mobile TV experience
  are
• Image quality
• Ease of use
• Thomson guarantees you a differentiating image
  quality
• Thomson has developed and implemented leading
  edge image technologies
• and ease of use
• Thomsons hybrid unicast / multicast solution
  offers a seamless customer experience

2.1
2.2
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The success of mobile TV will depend on the
quality of the image perceived by the user
KSF2 - Superior customer experience
2.1
Acceptability As a function of Quality, Choice
and Coverage
Acceptability of news content ()

• 23 of all 3G customers and 29 of all EDGE users
  would like better image quality for TV (France
  Telecom / Orange Dec.2006)
• 3G-delivery resulting in 30 to 60 up front user
  dissatisfaction (Tellabs survey, 2006)
• 24 of European mobile video and TV triallists
  said they stopped using it because of concerns
  about service quality and reliability
  (TeleAnalytics, April 2007)

240x180
168x128
120x80
Video bitrate (kbits/s)
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KSF2 - Superior customer experience
Thomson has developed and implemented leading
edge image technologies
2.1

• Automatic content adaptation to Mobile format
• Selection of interest zones ?visual attention
  model
• Dynamic reframing algorithms

Double Take automatic reframing using ROI masks
Selection of Region to process on Vibe MobileTV
encoders
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Thomsons hybrid unicast / multicast solution
offers a seamless customer experience
KSF2 - Superior customer experience
2.2

• Interconnection between broadcast 2G/3G service
  platforms
• Interactive content Voting, SMS alerts, Betting
• Broadcast incitement to 3G service consumption
  Watch, Click Buy

Push-Mode Mass Delivery
DVB-H Head-end
Up to 40 services
Terrestrial Network Operator - Broadcast
Point to Point
VOD Head-end
Pull-Mode Personalized services
Mobile Network Operator - Unicast
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KSF2 - Superior customer experience
An easy evolution to Fixed-Mobile convergence
thanks to a leadership on broadband - IP TV
Video
2.2
Order a movie download from my Mobile
Program my PVR with my mobile
Keep watching a movie with my mobile
Watch trailers on your mobile
Receive Content Alerts and Promotions

• Cross device video service Continuity
• Share content across terminals through shared
  platform and storage

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Key success factor 3 Market evolutions
mastery
KSF3 - Market evolutions mastery
3

• Some key parameters of mobile TV are still
  uncertain

Thomsons solutions are truly flexible and open

• Usage (Passive or interactive?, Indoor or
  mobility?, Short or long?,)

Smartvision enables you to offer a large range of
innovative cross-services
3.1

• Business model, speed of mobile TV penetration
  coverage requirement

Thomsons scalable solution enables you to pay as
you grow
3.2

• Number of service providers

Thomsons solutions allow you to implement
network partitioning
3.3
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KSF3 - Market evolutions mastery
Smartvision enables you to offer a large range of
innovative cross-services
3.1

PUSH servicesbroadcast networks

Interactive Services
Push-Video
Voting
http//www.yahoo.news.com
Technology August, 26th Pluto is not a planet
anymore August, 26th Mobile TV, a strong
trend for 2007 August, 26th Thomsons
results published More
Push-News
Buy tickets for this concert!
Barker Channel
Push-Advertising
Impulse Purchase
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Thomsons scalable solution enables you to pay as
you grow (capacity services)
KSF3 - Market evolutions mastery
3.2
interactivity and personalization
On Demand (VOD)
Customized active viewing
Manages VOD over 3G and xDSL/FTTHx
New media Mobile TV internetization
Niche Personal TV
Interactivity (cross-services)

Traditional passive viewing
Simple to multiple services
Limited extension of traditional TV
Seamless TV TV everywhere
Live Only (Multi/Unicast)
penetration of mobile TV
Niche penetration
Mass penetration
From 1 to n channels With or without
protection Advanced packaging possibilities
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Thomsons solutions allow you to implement
network partitioning
KSF3 - Market evolutions mastery
3.3

• Case study - consortium selling TV bouquet to
  multiple Mobile Network Operators across several
  countries

Transmission DVB-HMIP For all regions
Region 2
Region 1
Time
Rate
Region 2
Time
DVB-H Head-end
De-concentrator
Rate
Rate
Time
Time
Step 1 Filtering
Step 2 Rate smoothing

• Content Aggregation
• CAS/DRM
• Interactive platform

• Differentiated Service plan
• Differentiated Look and Feel
• Different CAS/DRM supported
• Different Mobile phones supported

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KSF4 A Cost Effective Solution

• Key success factor 4 A cost effective
  solution

• In an infrastructure business, optimizing both
  capex and opex is the key of the cost
  competitiveness
• The cost effectiveness of Thomson's solutions is
  unrivalled on a life-time basis
• Thomson can assist you to optimize your network
  coverage
• Thomsons best-in-class encoding limits your
  capacity requirement
• The lowest TCO of the market

4.1
4.2
4.3
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Thomson can assist you to optimize your network
coverage
KSF4 A Cost Effective Solution
4.1

• Difficult Balance between
• Network cost
• Bandwidth/Nb of service
• Coverage
• in-door
• max reception speed
• Receiver cost

Berlin Trial
Typical Capex per covered population (usd and
of total population)
Outdoor
Indoor -15dB
Indoor -20dB
11.49
9.21
8.89
62
6.25
53
30
27
US
Italy
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Thomsons best-in-class encoding limits your
capacity requirement
KSF4 A Cost Effective Solution
4.2
Master
Bandwidth allocation

• Thomson statistical encoding enables you to gain
  25 on your expected bit-rate

Slaves
Video metrics
Traditional Constant Bitrate
With Statistical Multiplexing
Available space for more services, interactive
data or error correction
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ELITE 1000 Lowest Cost of Ownership
KSF4 A Cost Effective Solution
4.3

• Up to 20 Power Consumption saving
• Half size of competitions
• Fast and Easy Maintenance

From Year 5 onwards, opex gt capex
YoY Total expense evolution (Indicative for a 5kW
transmitter)
Amplifiers combiner
Single or dual drive
Up to 12 amplifiers
Pre-equipped cabinet
Y1
Y5
Y10
Y15
Integrated power supply
Total Capex 200k
Total Opex 280k
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Advantages of working with Thomson
KSF4 A Cost Effective Solution
Key success factors for your mobile TV project
Thomsons advantages
Key success factor 1 A superior customer
experience Customer experience is the key to the
mass adoption of new services and one key
component of mobile TV experience is image quality
Thomson guarantees you a differentiating user
experience in terms of image and ease of use
Key success factor 2 Market evolutions
mastery Some key parameters of mobile TV are
still uncertain
Thomsons solutions are truly flexible and open
Key success factor 3 A smooth launch A
successful operational launch is key for the
customer adoption of a mobile TV offer
Thomson can guarantee you a fast and reliable
launch
Key success factor 4 Cost effective
solutions In an infrastructure business,
optimizing both capex and opex is key for the
cost competitiveness
The cost of Thomson's solutions is unrivalled on
a life-time basis
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Thank You !
yann.courqueux_at_thomson.net olivier.gori_at_thomson.n
et