IPTV and valueadded content the case of Elion

1
IPTV and value-added content the case of Elion

• Tallinn-Helsinki roundtable conference
• June 6, 2008
• Valeri Raag
• Digital TV development manager, Elion

2
Content

• Overview - Estonian market and Elion
• Elion DigiTV and triple play offer
• IPTV and value-added content
• Interactive services

3
Estonian internet and TV market

• 1,35 million inhabitants
• 510 th households, 400 th with TV, 50 pay for TV
  services
• Broadband penetration at 45 - above EU average
• 70 of inhabitants use internet

4
Elion who we are?

• 100 subdsidiary of Estonian Telecom
  (majority-owned by TeliaSonera )
• Biggest broadband and fixed voice company in
  Estonia
• 2007 sales 191 mEUR, net profit 38 mEUR
• Residential broadband market share 55
• 163 th BB customers (135 th residential)

5
Elion - triple play offer

• Home Solution
• ADSL broadband connection (1 or 12 Mbps)
• 40 Digital TV channels theme packages
• telephone connection
• free calls from 10th minute
• Free Self Installation Pack
• Set Top Box
• WiFi ADSL2 router
• with fixed 3-year contract
• KSFs - strong client base (2-play), brand and
  retail presence

6
Within 2 years 50 of Elion broadband clients
have subscribed for IPTV

• Launch April 2006
• Initial roll-out for max. 100.000 ADSL users
• 90 of Estonian households reached with ADSL2
  nodes
• By end-2006 28,000 Digital TV customers
• By end of 2007 55,000 Digital TV customers
• Now, 70,000 TV customers

7
Value-added live TV-Radio services

• Theme packages - value for clients, opportunity
  for us
• Sport, Music, Slavic, News, Science and Culture,
  Entertainment, Children,
• gt30 of IPTV customers subscribed to theme
  packages
• Radio channels in DigiTV Main Package
• 47 ad-free radio channels 11 different music
  styles
• HDTV first provider in Baltic states, 1 channel
  now

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Structure of DigiTV channel packages

• Basic Packages
• Estonian basic package
• Slavian basic package
• Additional packages for Basic packages
• Slavian (35 Estonian kroons)
• Soome pluss (35 Estonian kroons)
• Thematic packages
• Sci-Fi and culture (30 kroons)
• News (15 kroons)
• Entertainment (99 kroons)
• Sport (50 kroons)
• For Children (35 kroons)
• Music (25 kroons)
• 1 EUR 15 Estonian kroons

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Interactive TV

• Existing interactive services
• Video On Demand
• Picture album
• WEB browser
• Future services
• Games
• TV chat
• e-mail from TV screen
• Interactive commercials
• TV voting

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Video on Demand

• Launched in May 2007
• 500-600 rentals a day, 800 on weekends
• No additional equipment. No monthly fee. Just
  click.
• Hollywood and local movies, shows, music and
  karaoke.
• Sept lectures on demand
• Prices similar to DVD rental (1,5-4 EUR)

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Own middleware - key to flexible service
development

• Elion own middleware not standard solution
• Advantages
• Better compatibility with infrastructure
• Flexible and quick upgrades
• Cheaper than standard solution
• Simple interactivity integration
• Estonian menu

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Thank you!Questions?valeri.raag_at_elion.ee