Alternative Broadband Infrastructures fibre optics, satellites and wireless. Konrad Kobylecki CTO of Telekomunikacja Polska

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1 Alternative Broadband Infrastructures fibre optics, satellites and wireless Konrad Kobylecki CTO of Telekomunikacja Polska November 2005

2 Broadband is enabling an amazing world of communication... BROADBAND INFRASTRUCTURE BROADBAND ENABLED SERVICES CABLE ENTERTAINING (e-gaming, VoD, music download, chat) COPPER LINE ALWAYS ON! E-LEARNING Alternative Infrastructures FIBRE-OPTICS WIRELESS BB SATELLITE POWERLINE 128 kbps 15 Mbps + GLOBAL COMMUNICATION (VoIP, Push to Talk, videoconference) SMART HOME E-COMMERCE driving innovation & competitiveness in all industries.

3 Technologies lead to particular applications and usages Very High Fibre Speed per User High Medium Devices: xdsl Cable Satellite PC Wi - Fi Laptop Mobility PDA WiMax MTS/TDD TD-SCDMA High-end mobile phone HSUPA HSDPA UMTS/FDD EDGE/GPRS CDMA 2000 Mainstream mobile phone Key Innovations Multi Service Bundles (e.g. Voice + Video + Data) Seamless services Nomadic and Portable Applications Location: Home Office Hot-spots Hot-zones Global coverage Scenarios: Fixed Park and connect Always on On the move but the challenge is to keep the customer experience consistent regardless o the used technology.

4 Mobility becomes the new communication paradigm... New market entrants can benefit fro quick WiMax development and low cost infrastructure Currently, Europe accounts for 43,5 of the global 3G/UMTS market By 2008, over 80% of all notebook PCs in service will have Wi-Fi BENEFITS Wide coverage Mobility Always on Cost-efficient implementation Relatively quick roll-out CONSTRAINTS Quality & Security of Service Limited scope of assigned services Standardization issues but scope and quality of wireless services are still lower than the wired ones.

5 Satellite is an attractive solution to provide high throughput in distant and rural areas Satellite communication technologies offering for tele-workers or staff in small branch offices attractive alternative for the government, military and certain other vertical markets interest of retail, automotive, financial and other sectors BENEFITS Wide coverage High Quality & Security of Service Ease to develop and maintain Single point of ownership Fast good for downloading and web browsing CONSTRAINTS Need for substantial up-front investments Higher than average cost of customer premises equipment QoS (bad weather constraints) High latency (Not suitable for games o video conferencing) particularly adapted to long distance interconnection and backup access.

6 Fibre-optics is probably the best guarantee for the future with almost no limitation Fibre-optics services can reach all homes and businesses within the service area of a central office equipped with optical fibre BENEFITS High Capacity & Security Low Running Costs Alternative for Green fields and Brown fields Almost full scope of services (video streaming, VoD, AoD, security systems and large file transfer CONSTRAINTS High installation costs of fibre cables Deployment costs are about 10 times those of DSL but the high cost of investment.

7 In Poland, unwired Broadband technologies are an opportunity because of the low fixed line penetration. MARKET STATEMENT Key Challenges Regularly online from home 19% BASE: All Polish consumers Broadband 13% Regularly online 30% 1 To assure a wide Broadband coverage with limited resources - Structural Funds - Low / No licence fees (i.g.: Wi-Fi) - Wireless technology (WiMax) - Economy of scale (integrated operator) fixed line penetration at a level of c.a. 33% Only 35% of Polish consumer have access to the Internet More than 50% of all mobile users with Internet access would like to have wireless Internet access from Home 2 To stimulate revenues needed to finance investments - e-government - Entertainment services (Triple-play) - Virtuous circle : Broadband New Business Investments Revenue Increase

8 Limited revenues from Broadband services in emerging countries could be stimulated by government & EU stimulation of demand for ICTs through a range of means, including users education about the benefits of broadband services, increasing awareness, promoting e-services, stimulation of infrastructure development in areas underserved by the market, and where it appears that the liberalisation is not sufficient. INITIATIVES 1. Funding of National Broadband development programs 2. Direct public subsidies to telecommunication providers 3. Public private partnership 4. Creating an attractive environment for commercial providers (ex: tax reduction) giving Poland the chance to leverage its competitiveness and innovation

9 Education with tp Internet is an example of initiative toward awareness building and providing broadband infrastructure Goals of the Program: Support IT education - leverage Polish youth chances, - provide schools in poor economical regions with broadband access to Internet Stimulate needs of new technologies in every day life - diminish psychological barriers in computer usage - change Internet perception as only entertainment medium Realize development strategy of IT society schools with Internet access Key TP Achievements: students with fixed internet access at schools 100 schools received grants for interesting IT projects under th Smart School program

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