mediacore brochure

Awards & Accreditations

CASBAA Chairman's Award 2004

This was awarded to now TV for innovative and proactive marketing of a secure and advanced pay-TV platform and for developing an interactive capability, resulting in stellar subscriber take-up.

Marcel Fenez, Chairman of CASBAA (the Cable and Satellite Broadcasting Association of Asia), said: "This award represents a new benchmark for our industry. It recognizes companies or individuals who have really made a di�erence. This year, the winner is a relatively new entrant to the market and has made us all sit up and take notice with its innovative service and marketing resulting in a large subscriber take-up. It's a wonderful start to what will become a long-standing tradition for both our industry and the Association."

InfoVision Award 2006

PCCW’s middleware received the Infovision Award in the Content, Entertainment, Applications, and Services category of a scheme run by the International Engineering Consortium (IEC).The InfoVision Award program recognizes technologies, applications and advances judged to be the most unique and bene�cial to the telecommunications industry, based on a set of stringent criteria including innovation, contribution to technology advancement, originality and vision, market success and contribution to end-user quality of experience.

“… PCCW is very advanced and successful in rolling out new services. Its now TV service, launched in 2003, is now in 36% ofHong Kong homes ... PCCW is now pushing ahead with quadruple-play service offerings, multimedia content and transaction services…PCCW is the only incumbent in the world to have reversed access line losses and its consumer broadband market share has jumped 14 points in 2 ½ years.”

Merrill Lynch,July 2007

“Despite operating in a highly saturated and competitive broadband market, now TV was able to turn PCCW's trend of subscriber loss into net gains for its ADSL broadband access by bundling broadband access with data and video.”

Telecom Asia, Broadband TV,December 2007

“PCCW has been a global leader in IPTV for several years and is breaking new ground with its quad-play strategy”. Judges of the

Telecom Asia Awards 2008

Creating Next-generation Revenue StreamsEnd-to-end IPTV Solution

For more information, please contact us at:Business DevelopmentPCCW International32/F, PCCW Tower, TaiKoo Place, Quarry Bay, Hong KongTel: +852 2888 3030 Fax:+852 2888 3232 Website: www.pccw.com Email: [email protected]

Copyright ©PCCW Limited 2008. All Rights Reserved.

Re-energize your corebusiness by emulating

an IPTV success story

Multimedia IP Phone

• PCCW eye – fixed-line multimedia phone as part of a quadruple-play capability

• Delivers broadcast and unicast TV content over a fixed-line

• Secure transactions for payment, ticketing and home shopping

• Infotainment and voice/video calls

Home Networking

• Home Media Center is PCCW’s home networking solution

• Central unit connecting with TV, STB, PC and digital cam

• Manages multimedia content coming in, going out and within the home

• DVR features with remote recording and software upgrade via Internet

Music Streaming

• MOOV is PCCW’s music streaming portal service

• More than 110,000 songs and music videos from famous labels

• Delivered on PC, mobile, fixed-line phone and TV with DRM protection

• Personalized playlists and customized players with user-friendly interface

Multimedia Sharing

• snaap! is PCCW’s multimedia digital album service

• Share of photos and videos instantly via the Internet, mobile phone, fixed-line phone and TV

• User friendly portal interface for uploading via PC or mobile phone

• Partners with photo printing house for ordering and delivering printed photos

Mobile TV

• Both live and on-demand TV programming delivered to 3G handsets

• H.264 standard-based, high-quality streaming

• now TV content including exclusive live football coverage

• Multicast and unicast over 3G network / WiFi

Web TV

• now.com.hk is PCCW’s multimedia Internet portal

• Rich entertainment portal offering live TV, VOD and radio content

• Also serves as an interactive community portal

• System architecture ensures quality of experience and content security

Having seen many of the world’s IPTV deployments and compared their maturity of technology, scalability, cost efficiency and speed to market with what we have achieved, I would recommend PCCW MediaCore without hesitation.

PCCW MediaCore therefore provides unprecedented capabilities in terms of new service creation without dependence on, or intervention from, vendors and developers. The message here is clear: PCCW MediaCore puts service creation in the hands of the operator, not the vendor.

Interactive service creation for local market requirements, such as banking interfaces, purchase transactions or even cinema ticketing, will ultimately be the make-or-break factor in IPTV market deployment.

This is because IPTV is much more than just pay-TV over a broadband line – it is a platform for the development of a huge range of new and interactive media content and advertising services.

I invite you to consider PCCW MediaCore as the world’s prime enabler in the successful deployment of IPTV.

Yours sincerely,

Paul BerrimanPCCW Limited

Words from CTO

Telecommunications providers the world over are looking into IPTV to explore new revenue opportunities and develop defensive measures against competitors, while maintaining growth.

Recognized as the world’s most successful deployment of IPTV, PCCW’s now TV service today serves more than 900,000 subscribers in Hong Kong, thereby achieving a household penetration rate of around 40% – the highest in the world. now TV has also helped the company increase broadband subscriber numbers by about 50%, while halving broadband churn and reversing a decline in fixed lines.

As well as creating new revenue streams, now TV has produced unprecedented synergies between our core businesses. Behind this success story is PCCW’s IPTV solution, PCCW MediaCore, which combines proven technologies, solutions, services, strategies and experience, and is now available to operators wanting to launch successful IPTV businesses.

Beyond IPTV to Quadruple Play To drive revenue growth and increase ARPU, PCCW has developed its globally-leading quadruple-play strategy and capability. Drawing on the expertise and experience gained, we o�er a comprehensive set of solutions and services to assist an operator to deliver integrated value-added communications, media content, interactive and transaction services across fixed-line, broadband, TV and mobile platforms.

Benefits of Quadruple-play

• Creates new revenue streams over and above connectivity services

• Reduces cost of content by enabling negotiations for rights across four platforms

• Enables interactive and transaction services to provide new revenue streams

• Sweats assets while enabling integrated Next Generation Network services

• Exclusive content and services create customer loyalty

• Leverages the customer base across different platforms

• Reduces churn and drives ongoing growth via bundled / integrated services

Broadband

Fixed-line

IPTV Mobile

Broadband Internet

Content Transactions

Application

Fixed-line

IPTV Mobile

NGN IP Core

Access

xDSLFibre 3G/HSDPA

WiFi

PCCW MediaCore replicates the core solutions essential to now TV and enables an operator to run an IPTV business using the same proven technology, functionality, methodologies and strategies. Our complete set of solutions and services ranges from business and technical consultancy, design, build and technology solutions to content management, marketing support and operations management.

Introduction

PCCW is a telecoms operator, as well as a solutions provider, systems integrator and TV content producer, which means we understand the business and challenges from an operator’s perspective. The PCCW MediaCore solution provides the collective strengths, capabilities and advantages to address all these business issues.

MediaCoreTechnology

Design& Build

Content &Marketing

OperationsManagement

Business & TechnicalAssessment

PCCWMediaCore

Solution

now TV success storyAs one of the world’s largest commercial IPTV deployments, now TV was serving more than 882,000 IPTV subscribers in Hong Kong by the end of 2007, ranking PCCW No.1 in IPTV penetration and among the top operators

worldwide in terms of total IPTV subscriber numbers. now TV was the world’s �rst to provide a DVD-quality video service over broadband lines, and now enables customers to choose from more than 160 broadcast channels and 500 VOD titles of high-quality programming, based on an innovative “a la carte” pricing scheme by which subscribers only pay for what they want to see. Reinforcing its market leadership, PCCW was also the �rst operator to deliver HDTV in Hong Kong.

This success story is built on close partnerships with worldwide content providers and a comprehensive technology platform. Time and again, content partners have applauded PCCW MediaCore’s CA technology as the most reliable CA solution for revenue protection. In turn, this unparalleled level of trust has facilitated top-tier content acquisition that has included HBO, ESPN, Barclays Premier League coverage and Discovery Channel.

In addition, the deployment of a quadruple-play capability has created exciting new multimedia opportunities, while transforming the company from traditional telecoms operator to new breed of ICT/media-delivery player. With help fromnow TV, growth of PCCW’s broadband access service has outperformed the market norm with maximized ARPU.

PCCW Value Proposition 1) Content acquisition and management

• PCCW’s trusted partner relationships with major international content providers enable more cost-e�ective content acquisition

• PCCW brings content creation and production experience to enrich the channel o�ering with local content

2) Quality IPTV service

• PCCW o�ers a world-class, �eld-proven and scalable IPTV platform with high quality of service

• PCCW brings best operational practices and experience to achieve high levels of customer satisfaction

3) Highly-e�ective network and service quality management

• PCCW enables continuous enhancement of operational e�ciency and user experience with implementation of best practices supported by a best-in-class quality management system

• PCCW is experienced in utilizing network resources in ways that optimize quality of experience and achieve best return on investment (RoI)

4) Service innovation with fast time-to-market creates new revenue opportunities

• PCCW’s highly-customizable platform encompasses state-of-the-art EPG and interactive services to enable fast time-to-market deployment of interactivity, thereby achieving service di�erentiation

• PCCW’s IPTV solution enables e�ective development and integration to provide a wide variety of interactive and transaction services on �xed-line, broadband, TV and mobile platforms. This not only creates new revenue streams, but also increases customer inertia and loyalty

5) Extensive experience and innovation in marketing new pay-TV services

• PCCW o�ers a wealth of experience in innovative marketing strategies, which played a major role in now TV’s success

• PCCW o�ers sophisticated strategies for sales, distribution, marketing communications and pricing to support service launch

• PCCW has developed methodologies and powerful tools to capture and analyze valuable viewership and service usage data, all of which enables a service provider to maintain marketing momentum and liaise with content providers via regular reviews and decisions based on content performance, sales performance, take-up and more

1stoperator to deliver HDTV in Hong Kong

1stto deliver quadruple-play services inHong Kong

1stoperator in the world to launchlarge-scale commercial IPTV service

Operations ManagementPCCW has proven skills and experience in operating a high quality end-to-end IPTV platform. Today, other operators can also bene�t from PCCW’s best practices, expertise, skills and operational experience to deliver IPTV services of world-class quality. We will provide management services in the following functions to support an operator in delivering high-quality services:

• Digital media center / headend

• Network operations center

• Network and service platforms

• Field services

To enable an operator’s technical sta� to carry out day-to-day operation and maintenance of an IPTV platform, PCCW also provides professional training programs, including classroom and on-the-job training. This approach equips an operator’s sta� with end-to-end systems knowledge, design philosophy and operational processes, as well as a hands-on understanding of the system for daily operation and maintenance.

PCCW can assist operators in developing a strategy and business case for IPTV in an interactive fashion, covering the vision and objectives for IPTV, along with product positioning, segment focus, segment-speci�c propositions, content strategy, partnership requirements and technology strategy. This includes:

• Developing di�erent market scenarios and strategic options for IPTV

• Developing a business case or a set of business case scenarios

• Facilitating the process of �ne tuning an investment approach, particularly investment in network infrastructure and cost of content

• Drawing on PCCW’s experience in markets around the world in terms of strategy and assumption development

• Developing a strategic roadmap and implementation plan

Business Case andIPTV Strategy

A comprehensive solution blueprint is crucial to successful IPTV deployment. An extensive network assessment and technical trial are undertaken initially to ensure readiness of the existing environment to support the quality-of-service requirements of IPTV solutions.

Network Assessment andTechnical Trial

Technical Trial

Network Audit and Assessment

Gap AnalysisData Collection andField Visits

Network Audit andInterview

RecommendationReport


Collect market &user feedback

Proof-of-concept ofIPTV system features

Fine tuning of networkcon�guration &

parametersEnd-to-end setup of

IPTV trial system

Network upgrade / technologyand network development

Valuable information forbusiness planning

Content and Marketing Support

Compelling content and e�ective marketing are crucial to the success of any pay-TV business. As one of the world's largest and most successful IPTV operators, PCCW excels in pay-TV content management and marketing. As your strategic partner, PCCW is pleased to share insightful knowledge and experience in content strategy, acquisition, management and marketing to provide you with the competitive advantage you need.

Before securing a foothold in the pay-TV market, an IPTV operator must undertake comprehensive market analysis to determine the best content, pricing and overall service o�ering to suit the target market. Strategic planning for the rollout of an IPTV service needs to consider numerous factors, such as market competitors, services and pricings o�ered, content strategy and entry strategy. In addressing these issues, PCCW’s services are tailored to the speci�c requirements of each operator.

Formulation ofContent Strategies

Content & MarketingSupport Services

MarketAnalysis and

Segmentation

ContentAcquisition

BusinessPerformanceManagement

Sales andMarketingTraining

Compliance andContract Management

Content Development

PCCW MediaCore Set-top Box

PCCW MediaCore’s STB is an essential customer premises device for decoding IPTV signals entering a TV set. All STB models are cost-effective products with a proven track record in commercial mass-market deployment and are fully integrated with PCCW MediaCore solutions. All STB models are H.264 decoder compatible with both MPEG-2 and MPEG-4 encoded signals, supporting both standard definition (SDTV) and high definition (HDTV). We also offer hybrid STB models supporting a combination of IP plus terrestrial or satellite DTH in one box to meet the different needs and strategies of operators in varying markets.

IT Support Systems

PCCW IT Support Systems is a complete suite of IPTV support services based on our extensive operational experience. Our depth of expertise in developing IT support systems for the TV industry means we know the unique operational demands of a successful IPTV environment. To address your specific needs, our IT support systems include:• OSS / BSS system • Customer relationship management • Content partner management and settlement system • Electronic Price and Plan Book • IPTV Quality Management System

Technology Components Design and BuildEnd-to-end IPTV Platform

This includes:

• A total end-to-end IPTV solution for broadcast TV and video-on-demand services

• End-to-end systems integration services across the entire IPTV platform that include systems installation, integration, testing and commissioning of the platform

• Design and customization of the Electronic Program Guide (EPG) and end-user applications portal

• Design and build of a digital media center, including infrastructure and equipment for broadcast and on-demand TV, interactive applications and more

PCCW has proven skills and experience in the implementation of an end-to-end IPTV platform within a competitive, multi-vendor, multi-technology environment. Drawing on this expertise, we o�er extensive design-and-build services across all aspects of IPTV deployment.

Digital Media Center

IRD, Encoders & Modulators OSS/BSS

FTTH

Conditional Access/Digital Rights Management

VOD Servers

Archive

Central O�ce

End-to-end IPTV SolutionCustomer Premises

ProductionFacilities

Middleware

EPG / Portal Mediator

VAS Application Servers

IP Network withManaged QoS

Content Delivery Network

End-to-end Network & Service Management

xDSL

DSLAM

FTTB

RemoteDSLAM Home

Networking

Modem

Home MediaCenter

Home Gateway

ONT

Set-top Box

PC

IP Phone

Satellite

LocalTerrestrial

Technology ComponentsPCCW MediaCore Conditional Access (CA) and Digital Rights Management (DRM)

PCCW MediaCore’s Conditional Access and Digital Rights Management solutions are anti-piracy technologies developed by PCCW. They are now recognized by content providers worldwide as the most secure revenue protection measures available.

Network-based Conditional Access

Network-based Conditional Access (Network CA) is essential to acquire top-tier content. Unlike traditional CA systems that rely on smartcards or software in the STB, we integrate the right-to-see CA mechanism into network equipment at the central o�ce, providing 100% protection of content beyond the reach of pirates, ensuring zero piracy. The control mechanism can also facilitate e�cient service provisioning and capture viewership statistics. Network CA can be built into di�erent types of network equipment including DSLAM, network switches or routers to provide the same level of content protection. This solution is also supported by leading broadband equipment vendors such as NEC, Alcatel, Huawei and ZTE.

Digital Rights Management (DRM)

Total content protection is undertaken by the interoperation of Network CA and Digital Rights Management (DRM). As well as supporting third-party DRM solutions, we provide our self-developed DRM by using a proprietary algorithm for broadcast TV, VOD, Personal Video Recorder (PVR) and Pay-Per-View (PPV) services. The PCCW MediaCore DRM has been widely accepted by content providers as a proven solution to protect right-to-see status and prevent pirate copying.

By drawing on skills and experience earned by implementing the world’s largest IPTV service, the technology components of PCCW MediaCore are intelligently designed with advanced functionality and a high degree of �exibility, scalability, compatibility and user-friendliness.

PCCW MediaCore Middleware

PCCW MediaCore Middleware comprises two key components – the TV Portal for the EPG and end-user applications, and the Mediator for back-o�ce management functions. PCCW MediaCore Middleware is operated according to a standard-based architecture to ensure systems interoperability and integration �exibility over the long term.

Both the TV Portal and Mediator are highly customizable, are able to be integrated with di�erent billing and support systems and can be used to create new services and interactive applications without limitation.

TV Portal

The TV Portal is the frontline interface between the STB and backend system. User self-administration and subscription, as well as interactive user-applications, can be managed via the TV Portal and include:

• Portal for EPG

• Subscriber information and billing information

• STB remote management

• VOD catalog and subscription

• Interactive services

Technology Components

Mediator

The Mediator is the backend system that serves as a central data repository, seamlessly integrating with various important support functions such as OSS/BSS, VAS applications and customer relations management. This provides comprehensive functions that include:• Channel and product management

• EPG management

• STB remote monitoring and troubleshooting

• Interactive services management

• Sales information capture and report

Interactive and Transaction Services

PCCW provides experience, ideas and solutions to help an operator implement interactive, transaction and multimedia services. Not only can new revenue streams be established with interactive and transaction services, but services can also be di�erentiated from competitors, while enhancing customer satisfaction. Drawing on our in-house expertise, we can help deploy a range of unique services such as:

• Content on demand

• Stock trading

• Online shopping, ticketing and banking

• Interactive advertising and games

• Polling and voting

PCCW MediaCore Set-top Box

PCCW MediaCore’s STB is an essential customer premises device for decoding IPTV signals entering a TV set. All STB models are cost-effective products with a proven track record in commercial mass-market deployment and are fully integrated with PCCW MediaCore solutions. All STB models are H.264 decoder compatible with both MPEG-2 and MPEG-4 encoded signals, supporting both standard definition (SDTV) and high definition (HDTV). We also offer hybrid STB models supporting a combination of IP plus terrestrial or satellite DTH in one box to meet the different needs and strategies of operators in varying markets.

IT Support Systems

PCCW IT Support Systems is a complete suite of IPTV support services based on our extensive operational experience. Our depth of expertise in developing IT support systems for the TV industry means we know the unique operational demands of a successful IPTV environment. To address your specific needs, our IT support systems include:• OSS / BSS system • Customer relationship management • Content partner management and settlement system • Electronic Price and Plan Book • IPTV Quality Management System

Technology Components Design and BuildEnd-to-end IPTV Platform

This includes:

• A total end-to-end IPTV solution for broadcast TV and video-on-demand services

• End-to-end systems integration services across the entire IPTV platform that include systems installation, integration, testing and commissioning of the platform

• Design and customization of the Electronic Program Guide (EPG) and end-user applications portal

• Design and build of a digital media center, including infrastructure and equipment for broadcast and on-demand TV, interactive applications and more

PCCW has proven skills and experience in the implementation of an end-to-end IPTV platform within a competitive, multi-vendor, multi-technology environment. Drawing on this expertise, we o�er extensive design-and-build services across all aspects of IPTV deployment.

Digital Media Center

IRD, Encoders & Modulators OSS/BSS

FTTH

Conditional Access/Digital Rights Management

VOD Servers

Archive

Central O�ce

End-to-end IPTV SolutionCustomer Premises

ProductionFacilities

Middleware

EPG / Portal Mediator

VAS Application Servers

IP Network withManaged QoS

Content Delivery Network

End-to-end Network & Service Management

xDSL

DSLAM

FTTB

RemoteDSLAM Home

Networking

Modem

Home MediaCenter

Home Gateway

ONT

Set-top Box

PC

IP Phone

Satellite

LocalTerrestrial

A comprehensive solution blueprint is crucial to successful IPTV deployment. An extensive network assessment and technical trial are undertaken initially to ensure readiness of the existing environment to support the quality-of-service requirements of IPTV solutions.

Network Assessment andTechnical Trial

Technical Trial

Network Audit and Assessment

Gap AnalysisData Collection andField Visits

Network Audit andInterview



Collect market &user feedback

Proof-of-concept ofIPTV system features

Fine tuning of networkcon�guration &

parametersEnd-to-end setup of

IPTV trial system

Network upgrade / technologyand network development

Valuable information forbusiness planning

Content and Marketing Support

Compelling content and e�ective marketing are crucial to the success of any pay-TV business. As one of the world's largest and most successful IPTV operators, PCCW excels in pay-TV content management and marketing. As your strategic partner, PCCW is pleased to share insightful knowledge and experience in content strategy, acquisition, management and marketing to provide you with the competitive advantage you need.

Before securing a foothold in the pay-TV market, an IPTV operator must undertake comprehensive market analysis to determine the best content, pricing and overall service o�ering to suit the target market. Strategic planning for the rollout of an IPTV service needs to consider numerous factors, such as market competitors, services and pricings o�ered, content strategy and entry strategy. In addressing these issues, PCCW’s services are tailored to the speci�c requirements of each operator.

Formulation ofContent Strategies

Content & MarketingSupport Services

MarketAnalysis and

Segmentation

ContentAcquisition

BusinessPerformanceManagement

Sales andMarketingTraining

Compliance andContract Management

Content Development

Operations ManagementPCCW has proven skills and experience in operating a high quality end-to-end IPTV platform. Today, other operators can also bene�t from PCCW’s best practices, expertise, skills and operational experience to deliver IPTV services of world-class quality. We will provide management services in the following functions to support an operator in delivering high-quality services:

• Digital media center / headend

• Network operations center

• Network and service platforms

• Field services

To enable an operator’s technical sta� to carry out day-to-day operation and maintenance of an IPTV platform, PCCW also provides professional training programs, including classroom and on-the-job training. This approach equips an operator’s sta� with end-to-end systems knowledge, design philosophy and operational processes, as well as a hands-on understanding of the system for daily operation and maintenance.

PCCW can assist operators in developing a strategy and business case for IPTV in an interactive fashion, covering the vision and objectives for IPTV, along with product positioning, segment focus, segment-speci�c propositions, content strategy, partnership requirements and technology strategy. This includes:

• Developing di�erent market scenarios and strategic options for IPTV

• Developing a business case or a set of business case scenarios

• Facilitating the process of �ne tuning an investment approach, particularly investment in network infrastructure and cost of content

• Drawing on PCCW’s experience in markets around the world in terms of strategy and assumption development

• Developing a strategic roadmap and implementation plan

Business Case andIPTV Strategy

PCCW MediaCore replicates the core solutions essential to now TV and enables an operator to run an IPTV business using the same proven technology, functionality, methodologies and strategies. Our complete set of solutions and services ranges from business and technical consultancy, design, build and technology solutions to content management, marketing support and operations management.

Introduction

PCCW is a telecoms operator, as well as a solutions provider, systems integrator and TV content producer, which means we understand the business and challenges from an operator’s perspective. The PCCW MediaCore solution provides the collective strengths, capabilities and advantages to address all these business issues.

MediaCoreTechnology

Design& Build

Content &Marketing

OperationsManagement

Business & TechnicalAssessment

PCCWMediaCore

Solution

now TV success storyAs one of the world’s largest commercial IPTV deployments, now TV was serving more than 882,000 IPTV subscribers in Hong Kong by the end of 2007, ranking PCCW No.1 in IPTV penetration and among the top operators

worldwide in terms of total IPTV subscriber numbers. now TV was the world’s �rst to provide a DVD-quality video service over broadband lines, and now enables customers to choose from more than 160 broadcast channels and 500 VOD titles of high-quality programming, based on an innovative “a la carte” pricing scheme by which subscribers only pay for what they want to see. Reinforcing its market leadership, PCCW was also the �rst operator to deliver HDTV in Hong Kong.

This success story is built on close partnerships with worldwide content providers and a comprehensive technology platform. Time and again, content partners have applauded PCCW MediaCore’s CA technology as the most reliable CA solution for revenue protection. In turn, this unparalleled level of trust has facilitated top-tier content acquisition that has included HBO, ESPN, Barclays Premier League coverage and Discovery Channel.

In addition, the deployment of a quadruple-play capability has created exciting new multimedia opportunities, while transforming the company from traditional telecoms operator to new breed of ICT/media-delivery player. With help fromnow TV, growth of PCCW’s broadband access service has outperformed the market norm with maximized ARPU.

PCCW Value Proposition 1) Content acquisition and management

• PCCW’s trusted partner relationships with major international content providers enable more cost-e�ective content acquisition

• PCCW brings content creation and production experience to enrich the channel o�ering with local content

2) Quality IPTV service

• PCCW o�ers a world-class, �eld-proven and scalable IPTV platform with high quality of service

• PCCW brings best operational practices and experience to achieve high levels of customer satisfaction

3) Highly-e�ective network and service quality management

• PCCW enables continuous enhancement of operational e�ciency and user experience with implementation of best practices supported by a best-in-class quality management system

• PCCW is experienced in utilizing network resources in ways that optimize quality of experience and achieve best return on investment (RoI)

4) Service innovation with fast time-to-market creates new revenue opportunities

• PCCW’s highly-customizable platform encompasses state-of-the-art EPG and interactive services to enable fast time-to-market deployment of interactivity, thereby achieving service di�erentiation

• PCCW’s IPTV solution enables e�ective development and integration to provide a wide variety of interactive and transaction services on �xed-line, broadband, TV and mobile platforms. This not only creates new revenue streams, but also increases customer inertia and loyalty

5) Extensive experience and innovation in marketing new pay-TV services

• PCCW o�ers a wealth of experience in innovative marketing strategies, which played a major role in now TV’s success

• PCCW o�ers sophisticated strategies for sales, distribution, marketing communications and pricing to support service launch

• PCCW has developed methodologies and powerful tools to capture and analyze valuable viewership and service usage data, all of which enables a service provider to maintain marketing momentum and liaise with content providers via regular reviews and decisions based on content performance, sales performance, take-up and more

1stoperator to deliver HDTV in Hong Kong

1stto deliver quadruple-play services inHong Kong

1stoperator in the world to launchlarge-scale commercial IPTV service

Having seen many of the world’s IPTV deployments and compared their maturity of technology, scalability, cost efficiency and speed to market with what we have achieved, I would recommend PCCW MediaCore without hesitation.

PCCW MediaCore therefore provides unprecedented capabilities in terms of new service creation without dependence on, or intervention from, vendors and developers. The message here is clear: PCCW MediaCore puts service creation in the hands of the operator, not the vendor.

Interactive service creation for local market requirements, such as banking interfaces, purchase transactions or even cinema ticketing, will ultimately be the make-or-break factor in IPTV market deployment.

This is because IPTV is much more than just pay-TV over a broadband line – it is a platform for the development of a huge range of new and interactive media content and advertising services.

I invite you to consider PCCW MediaCore as the world’s prime enabler in the successful deployment of IPTV.

Yours sincerely,

Paul BerrimanPCCW Limited

Words from CTO

Telecommunications providers the world over are looking into IPTV to explore new revenue opportunities and develop defensive measures against competitors, while maintaining growth.

Recognized as the world’s most successful deployment of IPTV, PCCW’s now TV service today serves more than 900,000 subscribers in Hong Kong, thereby achieving a household penetration rate of around 40% – the highest in the world. now TV has also helped the company increase broadband subscriber numbers by about 50%, while halving broadband churn and reversing a decline in fixed lines.

As well as creating new revenue streams, now TV has produced unprecedented synergies between our core businesses. Behind this success story is PCCW’s IPTV solution, PCCW MediaCore, which combines proven technologies, solutions, services, strategies and experience, and is now available to operators wanting to launch successful IPTV businesses.

Beyond IPTV to Quadruple Play To drive revenue growth and increase ARPU, PCCW has developed its globally-leading quadruple-play strategy and capability. Drawing on the expertise and experience gained, we o�er a comprehensive set of solutions and services to assist an operator to deliver integrated value-added communications, media content, interactive and transaction services across fixed-line, broadband, TV and mobile platforms.

Benefits of Quadruple-play

• Creates new revenue streams over and above connectivity services

• Reduces cost of content by enabling negotiations for rights across four platforms

• Enables interactive and transaction services to provide new revenue streams

• Sweats assets while enabling integrated Next Generation Network services

• Exclusive content and services create customer loyalty

• Leverages the customer base across different platforms

• Reduces churn and drives ongoing growth via bundled / integrated services

Broadband

Fixed-line

IPTV Mobile

Broadband Internet

Content Transactions

Application

Fixed-line

IPTV Mobile

NGN IP Core

Access

xDSLFibre 3G/HSDPA

WiFi

Re-energize your corebusiness by emulating

an IPTV success story

Multimedia IP Phone

• PCCW eye – fixed-line multimedia phone as part of a quadruple-play capability

• Delivers broadcast and unicast TV content over a fixed-line

• Secure transactions for payment, ticketing and home shopping

• Infotainment and voice/video calls

Home Networking

• Home Media Center is PCCW’s home networking solution

• Central unit connecting with TV, STB, PC and digital cam

• Manages multimedia content coming in, going out and within the home

• DVR features with remote recording and software upgrade via Internet

Music Streaming

• MOOV is PCCW’s music streaming portal service

• More than 110,000 songs and music videos from famous labels

• Delivered on PC, mobile, fixed-line phone and TV with DRM protection

• Personalized playlists and customized players with user-friendly interface

Multimedia Sharing

• snaap! is PCCW’s multimedia digital album service

• Share of photos and videos instantly via the Internet, mobile phone, fixed-line phone and TV

• User friendly portal interface for uploading via PC or mobile phone

• Partners with photo printing house for ordering and delivering printed photos

Mobile TV

• Both live and on-demand TV programming delivered to 3G handsets

• H.264 standard-based, high-quality streaming

• now TV content including exclusive live football coverage

• Multicast and unicast over 3G network / WiFi

Web TV

• now.com.hk is PCCW’s multimedia Internet portal

• Rich entertainment portal offering live TV, VOD and radio content

• Also serves as an interactive community portal

• System architecture ensures quality of experience and content security

Awards & Accreditations

CASBAA Chairman's Award 2004

This was awarded to now TV for innovative and proactive marketing of a secure and advanced pay-TV platform and for developing an interactive capability, resulting in stellar subscriber take-up.

Marcel Fenez, Chairman of CASBAA (the Cable and Satellite Broadcasting Association of Asia), said: "This award represents a new benchmark for our industry. It recognizes companies or individuals who have really made a di�erence. This year, the winner is a relatively new entrant to the market and has made us all sit up and take notice with its innovative service and marketing resulting in a large subscriber take-up. It's a wonderful start to what will become a long-standing tradition for both our industry and the Association."

InfoVision Award 2006

PCCW’s middleware received the Infovision Award in the Content, Entertainment, Applications, and Services category of a scheme run by the International Engineering Consortium (IEC).The InfoVision Award program recognizes technologies, applications and advances judged to be the most unique and bene�cial to the telecommunications industry, based on a set of stringent criteria including innovation, contribution to technology advancement, originality and vision, market success and contribution to end-user quality of experience.

“… PCCW is very advanced and successful in rolling out new services. Its now TV service, launched in 2003, is now in 36% ofHong Kong homes ... PCCW is now pushing ahead with quadruple-play service offerings, multimedia content and transaction services…PCCW is the only incumbent in the world to have reversed access line losses and its consumer broadband market share has jumped 14 points in 2 ½ years.”

Merrill Lynch,July 2007

“Despite operating in a highly saturated and competitive broadband market, now TV was able to turn PCCW's trend of subscriber loss into net gains for its ADSL broadband access by bundling broadband access with data and video.”

Telecom Asia, Broadband TV,December 2007

“PCCW has been a global leader in IPTV for several years and is breaking new ground with its quad-play strategy”. Judges of the

Telecom Asia Awards 2008

Creating Next-generation Revenue StreamsEnd-to-end IPTV Solution

For more information, please contact us at:Business DevelopmentPCCW International32/F, PCCW Tower, TaiKoo Place, Quarry Bay, Hong KongTel: +852 2888 3030 Fax:+852 2888 3232 Website: www.pccw.com Email: [email protected]

Copyright ©PCCW Limited 2008. All Rights Reserved.

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