All Rights Reserved © Alcatel-Lucent 2007 Unlimited Mobile TV with DVB-SH in S-Band Paris Mobile TV Demo March 2007

All Rights Reserved Alcatel-Lucent 2007 2 | Paris Mobile TV Demo| March, 2007 Achieving service availability for Broadcast Mobile TV Among top criteria, service availability is key for Mobile TV success Press & Watch: a 50 years old TV viewer habit Works everywhere: a 10 years old Mobile user habit Not providing such expectations Big market risk Italian feedback: the winter effect Korean feed-back (TU-Media): > 9 000 repeaters had to be deployed Trial feed-backs: all quoted the importance of indoor coverage Tellabs survey (Feb. 07): nearly a quarter (24%) of users who tried mobile video and TV stopped using the services due to concerns about service quality and reliability QUESTION: How to deliver the appropriate coverage? Two options: Option 1) From a broadcast network Option 2) From a mobile network

All Rights Reserved Alcatel-Lucent 2007 3 | Paris Mobile TV Demo| March, 2007 Two options to deliver Broadcast Mobile TV +18 dBi Tower ATower B OPTION 1) BROADCAST NETWORK: FROM FIXED TV OPTION 2) MOBILE NETWORK: FROM MOBILE UNICAST ++ + ++ Minimum Signal for rooftop antenna reception

All Rights Reserved Alcatel-Lucent 2007 4 | Paris Mobile TV Demo| March, 2007 ++ + ++ Two options to deliver Broadcast Mobile TV OPTION 1) BROADCAST NETWORK: FROM FIXED TV TO MOBILE TV OPTION 2) MOBILE NETWORK: FROM MOBILE UNICAST TO MOBILE TV ? ? ? ? ? ? ? ?? ? ?? ? ? Tower ATower B -8 dBi ? ? Minimum Signal for mobile indoor reception

All Rights Reserved Alcatel-Lucent 2007 5 | Paris Mobile TV Demo| March, 2007 ++ + ++..both leading to Cellular Broadcast OPTION 1) BROADCAST NETWORK: FROM FIXED TV TO MOBILE TV ++ + ++ ++ ++ + OPTION 2) MOBILE NETWORK: FROM MOBILE UNICAST TO MOBILE TV Repeater 1Repeater n Minimum Signal for mobile indoor reception -8 dBi

All Rights Reserved Alcatel-Lucent 2007 6 | Paris Mobile TV Demo| March, 2007 ++ + ++..both leading to Cellular Broadcast OPTION 1) BROADCAST NETWORK: FROM FIXED TV TO MOBILE TV ++ + ++ ++ ++ + OPTION 2) MOBILE NETWORK: FROM MOBILE UNICAST TO MOBILE TV Minimum Signal for mobile indoor reception -8 dBi Repeater 1Repeater n

All Rights Reserved Alcatel-Lucent 2007 7 | Paris Mobile TV Demo| March, 2007 Alcatel-Lucents Unlimited Mobile TV System Description DVB-SH = evolution from DVB-H 30MHz frequency available in S-Band Satellite for 100% country coverage Repeaters for urban and deep indoor coverage 3G streaming for limited audience TV, VOD and interactivity 1 2 3 19001920198020102025 21102170 2200 1 2 3 (2.5/3G/HSDPA) (DVB-SH)

All Rights Reserved Alcatel-Lucent 2007 8 | Paris Mobile TV Demo| March, 2007 Optimal Efficiency with Frequency Reuse Satellite Use of 5 MHz (out of 15) per country Adjacent countries should use different frequencies Repeater Same 5MHz repeating satellite channels 10 MHz for additional channels (national or local) Country 2 Country 1 Country 3 Country 5 Country 4 2170 2200 MHz F2F3F4F5F6 Not used Frequency for terrestrial repeaters F1

All Rights Reserved Alcatel-Lucent 2007 9 | Paris Mobile TV Demo| March, 2007 Possible Configurations Examples:Channels via terestrial repeater Channels via satellite 15 MHz, all QPSK27ch TV (256kbps)9ch TV (256kbps) 15 MHz, 16QAM terrestrial, QPSK at satellite 45ch TV (256kbps)9ch TV (256kbps) 30 MHz, all QPSK45ch TV (256kbps)18ch TV (256kbps) 30 MHz, 16QAM terrestrial, QPSK at satellite 90ch TV (256kbps)18ch TV (256kbps) 30 MHz, 16QAM terrestrial, QPSK at satellite 45ch TV (256kbps), 180ch Radio (64kbps) 9ch TV (256kbps), 36ch Radio (64kbps) Other combinations possible. including

All Rights Reserved Alcatel-Lucent 2007 10 | Paris Mobile TV Demo| March, 2007 European regulatory framework in place July 1 st, 2007 Priority to Mobile Satellite Services (MSS) Hybrid satellite/terrestrial systems allowed Member states make the band available for MSS as for July1st, 07 217.5 MHz to 230 MHz 470 MHz to 862 MHz 1452 MHz to 1492 MHz 1900 MHz to 2170 MHz 2170 MHz to 2200 MHz Band IIIUHFL band3GMSS 2500 MHz to 2690 MHz 1785 MHz to 1805 MHz

All Rights Reserved Alcatel-Lucent 2007 19 | Paris Mobile TV Demo| March, 2007 Feature description Use of 2 receiving antennas and a Maximum ratio combining scheme Diversity is based on the fact that fading and interference conditions vary from one reception point to another Diversity gain is optimal with a minimum correlation between both received signals (obtained with an antenna spacing of at least ~/2) User benefit Improved quality of signal reception in difficult conditions Operator benefit More than double the coverage area from a single transmitter (~6 dB gain in multipath conditions e.g. in the indoor environment) Receiver Antenna Diversity S band RF tuner 2 Demodulator 2 Diversity combining + FEC Decoding LNA S band RF tuner 1 Demodulator 1 LNA Antenna #1 Antenna #2 filt er Distance > /2 ~6.5 cm @2.2 GHz Demo 3

All Rights Reserved Alcatel-Lucent 2007 20 | Paris Mobile TV Demo| March, 2007 Feature description The depth of the time interleaver is increased by up to 300 milliseconds to overcome fading impairment while in motion The information is spread over time in the transmitted signal In case of a bursty error, only a part of an information block is lost and can be recovered by error correction code mechanisms User benefit Improved quality of signal reception while in motion Operator benefit Improved coverage quality, mainly in outdoor areas Time Interleaving Demo 4

Wrap-Up

All Rights Reserved Alcatel-Lucent 2007 22 | Paris Mobile TV Demo| March, 2007 Alcatel-Lucents Unlimited Mobile TV: Key Benefits Spectrum: Available, European wide, now DVB-SH Standard: Reuse of DVB-H technology, multiple vendors, bi-mode terminals (DVB-H/DVB-SH) Coverage/Quality Of Service: Complete coverage (indoor, nationwide) for a TRUE mobile service Choice/Offer: Up to 90 channels to mix with 3G Investment Needed: The lowest option. Stepwise, fast and easy to deploy Enabling Mass Market Mobile TV

All Rights Reserved Alcatel-Lucent 2007 23 | Paris Mobile TV Demo| March, 2007 S-Band to provide: geographical coverage complement additional channels (including local) easy and economical solution for indoor UHF multiplex simulcast in S-Band Dual reception on bi-mode [DVB-H UHF / DVB-SH S-Band] terminals S-Band as a complement to UHF Channel 1 Common Multiplex Channel 2Channel n UHF Band DVB-H S-Band DVB-SH Availability < 2008

All Rights Reserved Alcatel-Lucent 2007 24 | Paris Mobile TV Demo| March, 2007 ? MASS MARKET MOBILE TV NATIONWIDE IMPLEMENTATION UMTS/HSPA 3G MOBILE TV TRIALS DVB-SH in S-band TRIAL S DVB-H in UHF 60% pop coverage 90% indoor coverage Full territory NATIONWIDE IMPLEMENTATION MULTI-CITY IMPLEMENTATION 200820072006200920102011 Schedule for French Mass Market Mobile TV Terrestrial roll-out Satellite launch 200820072006200920102011 100% Country coverage

All Rights Reserved Alcatel-Lucent 2007 27 | Paris Mobile TV Demo| March, 2007 Feature description Replacement of Convolutional error correction code by turbo codes Turbo codes are also used in 3G technology Turbo codes allow to almost reach the theoretical maximum data rate over a noisy channel (Shannon limit) And to achieve lower coding rate down to 1/6 User benefit Improve the quality of the reception in difficult condition Operator benefit Increase the covered area of a cell by 50% (~3 dB gain in all type of environments) - to be proven in field trial From DVB-H to DVB-SH Turbo Codes BACKUP SLIDE

All Rights Reserved Alcatel-Lucent 2007 28 | Paris Mobile TV Demo| March, 2007 From DVB-H to DVB-SH Satellite/Terrestrial Single Frequency Network Feature description The same signal is broadcasted simultaneously over all transmitters over the same frequency channel all over the served area All terrestrials transmitters and the satellite are synchronized to avoid interference User benefit Improve the quality of the reception in difficult condition Operator benefit Efficient use of the radio spectrum Improve the coverage, mainly at cell edge BACKUP SLIDE

All Rights Reserved Alcatel-Lucent 2007 29 | Paris Mobile TV Demo| March, 2007 Stakeholders BACKUP SLIDE S atellite I nfrastructure O perator (S.I.O.) (Space segment op) National Infrastructure Operator (N.I.O.) National Regulator Spectrum Right of Use Mobile Network Operator (M.N.O.) Content Provider (C.P.) Capacity lease agreements Other countries NIOs Mobile Network Operator (M.N.O.) as retailer as site sharing provider Financing Partner (FinCo) Network Operation Partner (Outsourcer) as network outsourcing partner Mobile Virtual Network Operator (M.V.N.O.) B2b service sales b2c service sales

All Rights Reserved Alcatel-Lucent 2007 30 | Paris Mobile TV Demo| March, 2007 Sagem Terminals for DVB-SH My750C DVB-H version Ready for production in Jan 07 Innovative form factor to enjoy TV in any situation DVB-H with integrated antenna 2.2 QVGA with wide viewing angle MM features (MP3, 2Mpix cam., ) T1: Exists today First prototype of DVB-H in S-band and UHF MBRAI compliant in UHF and by ext. in S-band SMS / Call handling during TV session T2 : For tests from 2Q07 onward Same structure as My750C with integrated antenna diversity DVB-H in UHF and S-band with integrated antenna My9XX - DVB-SH version Industrial product (Scheduled beginning of 2008 depending on customer launch) based on My750C form factor Full multimedia features 2.2 QVGA with wide viewing angle OMA BCAST Industrial Products Prototypes (AII Project) BACKUP SLIDE

All Rights Reserved Alcatel-Lucent 2007 32 | Paris Mobile TV Demo| March, 2007 Cost Assumption Network Dimensioning Site Ratio DVB-SH vs. UMTS 0 95%90% 85%80% 75% UMTS benchmark Indoor Coverage 1/2 1/1 1/3 1/4 7 W 15 W 30 W 10 W CountryFranceUKItalyGermanySpain Number of 3G sites (est. per end 2007) 80007000600070006000 % population covered65%85%65% Assumptions: QPSK mode, 27 channels, 256 kbps, Indoor coverage at >1.5m Power is per carrier, per sector 1) 2) 3) Only a fraction of 3G sites are sufficient to reach 90% indoor coverage with DVB-SH BACKUP SLIDE

All Rights Reserved Alcatel-Lucent 2007 33 | Paris Mobile TV Demo| March, 2007 0 50 100 150 200 75%80%85%90%95% 27ch, 60% p.cov. 27ch, 30% p.cov. Indoor Coverage DVB-SH infrastructure: Typical cost for France (1/2) 8000 6000 2000 0 CAPEX (M ) Number of sites 4000 Invest < 100m, for 60% pop. coverage Invest < 50m, for 30% pop. coverage Note: 10W per carrier, per sector; total 90W per site BACKUP SLIDE

All Rights Reserved Alcatel-Lucent 2007 34 | Paris Mobile TV Demo| March, 2007 DVB-SH infrastructure: Typical cost for France (2/2) Repeaters: 27 channels 60% population covered 90% indoor penetration ~4 000 sites (over ~8 000 3G sites) Satellite: 9 channels 100% of the territory 1 satellite beam Total: Repeater CAPEX: < ~100M total Full OPEX (incl. FINEX): < 2M/y/channel Cost efficient roll-out for a TRUE cellular coverage BACKUP SLIDE

All Rights Reserved Alcatel-Lucent 2007 35 | Paris Mobile TV Demo| March, 2007 Developing a complete ecosystem for DVB-SH STANDARD DVB-SH specs. approved Feb 14, 2007 REGULATION EU decision on MSS Band published Feb 14, 2007 SATELLITE OPERATORS Satellite procurement confirmed In-orbit by early 2009 French Institutional support & funding of the ecosystem CHIPSETS TERRESTRIAL COMPONENTS Solution assessment Solution testing DVB-SH in S-Band TERMINALS Confirmed terminals availability by end 07 / begin. 08

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All Rights Reserved © Alcatel-Lucent 2007 Unlimited Mobile TV with DVB-SH in S-Band Paris Mobile TV Demo March 2007