UPC Direct on the Move An established DTH provider’s journey to Luxembourg

Jiří Kraval

Director of Marketing and Sales for Czech and Slovak Republics

February 10th, 2011

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Table of Contents Central European Radiocommunication Days

1. History

2. New Combined Expanded Platform

3. New Focused Team &

Centralisation of the UPC DTH business

4. Customer focusted business model

5. Q&A

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Brief History

UPC Direct - Astra

FocusSAT

Non Competitive

Business Structure

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New Satellite Platform: More Channels, Enriched Content

Astra – Thor satellite Swap

• 5 & 3 10 TXP’s + Simulcrypt Canal Digital

• New platform ready since May this year. Dual illumination

• 350,000 dishes turned in 5 months

• @ home support Professional installers

Quality from the new Thor 5 & 6 Satellites

• Great footprint

• Better overall quality through less compression / higher bitrates

Channel Additions

• 10 - 20 new channels depending on the market

• Addition of HD

• New and expanded Premium Film services in most markets

• Promotional activities in parallel with focus on DVR

Thor Broadcast Path

UPC Direct on the Move

Thor 6

Thor 5

Aorta Capacity

• 10 TXP’s on Thor 5 and 6

• Content aggregation in Amsterdam

• 10 TXP’s signal delivery to Luxembourg, to be uplinked from there to Thor

• Full Simulcrypt UPC Direct – FocusSat, Telenor, NBC (content sharing)

• Content can be delivered to DMC in several ways:

– Satellite downlink

– Aorta connections with local PoP’s in Budapest, Prague, Bratislava & Bucharest

– Physical Play Out at DMC

DMC Amsterdam Uplink Luxembourg

Local

Channels

Pan-

European

Channels

Contribution

services for 3rd

party head-ends &

some other uplinks

5

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Centralisation of UPC Direct Dedicated & Focused DTH Team

New dedicated DTH operating unit

• Luxembourg based entity - UPC DTH S.a.r.l

• 30+ employees end of summer

• Local UPC DTH business activities have been transferred to this new

entity:

– CZ, SK: 1st June

– HU: 5th July

Business partners

• Technical- UPC DMC, Telenor (Canal Digital), SES TechCom, ESS

• Customer Care- CGS, CCC

• P&T: DMC – Uplink location fibre connectivity; Office Internet PoP

Market: Slovakia

• UPC SK Marketing & Sales Support

• Local Sales Channels 3P

• Customer Care 3P

• Warehousing & Logistics 3P

• CPE Refurbishment / Repair 3P

• 3P Others (e.g. Printing House)

Market: Czech Republic

• UPC CZ Marketing & Sales Support

• Local Sales Channels 3P

• Customer Care 3P (located in SK)

• Warehousing & Logistics 3P

• CPE Refurbishment / Repair 3P

• 3P Others (e.g. Printing House)

Market: Hungary

• UPC HU Marketing & Sales Support

• Local Sales Channels 3P

• Customer Care 3P (located in RO)

• Warehousing & Logistics 3P

• CPE Refurbishment / Repair 3P

• 3P Others (e.g. Printing House)

New Team and Centralisation of the Business

178k 198k

83k 34k

Netherlands

• Digital Media Centre

Luxembourg

• UPC DTH

• Uplink

Other

• Content Providers

• CPE & TE Suppliers

• B2B Contribution Service

Customers

Market: Romania

• UPC RO Marketing & Sales Support

• Local Sales Channels 3P

• Customer Care 3P

• Warehousing & Logistics 3P

• CPE Refurbishment / Repair 3P

• 3P Others (e.g. Printing House)

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A New Business Model

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Customer Focused Business

Model

I

Adding channels

II

Pricing and Product Options

III

Improving Customer

Care

IV

Increased Support of

Dealer Network

New marketing ATL/BTL visibility

Channel line up und Products

• New channel line up • Products

– Packages

– Price adjustments

– Card only product

– Commitment and notice period

adjustment

– DVR x HD

9

Direct Medium

Card

9 EUR

Direct+ 15 EUR

box

Direct

Medium 11EUR

box

Direct+ Card

13 EUR

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Customer Care and Dealer Support

• Customer Care

– Contracted with a new Bratislava based

professional call center

• Serving both Slovakia and Czech Republic

– Set high standards for

• Training

• Answer rates

• Quality of personnel

– Provide a dedicated line for dealers to

be able to interface with customer care

on issues that effect their business

– Over 100 new jobs in Bratislava created

through this activity

• Dealers

– New account management style

– Channel restructured and revitalized

• Change our advertising model to

better support the local dealer

– Dealer locations highlighted

• Provide high quality materials to

populate the

dealer locations

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New marketing ATB / BTL visibility

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New marketing ATB / BTL visibility

12

Czech samples

Analogue switch

off

Slovak samples

Hungarian channel

for SK

Czech samples

Outdoors near

dealers

Slovak samples

Materials at dealers

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Tune to the NEW UPC Direct… Thank You for Your Attention