2006. 9.27

TU Media Corp.

Mobile TV broadcasting Development and Experience

in Korea

I. Advent of Mobile Broadcasting ServiceII. TU Media

III. TU Media’s Experience and Finding

IV. Cooperation

Will it be great………….if and someday,

we could watchlive sporting event,news or favorite TV dramas

at any time,at any place ?

We have found ,

has huge potentialMOBILE BROADCASTING

IT IS AN EXCELLENT IDEA

IT IS A GOOD IDEA

Satellite DMB(Satellite Digital Multimedia Broadcasting)

Satellite DMB(Satellite Digital Multimedia Broadcasting)

InteractiveInteractive • Convergence of Telecom. and Broadcasting

• Variety in Contents (Video, Audio and Data)

MobileMobile• Any place and Any situation

(Even in a moving vehicle at the speed of more than 200Km/h)

PersonalPersonal • Personalized Media(Television for me)

Mobile TV is new business concept in broadcasting service,

characterized by 3 key differentiators.

ContentContent PlatformPlatformFixed Type Portable Type Personalized

Type

TVBroad-casting

TVBroad-casting

RadioBroad-casting

RadioBroad-casting

FreeFree

PaidPaid

FreeFree

PaidPaid

Satellite DMBSatellite DMB

Terrestrial RadioTerrestrial Radio

Independent Production

Independent Production Terrestrial TVTerrestrial TV

Internet Music StationInternet Music Station

PPPP Skylife, Music Wire BroadcastSkylife, Music Wire Broadcast

PPPP Satellite Broadcasting(Skylife)

Satellite Broadcasting(Skylife)

Cable TVCable TV

RelayRelay

CableSO/ROCableSO/RO

BroadbandBroadband

Skylife IMAP*Skylife IMAP*

Terrestrial DMB(TV)Terrestrial DMB(TV)

Terrestrial DMB(Radio)Terrestrial DMB(Radio)

Skylife : The name of the satellite TV serviceIMAP : In-Motion & Portable

MobileTelecomMobile

Telecom PaidPaid PPPP JUNE / FIMMJUNE / FIMM

* This analysis is based on Korean mobile broadcast business situation.

With technical innovation, new business boundary could be realized.

Korea Government authorized two types of Mobile TV service – S-DMB & T-DMB.

Network Service Coverage Network Service Coverage

TerrestrialNetwork

Satellite Broadcasting Pay Service National-wide

Terrestrial Broadcasting Free Service Regional

Domestic Prospect of DMB MarketMarket Demand for DMB

Despite difficult start of service,outlook of DMB service is very bright.

I. Advent of Mobile Broadcasting Service

II. TU Media

III. TU Media’s Experience and Finding

IV. Cooperation

TU MEDIA prepared Mobile Broadcasting servicesince 2001

The international register for

satellite network was applied

Technical Specification of Satellite DMB

Terminal released

The policy direction

for satellite DMB was determined by the KBC

Technicalstandards for

satellite DMB were established by MIC

(System-E)

TU Media Corp. was

established.

The broadcasting Law was revised.

Hanbyul satellitefor DMB service

was successfully launched in Orbit.

TU Media Corp. was authorizedas Satellite DMB Service Provider

TU Media Corp started

Satellite DMB Field Trial.

TU Media Corp started commercial

broadcasting of Satellite DMB Service

Reach 700,000

subscribers

Sep.2001

Mar.2004Dec.2003Apr.2003

Feb.2003Nov.2002

Dec.2004 May.2005Jan.2005

Commercial Broadcasting

Launched the satellite

AUG.2006

Satellite Specification, share with MBCo

Formed a Consortiumwith total Capital of $230M

FoundationPeriod

FoundationPeriod

Formation of Consortium(November 2003)

Foundation of New Entity(May, 2003)

Paid-in Capital: $230 million

Compositionof Stakes

Compositionof Stakes

Company CompositionRatio

Remark

MajorShareholder

• Responsibility for management• Providing Network 29.6%Largest

Shareholder

• Foreign Strategic Partner5.9%MBCO

Content Providers, Terrestrial Broadcasters

Manufactures, Distributors

24.7%

30.1%• Samsung, LG, MBC,SBS,CJ and

other key companies.

Others

9.7%

OtherShareholder

• Key business partner in the Supply Value Chain

SK Telecom

Set-up Satellite Mobile Broadcasting Network

Ku-band(12 ~ 13 GHz)TDM : 13.824~ 13.849 GHz(25MHz)CDM : 13.858~ 13.883 GHz(25MHz)

Ku-band (12 ~ 13 GHz)TDM : 12.214~12.239 GHz(25MHz)

S-band CDM : 2.630~ 2.655 GHz(25MHz)

S-band CDM: 2.630~ 2.655 GHz(25MHz)

• Service Flow

Gap Filler

Video

Audio

Data

Program Providers

Introduce various types ofattractive Terminals

Cellular Hybrid (32)

• 2.2” or 2.4” LCD (QVGA)• Stereo Speakers• Wireless Internet support• Samsung, LG, Motorola,SKTT, Pantech&Curitel

Dedicated (4)

• 2.5~4.3” LCD (QGVA)• No return path• Combined with PMP & PDA.• SKC&C, Cyberbank, Access Telecom, etc

Vehicle-Mounted (10)• Utilizing 5~7” Car TV

• Reception module type

• Combined with Car Navi.

• Innoace, Joongang

system,Hyundai Autonet

12 Video Channels and26 Audio Channels

NEWS(2)

DRAMA(2)

SPORT MOVIE

CH.BLUE

TUBOX(PPV)

GAME

ENTERTAINMENT

EDUCATION ANIMATION

DJ ZONE (5)

VARIETY ZONE

NONSTOP ZONE(16)

Melon

Bugs

P.Station

KISS

MUSE

POP

ROCK

CLASSIC

TROT

Korea POP

JAZZ

Ch.Joins

GAG Station

English

Arirang

Ureka

Focus on premium contents,target mass market

Informative

APPEAL TO THE MASS MARKET

TARGET KEY SEGMENT

FREE TERRESTRIAL DMB MARKET

TU MEDIA AS IS

TERRESTRIALCONTENT

ENTERTAINING INFORMATIVE

As-isTU

Developed Business Models……

SubscriberSubscriber

Mobile

Operator

&

Own

Agency

Mobile

Operator

&

Own

Agency

TU Media

(Satellite DMB

Operator)

TU Media

(Satellite DMB

Operator)

Network Installer

(Satellite/Gap Filler)

Network Installer

(Satellite/Gap Filler)

Program ProviderProgram Provider

Contents Provider

Contents Provider

Operation Fee

Contents

Profit Share

Commission

Subscriber Fees

Subscription Fee New Subscription

BasicVideo

AudioBasic Channel • Monthly Fee : 13,000 won

• Pay per View : 2,000 won

• Only impose to a new subscriber• Initial Fee : 20,000 won ($20)

Basic Pricing Scheme

Basic Pricing Scheme

TU mediaMobile Telecom

Company

BroadcastService

•Broadcasting•Contents Sourcing & Development•Network & Platform Mgt.

DistributionService

•Getting Subscribers•Terminal Sales•Distribution Channel Mgt.

More advanced service planned……….

Data Service - Weather, Traffic, Stocks① Provides useful information ② Enables viewing real time information without difficult key action

T-Commerce① Home shopping (CDs, Albums, Fashion, Home appliances)② Tickets (lottery tickets, sporting events, movies, concerts)③ T-Banking/T-Trading

Interactive Service① Voting, SMS② Viewing at different angles③ Sports + Commerce

I. Advent of Mobile Broadcasting Service

II. TU Media

III. TU Media’s Experience and Finding

IV. Cooperation

Attentions fromcustomers and media

Convergence Big Bang Hits 2005 Telecom Market

Most popular products of 2005 highlight practicality. Satellite DMB rank thirdpopular product in 2005.- SERI

"As technology moves ahead, consumers increasingly turn toward digital devices in their lives. Satellite DMB is one of good example."– Koreatimes

Satellite DMB Soars on Baseball Frenzy- KoreatimesNon-Mainstream Media’s

Rebellion Gathering Force

44,00079,000109,000146,000

203,000251,000

301,000372,000

416,000444,000498,000

540,000600,000

MAY

JUNE

JULY

AUGUSTSEPTEMBER

OCTOBER

NOVEMBERDECEMBER

JANUARY

FEBRUARYMARCH

APRIL

MAY

750,000 customersin last 16 months,

subscribednew

MOBILE Broadcasting Service with TU MEDIA

Suburb18%

Urban82%

Our customers are……

※ Note : Based on TU Subscribers on ’05.12

,

Female, 35%

Male, 65%

under 194%

over 4024%

20~2419%

25~2926%

30~3416%

35~3911%

65%

Sex Age Place

Male users are 65% Age Group of 20~30’s are 72% of total user

82% of customers resides in Metropolitan areas

Popular contents are……

* Sport Video Channel showed low view rate

as an average but becomes most powerful channel

with big sporting event.

Ch.Blue GameMovie MBC

DramaSBS

DramaKorean

latest MusicSportsnews

SBS Drama- Comedy

Japan Baseball - Yomiuri

Game ( Final League)

Major League Baseball

Video vs AudioVideo vs Audio Popular channelPopular channel

Popular ContentPopular Content

※ Note : Based on TU Subscribers on ’06.5

Soccer - National Team

audio35%

video65%

User behaviors are……

Usage(Minutes) Customers by usage(%)

Average June July

60.2Minutes

59.3Minutes

59.8Minutes

Under 30

Minutes

30~60Minutes

Over 60 Minutes

19% 30%51%

■ Daily Average Usage (Source : VAS Data)

■ Average Usage time by date

56

49

59.358.7

63.463.7 62.4

40

45

50

55

60

65

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Sunday

■ Daily usage per time slot

■ Usage Situation

Usage Situation

(CustomerSurvey)

Usage Situation

(CustomerSurvey)

42%

31%

17%

31%

10%

To relax/entertain oneself

To pass the time

To stay updated (Select Channels

through EPG)

Watch selected channels

Passive User

(73%)

Active User

(27%)

•Mobile Broadcasting do not shows specific prime time while fixed broadcasting shows two big prime times

※ Note : Based on TU Subscribers on ’06.07

0

24

68

10

1214

16

6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

TU

FIXED

(%)

(H)

I. Advent of Mobile Broadcasting Service

II. TU Media

III. TU Media’s Experience and Finding

IV. Cooperation

USAKorea

Satellite DAB service is very popular in the US, but is limited to Audio Services. However, DAB providers plan to add Video services and Major MNOs are under evaluation of all platforms.

Korea and Japan successfully launched Satellite DMB Services.

Korea launched T-DMB services from Dec. 2005.

Germany, France, the UK are testing DVB-H as well as T-DMB. S-DMB is also being considered by major MNOs in Europe

Many countries plan to start

Mobile broadcastingChina is looking at open standards similar to DMB and DVB-H, as well as proprietary technologies to be the standard for China

ChinaEU

18%30%

12%22%

Mobile Network Operators

Broadcasters

Government Delegation

18%Satellite Operators

Press etc.50%

50%29%

18%

Asia PacificEU

America

110 delegations from all around the world visited

TU Media to benchmark

Mobile Broadcasting

TU Media is willing to share our knowledge to other countries.

Well designed Marketing and

Promotion Strategy

Technical Know-How and New Interactive and

Dataservice

S-DMB

Contribute to Industry

&Social

Welfare

Develop Data

Service

Marketing Strategy

Contents Strategy

Service Strategy

Terminal Strategy

Develop mobile

contents

Alliance with Terminal

Manufactures

Cooperation with

Major MNOs

Create Interactive

Service

Createright contents for

mobile environment

Suitable and Affordable

Terminal for DMB Service

TU Media Corp.http://www.tu4u.com ( htshin@tu4u.com )