. SBC Verizon Competition Overview SBC Verizon AT&T MCI < 1> SBC Verizon SBC Verizon AT&T SBC AT&T SBC 13 MCI 356, 13, Cingular Wireless 60%

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. SBC Verizon Competition Overview SBC Verizon AT&T MCI < 1> SBC Verizon SBC Verizon AT&T SBC AT&T SBC 13 MCI 356, 13, 12 13 51 Cingular Wireless 60% Verizon Wireless 55% (DSL) AT&T Call Vantage (29.99$/mon) IPTV VoiceWing (24.95$/mon) 2005, Source: 24 SBC Verizon IPTV IPTV Verizon SBC, Verizon 2005 9 Texas, SBC 2006 Verizon

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. SBC IPTV 1. SBC AT&T MPEG2 6-7Mbit/s MPEG4 2006 2005 IPTV SBC Switched IP Video Distribution System / TV MS IPTV Edition, CRM AmDocs IP Convergence HDTV, DVR, VOD EPG Alcatel Scientific-Atlanta IP 2Wire, VoD,, 2Wire Cingular

< 1> Contents Platform Equipment Joint Venture Source: SBC N/A MS AmDocs IP Convergence Alcatel Scientific-Atlanta IP 2Wire Inc. 2. IPTV Project Lightspeed IPTV Project Lightspeed FTTN/FTTP 2007 3 13 SBC IPTV 2005 3 Project Lightspeed Programming SBC 2007 U-verse SBC 2004 11 MS IPTV 2005 1, VoIP, U-verse

2004 4 2005 Homezone BB DVR, VoD, SBC U-Verse IPTV 2005 2005 3, 2005 < 2> U-verse 2004.11 MS IPTV 2005.01 U-Verse 2005.04 HomeZone Source: SBC SBC HBO, Showtime 3 DSL 14.95 SBC 2005 11 & (SBC Blue Room How2Tour) 13 150 3. 2007 40-60 1,800 FTTN MS IPTV 2005 2006 SBC

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Hardware Motorola Hardware Solution 6 DVR DVR < 3> Contents Platform H/W Source: Verizon Varsity TV, the Gospel Music Channel, MavTV, GolTV Soundtrack Channel, Showtime Networks 11, NBC Universal Cable A&E Television Networks MS IPTV Edition Motorola Hardware Solution Verizon,, MTV, ESPN,, ABS,, ESPN HD Verizon Verizon 2. IPTV Fios TV TV TV FTTH IP, TV

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