Transform Digital Conference 08-05-2014 broadband, technology, fibre, digital

1. 1
Legally privileged & confidential
INCA Transform Digital
Grant Forsyth, Head of Regulatory Policy, NGN, Sky
8 May 2014

2. 2
0
0.2
0.4
0.6
0.8
1
2007 2008 2009 2010 2011 2012 2013
Internettakeup
Internet take up vs. Fixed internet revenue, 2006-2013
Internet take up (%) Total broadband (%households)
Fixed Broadband (%households)
£0
£1
£1
£2
£2
£3
£3
£4
£4
£5
£5
Fixedinternetrevenues(£bn)
Fixed Internet revenue (£bn)
£0
£5
£10
£15
£20
£25
Price(£/month)
Price £ per month
0
2
4
6
8
10
12
14
2007 2008 2009 2010 2011 2012
Averageactualspeed(Mbit/sec)
Average speed vs. Price, 2007-2012
Ave actual speed…
8.4 8.1 8 7.8 8.1 7.5
3.4 3.7 3.8 4 4.1 4.3
3.7 5.5 6.4 7.5 7.9 8.8
0.1
0.4
1.1
0
5
10
15
20
25
2007 2008 2009 2010 2011 2012
Fixedbroadbandconnections
(mn)
Fixed broadband connections, 2007-2012
Non-LLU ADSL Cable LLU ADSL Other (inc FTTX)
Competition in UK BB is dynamic and hugely beneficial for
consumers
(Source: Ofcom Communications Market Reports)

3. 3
Regulated access to NGA does not provide the same
opportunities as LLU
• Ofcom should seek to promote infrastructure investment by CPs to deliver increased
competition in superfast broadband – likely to deliver similar benefits as observed with
LLU
• GEA provides few opportunities to invest or innovate – it is a white label active product
• Other access products (SLU & PIA) are not fit for purpose – so don’t offer opportunity to
replicate the dynamic success of LLU

4. 4
Sky Believe in Better
Always innovating, always looking to deliver an even better customer experience
Ultra-Fast Broadband in York
• A joint venture with TalkTalk and CityFibre
• Working with TalkTalk (between us we have more BB customers than anyone else), but we
will compete at retail with competing customer propositions
• Technical and commercial trial - to better understand the potential of the
technology, economics and customer response
• State of the art city-wide FTTP network
• Unencumbered by legacy infrastructure enabled a focus on what is right for customers
• Delivering 1 Gigabit, initially to 20,000 homes and businesses in York

5. 5
Other fibre initiatives
Improving the customer experience on existing commercial FTTC GEA
1. The launch of a new dual ADSL/VDSL router with accompanying wireless boosters
2. Self-install (removing the requirement for home visit by an engineer)
3. Support the call for access to the NTE5 socket – allowing for a holistic in-home customer experience
Investigating alternative fibre options
(On-going process of assessing opportunities to building out our network to better serve customers)
4. Harrow trial of FTTP with TalkTalk in 2011
5. Unbundled FTTC – via a Statement of Requirements (SoR) which is in protracted discussions with
Openreach
6. Small scale technical trials including:
a) MDUs – fibre to the basement and various in-building distribution options
b) SLU – various cabinet backhaul options (including PIA) and operational processes
c) FTTH using poles – new network build and operational processes
7. Accept that any approach will need to be flexible, local and no one size fits all

6. 6
BDUK SEP funding
Public Accounts Committee recommendation
“The department should not spend any of the further £250m of public money until it has developed
approaches to secure proper competition and value for money for improving superfast broadband after
2015,”
Sky would support:
- The opportunity to offer our BB&T services over the networks of alternate fibre networks.
- A standardised wholesale platform for provision and assurance of access provided by alternate fibre
networks.