This document discusses Portugal Telecom's focus on innovation and multimedia communications. It aims to lead the consumer market in convergence and the enterprise market in ICT. It has built future-proof fiber and mobile networks to support increasing data usage and devices. Its MEO brand offers innovative TV, internet, and communication services across multiple screens. Portugal Telecom is preparing its fixed and mobile networks for continued growth in bandwidth demand and new technologies.

1. Multimedia Communications
0
October 2013
Multimedia Communications
José Salas Pires
Portugal Telecom

2. INTERNATIONAL OPERATOR FOCUSED
IN PORTUGAL, BRAZIL AND AFRICA
1
1 Full Year 2012
2 As of 31 January 2013
$5.3

3. INNOVATIVE VALUE ADDED SERVICES FOCUSED
ON THE DIGITAL CONSUMER
Consumer Seamless access to content and communications
with a fully integrated convergent offering catering
to the needs of Portuguese families: simple,
comfortable and economical
Personal
Innovative flat-fee offering
with mobile data plans
Enterprise
Increase penetration of
IT/IS services (Cloud,
Outsourcing and BPO) to
increase share of wallet of
ICT spendingResidential
Unique 3P offer with
advanced multi-screen
2
with mobile data plansadvanced multi-screen
interactive TV experience
Innovation
Reach global relevance through a balanced ecosystem of partnerships with leading industry
players to maintain a technological edge in products, networks and operations

4. Multimedia
The main goal of PT Inovação is to gather knowledge and generate value for the PT Group. Its mission is to engage in the
promotion of the innovation process at the service, technology and operations levels, in order to disseminate the knowledge
that ensures competitiveness for the PT in the Portuguese and International markets
Wireless Networks
• GSM / UMTS / 3,5 G
• LTE
• Wi-Fi
• IPTV
• Digital TV
• Content Management
Service Platforms
Innovation Areas Projects
Entertainment
PT INOVAÇÃO: THE INNOVATION FORCE OF PORTUGAL
TELECOM
3
E-Education
M2M
Access Networks
• Metro networks
• Core networks (IP, Ethernet, xDSL, xPON, SDH)
• NGN
• Smart metering
• Home management
• Service Delivery Platform
• Personal Learning Environment
• Learning Objects and Mobile learning
• Inteligent Learning Contexts
Entertainment
Service Platforms
Internet of Things
Digital Persona
• PT Inovação maintains partnerships with universities, labs and research centers, and is an active participant in
international standardization and legislation technical committees i.e. ITU, ETSI and Eurescom

5. STRATEGIC OBJECTIVES
GROW IN SCALE
INCREASE CONTRIBUTION OF INTERNATIONAL
LEAD THE CONSUMER MARKET IN CONVERGENCE AND
4
LEAD THE CONSUMER MARKET IN CONVERGENCE AND
ENTERPRISE MARKET IN ICT
TOP TIER IN THE SECTOR IN TECHNOLOGY, CUSTOMER
EXPERIENCE AND OPERATIONAL EFFICIENCY
REFERENCE OPERATOR IN SUSTAINABILITY

6. DATA HAS REPLACED VOICE
Social
Other
26
10
15
100% 4
Share of total communication time
Percentage.
100%
39
Share of mobile phone time
Percentage.
5SOURCE: iConsumer US 2012
Voice
Email & Msg
2012
28
36
2008
39
42
Voice22
Data
2012
78
2008
61

7. USAGE TIME GOING MOBILE…
25
7
19 21
0
11
22
33
Share of usage time
Percentage.
Average daily usage
Minutes.
6
Social networks Email & messaging Gaming
4
2008 2012
7
20122008
4
2008 2012
SOURCE: iConsumer US 2012
2012
56
2008
78

8. … AND INCREASINGLY APP-BASED
29
Number of active apps
Average per smartphone
user. 2012. US
64% of mobile phone time
is spent on apps
7SOURCE: Nielsen; Compuware
18
13
85%of consumers prefer mobile apps
to mobile websites

9. MORE TERMINALS
8
Smartphones Penetration
Percentage
Connected TV Penetration
Percentage. US
Tablets Sales
Million

10. Number of devices in Portugal
Million
Momentum Mobile Data
Tablets = 1211 x
12.912.6
1.2 2.6
Smartphones
Others
MORE DATA AND DEVICES IN PORTUGAL
9
Laptop = 4981 x
Smartphones = 351 x
2016E
49%
2011
90%
Handsets
2016E2011
0.1
Tablets
2016E2011
1.9
Data Cards
1 Montlhy basic mobile phone data traffic
Source:Cisco VNI Mobile 2012

11. TV
• INTERACTIVITY
• NON LINEAR SERVICES
INTERNET
• MOBILITY
• DATA CONSUMPTION
Fixed Mobile
Convergence
• TV
• VOICE
•
TRENDS IN CUSTOMER BEHAVIOUR
10
• INTERNET
Anytime
Anywhere
Any Service
Any Equipment

12. PORTUGAL STATUS
All Networks deployed: Fixed and Mobile
11

13. PORTUGAL STATUS – MOBILE SERVICE
12
Source: OECD report 2013
Portugal: Mobile Penetration -
July 2013 - 158%
Portugal 3rd

14. PORTUGAL STATUS – TV SERVICE
2.000
2.500
3.000
3.500
Paid TV Customers in Portugal
Thousands
13
Source: Anacom 2Q13 Report
0
500
1.000
1.500
75% of customers susbscribe to a package

15. MEO IS INNOVATION WORLDWIDE
14

16. MEO BRAND
15

17. MEO IS INNOVATION WORLWIDE
16

18. MEO INNOVATIVE SERVICES
INTERATIVITY
•Social Networks, Sport, Kids / Kiddy, News
BENFICATVMEO KIDDYSAPO NOTÍCIAS
17

19. • 170 channels (HD and 3D channels)
• Video On Demand
• Fast zapping with PIP
• MEO Kanal – MEO Community
• Cloud TV and MEO Cloud
MEO INNOVATIVE SERVICES
18Este documento é propriedade intelectual da PT e fica proibida a sua utilização ou propagação sem expressa autorização escrita
• Cloud TV and MEO Cloud
• Meo Go: Multi screen
• Music Box
• MEO Games
• Restart TV / Catch-up

20. H.264H.264 H.265H.265H.263H.263
IN USE IN USE FUTURE
TECHNOLOGY STRATEGY
Codecs:
19
Used for old mobile
phones
Used for VOD content
and Live.
Push for H.265 with
MPEG-DASH.
Leverage on
State of the Art
Networks:
FTTH 4G

21. 20
FTTH Network

22. 800
1,000
1,6001
+600
FTTH Home Passed
Thousands
PT LEADING IMPLEMENTATION of FIBER NETWORKS in
EUROPE
21
Best Fibre Network in Europe
800
2009 20132010
Population coverage: 46%
Approximate: 74% GDP
1) 1.6 million of passed homes ( not necessary all available for service provision )

23. Fibre GPON vs. Copper ADSL
MIGRATION COPPER FIBRE: CHANGING THE PARADIGM
4-6x less
space
4-5x less energy
consumption
22
consumption
400Mbps vs.
24Mbps
5x more
coverage

24. SUSTAINABILITY AND SPEED
Energy
consumption
Indexed
Maximum bandwidth
Mbps
xDSL
-4/5x
GPON
10024
GPON
1,000
VDSL1ADSL 2+
23
1 VDLS2 with vectoring
GPON
-4/6x
xDSL
50%50%
4%
x12
GPONVDSL1ADSL 2+
Physical space
needs
Indexed
Symmetry
Uplink/downlink

25. FIBRE ADVANTAGES
Almost no civil work is needed:
widely spread duct infrastructure
RF-Overlay:
Not possible with copper
24
Street cabinets require municipal
licenses in Portugal
Not possible with copper
Fibre has attractive cost structure
(Capex and Opex)

26. HIGHER TAKE UP AND HIGHER QOS
Indexed
+22%
Service faults
2012YTD. Per customer
Higher take up
-40%
25
FibreCopper FibreCopper

27. PT BUILT A FUTURE PROOF ACCESS NETWORK
GPON today allows for 2.5Gbps per
PON
26
NGPON2 will allow in the future for
40Gbps per PON

28. LIS-
15113809
0911
Speed
Quality
Simultaneity
27
Mobile Networks
Simultaneity

29. QoE: QUALITY OF EXPERIENCE
Real Time Interaction: Games and Browsing
Bandwidth
28
MEO GAMES also available “FIBER IN THE AIR”
Bandwidth
4x less
latency

30. CAPACITY
29

31. +90% OF POPULATION WITH 4G SERVICE
TMN’s 4G/LTE network coverage
% population. 2012
Education
(remote class)
Education
(remote class)
Health
(Telemedicine)
Health
(Telemedicine)
At launch
+70
+90
+80
+20
30
Efficiency
(augment reality and
mobile teleconference)
Efficiency
(augment reality and
mobile teleconference)
Entertainment
(cloud based gaming,
4G TV cameras)
Entertainment
(cloud based gaming,
4G TV cameras)
base stations
connected with fibre
base stations
connected with fibre
DecemberAprilMarch
+20

32. EXCELLENCE IN NETWORK ENGINEERING: LIDERSHIP
TMN’s network coverage
% population. 2013
TMN’s 4G network
is a reference
of quality
• 2G Network:
Population 98%
Area 95%
• 3G Network:
Population 95% (HSPA+: 82%)
Area 70%
31
Extended range of 4G
devices since launch :
• Dongle
• Router
• Smartphone
• Tablet
Speed and Capacity
• Network Launched
for 150Mbps dongles
• Successful LTE – Advanced tests
performed in April 2013: 300 Mbps
Area 70%

33. WiFi Network
• Modernization of
the national network
of WIFI Premium
hot-spots (~1.600)
• Launch of Internet
“fora de casa” with
2G Network
• Modernization of all
2G Network to
improve QoS,
increase network
capacity
• 85% reduction
of aggregation
PT PREPARED FOR GROWTH IN MOBILE
Mobile Backhauling
• 95% of mobile sites
connected with fibre
optic in 2013
• 93% of mobile sites
connected with
IP/Ethernet
technology
LTE/4G Launch
• TMN in a restrict
group of first mobile
operators to launch
LTE in 2600 GHz
and 800 MHz
• Availability of
extended range of
32
“fora de casa” with
310.000 hot-spots
of aggregation
nodes
3G Network
• Network HD Voice
enabled
technologyextended range of
devices since
launch

34. BUILDING FUTURE PROOF NETWORKS
E2E Vision Bringing Value to All Segments
33

35. 34
Thank you