Broadband World Forum Europe 2008

Alcatel-Lucent Leverages Network Architecture to Deliver Comprehensive Addressable IPTV Advertising Solution

| Sep 29, 2008 | Digital Media Infrastructure | Show Update

| Analyst: Yoav Schreiber

Current Perspective: Very Positive Vendor Importance: High Market Impact: High

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Event Summary

September 29, 2008 –- Alcatel-Lucent introduced a new advertising delivery solution for IPTV networks at the Broadband World Forum Europe 2008 trade show, which enables service providers to distribute ads to targeted groups of consumers. Alcatel-Lucent’s Targeted and Interactive IPTV Advertising Solution is designed to increase IPTV revenue by making it possible for operators to deliver more timely and relevant ads, as well as better measure the effectiveness of advertising campaigns. The solution will be available in 2009.

Analytical Summary

• Current Perspective: Very positive on the launch of Alcatel-Lucent’s Targeted and Interactive Advertising Solution for IPTV operators at the Broadband World Forum (BBWF) Europe 2008 because the announcement is clearly differentiated from rivals due to its comprehensive, end-to-end proposition as well as its leveraging of the company’s network-based assets, such as its Triple Play Service Delivery Architecture (TPSDA), whose version 2.0 was also introduced today. As a result, Alcatel-Lucent is well positioned to deliver a compelling solution to IPTV operators that they can easily implement and operationalize by leveraging Alcatel-Lucent’s deployment credentials, as well as its advertising partner ecosystem to help operators more fully participate in the advertising value chain.

• Vendor Importance: High to Alcatel-Lucent because the company needs to continue enhancing its overall IPTV solution in order to maintain its credentials in the market in its own right (i.e., separate from Microsoft’s accelerating Mediaroom traction, with which Alcatel-Lucent is well-partnered). In addition, the announcement demonstrates that Alcatel-Lucent remains well-aligned with the progress of its IPTV operator customers, having helped more than 50 accounts establish first generation IPTV operations, and therefore now assisting them in achieving profitability by tapping into the incremental revenue possibilities opened up through the advertising market.

• Market Impact: High on the digital media infrastructure (DMI) market, and in particular on rival IPTV solution rivals who will be challenged to articulate offerings that are equally compelling and comprehensive in terms of both the leveraging of end-to-end assets, as well as incorporating advertising partner solutions. The bar has been set high for DMI vendors targeting the addressable IPTV advertising opportunity.

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