Launch of 1&1 Digital-TV. veed snapshot January 2018

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1 Launch of 1&1 Digital-TV veed snapshot January 2018

2 1&1 has launched its new state-of-the art entertainment proposition Digital-TV Strategic Rationale 1&1 continues to leverage the value of an entertainment offering as driver for its broadband business through the hard bundling of broadband products with its Digital-TV service. 1&1 new TV offering comes with a variety of functionalities enabling flexible and independent TV consumption. Although a set-topbox is part of the basic, consumers are not obliged to use it. 1&1 already supports a set of relevant streaming clients (Fire TV, Apple TV, Chromecast) providing access to the big screen. While the former offering was in cooperation with Deutsche Telekom, the new service is based on Zattoo s B2B whitelabel solution, the set-top-box is provided by Abox42 Offering Details Proposition: Pricing: State-of-the-art TV offering with a launch focus on Linear TV, EPG and Cloud PVR. Full in-home multiscreen offering on various device classes including mobile and streaming clients 9,99 (1&1 DSL access required) Availability: Launch in Germany end of December &1 Digital-TV 1

3 1&1 Digital-TV Packaging & Pricing International Add-Ons 1 Italien 5 channels, thereof 3 in HD 5,99 Türkei 7 channels, thereof 0 in HD 5,99 Polen 3 channels, thereof 0 in HD 5,99 Russland 6 channels, thereof 0 in HD 9,99 Entertainment 9,99 34 channels, thereof 19 in HD Includes all Genre s Add-Ons 1 Film & Serie 7 channels, thereof 4 in HD Kinder 6 channels, thereof 2 in HD Dokumentation 7 channels, thereof 6 in HD Music & Lifestyle 9 channels, thereof 5 in HD Sport 5 channels, thereof 2 in HD HD-TV 25 channels, thereof 25 in HD Maxdome Month 1-24:5,99 After 24 th month: 7,99 Cloud Recorder h in HD resp. 250 GB 2,99 Cloud Recorder h in HD resp. 500 GB 4,99 Package 1&1 Digital-TV 9,99 65 channels, thereof 21 in HD incl. STB, 10h recording Minimum term: 24 months Access DSL Mbit/s Download, 10 Mbit/s Upload Phone + Mobile included Month 1-12: 1 after the 12th month: 29,99 DSL Mbit/s Download, 40 Mbit/s Upload Phone + Mobile included Month 1-12: 19,99 after the 12th month: 34,99 1) no long-term commitment, monthly cancellation As of January &1 Digital-TV 2

4 Feature Benchmark of German video platforms 1&1 DTAG Entertain TV Plus VF Giga TV Unitymedia Horizon Direkt Channels total (HD UHD) 1) 118 (67 0) 202 (113 2) 179 (86 0) 234 (96 0) Sky 258 (125 3) (incl. FTA Satellite) Pay-TV channels total (HD) 2 34 (19) 65 (47) 41 (33) 54 (32) 47 (28) Catch-up libraries yes Instant Restart 3 yes yes no yes no Backwards EPG 4 yes yes no no no Recording Multiscreen Premium 3 rd Party integration HDD in STB GB 1 TB 500 GB 1 TB Cloud Recordings up to 200 h up to 70 h Out-of-home no yes yes yes yes Device classes maxdome (reselling only) Sky, Netflix, maxdome Sky, maxdome Sky, maxdome, Netflix STB yes yes yes yes yes no 1) incl. 3 rd party s 2) 3 rd party s are not considered 3) Restart a already running show from the beginning 4) Get back in your EPG and watch missed shows 1 Laptop/PC 2 Tablet 3 Smartphone 4 Streaming 5 SmartTV 6 Set-Top-Box 7 Game Console Client 1&1 Digital-TV 3

5 0,00 Price per month in 120,00 Only minor pricing differences occur when comparing equivalent Triple Play products Digital-TV + HD-TV DSL: 50 Mbit/s Mobile: Flat cable access: no* channels: 65 HD channels: 45 Entertain TV Plus DSL: 50 Mbit/s Mobile: none cable access: no* channels: 95 HD channels: 46 Giga TV DSL: 32 Mbit/s Mobile: none cable access: yes channels: 98 HD channels: 44 Horizon TV Plus DSL: 30 Mbit/s Mobile: none cable access: yes channels: 108 HD channels: 54 [WERT]1 54,901) [WERT] 46,971) 1 [WERT] 49,98 2) 2 [WERT] 49,98 1) 1 regular price +13m 33,97 34,90 34,98 +13m 39,98 display price 1) full price from 13. month, 2) full price from 25. month *not required, as of January &1 Digital-TV 4

6 Highlight: 1&1 offers Cloud PVR Launch December 2017 October 2017 September 2016 April 2016 Basic Capacity 10h recording and playback Part of 9,99 Digital-TV 30 shows recording and playback Part of 9,99 Premium Unlimited recordings Basic 25h playback Part of 4,99 Comfort 10h recordings and playback Part of 9,99 Entertain TV Mobil Capacity Upgrades Add. 100h for 2,99 Add. 200h for 4,99 No upgrade possible 100h in 14,99 Perfect Add. 20h for 2,00 Add. 50h for 5,00 Add. 100h for 9,00 20h for 4,95 max. 3x per month Limitations channels not available selected shows missing * *except TNT Film which is not available, as of January 2018

7 Summary & Outlook 1&1 has built the product around Linear TV and EPG. So far consumption is foreseen at home with an 1&1 broadband access. This is interesting in times where the industry discussion revolves around SVoD and OTT. As for 3 rd party integration, only maxdome is being re-sold via 1&1, but there is no deep product integration with any Premium VoD 3 rd party yet. Cloud PVR becomes more and more popular in the markets, some are already offering sufficient amount of cloud storage. All relevant Cloud PVR services are still only running on the concept of private copy in Germany. Entertainment offerings remain a key component to drive and lock-in access business, while Triple Play pricing for a standard bundle is leveled out across the key players. Questions to follow-up in the coming months: Is unicast IP streaming becoming the key delivery method for Linear TV? Will 1&1 open up its platform for 3rd parties and become the one-stop-shop for video? When will 1&1 loosen the access bundle allowing out-of-home resp. off-net usage? If you would like to discuss the impact of 1&1 Digital-TV launch on your business or the different market scenarios, please get in touch with: Dr. Bernd Riefler Co-Founder & Chief Marketing Officer veed analytics &1 Digital-TV 6

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