COMMISSION PRESENTATION January 13, 2005. Increase Access to Broadband Cable Modem Subscribers.

COMMISSION PRESENTATIO

NJanuary 13,

2005

Increase Access to BroadbandIncrease Access to Broadband

Cable Modem Subscribers

0

5

10

15

20

2000 2001 2002 2003 2004

Migrate to Digital DeliveryMigrate to Digital Delivery

Expand Digital ContentExpand Digital Content

0

50

100

150

200

250

300

2003 2004

DAILY AVERAGEDAILY AVERAGEHD PROGRAMSHD PROGRAMS

(BROADCAST AND CABLE)(BROADCAST AND CABLE)

Boost Digital TransmissionBoost Digital Transmission

0

200

400

600

800

1000

1200

1400

1600

2001 2002 2003 20040

20

40

60

80

100

(mill

ions

)

Jan 03 Jun 03 Jan 04 Jun 04

DTV STATIONSDTV STATIONS HOMES PASSED byHOMES PASSED byCABLE HDTV SERVICE CABLE HDTV SERVICE

ON AIRON AIRON AIRON AIR

Support Consumer Support Consumer InvestmentInvestmentCONSUMER PURCHASESCONSUMER PURCHASESOF DTV EQUIPMENT OF DTV EQUIPMENT

0.02.04.06.08.0

10.012.014.0

(mil

lio

ns

)

1999 2000 2001 2002 2003 2004

DTV Equipment Sold

Cum. Total Number of DTV Households

Increase Consumer ChoiceIncrease Consumer Choice

1993 2004

1993 1998 2004

MVPD SUBSCRIBERS as a MVPD SUBSCRIBERS as a PERCENTAGE of TV HHsPERCENTAGE of TV HHs

MVPD SUBSCRIBERSMVPD SUBSCRIBERSby PERCENTAGEby PERCENTAGE

CABLE SUBSCRIBERS

DBS SUBSCRIBERS

OTHER

1998

100

80

60

40

20

0

Facilitate Deployment of ServicesFacilitate Deployment of Services

Digital Audio Broadcasting 186 stations authorized

First-ever Open FM Auction 258 new radio stations New entrants into radio market $147.4 million dollars in revenue

License Renewals 26,000 Broadcast stations up for renewal

Rechartered Chairman David Barrett, CEO, Hearst-Argyle

Develop Industry Best Practices Optimal Reliability and Security Disaster Recovery Plans

Strengthen Communications InfrastructureStrengthen Communications Infrastructure

Media Security and Reliability Media Security and Reliability CouncilCouncil

MSRCMSRC

Backlog Reduced by 45%

Expanded Electronic Filing 253 FCC U Courses in 04

Emphasize Performance and ResultsEmphasize Performance and Results

TO DO:

DTV TRANSITION

ROLL OUT OF DIGITAL RADIO

SHVERA IMPLEMENTATION

LOCALISM STUDIES

IMPROVE SPEED OF DISPOSAL

THE END