CableLabs: 25 Years of Technology Development, Looking Forward to the Next 25. April 24,2013
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1 CableLabs: 25 Years of Technology Development, Looking Forward to the Next 25 April 24,2013 Cable Television Laboratories, Inc All Rights Reserved.
2 Agenda 25 years is a lot to talk about! Who is CableLabs? History 25 years of developing cable technology and spurring cable growth What does the future hold for cable? CableLabs Themes CableLabs Projects Video, Voice, Data, Business Services, Back Office Name single most important cable technology development in your 25 years Slide 2
3 Who is CableLabs? Our History Founded in 1988 by cable operating companies, Cable Television Laboratories, Inc. (CableLabs ) is a nonprofit research and development consortium (under the 1984 Cooperative Research Act) serving its cable operator members. Slide 3
4 Our Team Nearly 100 contributing engineers 175 employees Slide 4
5 Our Members 38 members Slide 5
6 Our Mission What are we about? Deliver innovations that enable our members to be the provider of choice in their markets. Slide 6
7 CableLabs Charter Expanded Charter Provide timely & evaluated information Fund R&D projects Facilitate transfer of relevant technology and best practices Promote interoperability Cultivate an innovation pipeline (4 6 yr. planning horizon) Take educated risks Slide 7
8 CableLabs Historical Impact U.S. Cable Growth RGUs in Millions Year Basic cable Digital video Broadband Digital Voice Source: SNL Kagan Slide 8
9 CableLabs Strategy Slide 9
10 CableLabs Future Technology Theme Focus All IP Smart Space Transformation of the Content Ecosystem Identity Management and Security Rich User Experiences Pervasive Wireless Big Software Platforms Better Pipes Radically Changing Economics Future of Work Measurement Revolution Slide 10
11 Innovation Development Process Slide 11
12 Video Transition To All-IP Cable Television Laboratories, Inc All Rights Reserved.
13 Consumption Trends Viewers are watching more than ever before, through every device Old ways of consuming video like the DVD are gradually losing ground to more convenient solutions While people say they are unwilling to pay for all this content, they continue to pay for easy access to content across their new platforms Slide 13
14 Connected Device Trends Slide 14
15 Market Trends a In North America, there will be 2 billion networked devices in In North America, there will be 5.8 networked devices per capita in Globally, there will be 15 billion networked devices in Globally, there will be 2.0 networked devices per capita in a source: Morgan Stanley Research Estimates, Next Up in the Evolution of Media: The Connected TV, May 12, 2011 b source: Slide 15
16 Independent QAM and IP Networks Slide 16
17 Bridging of QAM and IP Networks Slide 17
18 Bridging QAM and IP Networks with a Gateway Slide 18
19 Full IP Convergence Slide 19
20 Voice Digital Cable Telephony (etc.) Cable Television Laboratories, Inc All Rights Reserved.
21 Efforts Spec Timelines 1. MULTIMEDIA 2.0 & APPS SMA INTERCONNECT 1.0: ( ) (2003 ) (2006 ) (2008 ) (2008 ) HD VOICE (2009 ) BRIEF HISTORY 1.5: (2005 ) MSO Benefits Digital Voice: Residen7al & Business* IMS Apps Interconnect & Interoperability Smart Spaces Apps High DefiniGon Voice Overview NCS- based Telephony Architecture & Features Telephony Features 2.0: 3GPP IMS based Architecture Interworking & Provisioning Guidelines, Addressing & Provisioning Security & AutomaGon Dynamic QoS PacketCable MulGmedia DOCSIS 21
22 Data The Need For Speed and Mobility Cable Television Laboratories, Inc All Rights Reserved.
23 Premium U.S. Broadband Trends Trend predicts 1 Gbps premium offers in 2016 or later Cable DS 50% CAGR Cable US 51% CAGR Downstream (DS) Upstream (US) * * Symmetric DS and US rate Slide 23
24 DOCSIS Technology Evolution DOCSIS Version DOCSIS 1.0 DOCSIS 1.1 DOCSIS 2.0 DOCSIS 3.0 DOCSIS 3.1 Example Services Broadband Internet Tiered Services VoIP Video Conferencing SMB Business Services Entertainment Video Enterprise Business Services Example Customer Premise Devices Cable Modem VoIP Phone (MTA) Residential Gateway Video Conferencing Mobile Devices IP Set-top Box Business Services Gateway Downstream Bandwidth Capacity in bits-per-sec 40 Mbps 40 Mbps 40 Mbps 160 Mbps min Target 1 Gbps min Upstream Bandwidth Capacity in bits-per-sec 10 Mbps 10 Mbps 30 Mbps 120 Mbps min Target 200 Mbps min Slide 24
25 DOCSIS 3.1 Technology Cable continues to invest in broadband What s new in DOCSIS 3.1? More efficient modulation and FEC (OFDM, OFDMA, LDPC) Enables new downstream and upstream spectrum allocations Extensive re-use of DOCSIS 3.0 concepts Energy efficient operation through traffic-load based duty cycle Backward compatibility with earlier versions DOCSIS 3.1 cable modems can be upgraded before head-end and can coexist with older versions (1.1, 2.0, and 3.0) DOCSIS 3.1 specifications to be issued later this year Slide 25
26 DOCSIS 3.1 Summary So what does this mean for the business? With DOCSIS 3.1 technology cable operators can deploy Gigabit services over HFC Deploying DOCSIS 3.1 technology is more cost effective than building FTTH DOCSIS 3.1 technology enables a migration to higher bandwidth services based on market demand Consequently, capital investment can be made consistent with customer demand Slide 26
27 Wireless Market Can you say big? Consumers value mobility proven churn reduction US wireless market revenues greater than combined cable services Cable can leverage wired assets to enable wireless access to services Annual Revenue ($B) $300.0 $250.0 $200.0 $150.0 $100.0 $50.0 $0.0 U.S. Market Size Wireless Services Business Network Services Video-related Services Residential Network Services Slide 27
28 Wireless Data Growth Mobility is growing in importance More than 2x for last four years, consistently beating estimates CAGR estimated at 78% Slide 28
29 Mobile Data N.A. (TB/Month) Wi-Fi Usage Growth Wi-Fi a built-in feature in many mobile Mobile data traffic tripled in 2010 for the third year in a row, and is esemated to grow 26- fold by ,200,000 1,000, , , , ,000 - Mobile Data Traffic - N. America (TB/month) Smartphone - N. America (Units) Sources: 82% CAGR Forecasted Units (M) US Postpaid Subs Smartphone Penetration (Postpaid) Average Usage per Month Monthly Tonnage (PB) Q M 25% 230 MB 12.9 Q M 38% 435 MB 37.8 Q2 12 estimate Mobile Data Usage - Cisco Visual Networking Index [Global Mobile Data Forecast, ] Smartphone Shipments Oppenheimer & Co, 4Q10 Wireless Snapshot Tablet Sales - Forrester Research ereader Forecast, 2010 to 2015 (US) Smartphone users are bane and boon to mobile carriers, driving higher ARPUs, but also the vast majority of usage. x x = 225M 55% 1,000 MB Sources: UBS Wireless 411 4Q10 (Carrier reported ARPU through 4Q10, postpaid subs) Nielsen Mobile Customer Value Metrics; Cisco Visual Network Index ( ) BoA Merrill Lynch 2Q11 US Wireless Matrix 10x Slide 29
30 CableLabs ROAM Specification Roaming across MSO Wi-Fi networks Includes options for open and secure SSIDs WR-WiFi-1 Visited Network Federated Login Portal Defines several related interfaces including AAA attributes Subscriber Device WR-WiFi-2 WR-WiFi-3 Clear Secured Visited Network Wi-Fi GW Home Network AAA Server Aligns WBA, WFA, and GSMA specifications for secure SSIDs and Passpoint (Hotspot 2.0) WR-WiFi-4 Visited Network Access GW and AAA Proxy WR-WiFi-5 WR-WiFi-6 Visited Network Figure 2 - Roaming Architecture Specified Interfaces Slide 30
31 CableLabs Wireless Service Locator (WSL) Exchanging Wi-Fi AP Location Information Centralized database of AP locations and Metadata currently used by CableLabs members for Wi-Fi service finder applications and web maps Slide 31
32 Business Services Growing the Business Cable Television Laboratories, Inc All Rights Reserved.
33 Business Services Cable s Largest New Revenue Opportunity Business Services is generating up to 50% of new revenue growth in the industry Small Business continues to be best opportunity o Millions of SMBs (1-20 employees) reachable by HFC network o DOCSIS can support Business Class Performance, Capacity Our success comes at our competitor s expense o We offer a businesses a facilities-based alternative to telco o ILECs losing millions of SMB lines, billions of dollars in revenue Slide 33
34 Focus On Up-market Technical Roadmap MSO Business Services Revenue Extensions to DOCSIS broadband service platform Development of carrier class infrastructure Alternative access networks PON, EPoC Slide 34
35 CableLabs Project Objectives Business Services Increase performance and capacity for voice and data services delivered over DOCSIS3.0 Networks Ability to monitor faults and performance for SLAs Simplify connection to Business Phone systems Well defined SIP Gateway, PB interoperability standards Establish scalable last-mile fiber architecture beyond DOCSIS 3.0 DOCSIS Provisioning of EPON (DPoE) Architecture roadmap for Cloud-based services Ensure industry standards include MSO requirements Voice: IETF, SIP FORUM, 3GPP Business Ethernet: Metro Ethernet Forum Network: Broadband Forum, IEEE Slide 35
36 DOCSIS Provisioning of EPON (DPoE ) What is DPoE? Provides for unified back office provisioning makes EPON look like DOCSIS Facilitates interoperability between EPON devices Provides enhanced device capabilities to support Metro Ethernet services Slide 36
37 Enterprise SIP Gateway (ESG) SIP Trunk Customer Network Cable SIP Trunking Architecture for ISDN PRI Replacement Cable Service Provider Network IP Phones SIP PB Enterprise SIP Gateway Broadband Access (coax, fiber) SIP Trunk SIP Call Control & Routing PacketCable 2.0 Network PSTN Gateway PSTN Business voice architecture that supports interoperability challenges in deploying SIP solutions over cable v Builds on successful PacketCable voice architecture v Developed in collaboration with the SIP Forum SIPconnect1.1 specifications v CableLabs developed SIPconnect reference implementation using open-source IP-PB Define common industry requirements for Enterprise SIP Gateway v Addresses management and scalability challenges of deploying IP trunks Create opportunities for cable to re-invent voice via open IP platform Slide 37
38 Back Office Easing the Integration Burden Cable Television Laboratories, Inc All Rights Reserved.
39 Cable Information Systems Focused on Back Office Launch of new services may often be limited by integration of back office systems Lack of consistent data models across back office systems complicates integration Common data models can simplify these integration efforts The CIS Cable Information Architecture (CIA) project addresses common data models Slide 39
40 Cable Information Architecture Party Customer Content Product Resource CIA Location Focus: 1. Commercial Services 2. Sales Automation 3. Advanced Analytics Service Common Language - 6 Domains Slide 40
41 CIS Program Cable Information Architecture (CIA) Based on TM Forum SID - extended for the cable industry Six information domains: product, service, resource, location, customer and content Focus: B2B, sales automation, advanced analytics Current supplier participants: Amdocs, Netcracker, Oracle Slide 41
42 The Single Most Important Thing Drum Roll Please Cable Television Laboratories, Inc All Rights Reserved.
43 Name Single Most Important Cable Technology Development In Your 25 Years OK, maybe the top two 1. Hybrid Fiber Coax (HFC) Architecture 2. Data Over Cable System Interface Specifications (DOCSIS) through its many generations Think about what s to come! Slide 43
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