Broadband & VOD Deployment Trend for MSO
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1 2010/TEL41/LSG/IR/004 Agenda Item: 5 Broadband & VOD Deployment Trend for MSO Purpose: Information Submitted by: Chinese Taipei Industry Roundtable: National Broadband Networks and Fibre to the Premises Chinese Taipei 6 May 2010
2 Broadband & VOD Deployment Trend for MSO 6 May 2010 Agenda Migration path to Ultra Broadband Customer Demands and Competition New Ways to Implement VOD DTV Market Forecast & Approach Main VOD Categories Our VOD approach Summary 1
3 Consumer Demands and Competition Various home networking/devices requirements Each at home can be an individual bandwidth demander IP Settop Box Home Control Server TV Media Server VoIP AP/TA Video Phone 3 Consumer Demands and Competition Triple play services available everywhere and become popular More services more bandwidth required Continuous network capacity expansion Next generation network infrastructure may required Home Mobile Internet Video Data Voice BATTLE FOR THE CONSUMER Triple Play Services. Every time.. Every where.. Every devices 4 2
4 Consumer Demands and Competition Carrier usage transition 125 Carriers per FN 125 Analog Broadcast Switched Digital IPTV VOD Digital Broadcast MPEG VOD 5 1 Today time DOCSIS High Speed Data Everything On Demand Technology roadmap for Wireline and Wireless 6 3
5 How to protect investment for now and future, and to maximize utilization of existing CPE, DOCSIS and back office system? How to maintain full redundancy or running in parallel without stranding previous generation hardware? How to stay ahead of the competition without loosing features or adding complexity? Is it ready technically? PON or NG-PON? Do we have enough support on the regulatory side? $2,500 riber Cost per Subscr $2,000 $1,500 $1,000 Crossover Point RFoG 2009 GPON HFC Total Cost $500 7 $ Home Density (Homes Passed per Mile) A feasible solution and migration path for cable operator to deploy FTTx Deploy DOCSIS 3.0 channel bonding and fiber node split with minimum new fiber construction to accommodate all needs All-Fiber CablePON Fiber Deep Bonded DS Channels 40 Mbps DS 40 Mbps DS 40 Mbps DS 40 Mbps DS HFC Service Evolution Huge Mbps to 1 or more Households 8 4
6 Expanding the pipe to stand ahead Reclaim available spectrum Downstream Upstream Today 870 MHz Bandwidth Reclamation Switched Digital Video MPEG 4 Analog Video Reclamation Higher order modulation Downstream Upstream Near Future 1 GHz 9 Bandwidth Optimization, Innovation DOCSIS 1.0/1.1: Higher Upstream (US) and Downstream (DS) Speeds & Greater Density lead to additional services & Lower Subscribers per DS/US DOCSIS 2.0: Additional Bandwidth in US Only: ATDMA, SCDMA, Logical Channels Ingress Noise Cancellation created Additional Bandwidth in US only DOCSIS 3.0: Bonding together Downstream & Upstream Channels to create higher bandwidth Logical Channels Downstream IP Packets from Internet CMTS Bonded Downstream Channels CM 10 5
7 Maximize spectrum utilization to gain more bandwidth Modulation Order SCDMA Extra SCDMA Extra SCDMA and ATDMA Capacity Overlay SCDMA Extra SCDMA Extra Existing US ATDMA Total RF Capacity: With ATDMA only = 160 Mbps With SCDMA = 210 Mbps SCDMA Extra 5 MHz 15 MHz 25 MHz 55 MHz SCDMA to address Impulse» SCDMA Advantages: Impulse & Noise Floor SCDMA to roll-off Max Schedule Code» SCDMA increases capacity up to ~30%» SCDMA only modulation tech to address barren land below 15 MHz» Deals with dominant Impulse Noise and Ingress Noise Ready for Ultra Broadband Current CMTS Decoupled I-CMTS or M-CMTS DIBA (DOCSIS IPTV Bypass Arch) 12 Average supplied bandwidth per Fiber Node 73 QAMs? 2800 Mbps 8.0 QAMs 4.0 QAMs 2.0 QAMs 320 Mbps 1.0 QAMs 160 Mbps 0.5 QAMs 80 Mbps 40 Mbps 20 Mbps / xx? 6
8 Agenda Migration path to Ultra Broadband Customer Demands and Competition New ways to implement VOD DTV Market Forecast & Approach Main VOD Categories Our VOD approach Summary DTV Market Forecast and Approach DTV Subs in 2014 Pay DTH; ; 21% IPTV; 69.62; 9% DTT; ; 18% FTA; 54.29; 7% P/F Subs Growth Cable 40M 120 M DTT 15M 50 M IPTV 10M 35 M DTH 10M 30 M Cable; ; 45% FTA 2M 10 M Cable is the leading platform in numbers and growth 14 Source: Nagravision 7
9 DTV Market Forecast and Approach First in CT: AETN suite of channels External DVR Top Korean Channel More innovations to come: DVR recording via mobile Dual Tuner Push VOD 15 A promising but crowded niche Main VOD Categories Free VOD Mainly used for short programs such as trailers, music clips etc. as well as catch-up TV A substitute for liner TV Some advertising-based are for long videos, such as Hulu A la cart VOD Traditional pay-per-view VOD for full movies A substitute for DVD rentals Subscription VOD Subscription VOD An unlimited access to content from a specific TV channel (e.g. HBO) or to a full sports season 16 8
10 Our VOD Approach Reducing Churn by Focusing on 3 Cs Choice More content or more virtual content with time-shifting Convenience Remember programming the VCR? Ever get phone call during your favorite show? Control Make the program schedule fit to my schedule I hate that commercial 17 Our VOD Approach The Bottom Line DVR s make for sticky, happy customers DVR users grow attached to content on the DVR 40% of DVR households would pay for regular storage upgrades VOD with DVR a killer combination 43% of DVR customers used VOD first (where available) DVR customers: churn less,,pay more >25% have multiple DVRs (USA) USA Pay TV market expected to be >80% DVR by Source: Seagate Market Research 9
11 Our VOD Approach Delivering On-Demand Solutions 19 Source: Nagravision Our VoD Approach Streaming VOD vs Push VOD (1) 1. User request video Video server 2. Video server stream requested video 20 Streaming VOD network Each video stream from the video server is an unicast, dedicated to each user for his need to control o (pause rev & forward) Each dedicated video stream consumes capacity of both network & video server In times of high demand (hit-rate), either video server or network will be the bottleneck, hence unable to accept additional request for video Similar limitations for telecommunications network (e.g. pricing vs erlang traffic modeling) 10
12 Our VoD Approach Streaming VOD vs Push VOD (2) Video server network 1. User request video 2. STB s local storage stream requested video User A User B 21 Push VOD Video server broadcast content (usually popular video selection) to settop boxes (STB), stored in its local storage (e.g. harddisk drive) User s s requested video is being delivered from STB s local storage, hence still able to provide dedicated control to user (for pause, rev & forward) In times of high demand (hit-rate), neither video server or the network will be the bottleneck works well together with streaming VOD TBC and our technology partners (Alticast & Nagra) has developed an improved PushVOD implementation to optimize performance Using forward error correction technique, patent pending Agenda Migration path to Ultra Broadband Customer Demands and Competition New ways to implement VOD DTV Market Forecast & Approach Main VOD Categories Our VOD approach Summary 11
13 Summary Given the advance technologies available today, cable operators select the best solution to provide next generation services to its customers DOCSIS 3.0 deployment can be used to the need for high broadband speeds Over time, phased migration to deep-fiber network is an option, as the demand arises With video & data convergence, cable operators can take advantage of both broadcasting network and on-demand technologies (e.g. DVR & xvod) to optimize bandwidth & service quality to stand ahead in the market 23 END 2009 TBC All Rights Reserved 12
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