Alternate Digital Content Distribution for the Last Mile

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Alternate Digital Content Distribution for the
Last Mile

• Mark Fratrik, Ph.D.
• Vice President
• BIA Financial Network
• Broadband Wireless Forum
• San Francisco, CA
• February 21, 2001

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Agenda

• Who is SpectraRep?
• Bandwidth capacity challenged.
• Bandwidth Demand is growing but supply is not
  keeping up.
• DTV and satellite datacasting advantages and case
  studies.
• The digital television roll-out in the U.S.
• Benefits of DTV datacasting.
• Summary

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In Conjunction with

• Leading Valuation Firm in Broadcasting Telecom
• Premier Industry Research Publisher
• Established Communications Investment Advisor

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Who is SpectraRep?
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s Mission

• We live in a world in which consumer and
• enterprise demand for last mile bandwidth
• will continue to exceed supply.
• Our mission is to be a leading developer and
  provider of innovative and cost-effective digital
  content distribution solutions for businesses
  and consumers, using bandwidth provided via
  satellite and television.

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• DTV and Satellite IP Datacasting
• Services company
• Broadband, wireless, multicast, last mile to the
  customer
• Scalable solutions
• Solutions designed around customer requirements
• Open partnerships
• The SpaceConnection, Inc.

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• Programming-related satellite transmission
  services
• Satellite space segment on a contractual,
  recurring, and occasional basis
• C-Band and Ku-Band satellite transmissions,
• analog and digital
• fixed and transportable uplinks
• TVRO downlinks and terrestrial facilities
• domestic and international distribution

• One of the largest inventories of C-Band and
  Ku-Band transponders worldwide for video, audio,
  data and internet services.
• ABC, CBS, FOX, NBC, PBS) cable programmers
  (e.g., CNN, HBO, MTV)
• Transmission services for events such as The
  Super Bowl, World Series, Winter and Summer
  Olympics, World Cup Soccer Matches, Space Shuttle
  Launches, among the tens of thousands of events
  arranged each year.

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The Internet is bandwidth challenged.
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• The demand for bandwidth grows 100 times
  faster than we can deliver it.

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Bandwidth supply not pacing demand.

• Bandwidth being rolled out at frantic pace, but
  uses growing faster.
• Internet backbone having trouble scaling to
  broadband use by mass user base.
• Broadband suppliers starting to use private high
  capacity networks.
• Bandwidth limitations affecting offerings.
• Streaming media offerings strained to serve
  flash events
• For each broadband user, 50 narrowband users
• Last mile broadband an issue
• Broadband cable service designed to serve 10,000
  user base, serve 5-10 of this base.

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Customer Need Segments
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Connectivity Options
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Pros and Cons of Services
Source Adapted from Deutsche Banc Alex Brown,
January 28, 2000
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Market Supply Segments
DTV MMDS LMDS UHF
Wireless
DTH
Cellular PCS
ISM
Hybrid Network Deployments
DSL Cable
Wired
Dial-up phone
T-1
Narrowband
Broadband
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Point-to-Multipoint Scale Advantages
Wireless added value
Wireless 1-to-Many
Wired or Wireless 1-to-1
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Broadcasting is Push from Video to Data
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DTV Datacasting Pros Cons
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DTV Datacasting Benefits

• Wireless Broadband
• Local, Regional, Nationwide
• Last mile solution
• One-to-many economies
• Scalable infrastructure
• Does not require cellular-like build out
• Significant through-put up to 15 Mbps
• Security, encryption, conditional access

01100101110110110 11011100110101000 11101010001110
011 01101001101001010
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Satellite Data Distribution Advantages

• National coverage
• Substantial capacity available in non-peak
  periods
• Satellite receive infrastructure in place or
  easily installed
• Network is flexible
• Digital technology handles video, audio and data

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SpectraRep Digital Content Alternate
Distribution Network
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SpectraRep Designs the Solutions, Assembles and
Manages the Alliance for Digital Content
Delivery
Optional
Return Path
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Case Studies

• NATPE 2001
• National Association of Television Program
  Executives
• Northern Virginia Technology Council
• Titans of Technology keynote address by Dan
  Akerson, XO Communications

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• January 2001
• Live streaming video
• DTV datacast at 512 kbps
• Simultaneous HDTV
• Technology Partners
• Sun Microsystems Real Networks
• Triveni Digital
• KLAS-DT

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• February 22, 2001
• Titans of Technology
• Keynote speech by Dan Akerson, XO Communications
• Hilton McLean, Tysons Corner, VA
• Technology Partners
• Streampipe.com
• Wavexpress
• WETA-DT
• NJN Public Television
• EFX Media Services

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Internet
Titans Tysons Corner, VA
GE-3
Fiber
Satellite Encapsulator/ Uplink
GE Americom
GE Americom Feed
Trenton, NJ
Washington, DC
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The DTV Roll-Out in the U.S.
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DTV Building Blocks

• DTV conversion timetable
• DTV devices in the market
• HDTV programming
• Program related data services
• Non-program related data applications
• Standards and interoperability
• Market acceptance

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Digital TV U.S. Transition Schedule

• Category Stations Markets Type
  Air Date USTVHH
• 0 24 Top 10
  Voluntary Nov 98 --
• 1 40 Top 10 Network
  May 99 30
• 2 80 Top 30
  Network Nov 99 53
• 3 1,037 All
  Various May 02 100
• 4 365 All Non-comm
  May 03 --

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• Category Stations Markets Type
  Air Date USTVHH
• 0 24 Top 10
  Voluntary Nov 98 --
• 1 40 Top 10
  Network May 99 30
• 2 80 Top 30
  Network Nov 99 53
• 3 1,037 All
  Various May 02 100
• 4 365 All
  Non-comm May 03 --

November 1, 1998
May 1, 2002
177 stations on the air in 61 markets as of
1/21/2001 Serving 2/3 of the U.S. population
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Broadcasters and New Business Models with DTV

• Digital Bit Stream Resource
• 19.38 Mbps
• Service Types
• HDTV (12-18 Mbps)
• SDTV (4 Mbps)
• Data (Opportunistic and/or Fixed)
• Business Models
• HDTV
• SDTV Multicasting
• Program related/enhanced data
• Non-program related data

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DTV Ancillary Data Opportunity

• What is the opportunity for broadcasters in DTV
  ancillary data?
• Market supply segments
• Broadband
• Wireless
• Internet
• Datacasting
• Mediacasting
• Customer need segments
• B2B Business to Business
• B2E Business to Employees
• B2C Business to Consumers

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Datacasting

• Real Time
• Internet Broadcasting
• Mediacasting
• Non-Real Time
• Filecasting
• Cachecasting
• Wireless webcasting
• Etc., etc.

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Market Opportunity for DTV Ancillary Data

• Internet Broadcasting
• Fiber Copperl networks are not
  multicast-enabled.
• Need exists for delivering content in multicast
  mode.
• Multicast point-to-multipoint.
• Bandwidth intensive applications increasing.
• ISPs and others trying to meet demand, contain
  costs.
• Looking for multicast, broadband solutions.

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DatacastingCustomers and Benefits

• Customers
• Publishing
• ISPs
• Streaming Media
• Distance Learning
• Messaging
• Corporate Comm
• Cable Modem Providers
• Building Owners

• Benefits
• Last mile broadband
• Wireless
• Multicast
• Scalable
• Packetized

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Benefits of Datacasting

• Content accessible to larger real-time audience.
• Increase revenue and market presence
• Reduces bandwidth needed
• Cost savings
• End users enjoy higher QoS
• Avoid network congestion from last mile
• Enables new service offerings
• Streaming media
• Bandwidth intensive applications
• E-commerce

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Data Streaming Service
18 Mbps
19.38 Mbps
HDTV Audio
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Opportunistic Data Capacity
19.38 Mbps
HDTV Audio
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SDTV Data Services
19.38 Mbps
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Summary

• Digital television provides wireless, broadband,
  last mile multicast infrastructure today.
• Satellite opportunities exist for direct to
  end-user, bypassing Internet cloud, and as
  backbone for regional and national DTV links.
• Wireless, one-to-many, satellite and DTV
  broadband solutions allow digital content
  companies and their customers a cost-effective
  and technically compelling solution to scaling
  business models.
• Some Assembly Required solution requires
  planning and managing various components into one
  seamless system