Introduction to IPTV

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(No Transcript)
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• Introduction to IPTV

Stoyan Kenderov Director of IPTV
Solutions stoyank_at_amdocs.com
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Agenda

• Overview
• Technology
• Market and Business Trends
• Opportunities and Challenges
• Key Success Factors
• Integration of IPTV and VoIP
• Summary QA

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The Relevance of IPTV

• Michael Powell, FCC Chairman, September 2004
• Almost every major phone company I'm aware of
  has an initiative under way to begin to try to
  plug the hole with partnerships with
  satellite-delivered video, but what they're
  really working on is broadband-delivered IP
  television. That's a major component that's
  moving fast

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What is IPTV

• A consumer technology for delivery of broadcast
  TV, on-demand video and interactive entertainment
  services to consumer TV sets over IP networks
• Fundamental part of the telco triple-play
  strategy (voice, data, video)
• User experience will be better than advanced
  digital cable
• Cheaper to scale, unlimited number of channels
• On-demand entertainment schedule
• Highly personalizable

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What made IPTV possible

• Evolution of BB access (ADSL225Mbps,
  VDSL50Mbps)
• Better video compression H.264, MPEG-4, WMV9
• Hollywoods increased acceptance of advanced DRM
  technology
• Cost of IPTV per subscriber going down
• Telco voice revenues eroding fast
• Greatly increased competition for telcos from
  VoIP and cable
• Decrease in of access lines
• Cable eating away customer base
• Consumers and businesses switching to VoIP
• Video is seen as the new opportunity to
• Retain customers
• Grow ARPU

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Agenda

• Overview
• Technology
• Market and Business Trends
• Opportunities and Challenges
• Key Success Factors
• Integration of IPTV and VoIP
• Summary QA

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Typical IPTV System
Transport
Headend
Access
Home
VoIP
Other Content Sources
IGMP Router
AppsServers
STB
Video Servers
STB
Transport Network
xDSL CPE/ FTTH
DSLAM
MPEG Encoders
Computer
Digital and Analog Receivers
Source Kasenna Inc.
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Technical facts

• Standard Definition (SD) channel 1-4Mbps per TV
• High Definition (HD) 6-8 Mbps per TV
• Only one channel at a time is transmitted to
  STB/TV
• In comparison cable requires 6MHz per channel.
  All channels transmitted even if only one watched
• 24Mbps link per household is enough for triple
  play(1x HD, 3x SD, VoIP data)
• IP multicast streaming for regular TV channels
• IP unicast streaming for VOD and time-shifted TV
• RTP streaming protocol, some add reliability on
  top
• Deployments today usually over FTTH, ADSL2 or
  E.PON/G.PON

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Customer IPTV Experience
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Content Partners IPTV Experience
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Agenda

• Overview
• Technology
• Market and Business Trends
• Key Success Factors
• Integration of IPTV and VoIP
• Opportunities and Risks
• Summary QA

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IPTV Market- Global DSL Subscribers Forecast

• DSL subscribers will be the first beneficiaries
  of IPTV services
• DSL subscribers will grow from 91M (2004) to 202M
  (2008) (22 CAGR)

Source MRG Inc. August 2004
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IPTV Market - Global IPTV Subscribers Forecast

• IPTV subscribers will grow from 2.1M in 2004 to
  27M in 2008 (89 CAGR) reaching 13 of DSL
  subscriber base

Source MRG Inc. August 2004
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IPTV Market - Global IPTV Revenue Forecast

• IPTV revenues to grow from 685M (2004) to 15.4B
  (2008) (118 CAGR) - 2 of total Wireline
  revenues
• IPTV ARPU is expected to reach 47 (including
  interactive services such as VOD and interactive
  games)

Source MRG Inc. August 2004
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IPTV Market - Global Spending on IPTV System

• IPTV system spending to grow from 472M (2004) to
  2.0B (2008) (44 CAGR)
• 47 for STBs, 25 for better access systems
• Middleware will account for 8 of total IPTV
  spending

Source MRG Inc.August 2004
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IPTV Launches Around the World

• Europe
• FastWeb (Italy)
• TPSL (FT TPS, France)
• DreamTV (TF1 LDcom, France)
• Imagenio (Telefonica, Spain)
• HomeChoice (UK)
• Kingston Interactive (UK)
• B2 (Sweden)
• France Telecom (FR)
• Asia
• PCCW (Hong Kong)
• Chunghwa Telecom (Taiwan)
• BB TV (of Yahoo BB, Japan)
• NA
• Sasktel (Canada)
• gt 100s of small operators in the US
• SBC Communications

• Recent Trials announcements
• SwissCom (Bluewin)
• Telecom Italia
• Bell Canada
• Reliance Infocom
• BT
• Telus
• Telstra

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Example - PCCW (Hong Kong)

• PCCW has gt 500K IPTV subscribers as of 2005
• Service launched August 2003
• IPTV offering contains
• No charge for equipment installation
• 6 free and 34 pay channels (1-3 each)
• 15 audio channels
• A-la-carte payment model for VOD
• PCCW reports IPTV launch helped to
• Reduce churn by half (now less than 1)
• Increase ARPU (IPTV ARPU - 20)
• Higher market share (25 of IPTV subscribers are
  new DSL subscribers)

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Agenda

• Overview
• Technology
• Market and Business Trends
• Opportunities and Challenges
• Key Success Factors
• Integration of IPTV and VoIP
• Summary QA

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IPTV Challenges

• Business challenges
• Create a better user experience than cable or
  satellite
• Becoming entertainment provider - major shift for
  a telco
• The television market is an uphill battle - well
  established entities
• Uncertain regulation for new fiber builds and TV
  franchises
• Get premium content at lower prices than cable or
  satellite
• Build trust with studios and publishers
• Differentiate business model from cable (On
  demand? Anywhere access?)
• Set Top Box price lt100
• Accelerate FTTx/ADSL2/VDSL roll-outs
• Technological challenges
• Build better/cheaper silicon for STB
• Lower cost of DSLAM/FTTx deployments (WiMAX?)
• Further improve video compression rates
• Content recording and distribution control
  (secure DRM)
• End-to-end QoS monitoring and service assurance
• Integrated customer care, billing, provisioning,
  activation, self-service
• Multi-services blending (VoIP, IPTV, apps)

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Opportunities

• Multi-service blending
• Click-to-speak from within TV experience
• TV parental control from cell-phone
• Interactive voting or messaging applications
• Access to personal picture albums, videos, music
  library
• Community applications
• Greeting cards
• Video-conferencing
• Alerts and public announcements
• Personalization
• Personalized advertising
• Personalization of on-demand TV experience
• Video content discovery
• Take content with you (drag and drop)

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Agenda

• Overview
• Technology
• Market and Business Trends
• Opportunities and Challenges
• Key Success Factors
• Integration of IPTV and VoIP
• Summary QA

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What Differentiates IPTV

• Exceptional on-demand experience
• Integrated Customer Management by operator across
  all touch points
• Powerful self-service capabilities
• Multi-services blending
• Community applications local directories
• Unlimited content choice
• Simplicity of service set-up and navigation

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Agenda

• Overview
• Technology
• Market and Business Trends
• Opportunities and Challenges
• Key Success Factors
• Integration of IPTV and VoIP
• Summary QA

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Multi-Services blending
Jane is calling
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IPTV-VoIP Integration Points
Transport
Headend
Access
Home
VoIP
IGMP Router
DSLAM
IPTVAppsServers
VoIP Soft switch/Gatekeeper
DSL CPE/ FTTH
STB
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IPTV and VoIP

• Possible integration points
• IPTV middleware platform
• full access to media, customer context, devices
  info, remote control
• full synchronization with user activities
• rich and deep application integration possible
• - tedious integration process (IPTV middleware
  owned by telco)
• erects a higher barrier to entry for
  competition
• The residential gateway (xDSL CPE)
• - no significant integration possible
• IPTV Set-Top-Box
• presently leased to customer by telco
• telco decides what goes on STB
• STBs are authenticated and validated at
  boot-time, no DIY
• - integration only possible with consent of
  operator
• - high cost of RD due to diversity of deployed
  STBs

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IPTV in the Living Room

• Distribution in the home via Coax/Cat5/PWL or
  WiFi
• Multi screen distribution with multiple STBs
• Number of screens only limited by broadband link
• Control service from
• Remote control
• Web browser
• Cell phone
• Portable media player
• Media centers will integrate with STB
• For current market, IPTV is still more TV than PC
• Indications are that our kids will want the above
  reversed

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What Are the Needs That IPTV Fulfills

• For Service Providers
• Much stickier service combinations lower churn
• Video conferencing, community messages, alerts
• Additional revenue from payTV, gaming,
  interactive advertising, tv-commerce
• Detailed service analytics
• Powerful customer self-service
• For Carriers
• Finally demand for the bandwidth glut in the
  network
• For Manufacturers
• New home devices market
• Innovation potential around user interface,
  silicon, services
• Customer managed PayTV service is a fantastic
  opportunity for telcos to run the money making
  machine on autopilot

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Future of Video Entertainment

• Community creative process
• Reality Shows
• Citizens journalism
• Participative entertainment voting,
  video-telephony (B2C, P2P)
• Broadband link is a commodity
• Access to content over any available access tech.
  
• Anytime, any device and any location
  entertainment
• Seamless blending of entertainment and commerce
• End of the 30sec ad spot TV economics
• Search and discovery of content
• Drag and drop services from one device to another

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Summary

• IPTV and triple play is happening
• IPTV is not me-too-TV its a differentiated
  user experience
• Integrated customer management is key
• Cable operators will probably adopt IPTV as a
  technology too
• Key success factor is a quality customer
  experience
• Differences between cable and telco companies are
  disappearing its only a last-mile technology
• User experience will decide success or failure
• Content is king
• Devices are converging in their capabilities
  mobile, TV, PC
• Advertising industry will have to adapt to new
  reality

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Thank you!

• Q A

IPTV