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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 Taipei6 May 2010

06/16/2010

1

Broadband & VOD Deployment Trend for MSO

6 May 2010

Migration path to Ultra Broadband

Customer Demands and Competition

DOCSIS 3 0 or PON

Agenda

DOCSIS 3.0 or PON

New Ways to Implement VOD

DTV Market Forecast & Approach

Main VOD Categories

Our VOD approach

Summary

06/16/2010

2

IP Settop Box

Consumer Demands and CompetitionVarious home networking/devices requirementsEach at home can be an individual bandwidth demander

Home ControlServer

TV

VoIP AP/TA

MediaServer

Video Phone

3

Triple play services available everywhere and become popular More services more bandwidth required Continuous network capacity expansion Next generation network infrastructure may required

Consumer Demands and Competition

Home Mobile Internet

Video

Data BATTLE FOR THE CONSUMER

BATTLE FOR THE CONSUMER

Triple Play Services . Every time

E h

4

Voice

CONSUMERCONSUMER .. Every where. . Every devices

06/16/2010

3

125 Carriers per FN125

Analog

Consumer Demands and CompetitionCarrier usage transition

IPTV VOD

SwitchedDigital

DigitalBroadcast

AnalogBroadcast

DOCSIS High Speed Data

MPEG VODBroadcast

timeToday “EverythingOn Demand”

1

5

DOCSIS 3.0 or PONTechnology roadmap for Wireline and Wireless

6

06/16/2010

4

DOCSIS 3.0 or PONHow 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?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?

$2,000

$2,500

riber RFoG 2009

GPON

7

$-

$500

$1,000

$1,500

0 50 100 150 200

Home Density (Homes Passed per Mile)

Cos

t per

Sub

scr GPON

HFC Total Cost

Crossover Point

DOCSIS 3.0 or PONA feasible solution and migration path for cable operator to deploy FTTxDeploy DOCSIS 3.0 channel bonding and fiber node split with minimum new fiber construction to accommodate all needsneeds

All-Fiber

CablePON

Fiber Deep

HFCHFCService

Evolution

Huge Mbps to 1 or more Households

40 Mbps DS40 Mbps DS40 Mbps DS40 Mbps DS

Bonded DS Channels

8

06/16/2010

5

DOCSIS 3.0 or PONExpanding the pipe to stand aheadReclaim available spectrum

Downstream

Upstream

Today 870 MHz

Downstream

UpstreamBandwidth Reclamation• Switched Digital Video• MPEG 4

Bandwidth Optimization, Innovation

Near Future 1 GHz

MPEG 4• Analog Video Reclamation• Higher order modulation

9

DOCSIS 3.0 or PONDOCSIS 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 ChannelsIngress Noise Cancellation created Additional Bandwidth in US only

DOCSIS 3.0: Bonding together Downstream & Upstream Channels to create higher bandwidth Logical Channels

CMTS CMBonded Downstream

Channels

Downstream IP Packets from

Internet

10

06/16/2010

6

Total RF Capacity:With ATDMA only = 160 Mbps

With SCDMA = 210 Mbps

SCDMA and ATDMACapacity Overlay

ModulationOrder

DOCSIS 3.0 or PONMaximize spectrum utilization to gain more bandwidth

SCDMA Extra

SCDMAExtra

SCDMA ExtraExisting

USATDMA SCDMA

Extra

64

32

16

8

4

5 MHz 55 MHz15 MHz

SCDMA Extra

25 MHz

-45

-70

Impulse & Noise Floor

11

» SCDMA Advantages:» 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

Impulse & Noise FloorSCDMA to address “Impulse”

SCDMA to “roll-off”Max Schedule Code

Current CMTS DecoupledI-CMTS or M-CMTS

DIBA(DOCSIS IPTV Bypass Arch)

DOCSIS 3.0 or PONReady for Ultra Broadband

Average supplied bandwidth per Fiber Node

2.0 QAMs

8.0 QAMs

4.0 QAMs

73 QAMs ?

320 Mbps

2800 Mbps

0.5 QAMs

1.0 QAMs

2007 2008 2009/ 2010 20xx ?

20 Mbps40 Mbps

80 Mbps160 Mbps

12

06/16/2010

7

Migration path to Ultra Broadband

Customer Demands and Competition

DOCSIS 3 0 or PON

Agenda

DOCSIS 3.0 or PON

New ways to implement VOD

DTV Market Forecast & Approach

Main VOD Categories

Our VOD approach

Summary

DTT 137 90IPTV; 69.62;

DTV Subs in 20142010 2014

Subs Growth2009 2010P/F

DTV Market Forecast and Approach

DTT; 137.90; 18%

Pay DTH; 157.88; 21%

9%

FTA; 54.29; 7%

Cable 40M 120 M

IPTV 10M 35 M

DTT 15M 50 M

DTH 10M 30 M

FTA 2M 10 M

Cable is the leading platform in numbers and growth

Cable; 331.82; 45%

FTA 2M 10 M

Source: Nagravision14

06/16/2010

8

First in CT:

DTV Market Forecast and Approach

More innovations to come:

AETN suite of channels External DVR Top Korean Channel

15

Dual TunerDVR recording via mobile Push VOD

A promising but crowded niche

Main VOD CategoriesFree VOD

Mainly used for short programs such as trailers, music clips … etc. as well as catch-up TVA substitute for liner TV Some advertising-based are for long videos such as HuluSome advertising based are for long videos, such as Hulu

“A la cart” VODTraditional pay-per-view VOD for full moviesA substitute for DVD rentals Subscription VOD

Subscription VODAn unlimited access to content from a specific TV channel (e.g. HBO) or to a full sports seasonto a full sports season

16

06/16/2010

9

Choice

• More content or more “virtual content” with

Reducing Churn by Focusing on 3 Cs

Our VOD Approach

More content or more virtual content with time-shifting

Convenience

• Remember programming the VCR?

• Ever get phone call during your favorite show?

ControlControl

• Make the program schedule fit to my schedule

• “I hate that commercial”

17

DVR users grow “attached” to content on the DVR

The Bottom Line – DVR’s make for sticky, happy customers

Our VOD Approach

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 , p ymore…

>25% have multiple DVRs (USA)USA Pay TV market expected to be >80% DVR by 2010

Source: Seagate Market Research18

06/16/2010

10

Our VOD ApproachDelivering On-Demand Solutions

Source: Nagravision19

1. User request video

2. Video server stream requested video

Our VoD ApproachStreaming VOD vs Push VOD (1)

Streaming VODEach video stream from the video server is an unicast, dedicated to each user for his need to control (pause rev & forward)

requested video

Video server

network

use o s eed to co t o (pause e & o a d)Each dedicated video stream consumes capacity of both network & video serverIn 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)

20

06/16/2010

11

1. User request video

2. STB’s local storage stream requested videoVideo server

User A

Our VoD ApproachStreaming VOD vs Push VOD (2)

Push VODVideo server broadcast content (usually popular video selection) to settopboxes (STB), stored in its local storage (e.g. harddisk drive) User’s requested video is being delivered from STB’s local storage hence

stream requested videoVideo server

network

User B

User 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 VODTBC and our technology partners (Alticast & Nagra) has developed an improved PushVOD implementation to optimize performance

Using forward error correction technique, patent pending21

Migration path to Ultra Broadband

Customer Demands and Competition

DOCSIS 3 0 or PON

Agenda

DOCSIS 3.0 or PON

New ways to implement VOD

DTV Market Forecast & Approach

Main VOD Categories

Our VOD approach

Summary

06/16/2010

12

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

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