Amino Communications ©
Rick SailorAmino Communications
IPTV and HDUS Telecom October 2, 2008
www.aminocom.com
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Introducing AminoHighlights:• Ranked # 1 by ABI Research in 2005, 2006 and 2007 in our market • Shipped in excess of 1.75 million IPTV STB’s• 1st MPEG-4 IPTV deployment in US• 1st to receive MPEGIF conformance• 1st High Definition IPTV deployments in US and Northern Europe• 1st integration of HD gaming applications in an IP STB • Launch 100% digital IPTV STB, June 2008
Key Facts:• Established in 1997• Flotation on London Stock Exchange: June 2004 • Global Company – Headquarters in the UK, Offices worldwide• Market presence in over 80 countries
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Agenda
• HD Purchasing Trends• HD Delivery in the Home• HD vs. SD• Costs of Deploying IPTV and HD• HDMI and Content Security• Home Networking• The Future
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Everyone’s Agenda
Revenue$$$$$$
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IPTV Markets
Residential IPTV and VoDIPTV enables telecoms and other operators to generate additionalrevenues by providing new services over their existing network with a “triple-play” bundle offering of voice, data and video
Hospitality & HealthcareIPTV allows hotels & hospitals to obtain revenues by providing residents with on-demand PPV movies and programmes, music downloads, gaming, digital radio, messaging and internet access
Education & EnterpriseThe use of IPTV in enterprise and education enables delivery of seminars, information and promotional material, exactly where and when it is needed, over both low and high-speed networks
“The internet television market is set to expand from 1.9m subscribers in 2004 to 25.3m worldwide in 2008” - Multimedia Research Group
Growth of IPTV is everywhere
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Significant existing HD Market with forecasted growth• 46% North American household HD ready (81% 2010)• 21% European households HD ready (48% 2010)
Barriers to HD penetration being removed• 320 WW HD channels (500 by 2010)• Falling HDTV prices (Blu-ray, games consoles, STBs)
IPTV operators addressing HD Market• 71% IPTV STB sold will be HD capable by 2010
HD Purchasing Trends - Today
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HD Delivery within the homeIPTV STB forecast by product type. ABI Research.
0%
20%
40%
60%
80%
100%
2006 2007 2008 2009 2010%
of T
otal
STB
sBasic HD-Only PVR-Only HD & PVR
2009 forecast*:HD-only: 41%
HD & PVR: 31%
2010 forecast:HD-only: 48%
HD & PVR: 52%
Expansion in 2009 beyond the living room in the US**
61% of HD TVs in living room39% in rest of the house
*Source: ABI Research
**Source: The Diffusion Group
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HD vs SD
Initial cost vs long term costUse of legacy equipment
Available HD contentNetwork Support of HD
Long Term Strategy
SDTraditional Analog/AV
HD
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Cost Of Deploying IPTV and HD
Equipment
Installation
$Increased
profit
HD Services
Gaming
Multi-room PVR
Self Install
Video On Demand
Installation costs
Basic Telco package
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Costs and Considerations for Deploying HD
Low-cost installation
Premium HD content
Multiroom and/or PVR
HD vs SD
Content protection
Telco
CapEx and OpEx
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Considerations of HDTV services
Business Model
HD ContentNetwork Bandwidth
Legacy Equipment
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Designing For A Digitally Connected Home
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Home Ethernet Options
• CAT 5/6 wiring
• MoCA
• HPNAv3
• Power Line
• Wireless
• Home RF option (gateway)
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Evolution in Bandwidth to enable Multi-Room TV over Home Networks
0
30
60
90
00 03 0801 02 04 05 06 07Year
SD becomes
viable
HD becomes
viable
Bandwidth Mbps
Required for 3 SD TVs
Required for3 HD TVs
Wireless
Powerline
Coax/phone
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• Incorporates content security -High Definition Content Protection, also known as HDCP
• HDMI supports Dolby audio and video on the same cable.
• Standard for all future HD TV’s
• Unique benefits for Telcos– Improved content protection– Simplified installation – Reduce CAPEX.
HDMI and Content Security
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INCREASE PENETRATION
SEGMENT and target your IPTV service. Look to target subscriber growth beyond the initial uptake
INCREASE ARPU
EXTEND your services with more revenue generating applications like HD, VOD, Gaming, etc.
REDUCE CHURN
EMPOWER your customer to control their viewing experience.
REDUCE COSTS
STREAMLINE total CAPEX
Keys to Success in IPTV
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• PVR – part of HD market
• HD standards – support 720p and 1080i today
• HD today (720p and 1080i) offers an enhanced viewing experience over SD
• Future HD technologies (1080p) – bandwidth intensive
The Future
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• Purchasing bias towards flat screen HDTV
• Remove AV / Analog connectors
• Removal of connectors allows for small form factor STB’s.
• Reduce STB CAPEX
The Future
HD HD & PVR
SD
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Amino CommunicationsRick Sailor – VP of Sales, Americas
Thank You