IntroductionHosted by:

Rick ThompsonSenior Analyst, Heavy Reading

Triple-Play SymposiumA Light Reading Live Event

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Today’s Agenda: Morning• 08:45 a.m. – 09:30 a.m. Welcome & Triple Play Market Overview

Rick Thompson, Heavy Reading

• 09:30 a.m. – 10:15 a.m. FastWeb Overview and Business ModelPaolo Tavazzani, FastWeb

• 10:15 a.m. – 10:45 a.m. Break

• 10:45 a.m. – 11:45 a.m. Triple-Play Service Creation & Bundling

• Voice & Video Telephony Apps: Alain Fernando-Santana, NetCentrex• IPTV & IP VOD Applications: Ian Locke, Envivio

• 11:45 a.m. - 01:00 p.m. Lunch

Today’s Agenda: Afternoon• 01:00 p.m. – 02:15 p.m. Triple-Play Network Architectures

• Triple-Play ATCA Platforms: Robert Heymann, Intel• IMS & Triple Play Services Architecture: Brian Mahony/Guillaume Widmer, Netcentrex• Triple-Play Network Design Considerations: Juan Vela, Allied Telesyn

• 02:15 p.m. – 03:00 p.m. Analyst Q&A: Triple Play Market Drivers & Adoption

• 03:00 p.m. – 03:15 p.m. Break

• 03:15 p.m. – 04:30 p.m. Keynote Presentation: FastWeb Deployment• Architecture, Lessons Learned, Q&A: Paolo Tavazzani, FastWeb

• 04:30 p.m. – 05:15 p.m. Service Provider Executive Roundtable

• 05:15 p.m. – 07:00 p.m. Reception, Wine Tasting, and Demos

• Paolo Tavazzani, FastWeb• The Largest Triple Play

deployment in Europe• >500k subscribers

• Mix of copper and fiber access• The services:

• VoIP• Broadband Internet• IPTV

• Live TV, Pay-Per-View, VOD, Interactive TV, nPVR

• Addt’l integrated services

Today’s Keynote Speaker

A Word on Questions

• To keep us on time...• As the session progresses,

please write down your questions on the slips provided

• We will answer these questions at the end of each session

My Question Is:

When is Cocktail Hour?

Heavy Reading Research• Heavy Reading has published multiple research reports in 2005,

analyzing the current state of the technology & expected market development for topics including IPTV, VOIP, IMS, FMC, Carrier Ethernet, ROADMs, Pseudowires, AdvancedTCA, etc.

• Heavy Reading published an exhaustive research report in June 2005, IPTV and the Future of Telecom Video Network Architectures, offering an in-depth analysis of vendor strategies & the market potential for IPTV.

• Heavy Reading conducted interviews with more than 100 technology suppliers, service providers & investors with a direct interest in telecom-related topics.

• Additional research planned for 2005 includes comprehensive reports on Broadband Edge Infrastructure, MultiserviceSwitching, Home Gateways, Optical Networking, Ethernet in the First Mile…

• IPTV is becoming the highest-priority residential telecom service as telcos finalize their triple-play bundles• Competition is the primary driver

• Competitive ecosystem of technology vendors is emerging• Target area for investment & consolidation• New players can challenge incumbent vendors

• System integration will be a primary challenge for carriers• Lack of defined standard interfaces

• Large-scale RBOC deployments won’t happen overnight• 2005/2006: Infrastructure phase, initial services/subscribers/markets• 2007/2008: “True” service introduction phase• 2008/2009: Large-scale subscriber growth phase

• Cable MSOs are not standing still• NGNA, packet voice subscriber growth, etc.

Key Research Findings

Broadband Service Evolution

• Residential multimedia in big cities• Some broadcast TV• VoD < 5% BB subs.

• Multi-Service CO DSLAMs with ADSL evolving to ADSL2+

• Leverage existing ATM aggregation, smooth migration to Ethernet

3rd phase100% Triple play

• New user-centric broadband, e.g.• Above 90% BB coverage• Full triple-play to all households

• More bandwidth with ADSL2+, FTTN VDSL2, FTTU (new builds & selective overbuilds)

• Mainstream E2E IP/Ethernet

2nd phase

Multi-service

• Build ADSL CO footprint

• Mainly data transport

• ATM aggregates all data accesses

1st phase

HSI

Data, eServices

IP telephony, Data, Residential & Business

multimedia

Voice over BB, Data, Res. & Biz. multimedia,

IP Television, HDTV

Video Differentiation is the Triple Play

0% 10% 20% 30% 40% 50% 60% 70% 80%

Lower Price

Superior Channel Lineup

Video on Demand

Other Multimedia

Bundle with Voice and Data

Operator Plans for Video Service Differenetiation

Source: Heavy Reading Survey

Dimensioning Triple Play Networks VOD/BTV ratio dictates bandwidth:30% VOD / 70% BTV up to70% VOD / 30% BTV in 2010

Video subscribers:•Typically 100

HSI subscriber• 200-500• Typically 300

20-30 access nodes per aggregation node. Up to 15K

HSI subs, ~3K video subs

Edge RouterAccessNode

80% 20%

Aggregation Node

Average 2.5 TVs per household

SDTV=2 Mbit/s HDTV=8 Mbit/s

Video traffic from 12 Mbit/s (2SD+1HD) to 20 Mbit/s (2.5 HD) in 2010

Hierarchical scheduling capabilities + up to 400 GE ports/ and or up to 40 10GE ports

Aggregation of up to 200 GE ports and/or 20 10GE ports

80%-20% average distribution of aggregation nodes & service edge nodes result in: Up to 75k HSI subscriber & 15K video subscribers

HSI bandwidth per sub, from 1.5 Mbit/s in 2005 to 5 Mbit/s in 2010

VOIP 40 kbit/s with 4 lines per household in 2010

Video Distribution Types• Broadcast

• All video programming broadcast to all homes

• Cable model• Big, fat pipe into the home

• Coax, FTTH

• Mix of analog & digital channels

Consumers

Video Server

Consumers Consumers

Analog or Digital Digital Digital

• Switched Digital Video• IPTV, Telco TV, Multicast• Typically 3 channels

allotted per home• Selected channel switched

• 8 - 15 Mb/s per home

• VOD• Individual video stream per

user• Individual Pause, Stop,

Forward, Reverse control

MSNBCESPN

MasterHeadend

VOD Server

Why Is IPTV Important?

Source: The Yankee group, 2004ARPU, US market in US$

57

92

179

18 18

39 39

35

18

39

35

42

15

105

7

8

Voice, Videoand Data

Voice and Data

Voice Only

150

100

50

200

HDTV

DVR

VoD

Premium Video

Digital Video

Basic Video

Broadband

Long Distance

Local

• Increase carrier ARPU & maximize customer retention• True potential to drive telecom spending & network growth• Every North American RBOC has significant plans to roll out IPTV• International players & US IOCs have already begun

Global IPTV Subscriber Forecast

Analysis based on IP/Broadband Video Market Research, MRG, May 2004

IPTV Service ExamplesLive TV

Stored TV

Communications

• Digital TV

• Premium TV

• Pay-per-view

• Near video on demand

• Program guide

• Video on demand

• Subscription VOD

• Time Shifting PVR

• Network PVR

• Residential VOIP portal

• Instant messaging

• SMS/MMS messaging

• Call & message notification

• TV Internet services

• Video conferencing

Entertainment• Gaming

• Gambling

• Karaoke

• Internet TV

• Telecommerce

• Targeted/interactive advertising

• Radio broadcast

• Music broadcast

• Music on demand

• Music subscription

Commerce

Audio Services

Video On Demand: The Leading Bandwidth Driver

100s of Gbit/s todayin a dozen US cities

020406080

100120140

ServiceTypeVOD Gaming VOIP

Bandwidth(Gb/s)

Bandwidth Required for Residential Broadband Services (1M homes passed network)

020406080

100120140

ServiceTypeVOD Gaming VOIP

Bandwidth(Gb/s)

Bandwidth Required for Residential Broadband Services (1M homes passed network)

HSData

BroadcastVideo

Monitoring

Bandwidth Requirements Per 20K Homes Per 1M homesVOD 2656 Mb/s 132.8 Gb/sHS Data 600 Mb/s 30 Gb/sGaming 230 Mb/s 11.5 Gb/sBroadcast Video 1500 Mb/s 7.5 Gb/sVOIP 34 Mb/s 1.7 Gb/sChild Monitoring 3.3 Mb/s 0.165 Gb/s

The Future ofEntertainment Services

The New IPTV Taxonomy

NetworkInfrastructure

Layer

Access CoreEdge/Aggregation/Metro“Video Core”

IPTV Middleware

IPTV Browser /

Service Interface

Core TransportDWDM/Sonet/SDH

Core IP Router/MPLS Switch

MSAN

FTTxxDSLHFC

NG DLC/BLC

ServiceInfrastructure

Layer

Local/ResidentialNational HeadendSHO/Back-office

Regional/DistributionVHO/VSO

DSLAM

EthernetIP

ATM Metro TransportxWDM/Sonet/ROADM/

Packet ADM/GigE/10GigE

IntegratedHeadend Systems

Security / CA / DRM Software

IP Set-Top Box

HeadendVOD Server Complex

Layer 2 Aggregation SwitchGigE / 10GigE / ATM

Distributed Headend Systems/Encoders

IP Service Edge Router /Video-Centric B-RAS

Distributed VOD Servers

IPTV: Who’s Who?

Alcatel, Atrica, Ciena, Cisco, Corrigent Systems, ECI Telecom, Lambda Optical Systems, Lucent, Marconi, Mahi/Photuris, Meriton, Nortel, Tropic Networks

Transport Infrastructure

Alcatel, Cisco, ECI Telecom, Foundry Networks, Fujitsu, Juniper Networks, Nortel, Riverstone

Edge/Aggregation Net Infrastructure

Alcatel, Allied Telesyn, Calix, Ciena, ECI Telecom, Entrisphere,Huawei, Lucent, Marconi, NEC, Nortel, Occam Networks, Optical Solutions, Pannaway, Siemens, Tellabs/AFC, UTStarcom, World Wide Packets, Zhone

Access Network Infrastructure

Irdeto Access, Latens, Microsoft, Nagra Vision, NDS Group, Secure Media, Verimatrix, Widevine

Security/CA/DRM

Amino, Entone, i3 Micro, Kreatel, Motorola, Pace, Samsung, Telsey

IP Set-Top Boxes

ANT, Alcatel, Espial, Microsoft, Minerva Networks, Myrio/Siemens, Opera, Orca Interactive

Middleware Software (Client & Server)

Arroyo, BitBand, Broadbus, C-COR/nCube, Concurrent, Entone, Kasenna, Microsoft, Seachange

VOD Servers

BigBand Networks, Envivio, Harmonic, Optibase, Scientific Atlanta, SkyStream Networks, Tandberg, Tut Systems

Headend Systems & Encoders

Technology Shifts Will Impact Competitive Environment

• Compression & format: MPEG2 ? MPEG4/WM9; SD ? HD• More channels, lower bit rates

• Access network: 1.5-3 Mbit/s ? 20-30+ Mbit/s; ATM ? Ethernet/IP• Combination xDSL/FTTx

• Aggregation network: ATM ? GigE/10GigE, IP multicast, QOS• IP edge: High density/capacity, Ethernet-centric, per-service QOS,

unicast/multicast scale, integrated B-RAS, high-availability edge• Cisco & Juniper vulnerable at the edge?

• Transport network: static/legacy ? reconfigurable/multiservice• Services evolve: Broadcast TV ? VOD ? nPVR ? integrated &

interactive services

Scaleable Video Network Architecture Example

Super Headend

RedundantSuper

Headend

VHOVHO

VHO

VHO

VHO

VHO

VSO

DSLAM

VSO VSO

Wide Area Network - GigE

Interoffice GbE

DSLAM

DSLAM DSLAM

DSLAM

DSLAM DSLAM DSLAM

DSLAM

VSO

DSLAM

VSO VSO

DSLAM

DSLAM DSLAM

DSLAM

DSLAM DSLAM DSLAM

DSLAM

GbE GbE

GbE

Super Headend

RedundantSuper

Headend

VHOVHO

VHO

VHO

VHO

VHO

VSO

DSLAM

VSO VSO

Wide Area Network - GigE

Interoffice GbE

DSLAM

DSLAM DSLAM

DSLAM

DSLAM DSLAM DSLAM

DSLAM

VSO

DSLAM

VSO VSO

DSLAM

DSLAM DSLAM

DSLAM

DSLAM DSLAM DSLAM

DSLAM

GbE GbE

GbE

Transport

Transport

Wide-Area Network Transport

Interoffice Transport

IPTV Building BlocksNational SuperHeadend Office

Regional/Local Video Hub/Serving Offices

Subscriber Premises

• Primary & redundant SHOs (2)• National broadcast content acquisition

(satellite/terrestrial)• High-capacity VOD server complex • Content encoding, transcoding,

transrating, IP encapsulation• Content encryption• Middleware & application servers• National ad insertion• BSS/OSS integration• Content security/DRM• Per-service QOS• IP multicast• B-RAS, subscriber management

Integrated HeadendSystem

IP Service Edge Router(s) & Aggregation Switches

National Satellite

Feed

VOD Server

Complex

App/Middleware Servers

Edge/AggregationSwitches/Routers

Regional/Local Satellite Feed

App/M-ware Servers

Distributed VOD Servers

Distributed Headends &

Encoders

• 10s of VHOs• 100s of VSOs• Regional/local broadcast content

acquisition (satellite/terrestrial)• VOD servers with stored regional/local &

high-usage content • Encoding, transcoding, transrating,

encapsulation of regional/local content• Content encryption• Middleware & application servers• Content security/DRM• IP multicast• Per-subscriber QOS• Policy control

DSLAM

DSLAM

IP Set-Top Box

Video (TV, STB)Voice (Phone)

Data (PC)

Video (TV, STB)Voice (Phone)

Data (PC)

Video (TV, STB)Voice (Phone)

Data (PC)

• IP set-top box• IPTV client application software• MPEG-x/WM9 decoder• Content decryption• Premises stored content (VOD, DVR)• Premises security/DRM• Additional triple-play service CPE

DSLAM

DSLAM

Transport

ADSL

VDSL

FTTP

CABLE

VBR VideoMPEG-2

CBR VideoMPEG-2

Head End Content Processing

AnalogVideo

DigitalVideo

DigitalAudio

AnalogVideo

ATM or IP

ATM

IP or RF

IP or RF

CBR VideoMPEG-4Baseband

Video

Compression Advances

MPEG-4 has adopted threevideo codecs H.264 is theITU name for AVC

AVC = H.264 = MPEG-4

Part 10

MPEG-4 has adopted threevideo codecs H.264 is theITU name for AVC

AVC = H.264 = MPEG-4

Part 10

Video compression science

MPEG-4 standard

Cameras & PDAsVideo ConferencingDoes NOT Support Broadcast Content

SimpleProfile

(SP)

Supports Broadcast

Advanced Simple Profile

(ASP)2 Mbit/s

Supports Broadcast

Standard Adopted byBroadcast Industry

Advanced Video Coding

(AVC) or H.2641 Mbit/s

Bit

Rat

e

MPEG-23.5 Mbit/s

Uncompressed250 Mbit/s

Generically speaking, middleware systems are responsible for four things:

The subscriber's service experience

The definition of services, service packages, pricing & service bundles

Interfaces to external systems

The management of transactions, media assets, physical assets & subscribers, and the underlying data about them

What Is Middleware?

De-Mystifying Microsoft IPTV

• Microsoft IPTV• Set Top Box Software

• Interactive Program Guide (IPG), DVR recording & control• Operating System (OS), Middleware

• Server Software• Broadcast IP server software• Encryption & DRM software• IPTV Service Management tools

• Software Architecture / Tools• Common software architecture for adding 3rd party services• Software development kits, testing tools

• Not an end-end IP video solution• Requires lots of other pieces and integration

IP Video Srv

Content Mngmnt

Billing Mngmnt

IP Video Srv

IP Video Srv

CA / DRM

IPTV Server STB

OS

Middleware

IPG

The Evolving IP STB

DVI

HDMI

ETHERNET

ETHERNETWI-FI

L AUDIO RVIDEO

S-VIDEO

115

DVB-C/T

L AUDIO RVIDEO

S-VIDEO

115

ETHERNET

Pr Pb Y

SCART

OPTICALS/PDIF

RF-IN

RF-OUT

3 – 4

SM

AR

TC

AR

D

TV - 2

TV - 3

AUDIO INPUT

VIDEO INPUT

L R

IP TVSET-TOP BOX

ENHANCEDVIDEO

HIGHDEFINITION

RFTUNER

VOICEOVER IP

DIGITALRIGHTS

DIGITALRECORDER

MULTI TV

VIDEOPHONE

HOMEGATEWAY

DIGITAL CABLE -SATELLITE STB

POTS 1 POTS 2

1

2

3 4

5

7

USB

GAMEPORTS

Basic IP STB Requirement1. AC power2. Ethernet IP input (RJ45)3. Composite video output (RCA)4. Analog stereo audio output (2 x RCA)5. S-video output (Y/C mini-DIN 4)6. IR remote control

Basic Digital Cable-Satellite STB1. AC power (Internal, External)7. DVB – C / DVB – T (F-connector)3. Composite video output (RCA)4. Analog stereo audio output (2 x RCA)5. S-video output (Y/C mini-DIN 4)6. IR remote control

Enhanced Video Options7. SCART video output8. Component video output9. Optical digital audio output10. S/PDIF digital audio output

High-Definition Option11. DVI HDTV output12. HDMI output

Analog Receive13. RF pass-through (2 x F-connector)

Voice Over IP14. POTS connectors (RJ11)

Digital Rights Management (DRM)15. Smart-card reader

Digital Video Recorder DVR16. Internal hard disk

Multi TV Support17. RF output (F-Connector)

Video Phone18. Analog video input (RCA)19. Analog stereo audio input (2 x RCA)

Karaoke Input20. Microphone jacks (1/4”)21. Audio mixing controls

LCD Display22. LCD clock display

Game Ports23. Peripheral ports (2 x USB)

Home Gateway24. Ethernet connectors (n x RJ45)25. WiFi

BASIC OPTIONAL

7

8910

11

13

14

15

16

17 19 23

MICROPHONE

GAIN

21

DELAY

24

25

6

REMOTE CONTROLIR or RF

18

KARAOKEINPUT

LCDDISPLAY

AM

PM

22

20

21

12

New Network Requirements

•Cumulative capital expenditure for enabling service – a key element in the profitability equation

Cost

•Ability to minimize deployment risk by supporting any mode of operation – to address future service requirements, but changing economics (density/subs/viewership) without risk of requiring network re-architectures.•Ability to support coexisting residential & business services

Flexibility

•Maintain service availability through per-subscriber, per-link, per-node HAHigh Availability

•Ability to support any mode of operation & optimize architecture for different multicast deployment models as well as 100% VOD

IP Multicast

•Subscriber, device & service authentication•Ability to scale security, anti-spoofing, accounting, filtering, policing, authentication mechanisms

Policy Scaling

•Ability of an architecture to scale the QOS mechanisms (queue count, delay/jitter/loss) to large-scale deployment & enforce operator-defined service interaction

QOS

•Ability to optimally & cost-effectively address the bandwidth needs at the access, aggregation, service edge nodes using high-density GE or 10GE interfaces

Bandwidth Scaling

CommentsRequirement

From centralized to distributed; from session-centric to flow-centric

Optimized QoS Management

VoIP

GE

Video

HSI

GEHSIVLAN

Gold

Bronze

ON-NET

VoIP VLAN

Video VLANVLANPER SUB

AggregationIP

AccessNode

Per-subscriber queuing and PIR/CIR policing/shaping for HSI. HSI service classified on SrclP range.

Per-service prioritization for VoIP and video. VoIP prioritized over video. DstIP and/or DSCP classification. 802.1p marking for prioritization in the access and home.

VoIP and video queued and prioritized as per VLAN QoS policy.

HSI content differentiation based on DSCP. Each queue may have individual CIR/PIR and shaping.

Optional overall subscriber rate limiting on VLAN (H-QoS)

Preferred content marked (DSCP) at trusted ingress points of IP network

For HSI content differentiation queuing for Gold/Silver/Bronze based on DSCP classification. Optional overall subscriber rate limiting on VLAN

Per-service priority/delay/loss Content differentiation in HSI

Per-sub rate-limited HSIPer-sub QoS policyPer-service priority/delay/loss

IP Edge

In-Home Network Considerations

ADSL2+

Residential Gateway

NID/Splitter

PunchBlock

Coax MoCa

Advanced STBPVR & Networking

V-tel

SD/HD TV

SD/HD TV

STBSTB

SD/HD TV

• In-home video distribution• Coax / MOCA

• Cat5 Ethernet

• Enhanced WiFi / MIMO

• Reduce operators turn-up time/cost per subscriber

• Networked home• Integrating IPTV with

voice & HSI services

• Home security

• Networked appliances

Notable IPTV Deployments• Atlas Interactive (India)• Belgacom (Belgium)• BellSouth (USA)• Bell Canada (Canada) • Chunghwa Telecom (China)• FastWeb (Italy)• France Telecom (France)• Free (France)• Iceland Telecom (Iceland)• iVisjon (Norway)

• KDDI (Japan)• Magnet Networks (Ireland)• Neuf/Cegetel (France)• PCCW (China)• Sasktel (Canada)• SBC (USA)• Sistema Multimedia (Russia)• Swisscom (Switzerland)• Telecom Italia (Italy)• Telefonica (Spain)• TeliaSonera (Sweden)• Verizon (USA)

• Numerous US IOCs

Summary: Forward-Looking Issues• Competition is driving network advancement & telecom spending• Vendor opportunities are significant throughout the IPTV ecosystem

• Microsoft’s focus on the largest accounts opens up other networks & 2nd supplier opportunities for smaller players

• IPTV has a significant impact on telecom network infrastructure• Further proliferation of IP/MPLS, Gigabit Ethernet, 10GigE, QOS, packet-

aware transport, support for residential AND business services, etc.

• Technology is mature & deployable, but innovation is ongoing• Example: maturity of MPEG4 from the headend to the STB

• Vendors’ systems integration capabilities are critical for incumbent SP’s• SBC Lightspeed is a leading indicator (ALA, MSFT, SCI ATL)

• Unprecedented scaling expectations are still to be proven• Large IPTV network today is 100K – 500K IP video subscribers• Large IPTV network in 2-3 years is 1M - 5M IP video subscribers

Thank You!Let’s hear from today’s

first speaker…

Thank You!Let’s hear from today’s

first speaker…