day1-digital catv deployment installations in the philippine setting

Digital Cable Television Digital Cable Television Deployment & Installations Deployment & Installations

in the Philippines in the Philippines IECEP 2010 PRESENTATIONIECEP 2010 PRESENTATION

B E El idi M PB E El idi M PBy: Engr. Elpidio M. ParasBy: Engr. Elpidio M. Paras

President, Philippine Cable TV AssociationPresident, Philippine Cable TV Association

HISTORY OF CABLE TV IN THE PHILSHISTORY OF CABLE TV IN THE PHILS

THE PIONEERSPhilippine Cable TV’s beginnings could be traced to 1969 when American

expatriate Russel Swartley -- together with some Filipino businessmen, p y g p ,including Sen. Ramon Magsaysay Jr., and Engr. Fernando Morales -- set up the first cable television system in Baguio City.

Being a new technology not to mention its high cable infrastructure costBeing a new technology, not to mention its high cable infrastructure cost, only a visionary like the young Magsaysay, upon Swartley’s prodding, would dare take up the challenge to put up other cable systems in Olongapo City in 1973, in Subic in 1976 and in Lucena City in 1977.

But the development of cable television came to a halt when in June 1977, Presidential Decree No. 1512 granted a 25 years exclusive franchise to install, operate and maintain cable television systems in the Philippines to only one Cable Company. Despite its nationwide franchise, Sining Makulay owned by the Benedicto family operated mainly in San Juan,Makulay owned by the Benedicto family operated mainly in San Juan, Makati and Binondo, Manila

212/02/10Cable TV was known as CATV then,

Community Antenna TeleVision

HISTORY OF CABLE TV IN THE PHILSHISTORY OF CABLE TV IN THE PHILSMILESTONES

■1969 – “NUVUE”, the first cable television system, was set up in Baguio City spearheaded by American expatriate Russel Swartley.

■1987 – Philippine Cable Television Association was organized with businessman and former Senator Ramon B. Magsaysay, Jr. as founding chairmanas founding chairman.

■1987 – President Corazon Aquino promulgated Executive Order N 205 ki bl t l i i d l t d d l i No. 205 making cable television a deregulated and non exclusive industry.

■1989 – The NTC promulgated a memorandum declaring cable television operations as part of the deregulated broadcast media industry

■1997- President Ramos issued Executive Order 436, recognizing CATV separate from Broadcast and Telecomms, also allowing advertising in CATV

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advertising in CATV.CATV operators in the 80s delivered off the air VHF signals from

Manila and Clark Airbase UHF (AFRTS)

HISTORY OF CABLE TV IN THE PHILSHISTORY OF CABLE TV IN THE PHILSTODAY:

■There are over 1000 PA holders /applicants in the Cable TV business encompassing the whole archipelago, from the Batanes to Bongao near Borneo.to Bongao near Borneo.

■The Philippine Cable TV Association has nearly 400 members and affiliates covering at least 85% of the subscriber base and affiliates, covering at least 85% of the subscriber base nationwide.

■Technology being used is still primarily Analog format delivered b H b id Fib t C (HFC) I f t tby Hybrid Fiber to Coax (HFC) Infrastructure

■Bandwidth Capacity: 450-1000 Mhz

A l Ch l C it 100 h l■Analog Channel Capacity: 100 channels

■Analog Addressable Systems deployed in some operators since late 1990s

■Digital Cable TV systems first deployed in NCR by SkyCable starting 2008, in provincial areas by Parasat Cable (Cagayan de Oro) in mid 2009.

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)

■Currently, DVB-C format digital deployment is ongoing in NCR, Cagayan de Oro,Cebu, Davao, Kalibo, Angeles, San Fernando, Pampanga, and Bacolod cities

Sining Makulay CATV operations were mainly focused ondelivering canned programs to the Binondo Chinese community

Transition to Digital : RationaleTransition to Digital : Rationale

Increase revenues with more content and services (i.e. tiering, PPV, etc)

Maximize reuse of frequency spectrum for additional high speed broadband capacity

Reduce piracy of analog pay TV services

Defend against competition

Improve picture and audio quality

Enhance Customer experienceEnhance Customer experience

Improve the Bottom Line

Comply with International standardsComply with International standards

512/02/10Cable operators in the country have adopted DVB-C as the digital standard, and the rationale is based on interoperability worldwide

Key Drivers for Deploying Digital Cable TVKey Drivers for Deploying Digital Cable TV

Increase revenues with more content and services

The reality is that more and more content providers are offering variedThe reality is that more and more content providers are offering varied

programming, different genre and dedicated feeds. Analog cable technology is a wasteful way of using limited frequency spectruma wasteful way of using limited frequency spectrum.

Upgrading from 450Mhz (60 channels) to 860Mhz (100+ch)

means that the cable operator will have to change all

active and passive devices, deploy fiber and incur a huge

investment.

612/02/10In June 2009, the US government regulatory agency, FCC ordered the shutoff of all analog terrestial signals and the shift to digital TV.


Maximize reuse of frequency spectrum for additional highMaximize reuse of frequency spectrum for additional high speed broadband capacityAs AAs demand for High Speed broadband increases (up to 100mbps), space has to be allocated for forward and return traffic. This means that aside from video content, high speed data will have to be delivered thru the HFC infrastructure and this requires allocating more channels.

To deliver 100 mbps to the end user without using

FTTH (Fiber To The Home), cable operators can use

the analog space for channel bonding techniques with

DOCSIS 3.0 standards with today’s available solutions.y

712/02/10Recently, the NTC has chosen ISDB-T, as the digital standard for

Philippine digital terrestial Television


Reduce piracy of analog pay TV servicesReduce piracy of analog pay TV services

MSO Skycable had experienced large scale piracy of its signals in Metro

Manila and govt. regulation is not yet existing to combat signal piracy, thus in 2007 started deploying digital addressable set top boxes in critical areas.

Its success there, inspired it to plan widescale digital deployment in its franchise areas. Today, the company , which used to be always in the RED is now profitable. It has also

started deployment in Davao, Cebu and other key areas.

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Improve Picture Quality and Enhance Customer Experience

Competition for eyeballs especially that more and more content is advertisingCompetition for eyeballs, especially that more and more content is advertising

driven, is increasing demand for a better customer experience. Quality is now anan

important factor since analog CRT TV sets are now becoming obsolescent and

LCD d LED di l b i ff d blLCD and LED displays are becoming more affordable.

Customers now appreciate High Definition , with the

advent of Blu Ray Disc technology and 3D television.

912/02/10Digital set top box costs are now comparable to 2nd hand 10 year

old analog set tops which are also becoming scarce.


Improve the Bottom LineImprove the Bottom Line

With increased competition and new threats, the cable operator needs to be more efficient in its operations. With conditional access, secure transmissions, clearer pictures and enhanced services, operators can increase their ARPU (Annual Revenue Per User).

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The potential income for the operator should increase as customers demand for focused quality programs is not price sensitive

Key Concerns for Digital Cable TV

ContentProvider’sAccess to compelling content

Valuep g

System integration

System security/integrity Technology Migration to new services

H d d d t t t

ProviderValue

Headend and set top costs

1112/02/10All of these contribute to the business model and the

success or failure of the digital service

Ho TV is ChangingHow TV is Changing…

More Content: F Ch l H d d f Ch lMore Content: Fewer Channels Hundreds of ChannelsGeneral Content Specialized/Customized

liBetter Quality: Analog Digital HDTV

Faster: Dial-up high speed cablevirtually unlimited bandwidthvirtually unlimited bandwidth

You Control Everything:y g

TV Schedule YOUR Schedule

Analog Headend DiagramAnalog Headend DiagramAnalog Headend DiagramAnalog Headend Diagram

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Digital Headend DiagramDigital Headend DiagramDigital Headend DiagramDigital Headend Diagram

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Basic Digital Headend Building BlocksBasic Digital Headend Building Blocks

A i iti• Acquisition• Multiplexingp g• Modulation

Plus add-on features• SI • EPG• CAS

Net ork Management• Network Management

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Digital Headend BUILDING BLOCKS • Typical digital headend solution adopted by Skycable, Satellite Cable

Network in provincial areasNetwork in provincial areas

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Business Benefit of Digital Cable TV Solution

Flexible Scalable Efficient

RFGW1RFGW1 DCM supports DCM supports RFGW1 supportsUp to 96 channels

RFGW1 supportsUp to 96 channels

turn around of ASI/IP

turn around of ASI/IP

RFGW1 supports

Video & HSD

RFGW1 supports

Video & HSD channelschannelsReduced Video Degradation

from re-encoding

I d

Lower Cost perChannel

Video & HSDVideo & HSDMaximize Investment

Flexibility to use for HSD

I t t P t ti Increased Operational

Efficiency, no need to re-encode

Investment Protection, Reduced Capex &

Opex

Investment ProtectionReduced Capex

& Opex

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Transitional OptionTransitional OptionTransitional OptionTransitional OptionAnalog+Digital HeadendAnalog+Digital Headend

DeploymentDeployment

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Analog + Digital SimulcastAnalog + Digital Simulcast

Analog Bandwidth (550Mhz) 77 channelsAnalog Bandwidth (550Mhz) 77 channelsAnalog Bandwidth (550Mhz) 77 channelsAnalog Bandwidth (550Mhz) 77 channels

Digital bandwidth (870Digital bandwidth (870--550=320Mz) 300 channels550=320Mz) 300 channels

Multiplexing and Compression allows for up to 8 Multiplexing and Compression allows for up to 8 channels per 6Mhz analog channelchannels per 6Mhz analog channelchannels per 6Mhz analog channelchannels per 6Mhz analog channel

Operators with 550Mhz bandwidth can simulcast 60 Operators with 550Mhz bandwidth can simulcast 60 analog channels and 100 digital channelsanalog channels and 100 digital channels

Operators with 450Mhz bandwidth can go full digital andOperators with 450Mhz bandwidth can go full digital andOperators with 450Mhz bandwidth can go full digital and Operators with 450Mhz bandwidth can go full digital and offer as many as 400 channelsoffer as many as 400 channels

Analog + Digital SimulcastAnalog + Digital SimulcastAdvantage of serving low end lifeline customers andAdvantage of serving low end lifeline customers andAdvantage of serving low end lifeline customers and Advantage of serving low end lifeline customers and catering to high end LCD/LED marketcatering to high end LCD/LED market

Can operate both Analog and Digital AddressabilityCan operate both Analog and Digital Addressability

Allows gradual transitionAllows gradual transitionAllows gradual transition Allows gradual transition

Increased cash flow and ARPUIncreased cash flow and ARPU

Upgrading of network infrastructure can be PhasedUpgrading of network infrastructure can be Phased

Flexibility in facing competitionFlexibility in facing competition

Operators with 450Mhz bandwidth can go full digital andOperators with 450Mhz bandwidth can go full digital andOperators with 450Mhz bandwidth can go full digital and Operators with 450Mhz bandwidth can go full digital and offer as many as 400 channelsoffer as many as 400 channels

The Future:The Future:Faced with Threats and Competitors, we expect the rest of the cable tv Faced with Threats and Competitors, we expect the rest of the cable tv industry to adopt the digital format within the decade. Even if government will industry to adopt the digital format within the decade. Even if government will not mandate the transition, operators who want to survive will have to not mandate the transition, operators who want to survive will have to merge, consolidate, share and adopt DIGITAL technology.merge, consolidate, share and adopt DIGITAL technology.

Those who will remain analog will not be able to compete and eventually sell Those who will remain analog will not be able to compete and eventually sell out their operationsout their operations

The early adopters of DVBThe early adopters of DVB--C will also transition or add on to their offerings C will also transition or add on to their offerings IPTV based in house and “Over the Top” servicesIPTV based in house and “Over the Top” services

On demand services such as VOD, Netflix, Hulu, etc will be commonplace On demand services such as VOD, Netflix, Hulu, etc will be commonplace as network streaming devices become affordable and available worldwideas network streaming devices become affordable and available worldwide

With current HFC infrastructure fully digital compliant, the operator will not With current HFC infrastructure fully digital compliant, the operator will not need to deploy more expensive FTTHneed to deploy more expensive FTTH

Th k YThank You

12/02/10

day1-digital catv deployment installations in the philippine setting

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