introduction to iptv stoyan kenderov director of iptv solutions [email protected]
TRANSCRIPT
Agenda
Overview
Technology
Market and Business Trends
Opportunities and Challenges
Key Success Factors
Integration of IPTV and VoIP
Summary & Q&A
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…”
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
What made IPTV possible Evolution of BB access (“ADSL2+”:25Mbps, “VDSL”:50Mbps) Better video compression: H.264, MPEG-4, WMV9 Hollywood’s 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
Agenda
Overview
Technology
Market and Business Trends
Opportunities and Challenges
Key Success Factors
Integration of IPTV and VoIP
Summary & Q&A
Typical IPTV System
TransportHeadend Access Home
TransportNetwork xDSL CPE/
FTTH
Computer
STB
IGMPRouter
Digital and Analog
Receivers
MPEG Encoders
AppsServers
DSLAM
VideoServers
OtherContentSources
Source: Kasenna Inc.
VoIP
STB
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
Customer IPTV Experience
Content Partners’ IPTV Experience
Agenda
Overview
Technology
Market and Business Trends
Key Success Factors
Integration of IPTV and VoIP
Opportunities and Risks
Summary & Q&A
IPTV Market- Global DSL Subscribers Forecast
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DSL subscribers will be the first beneficiaries of IPTV services DSL subscribers will grow from 91M (2004) to 202M (2008) (22%
CAGR)
IPTV Market - Global IPTV Subscribers Forecast
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IPTV subscribers will grow from 2.1M in 2004 to 27M in 2008 (89% CAGR) – reaching 13% of DSL subscriber base
IPTV Market - Global IPTV Revenue Forecast
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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)
IPTV Market - Global Spending on IPTV System
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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
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) > 100s of small operators in the US SBC Communications
Recent Trials announcements
SwissCom (Bluewin) Telecom Italia Bell Canada Reliance Infocom BT Telus Telstra
Example - PCCW (Hong Kong) PCCW has > 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)
Agenda
Overview
Technology
Market and Business Trends
Opportunities and Challenges
Key Success Factors
Integration of IPTV and VoIP
Summary & Q&A
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 <$100 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) Higher density of VOD play-out farms
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)
Agenda
Overview
Technology
Market and Business Trends
Opportunities and Challenges
Key Success Factors
Integration of IPTV and VoIP
Summary & Q&A
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
Agenda Overview
Technology
Market and Business Trends
Opportunities and Challenges
Key Success Factors
Integration of IPTV and VoIP
Summary & Q&A
Multi-Services blending
Jane is calling…Reject Take call
IPTV-VoIP Integration Points
TransportHeadend Access Home
DSL CPE/FTTH
IGMPRouterIPTV
AppsServers
DSLAM
VoIP
STB VoIP
Soft switch/Gatekeeper
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 R&D due to diversity of deployed STBs
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
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
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
Summary IPTV and triple play is happening
IPTV is not me-too-TV – it’s 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 – it’s 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
Thank you! Q & A
IPTV