The Next Generation Network:Ultra-Broadband IPTV

Tom Giunta, Vice President, Product MarketingMotorola Wireline Networks

Disruptive Forces Driving Change and Opportunity

Value Shift from Core to Edge

The Internet

Mobility

BroadbandAccess

Hom

eN

etworks

Traditional Business Models Threatened

• Centralized Communications Centers

– Central Office Served Telephony

• Local Telephone

• Long Distance

– Mobile Devices and Communications

– Cable Based Video Entertainment

– Internet Access

– Business and Enterprise Services

• Accommodating outdated technologies, inadequate service delivery, and antiquated regulations

InternetAccess

TelephonyServices

Video

BroadbandAccess &Mobility

Enterprise Mobile

In the wake of the Internet explosion…Who is the Telephone Company?

• Cable Companies expand beyond entertainment video

• Traditional wireline customers shift to wireless

• IXCs are absorbed by Common Carriers

• The fixed-price model, an artifact of dial-up competition, threatens revenue and investment

– $240 Billion in legacy services at risk

• VoIP poised to attract more voice minutes from the Telco Network

• Value and Services are created at the edge; not the core

Next Generation Technologies

Local Storage &Local Storage &Home NetworkingHome Networking

Mobility Mobility

Ultra-Broadband Ultra-Broadband AccessAccess

• Symmetrical Access to enhanced content

• Fiber Deep Architectures• Low cost optical terminals• ADSL2+, VDSL, VDSL2

• MoCA, HPNA3, HomePlug, WiFi

• Low Cost Storage• DVR• Media Servers

• WiMax 802.16e• IP Multimedia

Subsystem• Dual Mode Handsets

Enabling Next Generation Business Models

Local Storage &Local Storage &Home NetworkingHome Networking

Mobility Mobility

Ultra-Broadband Ultra-Broadband AccessAccess

• Symmetrical P2P Services

• Policy Management• High Definition Content

on Demand

• Secure Personal Libraries

• Digital Rights Mgmt• Home IT Services

• Follow-me Services• Mobile Video• Service that Adapts

to Environment

Source: Parks Associates 2005

Broadband connectivity hits critical mass

0

20

40

60

80

2003 2004 2005 2006 2007 2008 2009

33MM

18MM

67MM

36MM

US Households with Broadband ConnectivityUS Households with Broadband Connectivity

US Households with Home NetworksUS Households with Home Networks

Consumer Behavior Defined

Users want…– Their media to move with

them

– Smart home servers to know what they like

– Personal preferences and databases always attached and accessible

– Communication devices that enable one’s lifestyle

Changing viewing habits

0

5

10

15

TV broadcasts Web broadcasts

MIL

LIO

NS

OF

VIE

WE

RS AOL Music

broadcast for the week

after concerts

(July 4-12)

AOL Music broadcast for

the day of concerts (July 2)ABC

MTV

VH1

More people tuned into July’s Live 8 concerts online than they did on TV

TV off the Web

Rank among TV shows traded

over BitTorrent

Show Number of people downloading episodes in the week ending July 12

Rank in 2004-2005 TV Season

1 Lost 374,809 152 American Idol 360,538 13 CSI 360,130 34 Smallville 358,459 1735 The O.C. 286,939 1126 Desperate Housewives 282,502 47 Survivor 279,914 58 Family Guy 278,809 1019 Battlestar Galactica 272,965 N/A10 The Sopranos 270,356 N/A11 Friends 264,600 N/A12 The Daily Show 256,530 N/A

BitTorrent allows fans to download their favorite shows and watch them on their PCs

It’s the end of the world as we know it…• Television redefined

– Not just the big screen in the living room

– IPTV, P2PVideo, Streaming Video– Access to what you want when you

want it– ESPN streams content to Cell Phone

• What happened to the Plain Old Telephone?– Personal device with personality– More than just an instrument for voice

• Content Explodes– Distributed in many forms, and not

just from studios– The line between Consumers and

Producers blurs

The movement towards personalized content appears unstoppable

• Digital Media Devices Proliferate• Blogging: 50 million user created channels with a new

one created every 2 seconds– 36-fold explosion in consumer generated video on the

Internet this year • P2PTV: video file sharing follows trends established with

music swapping• 30 Million U.S. Mobile Video Subscribers by 2010

100 Kbps100 Kbps100 Kbps100 Kbps

10 Mbps

2 Mbps

How much Capacity per Household is Needed?

Service Quantity

VoIP 4

SDTV 2

HDTV 2

VOD/Gaming 1

HSI 1

9 Mbps

9 Mbps

2 Mbps

2 Mbps

35+ Mbps

The future common carrier

• Owns broadband access lines• Has an IP core with policy management

and control– Can offer differentiated services– And differentiated pricing

• Commercial grade interfaces between carriers

• A broad range of service offerings– Beyond voice, video, and data– Mobility an essential element

Local Storage &Local Storage &Home Home

NetworkingNetworking

Mobility Mobility

Ultra-Ultra-Broadband Broadband

AccessAccess

Conclusions

• Carriers need to prepare their networks for disruptive change– Broadband Access based on deep

fiber architectures delivering 30Mbps or better

– Fixed Mobile Convergence (FMC)– An IMS Switch evolution strategy

• Converged Service Oriented Business models

• IMS facilitates a new carrier business model around differentiated services and Seamless Mobility

Local Storage &Local Storage &Home Home

NetworkingNetworking

Mobility Mobility

Ultra-Ultra-Broadband Broadband

AccessAccess