KSO Slide 2

© Copyright 2006, Verizon. All rights reserved.

Transforming Transforming

Communications Communications

Transforming Transforming

Communications Communications

Verizon Labs in Waltham, MA

© Copyright 2005, Verizon. All rights reserved.2

Transforming the NetworkTransforming the Network

Delivering and managing voice, video and data

over the customer’s home

network

A single integrated backbone network for converged voice, video and data

Benefits for Verizon shareholders

– New revenue– Higher operational efficiency

Benefits for customers

– Higher bandwidths– Enhanced video and interactive services

Providing “Any to Any”

access (e.g., FTTP, DSL,

Ethernet) to home or business

Access Network Metro Backbone Network National Backbone NetworkPremises


VideoHub

Office

FTTP(Fiber to The Premisses) : The FTTP(Fiber to The Premisses) : The Residential FutureResidential Future

Access Network Metro Backbone Network National Backbone Network

Service Edge

Router

Optical Line Terminal

FTTP

Premises

Session Border Controller

Voice Application Server

ApplicationEdge Router

Verizon OnlineServers

Internet

PeeringRouter

SuperHeadend

(SHE)

SuperHeadend

(SHE)

PSTN

Media Gateway

Softswitch

Broadband Premises Gateway

ONTONT

VideoAggregation

Switch

IP VOD Server

VideoDistribution

Router

Local Content Provider


FTTP(Fiber to The Premisses) FTTP(Fiber to The Premisses) AdvantagesAdvantages

The key is dedicated wavelengths

870 MHz system

155 Mbps (1.2 Gbps with GPON)

622 Mbps (2.4 Gbps with GPON)

OpticalLine

Terminal

Fiber Amplifier

Public Public Switched Switched

Telephone Telephone NetworkNetwork

Public Public Switched Switched

Telephone Telephone NetworkNetwork

IP/SS7 signalingIP/SS7

signaling

Softswitch VOIP

VideoVideoVideoVideo

Optical Coupler

IP Data /IP Data /InternetInternetIP Data /IP Data /InternetInternet

1x32 Optical Splitter

1490 nm

1550 nm

1310 nmBroadcast Video

Voice, Data, IP TV

Voice, Data, IP TV

Optical Network Terminal

© Copyright 2005, Verizon. All rights reserved.

5

• Cable Television is a system of delivering television programming to paying subscribers via radio frequency (RF) signals transmitted through coaxial cables or light pulses through fiber-optic cables

• The Characteristics of Coaxial Cable: Voltage Cable 100-120 ohm, Speed and Throughput 0-100 Mbps, The maximum length of cable usage < 500 Meters, Cost Relatively cheap divided into types Thicknet and thinnel

• The Benefit of Coaxial Cable: Network using a coaxial cable network with low cost , but its scope is very limited and reliability is also very limited . Coaxial cable is generally used on the bus and ring topologies

• The Characteristics of FO: 100+ Mbps speeds and output, The average cost is quite expensive pernode, Medium and small connector size, The maximum cable length allowed is 2 km (length)

• The Benefit of FO: Speed fiber optic networks operate at high speed 100MBps - 1Gbps, Bandwidth FO capable of carrying packages with large capacity . Distance which signals can be transmitted further without needing treatment " refresh " or " amplified " max 2km


In-Premise ArchitectureIn-Premise Architecture

Fiber Optic Cable

Voice

CAT3/RJ11

Verizon Broadband

HomeGateway

Data

VideoVerizon

Set Top Box

Wireline Network

Coax

• Reduces installation time and number of new wires• Supports delivery of real-time IP traffic (e.g. Video on Demand, new services)

Optical Network Terminal

NIM

CAT5/RJ45

MoCA

MoCA

NetworkInterfaceModule


CircuitSwitch

FTTP ImplementationFTTP Implementation

SplitterHub

Overlay Build

OLT

SplitterHub

Greenfield Build

ONT

ONT

ONT

ONT

ONT

ONT

Small Businesses

ONT

ONT

ONT

ONT

Premises passed3M at end of 2005

6M by end of 2006


Consumer Bandwidth DemandConsumer Bandwidth Demand

Demand will soon outstrip current FTTC, FTTN or cable capacity… while FTTP has room for growth

Total Downstream

Demand (Mbps)

0

25

50

75

100 HD Video Streams(includes HD DVR)

Video

Games

Music

Voice

Basic IP Data

E-mailIM, Web

DownloadsFile Sharing

VideoconferencingE-mail

IMWeb

Fast Downloads File Sharing

Yesterday Today Tomorrow

Growth Potential

SD stream HD stream

2 SD streamsHigh-quality audio

Multichannel audio

3 HD streams

HD videoconf-erencing and mail

IMWeb

Instant downloads File sharing

SD stream


FiOS TV FeaturesFiOS TV Features

Analog BasicAnalog BasicAnalog BasicAnalog Basic

HD TierHD TierHD TierHD Tier

All Digital Core + Theme TiersAll Digital Core + Theme TiersAll Digital Core + Theme TiersAll Digital Core + Theme Tiers

Niche Channels

Niche Channels

Premier Interactive Program Guide (IPG)Premier Interactive Program Guide (IPG)Premier Interactive Program Guide (IPG)Premier Interactive Program Guide (IPG)

Interactive Apps

Interactive AppsIP VODIP VOD

STB DVR +

Multiroom

STB DVR +

Multiroom

HDTVNiche Channels

Multi-player Games

Entertainmenton Demand Time-shift TV

Videoconference


National programming is transmitted to our satellite farms, also known as Super Headends (SHE).

In each market, a Video Hub Office (VHO) adds local channels, commercials and video-on-demand programs to the national programming.

Video Serving Office (VSO) receive this feed, process the video signal, and relay it to . . .

. . . Splitters that transmit content to up to

32 homes or MDUs with...

. . . an ONT (optical network terminal) attached to the outside of each customer’s home or MDU.

InternetSHE

How FiOS TV WorksHow FiOS TV Works

Artwork by Donne Masaki (Verizon)


Video LabVideo Lab

SatelliteFeed

Video Hub OfficeVideo Serving Office Super Headend


House LabHouse Lab

Usability testing guides product development

Customers want the 4 C’s:

Content - Tons of it, easily foundConvenience - People want a “lean-back” TV experienceCommunity - A sense of community among FiOS TV customers Convergence - IP and off-air TV converged seamlessly for all devices

Documents

KSO Slide 2