Iptv Market And Technology Overview

Market and Technology Overview Testing IPTV Services and Triple Play Infrastructure

Market Overview – Triple Play Triple Play = Voice + Video + Broadband Data One service provider, one bill, one connection. Drivers - Commercial pressures: increase profits; reduce subscriber churn, reduce Opex - New enabling technologies: IPTV, VoD, VoIP, FTTx, ADSL2+/VDSL, Docsis 1.1/2.0, PacketCable, QoE, Multicast, MPLS, Carrier Ethernet… IPTV is the key component of CSP Triple Play strategy Cable MSOs: - Already provide video (TV) and data service - Advantage: high bandwidth to the customer (HFC vs copper pair) - Aggressively rolling out voice service - 2005, MSOs had 14 million VoIP users worldwide (Source: Probe Research)

Cable (HFC) Triple Play Cable Cable Internet TV Cable Voice

Telcos Copper Pair (DSL) Triple Play - Already provide Voice and data service - Deploying IPTV to compete with cable MSOs/prevent market share erosion - Biggest risk is in the last mile: Data IPTV - xDSL – enough bandwidth for video? - FTTx – enough budget to play the game? VoIP IPTV: Are you getting the picture? Agilent North America Seminar: June 2006

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Triple Play Network Infrastructure Physical Aggregation

Customer

xDSL Modem

DSLAM

Aggregation Network Ethernet or ATM Switches

Access Server

Edge Router & Transport Edge Router

B-RAS

Core Router & Transport Internet

Cable MSO

Wireline TELCO

DSL Edge Router

FTTx/ PON

Metro Network

Ethernet or ATM Switches ONU

B-RAS

OLT

Core Network

SGSN

Cable Modem

CMTS

Ethernet or ATM Switches

HFC

PSTN CS/IMS

Mobile SP

MSC RAN

3G

Node b

RNC

Triple Play is challenging every component of the network. IPTV: Are you getting the picture? Agilent North America Seminar: June 2006

What is IPTV exactly? • Merely television delivered over the Internet? - No! • Leverages IP technologies to deliver an enhanced TV experience in the context of Triple Play (voice, video, data) services – Whatever (diversity of content, customization of experience) – Wherever (mobility, iPod) – Whenever (VOD, PVR) • Integration with other Triple Play devices – “composite services” – Caller ID on TV – Online messaging/betting during televised sporting event • Different than current TV offerings: User created video; ad-hoc video content; much more choice and user preference in professional content – Multiple customizable camera angles during a sporting event – Personalize advertisements subscriber is interested in • “Click-to-Buy” button – Highly customized channel selection – ‘Intelligent’ channel control

IPTV: Are you getting the picture? Agilent North America Seminar: June 2006

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Market Trends (Million)

($ Million)

60

$50,000 $40,000

40

$30,000 $20,000

20

$10,000

0

$0

CY04 CY05 CY06 CY07 CY08 CY09

CY04 CY05 CY06 CY07 CY08 CY09

Wordwide IPTV Subscriber

Worldwide IPTV Revenue

“Worldwide CY04 IPTV subscribers were at 815K; we expect continued strong growth in IPTV subscribers with CY09 reaching 53.7M subscribers; a 5-year CAGR of 133%” “Worldwide CY04 IPTV service revenue was $323.3M; we expect continued strong growth in IPTV service revenue with CY09 reaching $44.3B, a 5-year CAGR of 154%”

- Infonetics IPTV Equipment and Services Outlook, 2005 IPTV: Are you getting the picture? Agilent North America Seminar: June 2006

Relevant Technologies •“Broadcast” IPTV is delivered over Multicast – A multicast group represents a TV channel – Subscriber sends an IGMP ‘join’ message to request an IPTV program – Video source sends a single video stream per channel, which is replicated by the network devices so that it reaches every subscriber who is watching that channel – Multicast replication should occur as close to the end user as possible to conserve network bandwidth • Video on Demand (VOD) is delivered through unicast • MSTV (Middleware platform and IPTV architecture ) – Key feature: Instant Channel Change (ICC): Video content is distributed via IP Multicast as in regular IPTV, but when the user changes a channel a short unicast burst of video traffic is sent from the “D-server” (Distribution Server) to the set-top box to enable a faster channel change • Access Protocols: PPPoX or DHCP to identify subscribers

IPTV: Are you getting the picture? Agilent North America Seminar: June 2006

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Relevant Technologies MPEG-2 vs MPEG-4 • Moving picture experts group • Audio and video compression (we will discuss video here) MPEG-2 Used with Cable, DVD, Satellite (DBS), VOD – With SDTV, bitrate ~ 3.75Mb/s – Not suitable for HDTV over IP – bitrate ~ 20Mb/s MPEG-4 • 22 parts to the specification • Part 10 (H.264/AVC) deals with advanced compression techniques for video • Includes technology for digital rights management (DRM) • Enables HDTV (much better compression than MPEG-2) • Many new IPTV deployments are going strait to HDTV and thus MPEG-4 Three frame types – i-frames: entire picture. Can be displayed w/o reference to other frames – p-frames: forward predicted from an i-frame. Only represent deltas with “motion vectors” – b-frames: forward and reverse predicted from previous and next i/p frames

IPTV: Are you getting the picture? Agilent North America Seminar: June 2006

IPTV Delivery Infrastructure IPTV Customers (Subscribers)

Physical Aggregation

Aggregation Network

Access Server

Edge Router &Transport

Core Router &Transport (National/Regional)

(Local)

Edge Router

xDSL Modem

DSLAM

B-RAS Ethernet Switches

Metro Network Edge Router

…

IGMP Snooping/Proxying and multicast replication

IP/MPLS Core Network

PPP session termination and multicast replication or DHCP server

IGMP messages

IPTV: Are you getting the picture? Agilent North America Seminar: June 2006

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IPTV is Driving Network Evolution • Financial rewards of IPTV are triggering the most remarkable evolution of Telco networks in this decade • Infonetics: Service Provider spending on IPTV-related services infrastructure: – 2006: will reach almost $1B – 2007: $2B – 2009: $4.5B • For example… – AT&T (former SBC) is spending over $6 billion on Project ‘LightSpeed’

IPTV and VoD services are re-shaping the network infrastructure, throughout access, edge and core networks…

IPTV: Are you getting the picture? Agilent North America Seminar: June 2006

IPTV and VoD are Driving Network Evolution Video transport creates new challenges for traditional telecom networks Robust RTSP servers IPTV or VoD source

Efficient bandwidth management

Reliability, Security More important than ever Firewall or ALG

IGMP snooping to enable efficient use of bandwidth

High Availability Critical for video Routers

DSLAM

B-RAS

Switches

Ethernet or ATM Aggregation Network QoS-enabled networks

Subscriber Authentication

IP/MPLS Core

High-bandwidth and scalability required for access and core

Dominant multicast traffic requires router upgrades

IPTV: Are you getting the picture? Agilent North America Seminar: June 2006

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Network Evolution Bandwidth and Scalability Requirements Challenges: • Traditional “Best Effort” networks need major bandwidth upgrade • To enable IPTV, 25-50 Mbps needed per subscriber (Source IPTV World Conference at NAB 2006) – Customer concurrence is enhanced dramatically; more bandwidth consumed • Fast growth in subscriber numbers; access and aggregation device overload Technologies • FTTx and new generation xDSL rolling out in the “First Mile” – Passive Optical Network (PON) technology is driving down the costs and complexity of FTTx deployment – Globally, service providers are embracing PON as an strategic step to enable “Triple Play” services (EPON in Asia, GPON in North America and Europe) • Increasing 10G interfaces in core/edge, 40G is landing • Carrier-class Ethernet is spreading “end to end” • Enhanced B-RAS or emerging EAR (establish large numbers of PPPoX or DHCP sessions) • MPLS becoming a foundation for core/edge networks IPTV: Are you getting the picture? Agilent North America Seminar: June 2006

Network Evolution Bandwidth Management Challenges • Raw bandwidth is not enough for protecting service quality

P2P Traffic hogs bandwidth

– Concurrent user traffic will cause congestion • P2P traffic, “all you can eat” monster, consumes up to 80% bandwidth Technologies • QoS policies must be deployed to guarantee bandwidth for revenue-critical services • Per-subscriber bandwidth management

IPTV: Are you getting the picture? Agilent North America Seminar: June 2006

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Network Evolution Multicast Traffic Explosion Challenges • Broadcast IPTV increases multicast traffic • Large numbers of routers, B-RASs, switches and DSLAMs are not multicastready; low maximum multicast forwarding rates • Large numbers of B-RASs, DSLAMs, switches have poor IGMP leave/join handling performance, which causes large IPTV channel zapping delays • Poor multicast routing performance is a barrier for routers Technologies • Enhance multicast forwarding performance of network devices • Enhance IGMP performance of B-RAS, EAR, DSLAM to improve channel zapping delay • Improve multicast routing performance

IPTV: Are you getting the picture? Agilent North America Seminar: June 2006

Network Evolution Reliability and Security Challenges • High Availability (HA) was required by Telco voice, now is also adopted for Triple Play service providers – Ensuring “five-nines” (99.999%) IP network reliability is challenging • DoS attacks and spam threaten voice, video and data services over IP Technologies • Deploy HA protocols: Graceful Restart, Non-stop Forwarding, MPLS Fast-reroute • Ensure performance and functionality of firewalls and intrusion prevention devices • Adopt application layer-aware devices

IPTV: Are you getting the picture? Agilent North America Seminar: June 2006

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Thorough testing can overcome the challenges in developing and deploying IPTV and ‘Triple Play’ networks 1. Test Devices

2. Test Systems

3. Test Services

Core/Edge Router BRAS, EAR DSLAM, OLT/OTN, CMTS Test L3 Ethernet Switch IPTV Encoder, VoD Firewall, MG, ALG

Internetworking Test Interoperability Test Inter vendor Test End to End Test

Infrastructure Testing

IPTV, Data, Voice service test QOE/QOS verification

Services Testing

Find and solve your problems before your customers do! IPTV: Are you getting the picture? Agilent North America Seminar: June 2006

Questions?

IPTV: Are you getting the picture? Agilent North America Seminar: June 2006

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