A Funny Solution - over the top

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First over-the-top "solution" for broadband investors.

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A Funny Solution - over the top

  1. 1. A FUNNY SOLUTION Xiaolin Lu April 1, 2003
  2. 2. What is this all about? Media companies (own or don’t own distribution infrastructure) want to grown business by directly connecting to users. Challenges are to overcome limitations of incumbents and embedded base (if own). Over-the-top was the idea then and is now widely adopted.
  3. 3. CHALLENGES Content E-Commerce Investment $ $ Networks Enablers Customers Network Independent Content Distribution: good business model but too early to materialize due to the limited control of suppliers and customers  Low switching cost  Low barrier for substitutes  Limited power of changing customer behavior
  4. 4. MIGRATION AND EXPANSION: THREE- THREE-ARM GIANT  Content  E-commerce Arm One Arm Two Arm Three Vertical integration Network-inside-network, Control the demarcationthrough owned network utilizing channels (6MHz points while utilizing with AT&T) others’ networks Walled Garden End-to-end control, aggregation, and distribution Control the customer presence and network access points  Aggregation = Consumption = Revenue  High cost for switching = High barrier fro substitutes  Power of influence buyers and suppliers’ behavior
  5. 5. POSITIONING Critical Transition Period #1Stickiness #2 Stickiness #2 #3 #1 #3 Cost Time
  6. 6. THE CONTROL 3rdparties Owned Walled Garden Content& E-commerce Aggregation for ASPs ETE control POP Metro ATT HG BB Piggy- Others back to Strict SLA existing & Co-Lo equip + owned HG  Utilize owned & others infrastructure & equipment  Cost sharing  Control the “Presence”  Establish a logical network (yellow lines and dots)
  7. 7. ARM ONE: OWNED CABLE NETWORK DOCSIS Already Upgraded DOCSIS Current STB  No Change Common Home HomeBack-office Gateway Network Operation MPEG To Be Upgraded MPEG Low-cost Ethernet  Digital Cable Ethernet STB DTV Abandon old upstream  Digital Cable  Simple, low-cost, more bandwidth capacity  More functions in customer primes equipment  Gain more control of customers
  8. 8. FEATURES OF DIGITAL CABLE Multiple Low-cost STBs Current6MHz QAM Home Gateway Digital with multiple tuners CableWideband Home Gateway QAM with Single tuner  Less stringent EOL requirements  Low-cost design & deployment  Low-cost equipment (amplifier, optics); Low power consumption  Simplify HE equipment  Common digital RF for all services (eliminate analog equipments)  Move to wideband RF subcarrier  Flexible and better bandwidth utilization (best statistic multiplexing)  Easy A/D: digital baseband over fiber link  Home networking for in-house distribution  Create control and stickiness
  9. 9. ARM TWO: NETWORK-INSIDE-NETWORK NETWORK-INSIDE-  Common STB Headend  Use EPG to link to Data 6MHz STB the 6MHz channel Stream M QAM  Walled Garden U QAM inside 6MHzMetro X QAM BB  Common STB 6MHz STB HG  Ethernet to HG Dedicated  Coax & others for Port home network QAM M STB QAM  Stand alone HG U X QAM 6MHz  Fully controlled HG home networking  Establish Content Distribution Infrastructure  Co-location & SLA  Define solution for signal injection at cable headend
  10. 10. ARM THREE: COMMODATIZE THE PIPE Content POP Metro HE ACCESS HG BB Value Commodity CM POP Metro HE ACCESS HG DSL BB Walled GardenContent & E-commerceAggregation for ASPs Strict SLAControl & management & Co-Lo Network Network Operation Build-in control Operation System mechanisms System
  11. 11. COMPARISONS OPTION 1 OPTION 2 OPTION 3  Lowest  Medium  High COST  Utilizing existing  Utilizing existing tuner  New equipment equipment  Low  Control 6MHz  Fully control CONTROL  Difficult to create  Unbundled-loop stickiness model Difficult Utilize HPNA & wireless Can use all means HOME     Maybe difficult to use  Can re-use in-houseNETWORKING in-house coax coax Legal  Easy  Medium  Difficult Now Need development Work with homeTime to Market    network vendors  Current STB does not have the flexibility Issues  Next generation STB (DCT5K) is not ready  Stand alone HG may make more sense
  12. 12. SUMMARY Walled Metro Home Garden POP HE ACCESS HG & BB Network + NOS Content  Collaborate with  Owned network:  Work with home Aggregation carriers to Digital Cable network vendors strategy establish Content  Others: network- to enable the NOS Network Distribution inside-network and establish in- Operation System Platform house distribution for ETE control  Co-location and control (work with HG)  Managed network platform access (SLA)
  13. 13. WORKING STRUCTURE Content E-Commerse Network Solution Content HomeOwned Network- In-network Network Distribution Platform

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