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  1. 2. Bill Dodd President & COO HEAnet, Kilkenny, Ireland November 10, 2006 IPTV and the Triple Play: Challenges and Opportunities
  2. 3. What is Internet Protocol TV (IPTV)? <ul><li>Video delivered to a device using IP data packets as the transport stream </li></ul><ul><li>It is not TV delivered over the Internet in a manner similar to cable or satellite because it is a switched network </li></ul><ul><li>Point to point connection to the multicast source, whether it is using the public Internet or private fiber transport </li></ul><ul><li>Can be viewed on most any device capable of displaying a video signal </li></ul><ul><li>Can be a highly secure, operator controlled network – end to end </li></ul>
  3. 4. Why is IPTV Relevant? <ul><li>IPTV market emerging at very rapid pace </li></ul><ul><ul><li>72 million IPTV subscribers worldwide in 2010 - nearly 25 times the 2005 figure </li></ul></ul><ul><ul><li>Representing over $200B in market value at today’s cable multiples </li></ul></ul><ul><ul><li>Most all major worldwide telcos to deploy IPTV over next 12-36 months </li></ul></ul><ul><ul><li>Telcos must deliver on their promises to the investment community, which translates to a very big need for innovation </li></ul></ul>YouTube sells to Google for $1.6 Billion
  4. 5. Many Approaches to Delivering IPTV <ul><li>Public Internet or private fiber networks </li></ul><ul><li>TVs, Computers, PDAs, Cell Phones </li></ul><ul><li>Linear or VOD or both </li></ul><ul><li>Fiber or Satellite </li></ul><ul><li>MPEG-2 or MPEG-4 </li></ul><ul><li>STB choices </li></ul><ul><li>Many middleware choices </li></ul><ul><li>DRM/Encryption options </li></ul>
  5. 6. Service Provider Model
  6. 7. The Network
  7. 8. Student Housing Platform
  8. 9. The Promise of IPTV <ul><li>More programming </li></ul><ul><ul><li>Hundreds of channels from major content providers </li></ul></ul><ul><li>More applications unrelated to entertainment </li></ul><ul><ul><li>Healthcare </li></ul></ul><ul><ul><li>Education </li></ul></ul><ul><ul><li>Productivity enhancements </li></ul></ul><ul><li>Switched network </li></ul><ul><ul><li>Theoretically infinite channel capacity – both for linear and VOD offerings </li></ul></ul><ul><ul><li>A la carte in the near future </li></ul></ul><ul><ul><li>Get ready to Google your TV </li></ul></ul><ul><li>Better picture quality </li></ul><ul><ul><li>Digital from the head-end to the STB </li></ul></ul><ul><li>Significantly lower costs for bundled IP services </li></ul><ul><li>Content encryption </li></ul><ul><ul><li>DRM to the satisfaction of the studios </li></ul></ul>
  9. 10. The Reality <ul><li>Today - equal programming </li></ul><ul><ul><li>Same as cable or satellite </li></ul></ul><ul><li>Switched network </li></ul><ul><ul><li>Promise not yet realized </li></ul></ul><ul><ul><li>Not enough content available . . . yet </li></ul></ul><ul><li>Better picture quality </li></ul><ul><ul><li>True for standard def </li></ul></ul><ul><ul><li>BUT, no HD available </li></ul></ul><ul><li>Significantly lower costs for bundled IP services </li></ul><ul><ul><li>BUT, RBOCs can (and will) subsidize pricing of traditional offerings </li></ul></ul><ul><li>Content encryption </li></ul><ul><ul><li>Still not much content available for IP-based transmission </li></ul></ul>
  10. 11. Legal Overview <ul><li>Types of Service Contracts </li></ul><ul><ul><li>Bulk Agreements </li></ul></ul><ul><ul><ul><li>Residents can opt to subscribe independently to other services and premium programming </li></ul></ul></ul><ul><ul><ul><li>Student Housing and Hotels typically Bulk Triple Play </li></ul></ul></ul><ul><ul><ul><ul><li>Installation and equipment covered by owner </li></ul></ul></ul></ul><ul><ul><ul><li>Hotels: exclusive voice/video/data for rooms and common areas </li></ul></ul></ul><ul><ul><li>Right of Entry (“ROE”) Agreements </li></ul></ul><ul><ul><ul><li>Typically includes exclusive marketing for life of contract </li></ul></ul></ul><ul><li>IPTV Programming Agreements </li></ul><ul><ul><li>Need for Large Cooperative to be Competitive (i.e. NCTC) </li></ul></ul><ul><ul><li>VOD content agreement aggregation required as well </li></ul></ul>
  11. 12. Business Overview - I <ul><li>What you need to operate an IP based TV service </li></ul><ul><ul><li>Network (long haul, last mile, in building) </li></ul></ul><ul><ul><li>Head-end </li></ul></ul><ul><ul><li>STBs </li></ul></ul><ul><ul><li>Middleware </li></ul></ul><ul><ul><li>DRM </li></ul></ul><ul><ul><li>Content </li></ul></ul><ul><ul><li>Buildings/Service Agreements </li></ul></ul><ul><ul><li>Customer Care </li></ul></ul><ul><li>And make it all work!!!!!!!!!! </li></ul>
  12. 13. Business Overview - II <ul><li>What you need to be relevant and cost effective </li></ul><ul><ul><li>Scale </li></ul></ul><ul><ul><li>Concentration of subscribers </li></ul></ul><ul><ul><li>Bundled offerings </li></ul></ul><ul><ul><li>Appropriately priced service agreements </li></ul></ul><ul><ul><li>Efficient hardware/software purchases </li></ul></ul><ul><ul><li>Effective and efficient network architecture </li></ul></ul><ul><ul><li>The right price for content </li></ul></ul><ul><ul><li>The right price for labor </li></ul></ul>
  13. 14. Lessons Learned <ul><li>It’s all about the bundle </li></ul><ul><li>Bandwidth, bandwidth, bandwidth </li></ul><ul><li>Computer illiteracy rates </li></ul><ul><li>Low demand for phone service </li></ul><ul><li>HD and multi-stream PVR quickly becoming must haves </li></ul>
  14. 15. Beyond the Triple Play: The Edge of the Future IP-based Controls Product
  15. 16. <ul><li>A glimpse offered from the past </li></ul><ul><li>IPTV will ultimately use the public Internet for VOD and private IP networks for live and real time streaming of high quality video in an open architecture </li></ul><ul><li>PVRs more disruptive than you might imagine </li></ul><ul><li>IPTV’s future is far beyond that of just entertainment…healthcare, distance learning, logistics, security… </li></ul><ul><li>The applications that will drive IPTV usage is anyone’s guess and everyone’s opportunity </li></ul>The Future Innovation: Key to Extending the “Reach” of IPTV
  16. 17. Thoughts/Questions <ul><li>Meaningful deployment of real bandwidth is still a ways off </li></ul><ul><ul><li>Will broadband-over-powerline (BPL) ever be relevant </li></ul></ul><ul><li>Wireless multicasting very, very costly </li></ul><ul><li>IP applications will drive value – can’t just be a 3 rd wire </li></ul><ul><li>Content is king – Hollywood quickly embracing IP delivery, but still far to go </li></ul><ul><li>When will TV quality video be available via the Internet in a usable fashion? </li></ul><ul><li>Keep your eye on WiFi/Cellular dual mode phones—The 3 rd Screen </li></ul><ul><li>VOD business models will transform the economics of entertainment </li></ul><ul><li>Microsoft is coming – but when? And with what? </li></ul>
  17. 18. A Closing Thought <ul><li>“ Technology is only one of many forces driving human history, and seldom the most important. . . . Technology only gives us tools. Human desires and institutions decide how we use them.” </li></ul><ul><ul><li>Freeman Dyson, </li></ul></ul><ul><ul><li>The Sun, The Genome and The Internet </li></ul></ul>The real opportunity before Ireland is to discover , not determine, how humans and institutions desire for IPTV to be used.