Triple Play Economics and IPTV Launch Informaiton


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  • Telcos must evolve their networks, and stay on the offensive Differentiate, increase ARPU, reduce chances of successful competitive entry Waiting will only make the competitive threat become more serious There are many decisions to make relative to network, etc But also the ability to move faster once they see the opportunity and decide how to approach it More Opportunity than Threat
  • Bandwidth cannot be shifted between routers If you have multiple service VLANs – one for VoD, one for multicast TV, one for voice, one for data… then you have to tie a service to a device – want to surf on the TV? You cant. Want to download music to your STB? – You cant… want to watch TV on your PC? You can’t Every time you touch a box there is a chance of a misconfiguration or an Error or something bad happening…. So the less you do the better. Provisioning infrastructure does not generate revenue. This is all work that The SP is doing himself, it may be good work, it may be necessary but it Does not generate revenue. So what you want to do is have the infrastructure provision itself. OPEX Intensive New service requires DSLAM and L2 network provisioning (new S-VLAN) CAPEX intensive Requires additional aggregation layer Service-specific routers require more capital Specialized CPE (multi-addresses) and complex CPE configuration Increased complexity Distributes service delivery point (intelligence) to multi platforms
  • The idea behind VPLS ring architecture is that you can eliminate redundant replication by sending a single copy of the multicast stream for the whole ring. The problem is that once you architect it this way you’re really screwed once unicast takes off since it has to traverse potentially many nodes before it reaches its destination. This is grossly inefficient and can be easily argued against since VoD is where the money is (broadcast is generally considered to be a loss leader)…. It’s very efficient at losing money – but terible at generating any. VPLS ring architecture proposed by ALA to overcome weak multicast implementation in the CO. Once the customer gets to the point where they decide to direct connect the DSLAM to the BSR to support efficient multicast while enabling a high penetration of VoD, ALA has to move 7750’s into the CO to replace the cheap 7450s’….adding considerable cost to their solution and watering down the benefits of their proposal.
  • Triple Play Economics and IPTV Launch Informaiton

    1. 1. Juniper Networks: The “IP” in IPTV The 8 th Arab Telecom & Internet Forum Muscat, Oman 24 – 25 May 2006
    2. 2. Market Drivers
    3. 3. IPTV Opportunity vs. Risks <ul><li>Clear Opportunity exist to add Video to the existing Voice and Data Services </li></ul><ul><ul><li>Expand share of wallet </li></ul></ul><ul><ul><li>These help differentiate service offerings, add subs, and lower churn </li></ul></ul><ul><li>IPTV still in its infancy </li></ul><ul><ul><li><2M lines deployed,30M-50M projected in 5 years (Source: Telephony Magazine) </li></ul></ul><ul><ul><li>Presents an opportunity to lead the Market </li></ul></ul><ul><li>Competing against Other Video Sources (Cable, Satellite, Internet) </li></ul><ul><ul><li>No Differentiation is a recipe for disaster </li></ul></ul><ul><ul><li>More importantly cost of delivering the service in an economical viable way </li></ul></ul>
    4. 4. IPTV and Beyond … IPTV is just one Service <ul><li>Red = “Triple Play” </li></ul><ul><li>Blue = Service differentiator and opportunities for incremental revenue </li></ul><ul><li>Choose an architecture that allows rapid intro of any of these services ! </li></ul>Bandwidth Consumption Latency/Loss Sensitivity Voice Music Download Game Download Video Conferencing/Telephony Secure Internet Console Gaming Video Download Internet Broadband IM (PC or STB) The Triple Play PC-based Streaming Video Video Turbo button internet Home Surveillance Potential Multi-Play Services
    5. 5. What Creates Costs in Network? <ul><li>Network complexity is created by: </li></ul><ul><ul><li>Forecasts and number of customers </li></ul></ul><ul><ul><li>Number of boxes and facilities </li></ul></ul><ul><ul><li>Number of different boxes </li></ul></ul><ul><ul><li>Number of required upgrades and installations </li></ul></ul><ul><ul><li>Reliability and performance </li></ul></ul><ul><ul><li>Complexity of provisioning and customer care process </li></ul></ul><ul><li>Complexity results in increases in both CAPEX and OPEX: </li></ul><ul><ul><li>Facilities costs </li></ul></ul><ul><ul><li>Customer care headcount </li></ul></ul><ul><ul><li>NOC Headcount </li></ul></ul><ul><ul><li>Training and other costs </li></ul></ul>
    6. 6. Building an Intelligent and Flexible IP Network for Multi-Play Services
    7. 7. Reference Architecture MPLS Core BSR/VSO DSLAM DSLAM DSLAM DSLAM Aggregation User Edge Core
    8. 8. Customer Service and Provisioning IP Backbone Internet Port IPTV DSLAM C-VLANs VoIP Switch DSLAM Service VLANs ASP (e.g. IP Telephony) Internet Port IPTV VoIP <ul><li>Customer VLANs enable: </li></ul><ul><ul><li>Service Pre-Provisioned thereby minimizing call to customer care </li></ul></ul><ul><ul><li>Application integration at layer 3 with SDX </li></ul></ul><ul><ul><li>Bandwidth sharing across applications </li></ul></ul><ul><ul><li>Easy addition of new applications such as business services </li></ul></ul><ul><li>Service VLANs Require </li></ul><ul><ul><li>A device per service </li></ul></ul><ul><ul><li>Application integration at higher layers in the OSI stack (significant development by vendors) </li></ul></ul><ul><ul><li>Significant additional customer care costs </li></ul></ul><ul><li>Effect will be (5x number of service Connections) </li></ul><ul><ul><li>Higher service provisioning and customer care </li></ul></ul><ul><ul><li>Higher application and future service deployment costs </li></ul></ul><ul><ul><li>Possible reduction in revenue due to limited add-on applications </li></ul></ul>Single Edge Approach Multi-Edge Approach Video Head End or ASP ASP (e.g. IP Telephony) ISP (Internet) Video Head End or ASP ISP (Internet)
    9. 9. Preferred Architecture (Single Edge): Subscriber-centric approach based on Single Edge / C-VLAN model AAA BSR 1 x C-VLAN 1 x VC Stacked VLAN MC-VLAN All subscriber and service provisioning in BSR C-VLAN per subscriber for all unicast services Shared MC-VLAN for IPTV broadcast services Per-subscriber policy and QoS centralized in BSR Access and aggregation focus is on connectivity/transport 1 x VC 1 x C-VLAN Per subscriber Internet VoD VoIP TV SDP Subscriber Policy Manager RG RG
    10. 10. Multi Edge Architecture: Service-centric approach based on Multi Edge / Service-VLAN model AAA BRAS Service VLAN - Internet VC - Internet Per subscriber Service VLAN – VOD Video PE MC - VLAN Service VLAN - Voice VC - Voice VC - VOD VC - BCTV Subscriber and service provisioning in access/aggregation Shared VLAN per service for all unicast services Shared MC-VLAN for IPTV broadcast services Per-subscriber policy and QoS distributed over access/aggregation/BRAS Access and aggregation is now ‘service-aware’ VC - Internet VC - Voice VC - VOD VC – BCTV SDP ? RG RG
    11. 11. <ul><li>Subscriber Benefits </li></ul><ul><li>Full access to all available bandwidth </li></ul><ul><li>QoS for all services </li></ul><ul><li>Provider Benefits : </li></ul><ul><li>Eliminates need to statically partition bandwidth per service </li></ul><ul><li>Minimizes planning and provisioning associated with rollout of IPTV </li></ul>Dynamic Bandwidth Allocation: Bandwidth, Where and When it’s Needed VOIP IP Video Data Internet Port IPTV VoIP Video/Hub Serving Office Video Head-end Office Video Hub Office Policy Manager Customer VLAN shaped to 10Mbps service Before IPTV is turned on – bandwidth fully allocated to Data/Voice Upon IPTV activation – Broadband Services Router adjusts BW to ensure IPTV QoE, Voice / Data allocated remaining bandwidth RG
    12. 12. <ul><li>Complex/Static provisioning on a per-service basis = Big OPEX $$ </li></ul><ul><ul><li>What happens when there is a shift to HDTV? </li></ul></ul><ul><ul><li>What happens when a new service is introduced? </li></ul></ul><ul><ul><li>Migration path to interactive services? </li></ul></ul><ul><li>Using a VLAN/VC per service prevents resource sharing </li></ul>Static ‘Carve Out’ Models: Bandwidth, Whether it’s Needed or Not Internet Port IPTV VoD High-speed Internet Broadcast video Video On Demand RG
    13. 13. <ul><li>A single converged network for all services </li></ul><ul><li>Common Service Delivery Point (SDP) provides ability to share resources </li></ul><ul><li>Auto Provisioning – zero touch too add new services and customers </li></ul><ul><li>Simplifies Access Aggregation by centralizing complex tasks </li></ul>Internet Port IPTV VoD High-speed Internet Broadcast video Video On Demand Network Architecture is Critical Dynamic Bandwidth Allocation between services works because……… RG
    14. 14. Operational Cost Savings <ul><li>Assumes $12 cost to carrier to provision a service connection (not including ADSL connections) and shows the impact of cutting connection requests in half </li></ul><ul><li>In the highest growth years this represents a $12.5M savings </li></ul>
    15. 15. Any Service, Any Access <ul><li>“ Agnostic to Access Method” </li></ul><ul><ul><li>ADSL, ADSL2+, VDSL, FTTN, FTTP (APON, GPON), WiMax </li></ul></ul><ul><ul><li>Access technologies will continue to evolve, physical plant deployments should not impede service delivery </li></ul></ul><ul><ul><li>Intelligence is separate from the physical plant and its upgrades </li></ul></ul><ul><li>Invest in infrastructure which builds a framework for scalable and extensible service deployments </li></ul><ul><li>A solution that works for residential, small business and large enterprise </li></ul>
    16. 16. Summary <ul><li>Choosing the right network architecture has far-reaching impact on cost and ensuing success of IPTV service </li></ul><ul><li>High-speed Internet Access remains critically important….it’s an early adopter base for IPTV service </li></ul><ul><li>A few Customers who chosen Juniper to be the “IP” in their IPTV services </li></ul>
    17. 17. Copyright © 2005 Juniper Networks, Inc. Thank You! (