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. 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. MIGRATION AND EXPANSION:
THREE-
THREE-ARM GIANT
Content
E-commerce
Arm One Arm Two Arm Three
Vertical integration Network-inside-network, Control the demarcation
through 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. POSITIONING
Critical
Transition
Period
#1
Stickiness
#2
Stickiness
#2 #3
#1
#3
Cost Time
6. THE CONTROL
3rd
parties
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. ARM ONE: OWNED CABLE NETWORK
DOCSIS Already Upgraded DOCSIS Current
STB
No Change
Common
Home Home
Back-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. FEATURES OF DIGITAL CABLE
Multiple
Low-cost STBs
Current
6MHz QAM
Home Gateway
Digital with multiple tuners
Cable
Wideband 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. 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 6MHz
Metro 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. 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. 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-house
NETWORKING in-house coax coax
Legal Easy Medium Difficult
Now Need development Work with home
Time 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. 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. WORKING STRUCTURE
Content E-Commerse
Network Solution
Content
Home
Owned Network-
In-network Network
Distribution
Platform