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Digital Television _ over IP_

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  • pg 1
									         Digital Televison




Digital Television
    (over IP)

      a management summary




                             Page: 1 of 26
                                        Digital Televison




                            Digital Television
                                (over IP)

                                            i-o
                                 information-organization

                                  ALMERE, the Netherlands

                                     www.nooter.info
                                   brochure@nooter.info




documentdetails
release:                0.3
documentname:           Digital_Television_management_summary-0.3
date (saved):           10/23/2006 3:36:00 PM
date(printed):          23-10-2006 15:36:00
number of pages:        26
number of characters:   48972
author:                 Eric Nooter RI
copyright:              i-o
                        information-organisation BV
                        Almere, The Netherlands




                                                                    Page: 2 of 26
                                                                  Digital Televison



contents
INTRODUCTION AND AUDIENCE ............................................................................................................ 5

GLOBAL INFRASTRUCTURE .................................................................................................................... 5

SERVICES AND SERVICE ELEMENTS..................................................................................................... 6

CORE IP-NETWORK ................................................................................................................................... 7

METRO IP NETWORK ................................................................................................................................ 7

NETWORK EDGES ...................................................................................................................................... 8

MEDIA SERVICE ELEMENT...................................................................................................................... 8
   USER INTERFACE AND APPLICATION SERVER..................................................................................................... 9
   USER PROFILE ENVIRONMENT (CRM AND CSS).............................................................................................. 10
   IPTV, EPG AND OSS/BSS ........................................................................................................................... 10
   VOD, OSS/BSS ........................................................................................................................................... 12
   TIMESHIFT TV............................................................................................................................................. 12
   CONTENT MANAGEMENT SYSTEM ................................................................................................................ 13
   DIGITAL RIGHTS MANAGEMENT ................................................................................................................... 13
     -encryption of real time tv channels ........................................................................................................ 14
     -encryption of Video on demand content ................................................................................................. 14
     -encryption of locally stored content ....................................................................................................... 14
     -analog copy protection .......................................................................................................................... 14
     -fingerprinting ........................................................................................................................................ 14
     -watermarking......................................................................................................................................... 15
   SESSION COLLECTOR (BILLING AND STATISTICS ENGINE) ................................................................................ 15
   FILE RECEPTION (FTP, XML) ....................................................................................................................... 15
   SETTOPBOX MANAGEMENT (SOFTWARE RELEASES) ........................................................................................ 15
   HEAD-END (CONTENT-RECEPTION) ............................................................................................................... 15
     -receivers (satellite, cable and terrestrial)............................................................................................... 16
     -digital playout (the digital movie concept)............................................................................................. 16
     -offline encoders ..................................................................................................................................... 16
     -online encoders ..................................................................................................................................... 16
     -transcoders............................................................................................................................................ 16
   INTEGRATION SERVER .................................................................................................................................. 17
   MONITORING AND MANAGEMENT ENVIRONMENT ........................................................................................... 17
   ROUTERS, IP- AND CONTENT SWITCHES .......................................................................................................... 17

VOICE SERVICE ELEMENT .................................................................................................................... 18

INTERNET SERVICE ELEMENT ............................................................................................................. 18

CONTENT SECURITY ............................................................................................................................... 18

CONTENT ACQUISITION......................................................................................................................... 18

MARKET APPROACH ............................................................................................................................... 19

ORGANIZATION AND PROCESSES........................................................................................................ 20

IP MULTIMEDIA SUBSYSTEM (IMS) ..................................................................................................... 20

HOW TO SET UP A BUSINESS MODEL.................................................................................................. 21
   AVERAGE REVENUE PER USER ...................................................................................................................... 21


                                                                                                                                           Page: 3 of 26
                                                               Digital Televison


   CAPITAL EXPENDITURES .............................................................................................................................. 23
   OPERATIONAL EXPENDITURES ...................................................................................................................... 24
CONTRIBUTIONS ...................................................................................................................................... 26




                                                                                                                                     Page: 4 of 26
                                            Digital Televison




introduction and audience
The motivation for this document is to set clarity to a new hype: IPTV. It seems that every company
with an interest in telecommunication is talking to do anything with this new technology. As usual we
will learn new words for old technologies. This is formulated in this way because in reality the whole
IPTV is based on existing technologies, only the market is exploring the edges of the possibilities.

The main effort will be in choosing the right technology partners and get them integrated. Most of the
planning forgets or under estimate the effort needed to integrate in the existing systems. One of the
key elements of an implementation is that technologies are converging:
                  TV
                  Telephony
                  Video-shop
                  Data
They all come through the same technology. Where in most cases these are separated services now.
You get you voice from a telephony company, including the invoice and support. Internet comes
through another supplier. For a video you have to go to the shop around the corner. Your TV comes
via cable, satellite or aerial.

Not to make you nervous, but there is no standard found yet. But there are some technologies that
mix, and have the potential to be open.

This document tries to address decision-makers, helping to assess advice the get from their staff or
consulting companies.


global infrastructure
The first thing is to understand the global infrastructure. It is noticeable to be aware that the number
of elements which are needed to deliver the service is high, also the number of configure-able
elements is high. This makes the change of faulty devices highly possible. Configuration
management is an important asset.

On the highest level the infrastructure can be broken down in pieces. And be aware that these pieces
are valid for:
1. traditional telecommunications
2. cable infrastructure
3. fiber to the home
4. mobile
The converging component is IP (the internet protocol).

The core-network is the base piece in the infrastructure. It is a maze of routing devices. As stated
before it does not matter what the origin of the company is. This network must be capable in
transporting the data without any disturbance or latency.

The core-network is connected, hierarchical, to so called metro-networks. These are the
interconnect between the MDF (in ADSL environments) or HUBS (in other infrastructures). These
networks contain IP-switches and routers, normally in one chassis.

From the metro-network the trees split further into the network-edges, these edges contain the
devices that bridge the last mile to the customer. You will see equipment that depends on the
technology used: DSLAM, aerials, cable-repeaters, fiber-switches.




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                                            Digital Televison




                                                                         The service-elements are
                                                                         limited to three main services at
                                                                         this stage. You could be able to
                                                                         define more, but the three are:
                                                                         1. softswitch for voice over ip
                                                                             services
                                                                         2. media-farm for streaming
                                                                             media, as we see in IPTV
                                                                             and Video on Demand
                                                                         3. internet, with the traditional
                                                                             services as email, usenet,
                                                                             hosting, chat, messenger

At the customers home you will find all equipment needed for connecting the customer to the
network. First you will find a modem, this is also depending on the used technology. For getting the
IPTV and VoD content on the TV a settopbox will be provided. For internet you will need a PC or a
PDA. The regular modem also will provide WiFi connections to the various devices. WiFi does have
some limitations, it is not possible -yet- to use the technology to connect the settopbox.

At the other side of the chain there is a head-end, this name is taken from traditional broadcasting
but the functionality is slightly extended. It is not just fetching the signal anymore, but is covers also
the encoding and encryption of the content. Also the type of content differs: the non-realtime content
also will be provided through this element.

Roughly there will be 40-ish configure-able devices in
one service chain. From the core this will be multiplied
to the locations. Effectively from end to end every
customer will have one unique configuration.

A new phenomenon in the infrastructure is IMS, which
stands for IP Multimedia Subsystem. It is the aim to
get the system-elements converging in technology. The
implementation is based on SIP (Session Initiation
Protocol), which –in theory- will bring a lot of benefits.
Although a separate chapter is created for IMS, this due
to the complexity it gives.

services and service elements
If we bring it to the basics Triple Play (data, voice, television) is all about the services. In fact the
elements are just mentioned. The bad message is that there are no common names for them yet.
This bares the risk that a word is used where everyone has his own vision with. Therefor in this
document we will stick to the following definitions:
1. Media-Farm: all that contains hard and software to deliver and manage content and customers
    delivering IPTV and VoD
2. SoftSwitch: all that contains hard- and software to make a telephony connection between two (or
    more) customers, where at least one customer is using a Voice over IP connection. This includes a
    voicemail-system.
3. Internet: this is all that delivers the basic -old fashioned- internet-services, like email, usenet,
    browsing, setting up personal webpages, messenger, chat and what will be delivered more.
One of the next phase developments will be the integration of the functionality of these service
elements. Which implies:
         -watch TV on your PC or mobile
         -see who is calling on your TV, first a line-identification, later even video-conversation
         -messenger-services, as on the pc, to see who of you buddies is watching the same program
         -interactive commercials, not push but pull and customer activated
         -this list can be longer, possible as long as fantasy can be.




                                                                                              Page: 6 of 26
                                             Digital Televison




core ip-network
The core network is the spine of the services. The behavior of the core network must be completely
transparent. The only thing it has to focus on is transporting packages from a to b. And this must done
in a way that capacity is delivered to each of the services to gain the quality.
That is where the challenge will be, capacity and quality management. Because these streaming
services are not forgiving. Any delay of transport or loss of data will be shown to the customer:
         bad sound
         echo
         blocking or freezing screens
The engineers will have their own slang for this.
         Jitter: this is if the packages time-frames are not the same, which makes the time sequence
         of the arriving packages variable, causing a weird plopping sound. Often a timing and
         buffering issue in the routing devices.
         Delay: This looks like jitter, but the sequence of the packages is OK. It is more like talking the
         old fashioned transatlantic telephone-line. You never knows when your partner stopped
         talking, or the neighbors got that matchpoint just 3 seconds earlier. This is being caused by
         bad lines (lots of retries and buffering), or just delays added by the devices which cannot cope
         with the traffic-load.
         Packetloss: This is like it says, the packets are gone, or arrive corrupted in a way they
         cannot be reconstructed. There are protocols on the way where you can loose up to 30
         percent of the bits, and still recover the package. But it will create overhead, so higher
         processor-usage, more buffering and the risk of introducing jitter and delay.
         Replication: This phenomenon is introduced by badly implemented redundancy. In the
         struggle to create continuity the used protocols can cause that the same packages are
         distrubuted along different paths in the maze. Especially settopboxes cannot handle this
         effect and will freeze in a stage where hard reboot are needed.
In a common network the core-network will show as fiber lines between routers. The routers can be of
any manufacturer. Even mixed can be possible, something you see at internet exchanges.
There is one big but. Most of the boxes have limitation that will not show in the brochure, or not at
least in big characters.
Like stated before it is important to deliver quality. Therefor Quality of Service (QoS) is part of the
operating system implementation. Any QoS-rule will downsize the routing-capacity.
Other limitations are the throughput in Mbps, and the number of concurrent session (or streams).
Every setting competes with another. There are cases shown where the filed capacity turned to be 5%
of the brochure capacity.



metro ip network
As explained before a common ip-network is a maze with a hierarchical structure. The highest maze
in the structure is the core. One level deeper the metro network is found.
It is normally geographical spread, clustering the next level of geography. In most of the occasions
the premises are still owned by yourself as a network company, at least leased.

In the metro you normally find a variety of switches and
routers. Also traffic shaping will be part of the functions done
here.
Traffic shaping is the first stage of Quality of Service. It
separates IP-traffic into different fibers, in this way it is not
competing the bandwidth of the core.

Regular also proxies or other forms of distribution of service-
elements are placed here.

It is an IP-node with quite some intelligent devices.



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                                                        Digital Televison


Up to this point the networks for telco’s, cable companies and mobile operators are pretty much the
same.


network edges
The network edges are the differentiating part, here telco, cable and mobile are separated.
For comparing the differences of similarities are put in three columns.

TELCO                                        CABLE                                        MOBILE
The infrastructure is shared, and owned by The infrastructure is owned. In some           the infrastructure is shared, and often
an incumbent                               occassions third parties can deliver           owned by a non-technical company.
                                           services over the infrastructure (where
                                           television, telephony and Internet are still
                                           separated).
The hardware consist of routers, switches ??                                              Routers, servers an antenna’s will be
and dslams.                                                                               found. Servers are needed because
                                                                                          roaming needed to be supported.
On average between 250 and 400                                                            The number of customers in a cell is
customers can be added tot a DSLAM                                                        depending on the number of radio-
                                                                                          connections each user can get. For
                                                                                          broadband-like connections 150 to 200
                                                                                          customers in one cell is a maximum.
The distance to the customer is limited to                                                The distance is several kilometers, but will
2500-3500 meters (ADSL2+ and VDSL),                                                       depend on external influences.
the minimum bandwidth needed for the
services is 12 Mbps, which will be the
average at the mentioned distances.
Interference is available, this will be                                                   Weather, buildings, shading/reflection and
caused by crosstalk (busy bundles will                                                    even leaves will cause loss of bandwidth or
suffer from this efect), but also the                                                     quality.
physical quality (humid, oxidation) will
cause higher errorrates
Protocol implementation, and error-                                                       The promised UMTS is still in an initial
correction, is implemented in a different                                                 rollout stage, GPRS is not providing the
way by the various DSLAM manufacturers.                                                   needed bandwidth.
The ADSL2+ and VDSL protocols are far
from mature and chip-sets are in first
release, providing a range of child-
diseases.

There is one column lacking: Fiber to the
Home (FttH). This is done deliberately, there
is hardly any infrastructure, only pilot
projects. The reason is that bridging the last
mile is very cost-intensive and can only be
achieved when it is subsidized by
government, or investors with long term
commitments. But in this era of de-regulation
creating a private infrastructure that will
create a monopolistic position will get the
investor in risk of opening his infrastructure
by force of law.
BUT.... most of the limitations of cable and
telco will be solved by using fiber.

Normally there is hardly any space to put in additional equipment. There are physical limitations to
the number of customers, because (except mobile) this is where the individual cable goes to the
customer. Whether it is copper, coax or fiber.


media service element
It is an element with quite some size. For a rough 250K customers you will be filling a data-center
with 100plus servers, some switches, routers and TV screens. For the VOD services you will be
placing satellites in the Metro area’s too.


                                                                                                                     Page: 8 of 26
                                             Digital Televison


The name “Mediafarm” is more in place. But Babel starts here too, some suppliers deliver ‘middle
ware’. Unfortunately the first thought is: “hey, this integrates all in my infrastructure”. NO. This
middleware only glues together all different components in the Mediafarm, and in most occasions
deliver a user interface.
For starting a listing of all components, which will be explained briefly one by one.
        1. user interface and application server
        2. user profile environment (CRM and CSS)
        3. IPTV, EPG and OSS/BSS
        4. VoD, OSS/BSS
        5. Content Management System
        6. Digital Rights Management
        7. Session collector (billing and statistics engine)
        8. File reception (FTP, XML)
        9. Settopbox management (software releases)
        10.head-end (content-reception)
        11.integration server
        12.monitoring an management environment
        13.routers, ip- and content switches




        user interface and application server
        Start with a small explanation of the two types of user-interfaces (UI).
        The eldest is the embedded interface. This is normally seen on satellite receivers. It is a
        static interface where logic, data and presentation are in one piece of software, not separated
        from each other.
        The benefit it is fast, the counter side is that it is very inflexible. You also need specific skills
        to develop the interface, and each type or hardware release of the settopbox needs
        compilation and distribution of the software.
        All of the intelligence resides in the settopbox.

        The other type is the http interface, actually this is feeding the settopbox with content as it is
        done on the internet. For development all skillsets as you need them for a webpage can be
        used. Data (content), logic and presentation are separated. This makes it possible to get
        different skins or brands from the same source. Changes can be made easily and realtime.
        It is independent from the hardware. As long as the hardware understands http it will work: pc,
        phone, or settopbox.
        For sure there are limitations. It is the speed of loading, like an average internet page. But
        also the processing capacity of the receiving device.

        So far a lecture on architecture.


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                                      Digital Televison


Normally the choice will be made for the http interface. To achieve this you need a series of
webservers, can be Microsoft IIS or Apache or any other. Most of the deployments do use
Microsoft at this stage.
The application servers are software implementations, running on the same hardware, or
separated. The function is to deliver specific data to the customer which will deliver content to
the customer, or provide limitation. Some examples:
        -authentication: the customer enters a pincode, the data will be sent from the
        Settopbox to the webserver, which transfers the data to the application server. On the
        application server a process is activated that validates the pincode in a database and
        creates the response.
        -a movie is selected: the application server gets the playlist from the VoD
        middleware, containing the ip-address, portnumber and filename. But also creates a
        session at the customer that the content was requested, for invoicing purposes.
        -EPG: the customer selects the program guide, the application server selects the
        format (occasionally preset for the customers profile) and shows the data as from the
        current date and time. The EPG also provide the most recent ip-address and
        portnumber for joining a multicasted IPTV channel. Also this data can change on the
        fly.

In the vocabulary of the suppliers this normally is a part of what is named MIDDLEWARE.


user profile environment (CRM and CSS)
A particular Mediafarm will have some like a Customer Relation Management environment
(CRM) and a Customer Support System environment (CSS), the size of the implementation
depends whether it is a stand alone or an integrated service. Normally integration will be
preferred to deliver the Triple, or Multi, Play to the customer.

In any way the Mediafarm needs storage of customer profiles. These profiles will contain the
details to provide the customer with services the customer bought. Examples of profile items
are:
         -settopbox identification: This is used for authentication of the settopbox to the
         network, but also for forensic purposes if the use of content is abused. Billing-records
         will show unique settopbox id-strings.
         -user details: This are human readable data, name, ip-addresses, customer-id, main
         pincode.
         -product details: From a marketing perspective packages will be delivered to the
         customer. In a package also the billing method is defined: pay per view, subscription,
         discount, usage bundles.
         -provisioning status: To show if a customer is active, suspended, canceled, upgraded.
         Or in any transition to another status.
Some of the data will be exclusive in the Mediafarm, some will be distributed (replicated) into
other -centralized- systems. Or the choice can be made to have a real distributed data(base)
environment where sources are exclusive and will be accessed by any other system. These
are all architectural choices which make implementations unique and add or reduce
complexity. But need to be made to create a manage-able, consistent system.

The CSS is the enviroment used by human and machine interfaces to access and alter the
data in the profiles. As an example to reset the pincode, update a status, or change a product.

Some suppliers will call this Middelware too.

IPTV, EPG and OSS/BSS
This paragraph focuses on the IPTV, an abbreviation broadly used but with multiple
interpretations, which again is a Babel.
Literal IPTV is “internet protocol television”. But in fact it is digital television transferred over
IP. In a particular implementation it is not comparable with Internet Television. The
technology is not different, but the quality (bitrate as well as continuity) in a TV-service is
much higher. This is expressed in the bitrate and delivered over a managed, secured,



                                                                                       Page: 10 of 26
                                   Digital Televison


infrastructure. Managed for the QoS and secured for the use of DRM (Digital Rights
Management).

                                 The technology used for IPTV is multicast. Multicast is a
                                 protocol within the IP spectrum that broadcasts a stream over
                                 a network. It uses a specific implementation of IP called UDP
                                 (user datagram protocol), other than TCP/IP it does not support
                                 resending lost or corrupted packages.
                                 A device is capable in joining a stream, by knowing its IP-
address and portnumber. Joining can be static are dynamic. The static joins are done in the
core and metro networks, this implies that the data streams are always available. In the metro
network (a switch), or in the dslam, customers will join a stream dynamically by choosing a
channel.
Good implementation of the protocols allow join and leave times of milliseconds.
Also here choices on architectural level need to be made. Bandwidth capacity and usage
statistics will drive those choices. But with the right choice of hardware a choice is not
necessarily irreversible.

Static joining is an one time manual action. Good administration is an important asset. To
know what stream contains what content. To keep capacity management in order, as we
learned bandwidth and number of streams drive the routing performance.

Typical a network has one ‘rendez vous point’, this is where the multicast streams are
delivered in the network, these have the source ip-addresses. An application will manage this
‘rendez vous point’ activating the ip-addresses. No magic, it is just maintaining an access-list
on a router, not even a complex expensive one.

The knowledge on the ip-adresses, channel-numbers, channel-names and synopsis’s of the
content is managed by the EPG. The
Electronic Programming File is a XML-file that
is distributed through the UI, and can even be
filtered based on the customers profile. Look
and feel can be managed as any other
webpage would be.
When the requesting device gets the
information it even can be directed to a
different stream depending on its browser
specification. To clarify, if you use a settopbox
the browser can be detected by the webserver
and sees that it can deliver a 4 Mbps MPEG2
stream, but when the customer accesses with
his PDA over a UMTS connection the address
of a 256 Kbps Windows Media 9 stream will be
given, or when a PC-browser is detected it will
assume it is running over public internet and a
750 to 1500 Kbps stream will be provided.

In the last line bitrates and streaming encodings are mentioned. This a becoming a science in
itself, or in some occasions perhaps closer to a faith.
The bitrates are driving the screensize in combination with the amount of movement in the
movie. Ideally a bitrate is variable, just like a DVD, but in a network it is the capacity
managers nightmare.

                  Bitrate                  Codex                     screen size
                  below 100 Kbps           WM9, MPEG4                Mobile phone
                  below 250 Kbps           WM9, MPEG4                PDA
                  500 Kbps to 1.5 Mbps     WM9, MPEG2, MPEG4         PC
                  4 Mbps                   MPEG2, MPEG4              TV (SD)
                  8-10 Mbps                MPEG4                     TV (HD)



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                                   Digital Televison


The bitrate is also depending on the encoding, also referred as compression. The three used
compression codexes are: MPEG2, MPEG4 and VC10 (also known as Windows Media
Format). MPEG4 and VC10 are close together, and migth expected to get compatible or
converge.
MPEG2 is the most mature, with an experience of over 10 years now. Bit the compression
ratio of MPEG4 and VC10 is higher, what implies that the same quality can be delivered at
half of the bitrate.
Flip side is that the higher the compression ratio the more powerful processing capacity is
needed for as well encoding as decoding. The fact will be that the industry will end up in a
similar upgrade cycle as is shown in the PC industry, enhancements will bring hardware
upgrades. Product and version lifecycles of two years for settopboxes must be expected to be
normal.


VoD, OSS/BSS
A VoD implementation uses the same codex as IPTV, the difference is in the transport of the
stream. It is a unicasted stream, every customer will activate his own stream.
From a network management perspective this again will be a capacity risk.
First part of the risk is covered by defining a concurrence ratio, with the current knowledge set
at 10%. But most of the operational environments only use up to 30% of the deployed
capacity.
                                                     Second way of reducing the risk is
                                                     distributing the content to locations deeper
                                                     in the network hierarchy, this brings
                                                     redundancy and not creates a single
                                                     pressure point.
                                                     The third approach is in the VoD
                                                     middleware. In this middleware are
                                                     counters that limit the number of playouts
                                                     at a time. Last in can get a “sorry not
                                                     available” message, but will not be charged
                                                     for the attempt.

Vod-files are large, 5 GB is a normal size for a MPEG2 2 hour movie. Uploading, processing,
distributing will take quite some time.
The content is highly valued, therefor the files are fully encrypted with DRM, and also stored
encrypted. Something to keep in mind when space-management is executed.

A VoD-system normally comes with -again- middleware. This middleware takes care of all
processing to upload and distribute files.
Another aspect of the middleware are API (application programmable interfaces) to use in the
UI for defining the buttons on the remote control. And make the actions happen associated
with these defined buttons.
The last part of the middleware manages the usage, sessionrecording and directing to the
available location of the content.
In correct implementation the direction towards the content also can be used for continuity.
There is a regular check if the file or server are responding, if not there will be an automatic
redirect to an alternative location.


Timeshift TV
Timeshift or delay TV are presented as the most important usp of the IPTV service. Originally
the technology was launched by TIVO in the United States, promoted as the way of avoiding
the annoying commercials. Largest sponsor of the technology were the content owners, they
were at the front to assure their interest was protected.
Customers were willing to pay a premium for the service.

The content for timeshift was stored locally on a harddisk. The content is local encrypted to
protect from copying.



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                                   Digital Televison



Bandwidth was not an issue since it used cable technology, the limitation for simultanious
recording was the number of tuners. Regular there were two, one for recording the watched
channel, and one for the use as a pvr.

                                                             In IPTV there are two
                                                             implementations: network centric
                                                             and settopbox centric. Most
                                                             implementations are settopbox
                                                             centric. The technology is similar
                                                             to the TIVO, the main limitation is
                                                             the number of simultaneous
                                                             streams. Two is a maximum at this
                                                             stage, which implies you only can
                                                             connect one set to the network.

                                                          The network centric version does
                                                          not have the bandwidth problem
                                                          for the customer. The bandwidth
                                                          problem lays in the transition from
multicast to unicast. When a customer is just a second delayed he will use his own stream,
consuming bandwidth through the whole network. This behavior can be unpredictable.

Also on the rights some needs to be solved, because the network operator, not the customer,
is seen as the recording party.


Content Management System
A full size Content Management System (CMS) is not a necessity in an IPTV environment.
But when content (in this case mainly text) is used on different distribution methods (tv,
mobile, internet) it will make sense.

Particular a CMS delivers a professional editorial
environment. It also provides tools for automated
processing of data, and reformatting for the delivery
method.
The editing environment is normally very user
friendly, in the latest releases with a MS-Word like
user interface.

The CMS also can be used as a database to store the
historical information. The customer can be provided
with interfaces to search old data. But also services
as writing comment to content is something easy to
deploy.

In general an IPTV environment comes with a limited editorial interface. Only to update
records and fields in the provided middleware.


Digital Rights Management
In this paragraph a bit more is covered, it is more about “content security”.
The elements of content security are:
-encryption of real time tv channels
-encryption of Video on demand content
-encryption of locally stored content
-analog copy protection
-fingerprinting
-watermarking



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                                    Digital Televison


There are quite some things needed tot satisfy the content owners. Only when they feel
completely confident the IPTV-supplier is protected their interest premium content will be
available.


-encryption of real time tv channels
Real time encryption on the MPEG-stream is never for the full 100%. In general around 10%
of the MPEG frames are encrypted in a way they will not be viewable without decryption with
the proper key. A settopbox request new keys on a regular base, for instance once every 24
hours.
These settings normally are a
parameter and can be changed.

Alternative for DRM is Conditional
Access, in that case a smart card
contains the keys. Smart Card can
be activated remotely. The
experience with pay TV and satelite
is that it is quite easy to hack and
copy these Smart Cards.



-encryption of Video on
demand content
The Video on Demand content
undergoes a intense process before it can be distributed to the customer. At the paragraph
“Headend” this process is explained.

The adding of DRM is done offline, and the whole file is encrypted. Keys are exchanged on
every request.
Adding the file is an intensive process, roughly the encryption takes half the time you need for
normal playout.


-encryption of locally stored content
In case the settopbox contains a harddisk content owners require encryption of the locally
stored content. The decryption of the content must be done via an embedded
softwaremodule. In that way reverse engineering of the decryption algorithm will be avoided.


-analog copy protection
For analog copy protection there is only one supplier that matters, Macrovision. This company
provides a chipset that needs to be in the settopbox. This chipset is licenced by the settopbox
supplier.
During processing the files or realtime stream a signalling bit can be added that activates the
chipset. When activated it prohibits the analog output to digital devices like harddisk. To a
video-recorder is messes the tracking, the output will be there but will show as a very bad
copy.
For usage the provider, networkoperator, has to pay license fees per user to Macrovision.


-fingerprinting
With finger printing a unique identification of the settopbox (customer) is inserted into the
output of the settopbox. This fingerprint is used in case of distributing the content in an illegal
way. The source of the content can be found, and measurement can be taken against the
abusing source.



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                                      Digital Televison


It is a reactive way of protection.

-watermarking
The processing of data is a long chain of activities. The technology is already used by a
number of studios, they insert secret identification in the source. In that case they can identify
the station in the chain where the content was the source of illegal distribution.

It is advisable that the networkoperator adds its own watermarks, in that way your own trail
can be tracked.
Note the fact that in 80% of the cases the content is stolen by own staff, or own staff give
access to the content.



Session collector (billing and statistics engine)
Mediation is well known technology in telecommunications. Similar processes are used for
IPTV. Quite often SIP is used for signalling sessions (Session Initiation Protocol). These
records are processed in a billable format, in a way they can be inserted in a invoicing
system.


File reception (FTP, XML)
A lot of data, not being the actual content, will be received.
-Electronic Programming Guide
-synopsis’s
-posters of movies
-CRM and BSS data
-data from account receivable systems
Normally this will be doen throgh one gateway, efficiency and security are the drivers for this.

FTP and XML (http) are the most used protocols.


Settopbox management
(software releases)
The architecture of a settopbox is the
same as a (personal) computer. Therefor
it needs an operating system and
applications. Both these are not stable -
yet- which implies regular updates and
new releases.
To get the settopbox up to date in a user
friendly way it must be an automated
process, preferable unattended. More or
less like Windows XP is handling release
management.


Head-end (content-reception)
The head-end is a collection of hard- and software with the purpose to prepare the streaming
content for digital distribution. The elements can be grouped:
-receivers (satellite and aerial)
-digital playout (the digital movie concept)
-offline encoders
-online encoders
-transcoders




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                                     Digital Televison


-receivers (satellite, cable and terrestrial)
The most common way of distribution of live TV is satelite. Cable and terrestrial are also a
possible distribution method, but the source is less of quality to transform to digital.
Satelite is already a MPEG stream, quality is depending on the bitrate. In some occasions the
bitrate is low due to the use of multiplexing on the channel. The channel owner uses this
technology of multiplexing to get a more cost-effective use of the available bandwidth.


-digital playout (the digital movie concept)
The digital movie is a new standard that is developping. It is used for distribution of the
content direct from the editors room to the distributor.
This concept can be used as well for stored content as live TV.


-offline encoders
The offline encoders are used for either digital stored content (the DV-formats) and tape (in
general digibeta). There is analog or digital input and the output is digital in the required
format (MPEG or VC).
Encoders in general are single purpose, they are capable handling one input-type and one
output type. There are full software encoders, but the quality is less.

Offline encoding is delivering higher quality than online encoders. The compression
algorithms used can have higher complexity because time is not an issue.




-online encoders
The online encoders compress the content realtime. Preferable even in a way that there is no
delay, which is contradicting: it assumes the processing does not take any time.
The delay can be one to one and a half second, which is acceptable.
Comparing the picture quality, both objective and subjective, between online and offline there
is a difference in favor of offline.
The type of content will influence the quality too. So called talking heads (hardly moving
pictures) are less demanding than a sports registration. The different suppliers use different
algorithms. Selecting a supplier must not be done based on price, brand or guts. Selection
must be done based on the output. It is good to use different brands.


-transcoders
Transcoding is done to put a digital signal, actual the end product, in another codex or bitrate.
Transcoding can be done realtime. An example for transcoding is getting the signal proposed
to feed the settopbox towards PC or mobile.

The transcoding market is in a initial state, but will be growing. It will give the benefit of a
single source.



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integration server
It is mentioned earlier in this document: quite often the word middle ware is used. This does
not mean an integrated service will be delivered. Most certainly there will be no integration
with existing systems.
The integration server will act as a broker between various systems. The used technology
depends on the environment in which it will be placed.


monitoring and management environment
Monitoring tools for servers (hardware) and services (applications and processes) are broad
available, and have developed a high stage of maturity.
For the signaling SNMP is often used. For parts of the management access to the servers

                                                                The monitoring of quality of
                                                                MPEG streams is still an area
                                                                under construction.

                                                             Most of the quality is still a
                                                             subjective observation. There
                                                             is a sample-tape from the
                                                             EBU (European Broadcast
                                                             Union) that can be used as a
                                                             reference for testing the
                                                             output.
                                                             A less subjective way of
                                                             looking towards the PQR
                                                             values (it stands for picture
                                                             quality ratio) it a machine
                                                             measured ratio, so fairly
objective. The measurement is quite complex: one clean source baseline and the result at the
other end. A visual inspection is not possible.




routers, ip- and content switches
Network-devices are an essential element in the infrastructure, all devices are connected.
There are some specifics.
Routers must be capable in
distribution of the streaming
content.

IP-switches are used to direct
data over Virtual LANs to
separate the data.

Content switches are essential for
spreading load over the different
servers. When used in the right
way scalability is almost endless.
Also the maintenance can be
done without any outage for
customers.

With a proper implementation of
the network devices also a distributed environment can be created. This bring redundancy on
different geographical sites. Where not only capacity issues will be solved but also
contingency will be arranged.



                                                                                 Page: 17 of 26
                                             Digital Televison


        If the job is done in a proper way this redundancy can be a second phase, executed without
        high impact changes in the architecture. It even is achievable without any disturbance or
        outage for the customers.


voice service element
Voice over IP is a replacement for ISDN and POTS. For the technology often is referred to the term
Softswitch, which sounds like an appliance. This is not true. The Softswitch is a cluster of servers with
different purposes, in a decent implementation of a Softwswitch the servers are even distributed over
the network, and still act as one entity.
Breaking down the softswitch, the following elements can be recognized.
    a signaling gateway: this is handling the authentication and the presence of a client, it sees if a
    client is online
    a media gateway: this is translating the voice stream (is it is data over the IP network) into speech
    as it is delivered to the POTS or ISDN network, and vice versa for an incoming call
    a SIP server: this collects the session information, who is calling who and when and how long.
    Both for incoing and outgoing calls.
    the softswitch: bearing all the functionality as call forwarding, malicious calls, busy tones,
    ringtones...
    a dns-environment: this is used for knowing which phonenumber belongs to what IP-address. In
    fact the implementation of a numberplan.
    middleware to manage all the data and customer details.
    a voicemail system: in the ideal situation it will do more than only store voice mail
Voice over IP is not yet as stable as landlines. It is comparable to mobile both quality and reliability.


internet service element
The internet service element is delivering that what we experience now a days as the normal internet
access service. The customer expects:
   email both incoming and outgoing (pop, smtp and webmail)
   name servers, the well known DNS which is needed for surfing the web
   usenet, also known as news
   hosting, a piece of server space where customers can put there own websites
Most of the other services (messenger, chat, skype for instance) are all delivered by third parties
making use of the public internet.


content security
Most of the technology is explained in one of the paragraphs handling the “media service element”.
Content security is essential to obtain any content of value.
Content security will be used for prevention and forensic purposes. Content security must be actively
managed, it is not implicit available.


content acquisition
The technology of content acquisition is described in the paragraph handling the head-end and the
encoding. There are two main aspects in the acquistion.
First is the acquisition of the rights. The owners of the rights are rarely organized, to obtain a right
sometimes negotiations have to be done with individuals.

Second is the processing of the data. There are companies in the marketplace specialized in handling
the data. This including encoding and quality control. The last is important: checking languages,
subtitles, lipsync, completeness, duration and so on.

For both it is advisable to outsource. A typical network operator is new in this arena, but also will not
immediately understand the differences in culture. What might bring the success in risk.




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market approach
The market is not yet waiting for this service, although the consultants, advisors and visionaries do
tell so. The customer acts different. Only the early adapters will take up these new technologies.
There is no real benefit for the customer:
    TV is still TV, with the same channels, quality is not better or guaranteed
    The telephone still works the same, as said with a lower quality and reliability than his current
    landline
    ADSL works as before, maybe a bit faster, but when the remote server is still a slow one the higher
    bandwidth does not help
    Prices are the same as they were before, slightly lower perhaps

Where will the benefit be.
  More channels available, but than in a personalized combination, and not pre-selected bundles
  Video on demand, at least the same titles as in the video-shop around the corner
  Timeshift TV
  Pay per channel for a short period, for instance see one football match or multicasted blockbuster
  A selection of charging methods, subscription, bundled, pay per view.

One of the risks is feeding the customer to much functionality at once, something that will be hard to
digest. It is better to release often new functions. Examples can be:
    video conferencing on TV
    calling line signalling on TV
    messenger on TV, including buddies
    chat on TV
    Interactive commercials
    Special interest, and sponsored channels
    Internet TV sources rerouting, proxy-ing streams from foreign channels
    Converging between TV, PV and Mobile: start watching news at breakfast, continue while
    commuting on your mobile, watch the last part on your PC at work. And all with the same account.
    Softclient for Vice, pick up the phone where ever you are.
The imagination will be the limit of the possibilities, it will be a product marketing utopia. But also the
richness of the services will differentiate from the competition. All will have the basis.

From a financial perspective the ARPU of a customer will be in the range from 35 to 75 euro a month.
The variance is in the different countries, in some countries the competition is hard and prices low.
Current media spending is in total between 75 and 120 euro a month, including mobile, video renting,
cable subscriptions. When offering the customer a one stop this will be a realistic ARPU.

Investments for delivery of a full deployed Triple (Multi) Play environment will depend strongly on the
situation.
Existing infrastructure can be reusable.
Is it possible to share elements (MVNO or a shared MediaFarm)
Entering from a more or less greenfield situation investments up to 175 M euro are not rare. But also
here the choices drive the cost. Turn key projects in general are more expensive, but not a guarantee
from success.
Important is to understand that the depreciation will have a variance across the infrastructure.
Settopboxes will depreciate within two years. Currently highly subsidized, but within two years a
standard is expected to develop which makes it a commodity, available on every corner of the street.


In the european market there are several implementations:
SKY (Great Britain)               An early adapter, with a hybrid technology.
                                  Sky claims to have approximately 750.000 customers on digital TV
Fastweb (Italy)                   The first Triple Play over ADSL provider in Europa, currently
                                  approximately 180.000 customers active, build in a timefram of 3
                                  years.
Belgacom (Belgium)                Started in 2005, is at 75.000 subscribers, but not clear how many
                                  are actual delivered and in service.
Versatel /Tele2 (Netherlands)     Started in August 2005, currently 100.000 customers active.
KPN (Netherlands)                 Started building in 2004, currently still in test phase


                                                                                            Page: 19 of 26
                                           Digital Televison


Swisscom (Switzerland)             For two years under construction
France Telecom                     Is not giving any statement on digital TV
Neuf Cegetel                       Appriximately 60.000 customers for digital TV, active since 2 years.

A broad variety of companies is testing and developing, but all on a low scale deployment.

organization and processes
Al that what is written in this document also must be delivered, operated and managed. There are
complete new activities for a typical network operator. Some activities are already in place and need
some altering.

The operational mindset must be different. The customer expects round the clock availability, a
service window hat causes a black screen is not shown in the world of broadcast. This is also valid for
the case something breaks: don’t waist time is seeking the fault, first restore the service.
The last also requires contingency measurements, the most important services must be able to
deliver by turning a switch. Less functionality, less quality but no black screens.



IP Multimedia Subsystem (IMS)
A separate chapter in this phenomenon. The idea is getting quite hot, it is driven by mobile operators,
as in this marketplace these new converging services are most accepted.
                                                                                  The technology is
                                                                                  moving from wireless
                                                                                  to wireline, but the
                                                                                  baseline is the
                                                                                  assumption that the
                                                                                  transport-layer is
                                                                                  complete
                                                                                  independent from the
                                                                                  services running on
                                                                                  top of them.
                                                                                  The assumed
                                                                                  implementation is
                                                                                  shown in the graphic
                                                                                  below.

In the analysis of the specialists the rollout of the technology is spread over the coming 5-10 years.
This has all to do with the lack of
robust proven technology so far.
Whenever IMS is offered as a
service ask a lot of questions.:
-where deployed
-number of customers served
-number of releases per period
-which services are supported,
and which services are supplied.

When looking at the graphics note
that the focus is on voice, where
the migration is from traditional
circuit based switches to packet
based switching. In this case
multimedia limits to sound and
data. More complex integration is
not developed at all.

The last figure will explain the complexity added by using the architecture of IMS. There is always a
risk involved by adding a high level of –assumed- integration. New dependencies are created, which


                                                                                          Page: 20 of 26
                                                         Digital Televison


are a new risk to the continuity of the services. A less level of integration may involve a limitation in
                                                  converging of the services, but this is most of all an
                                                  operational issue. There is no plea for not
                                                  investigating in IMS, but a hesitation to invest in and
                                                  rely on it. Special where the industry-solutions are far
                                                  from mature.

                                                                The architecture however does make sense, although
                                                                it looks a lot like Utopia.

                                                                At this stage most of the results also can be gained by
                                                                the use of simpler, proven, structures.

                                                The business model also will suffer from these types
of architectural implementations. The cost per user will be high on licenses, hardware requirements
and operational effort.


How to set up a business model
One of the struggles most companies go through is setting up a business and revenue model for
these type of complex, heterogeneous products. An additional complexity is the existing
infrastrucuture, the project won’t be in a total greenfield.
In this paragraph will some explanation on ARPU, CAPEX, OPEX and a summary to fit all together.

The information published here will help to build a model, it will definitely not a general cut an paste
ready model that will fit any organization.

Average Revenue Per User
Looking at the ARPU some dependencies will be found. The first dependency is the ability to attract
the customer to use all services available. This implies a full competitive package must be available,
also from the quality perspective.
Going through the package:
• connection (cable, ADSL, FttH)
• internet services
• telephony
• television (tv channels and VoD)
• commercial revenues (bannering, TV-commercials, infotainment channels)
The first four will be a direct revenue to be collected from the customer. Commercial exploitation will
be paid by third parties, but there is a direct relation with the size of the customer base. In later
implementations using interactive commercials even a revenue share model can be implemented.

Prices for the services vary between countries, based on competition and regulations. Therefor no
prices will be published, as an example the Dutch market is shown..

                      Payment type / Service                          current           offer       bandwidth           Bandwidth
                                                                                                          low                high
                                              1
                      monthly recurring                                              euro 45
                              -cable subscription                     euro 13                            euro 13             euro 13
                              -satellite                              euro 10                            euro 10             euro 20
                              -pay tv                                 euro 29                            euro 29             euro 30
                              -internet connection                    euro 15                            euro 15             euro 45
                              -telephony (fixed)                      euro 10                            euro 10             euro 10
                      Variable
                              -telephone calls                         euro 8        euro 10               euro 5            euro 15
                              -video/dvd rental                       euro 15        euro 20               euro 5            euro 25
                      Support refunds

1
  Note that those numbers cannot be add up, satellite and cable discriminate, and in some countries free to air TV is still available (or
regulated).



                                                                                                                      Page: 21 of 26
                                              Digital Televison


                 Payment type / Service                 current             bandwidth
                                                                         offer           Bandwidth
                                                                                   low           high
                         -0900 service                euro 3    euro 2             free        euro 4
                The prices are per month, and for video/dvd rental it is assumed the same titles can
                be offered as in the video-rental-shop.

More and more there is a trend to limit the variable cost. Customers can use a ‘all you can eat’ offer
by paying one fixed premium per month, or bundles are offered. The last look more like a pre-paid
model where the cost are not allocated to a specific service. Which implies a proper implementation
of Multiplay services in the billing and collection systems.

Market expectations are also important to calculate the revenues on these offerings to customers.

                                  country           connections   penetration total market    theoretical     potential
                                                                                                 market

                                  Taiwan           3.835.000,00    0,558100       6.871.528    3.779.341       -55.659
                                  Finland          1.135.999,00    0,478700       2.373.092    1.305.200      169.201
                                  Israel            845.000,00     0,456000       1.853.070    1.019.189      174.189
                                  Norway            894.600,00     0,451800       1.980.080    1.089.044      194.444
                                  HongKong          953.000,00     0,450800       2.114.020    1.162.711      209.711
                                  France          11.082.000,00    0,448400      24.714.541   13.592.997     2.510.997
                                  SouthKorea       6.376.294,00    0,425100      14.999.515    8.249.733     1.873.439
                                  Switzerland      1.253.000,00    0,412200       3.039.787    1.671.883      418.883
                                  Netherlands      2.684.120,00    0,379100       7.080.243    3.894.133     1.210.013
                                  Singapore         372.000,00     0,373100        997.052      548.378       176.378
                                  Denmark           916.718,00     0,371100       2.470.272    1.358.650      441.932
                                  UK               8.699.000,00    0,362400      24.003.863   13.202.125     4.503.125
                                  Australia        2.686.200,00    0,356800       7.528.587    4.140.723     1.454.523
                                  Italy            7.352.612,00    0,351700      20.905.920   11.498.256     4.145.644
                                  Sweden           1.473.750,00    0,340900       4.323.115    2.377.713      903.963
                                  Spain            4.582.700,00    0,333600      13.737.110    7.555.411     2.972.711
                                  Belgium          1.387.287,00    0,322500       4.301.665    2.365.916      978.629
                                  Japan           14.861.686,00    0,308900      48.111.641   26.461.403    11.599.717
                                  Germany         11.763.000,00    0,305100      38.554.572   21.205.015     9.442.015
                                  Canada           3.570.500,00    0,296200      12.054.355    6.629.895     3.059.395
                                  NewZealand        435.000,00     0,295700       1.471.086     809.097       374.097
                                                      source: Point Topic’s Global Broadband Statistics (GBS) Database


This table show for a selection of countries the number of connections as reported for Q2-2006. The
column connections show the absolute number of ADSL connections. The penetration is the ratio of
number of households and the number of connections. The theoretical market is a number calculated
on the base assumption that 55% of the total number of households will be in a coverage distance for
ADSL2+.
Roughly the potential is the total available broadband market (ADSL, cable and FttH).on customers
first entering the technology. Surely those are not the early adapters.

Analyzing these numbers will tell that the marketing will be a harsh job.
• early adapters need to be migrated to the new service, or even conquered from the competition
• the free market consist of late adapters to never adapters, for those customers the ‘what’s in it for
    me...’ component is very high.
To compete all aspects must be covered: price, quality, service and convenience.
Be aware that the aim is to replace existing services, not like Internet and mobile telephony whom
penetrated in a new market. Interactivity and Video on Demand are the only elements with an aspect
of innovation.




                                                                                                     Page: 22 of 26
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Capital Expenditures
The CAPEX is the total sum of spendings in elements that will be used over a period of time, longer
than one year.
It is not possible to give any prices on the elements mentioned. The cost involved is very depending
on the existing situation, choice of suppliers, way of integration and negotiation power.

Therefor this paragraph limits to mentioning the various cost-elements, the scale-ability, costing
model and a suggested depreciation period.

Cost element / -details                  depreciation      scaling       costing   remarks
                                                                               2
                                                             per         model
FIBER NETWORK                               10 years        500K            F
CORE NETWORK-ROUTERS                         3 years       10-25K           F
METRO                                        3 years
      -router/switches                                       10K           F
      -VoD satellites                                        10K           F
      -service elements                                      100K          F
ACCESS                                       3 years
      -router/switches                                       10K           F
      -DSL modems                                            0.5K          F
CUSTOMER PREMISES                            1 year            1                   ordering might go per
                                                                                   batch of 15K
SERVICE ELEMENTS                             3 years
      -voice systems                                         10K            F
      -media systems                                         25K          F/V+
      -internet systems                                      100K           F      very depending on the
                                                                                   way of impmentation
CONTENT                                      1 year                                license prices and
                                                                                   hardware are depending
                                                                                   on numbers of customers
       -Video                                               endless       F/V+
       -TV channels                                         endless       F/V+
IT AND SUPPORTING SYSTEMS                    3 years         100K         F/V      very depending on the
                                                                                   way of impmentation

The sizing of the base implementation has to do with the expected customer targets, speed of intake,
way of market approach. Some parameters can be given.
The core should be dimensioned for IPTV (multicast), VoD (unicast), Voice over IP, Data (internet)
and other applications and services (like maintenance, distribution of content). The unknown and risky
factor is the over-subscription (concurrence ratio) because there is hardly any referring expertise on
the customers expectation. As the core is a quite static element there will be no other approach of a
high over-capacity, and managing bandwidth and QoS on a software base. This to get an emperic
approach on adjusting settings, to avoid the luxury of using the over-capacity and running into a brick
wall.
The opposite approach is work with minimal capacity and scale up by the growth. Leadtimes and work
in progress are risking roll out and service quality. A risk quite high in an immature industry.

Some numbers from past projects.
For 250K customers (and fiber up to 1000K) approximately 150M euro was spent on the network
components. For mediasystems, including the reception of the content, roughly 35M euro was
needed. For Voice (over IP) around 10M euro traded places.
With standard developping, open source available and more players on the marketspace price are
declining rapidly. Perhaps 50% of the cost can be saved by negotiations and project staff with proven
exeprience.




2
    F ixed per stage, V ariable per user, V+ variable with initial fee


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                                           Digital Televison


Operational Expenditures
The operational cost will be integrated in the standing organizations. Most of the technology will be
integrated in the operational processes. Skillsets might adjustment, from traditional
telecommunications or cable technology toward IP-centric technologies. A transition which should not
be underestimated as the behavior of IP-based transport is very different from classic switched circuit
technology.
New will be the operations of the mediasystems, however any company with content management
systems and portals will see similarities, the size and type of content will differ but processes are
pretty equal.

Operational area       components                  remarks
Network                − routers                   All of this is business as usual, new will be the
                       − switches                  extended management of Quality of Service. Which
                       − leased line               needs to be pro-active instead of grow till it breaks.
                       − radio connections
                       − fiber/copper
                       − dslams and other
                         edge equipment
Customer support       − access                    The customer expects an integrated service with an
                       − transport                 integrated serviec desk. No forwarding from TV to
                       − CPE (modem and            telephone and back again to networks or access
                         settopbox)                support.
                       − telephony
                       − billing
                       − TV and VoD
                       − Internet
Housing and energy     − POPs                      A pushing IP closer to the customer (to the last mile)
                       − MDF’s                     the number of equipment will be higher in POPs and
                       − datacenters               MDF’s. You will find servers where they normally are
                       − headend                   not seen. Which requires specifications for remote
                       − operation centers         management on those.
                                                   This distribution also needs attention towards power
                                                   and cooling.
Interconnect           −   POTS interconnect       From two traditional interconnects (pots and internet)
data/voice             −   internet interconnect   there will be more.
                       −   streaming media         People want to access their VoIP account from
                       −   Voip access             foreign networks, one of the things that will be an
                                                   enhancement on traditional service (people will
                                                   compare VoIP with Skype).
                                                   Streaming is something that is developping, new
                                                   commercial services or Internet eXchange like co-
                                                   operations (in the Netherlands “Streamgate” is such
                                                   an initiative).
Organization           −   more people             All staff need to learn new technologies.
                       −   training                Integrated services require an other approach.
                       −   launch boosts           End to end service, even if parts of the chain are
                                                   managed by the customer.
                                                   Expect lots of issues whilst initiating the roll out.
IT operations          −   integration             IT is traditional on the sideline, but the IT component
                       −   customer selfcare       in these integrated services becomes part of the
                       −   suspending              network.
                                                   Customers expect high levels of selfcare. Customer
                                                   support needs realtime access, you cannot have a
                                                   customer out of service (no phone, no TV) for longer
                                                   periods of time (one hour is long)
Services operations    −   VoIP                    There is also a transition from delivery of one
                       −   Media                   relatively simple service to multiple complex
                       −   Internet                integrated services.
                                                   Bare in mind that a server farm for these three
                                                   services will contain over 400 servers (for 250K


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                                             Digital Televison


Operational area       components                   remarks
                                                    customers), multiple active network components.
                                                    Services are available 7x24, a servce window does
                                                    not mean ‘no service’. Capacity behavior will
                                                    unpredictable.
                                                    Software is not reliable, data is stored in multiple
                                                    systems facing inconsistencies.
Licenses               −   DRM                      All types of license agreements will be added. Most of
                       −   Codex                    them are negotiable, but in some cases there is a
                       −   content                  monopoly.
                       −   online services

A raise of 10 to 15% of the original cost of OPEX must be accounted for. This is not including the
cost for content.
On the long term (2 to 3 years) the integration will bring benefits of concentrating technologies and
sharing operational efforts. Also growth of customers will not invoke a linear increase of operatinal
cost. But targets must be set to achieve declining operational cost.




                                                                                          Page: 25 of 26
                                        Digital Televison




contributions
The following organizations have contributed to this document by reviewing, commenting and
delivery of specific pieces of content.

Logo                             name                              url
i-o                              i-o information-organization BV   www.nooter.info
                                 Eric Nooter

SEE IT SOLUTIONS                 See It Solutions LTD              http://www.seeitsolutions.co.uk/
                                 Chris Toller

BITBAND                          Bitband LTD                       www.bitband.com
                                 Adi Yosov
                                 Arie Aig

ALTOS                            Altos Advisors GmbA               www.altosadvisors.com
                                 Joerg Sperling




                                                                                       Page: 26 of 26

								
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