ENABLING CABLE & DTH FOR INTERNET & INTERACTIVITY

Regulation & Triple Play

WE LOOK FAR AND BEYOND FOR THAT WE HAVE IN PLENTY

Digital STBs Deployed (millions)

Top Cable MSOs

21.5

10.9M

6.3M

1.5M

10.7M

5.2M

DBS Operators 13M

11M

Source: Bear Sterns

• DBS Operators provide Triple Play Today

• All Cable operators are Enabled for Triple Play

Voice, VOD, ITV, HDTV, DVR

http://compnetworking.about.com/od/dslvscablemodem/ss/broadbandtutor_2.htm

Broadband: Worldwide Deployment

U.S. Lags Behind in Broadband

Deployment Other countries, led by

Korea and Canada, have strategic vision for broadband build-out.

The U.S. slipped from number 11 to number 13 in broadband deployment between 2003 and 2004.

The Massive C&S Networks in India serve 90 million households. These will be HD Capable by 2011. Do we have a roadmap for their use for triple play?

93.5 INSAT 4B

95 NSS

83 INSAT 4A

74 INSAT 4CR

ST1

DISH TV

Tata

Sky

RELIA

NCE

VID

EO

CO

N

DTH SATELLITE SCENARIO YEAR 2009

INDIAN DTH

SUBSCRIBER

91.5 MEASAT

BH

AR

TI

DD AND S

UN

98.5

PROTOSTAR-1

DTH Subscribers in India

2003 2007200620052004 2008

Dish TV

DD-Direct

T-Sky

1 2 3 4 5 60

2000

4000

6000

8000

10000

12000

14000

Big TV

T-Sky

DD Dir-ect+Dish TV

Big TV

Subs

( Thousands)

Cable TV

DTH

Three facets:

IPTV

Agenda

Issues-Technology & Cost

Broadband on Cable & DTH

Regulatory issues

Conclusion

Introduction- TRIPLE PLAY

What Broadband means to users

                                                                        

Source: Providers’ websites

Introduction: Broadband

Voice VoIP Video Conferencing Lifeline

Video Video Premium Video Music

Data Cable Modem 128k 45MB Managed “Always-on”

Cable

Digital Video

DTH

ITV Applications EPGs VOD Active Chs Games

Digital -PVR

PVR Video Premium Video Push VoD

Triple Play

Timeline

Timeline of Take up of Services by Customers

Agenda

Issues-Technology & Cost

Broadband on Cable

Regulatory issues

Conclusion

Introduction- TRIPLE PLAY

Current Delivery

HUB

HUB

HUB

MCR

TV

Optical

node

Optical

node

Optical

node

Coax

TWO WAY SPLITTER

PC

Cable Modem

Optical

node

Optical

node

Optical

node

TV

Coax

TWO WAY SPLITTER

PCCable Modem

HFC For Cable

Cat 5e Ethernet for Broadband

PC and TV are Separate.

No Convergence

The Technology

DOCSIS 1.040 bps/10

Mbps

DOCSIS 1.1

Real-time services, QoS, VoIP, interactive gaming, tier-based services

DOCSIS 2.0Upstream: 6.4 MHz wide, 30MbpsWhy more bandwidth?

Peer-to-peer servicesDigital photographyMusic downloadsAuthenticated Services

Agenda

Issues-Technology & Cost

Broadband on Cable

Regulatory issues

Conclusion

Introduction- TRIPLE PLAY

Regulatory Issues

Cable TV is Licensed Under the Cable Television Networks (Regulation) Act, 1995.

( Ministry of I&B) VoIP is not allowed under Cable Acts. ISP License Needed for VoIP ( MC&IT) Cable Operators are not eligible for

last mile spectrum

Issues With Cable Internet-LCOs

Last Mile control in Cable is with LCO

LCOs are unwilling to upgrade in most cases

Payment and revenue Share issues

Commercial Barriers to using Cable Internet

No Right of Way ( Cable Act)

High Cost of Internet Rs 1.2/MB

Split Nature of Industry-MSO,LCO

Absence of VoIP- Customers prefer DSL

Expensive DSL modems

Issues relating to Regulation of Cable Networks

Local Cable Operators Not interested in investing in 2 way Plant

Internet Services are obtained from a local ISP rather than MSO

If VoIP is permitted, MSOs can offer Set Top Boxes with VoIP

VoIP- Telephony LCOs are unable to provide VoD, which needs the

scale of an MSO

Viewers Expectations-Broadband

Viewers used to Cable TV

Expect Full Resolution for Internet streaming

For mail and browsing, viewers expect Computer resolution

Broadband on TV does not meet these demands

DTH

DTH is licensed as a standalone service

DTH operators not allowed to provide Internet or even two way interactivity under DTH license

DTH has its own separate interconnect regulation

Only “VSATs” can provide Internet

WHAT CAN THE REGULATORS DO?

What Can Regulators Do?

Review the Cable TV Act to enable Triple Play including VoIP

Encourage initiatives such as HITS for uniform cable TV offerings across India

Promote additional investments as Infrastructure

Be proactive on standards- we do not want a host of incompatible technologies

For Internet to Succeed Broaden Scope of Cable TV License to include VoIP,

ISP and IPTV Enable DTH Licenses for Internet Price Regulations should be tailored for Triple Play Enable Bundle of Services just as in DSL landlines Cable and DTH operators should be recognized as

infrastructure providers Should have right of way as for Phone Lines

Set Aside local spectrum for last mile

THANK YOU

WORLD INTERNET USAGE AND POPULATION STATISTICS

World RegionsPopulation

( 2005 Est.M)

Population% of World

Internet Usage,

Latest Data

Usage Growth

2000-2005

% Population( Penetratio

n )

WorldUsers

%

Africa 896,7 14.0 % 16,174,600 258.3 % 1.8 % 1.7 %

Asia 3,622,9 56.4 % 323,756,956 183.2 % 8.9 %34.5

%

Europe 731,0 11.4 % 269,036,096 161.0 % 36.8 %28.7

%

Middle East 260,8 4.1 % 21,770,700 311.9 % 8.3 % 2.3 %

North America 328,3 5.1 % 223,392,807 106.7 % 68.0 %23.8

%

Latin America/Caribbean

546,7 8.5 % 68,130,804 277.1 % 12.5 % 7.3 %

Oceania / Australia

33,4 0.5 % 16,448,966 115.9 % 49.2 % 1.8 %

WORLD TOTAL 6,420,1 100.0 % 938,710,929 160.0 % 14.6 %100.0

%

How does broadband impact telecoms The Internet enables a separation between

facilities and services Broadband allows providers to fully exploit this

separation The killer application for broadband may turn

out to be voice

Impact of Broadband

Traditionally there has been a service–infrastructure division in communications services …

Spectrum

Telephony Mobile

Coax

Cable TV TV

PSTNInfrastructure

Service

Spectrum

Voice: Two-way, low volume Broadcast TV: One-way, high volume

The Internet increases competition by separating service provision from infrastructure ownership

IP

Voice, video, and dataService

Everything over IP

Infrastructure CoaxCopper SpectrumSpectrum

IP over everything

xDSL 3G Cable modem iTV

VoIP is available as a service marketed directly to consumers …

Do it yourself – Skype Skype allows

computer-to-computer calling using user-assigned names instead of numbers

Skype currently has 100 million users

Voice over broadband this may be linked

to the broadband provider (Yahoo!BB)

can also be provided as an independent service (Vonage) in this case it is

nomadic and can be used over any broadband connection

… or as a technology that is transparent to end users Carrier internal use

(“BT 21CN”) this requires a

replacement of all switches in the network

the result is often referred to as a Next Generation Network (NGN)

Corporate internal use as a low-cost PBX

replacement Asterisk is a VoIP

PBX that can be downloaded from the Internet

Agenda

Broadband In Brazil

Impact of broadband

Regulatory issues

Conclusion

Introduction

How is Brazil doing in broadband?Percentage of households with broadband service

0%5%

10%15%

20%25%

30%35%

40%45%

50%

Argentina Brazil Canada Chile Mexico USA

The majority of lines in Brazil are from DSL

Percentage DSL/Cable lines at 31 December 2004

0%10%20%30%40%50%60%70%80%90%

100%A

mer

icas

Arg

entin

a

Bra

zil

Can

ada

Chi

le

Mex

ico

US

A

Oth

er

Cable

DSL

In Europe, wholesale access has increased DSL competition…

*Greece only has 359 DSL lines, all served by an entrant

0%10%20%30%40%50%60%70%80%90%

100%

Bel

giu

m

Den

mar

k

Ger

man

y

Gre

ece

*

Spa

in

Fra

nce

Irel

and

Ita

ly

Luxe

mbo

urg

Net

her

land

s

Aus

tria

Por

tug

al

Fin

land

Sw

eden

Uni

ted

Kin

gdo

m

DSL lines incumbent DSL lines competitors

Source: European Commission

… while promoting deployment

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2001

2002

-Q1

2002

-Q2

2002

-Q3

2002

2003

-Q1

2003

-Q2

2003

-Q3

2003

2004

-Q1

2004

-Q2

2004

-Q3

2004

Pen

etra

tion

per

100

Pop

ulat

ion

France United Kingdom Netherlands

Denmark Canada United States

Korea Japan

Net neutrality can promote competition in Internet services

Freedom to Access Content: consumers should have access to their choice of legal content;

Freedom to Use Applications: consumers should be able to run applications of their choice;

Freedom to Attach Personal Devices: consumers should be permitted to attach any devices they choose to the connection in their homes; and

Freedom to Obtain Service Plan Information: consumers should receive meaningful information regarding their service plans

FCC Chairman Michael Powell’s Net Freedoms, 2004

A forward-looking broadband policy could have several features Enable entrants to build and operate their own

facilities Allow entrants to use existing facilities with

their own equipment Ensure net neutrality in Internet services and

applications

Hype & StatusCurve

< 2 yrs

1-3 yrs\

2-5 yrs

7 yrs

Obsolete before

plateau

4G UWB 1X EVDV Ad Hoc 802.15.4

WCDMA

BLUE TOOTH NET

Wi-Fi 802.11g

Wi-MAX

BWA

Mesh Net

EDGE

Blue tooth cable replacement

Wireless PDA

1X EV-DO

GPRS

Wi-Fi 802.11a

CDMA 1X RTT

802.11b

Trigger

HYPE PEAK

DISILLUSIONMENT Trough

Enlightenment

Productivity

Plateau

HD Capable Broadband Subscriber Forecast for America