Global Broadband & IPTV Update 1Q10 Subscriber Data and Technology Update

Robin Mersh, COO Broadband Forum June 16, 2010

Broadband- The Big Picture

  Total broadband lines worldwide have grown to 484 million (484,788,597) by the end of Q1 2010

–  This is a 3.12% growth in the quarter and 12.41% in the 12 months to end Q1 2010.

  The total lines added in the quarter was, at 14.67 million, the 3rd largest quarter in the last 8.

  Q1 2010 saw a return to increased growth rates for worldwide broadband.

–  6 of the top 10 countries improved their performance in Q1 2010 compared to Q4 2009; China, the USA, Germany, the UK, South Korea and Brazil

  Asia was responsible for more than 53% of the new broadband lines added in Q1 2010

–  Mainland China alone was responsible for 45% of the total lines added worldwide in the quarter

All data provided by

Broadband- Access Option Market share

  DSL continued as dominant technology with 64% market share

  Fiber strong gains, especially in Asia –  Fiber replacing some DSL

  Wireless and satellite all experienced strong growth

  N. America still strongest market for cable

Top 10 Broadband Countries

Country 2009Q1 2009Q4 2010Q1 China 93,084,160 106,549,000 112,594,000 USA 80,117,747 85,337,647 87,070,960 Japan 30,666,900 31,583,500 31,782,400 Germany 23,788,750 25,114,450 25,953,150 France 18,009,500 19,013,200 19,254,000 UK 17,661,100 18,356,000 18,712,000

South Korea 15,706,466 16,348,571 16,552,222 Italy 12,595,533 13,343,890 13,528,650 Brazil 10,014,200 10,940,400 11,293,400 Russia 9,280,000 10,870,000 11,270,049

IPTV Global Headlines The most subscribers added in 12 month period- 11.4 Million

  There are now 36.3 million IPTV subscribers as at March 31st 2010.

  Global IPTV subscription--grew by 46% in terms in the 12 months Q109-Q110.

–  This is equal to 11.4 million new IPTV subscribers, the most rapid growth in any 12 month period yet recorded.

  Grew 7.8% in the first quarter of 2010 –  Net additions in the quarter were down

on Q3 and 4 2009 but up on the more directly comparable Q109 – seasonal affects look to reduce IPTV take-up in the early part of the year since we’ve seen the same pattern repeated over the last 3 years.

  Significant IPTV penetration now-running at around 7.7% of total broadband lines

IPTV Regional Growth

Region 2010Q1 % growth Annual growth

Regional marketshare q110

Total Subs for q110

Europe 7% 36% 49.07% 17,817,789

Asia 9% 62% 32.39% 11,759,790

Americas 8% 47% 18.17% 6,598,329

Middle East/Africa 499% 1217% 0.36% 131,700

Top 10 IPTV Countries Europe & Asia battle for dominance

Europe   France continues to lead in total IPTV subscription   The quarter saw Europe lose its growth dominance in

the IPTV market as the Americas and particularly Asia posted strong numbers. Asia in particular is expected to increase its dominance. This is to be expected as two important European markets (France and Belgium) become increasingly saturated.

Asia   Asia has increased its regional share of the market to

32.4% of the market   China added the most new IPTV subscribers of any

single country –  China is likely to move into the number 2 spot

during 2010 –  The largest single IPTV operator in the world is

now China Telecom, having over 4 million subscribers passing French provider Free

Americas   The Americas which grew to 18.17% market share was

the only other region to increase its share in the quarter

Middle East   Middle East and Africa started to grow seriously for the

first time as numbers from the UAE and Egypt contributed to a record quarter

Asian Broadband & IPTV Market Highlights

Broadband Highlights   Asia dominated the market with China

contributing the most. –  Other Asian markets like India, Indonesia and

Vietnam all reported strong DSL numbers.   Asia now has over 50 million fiber

subscribers –  Asia has 3 of the top 4 fiber markets in the

world –  China has the largest number of fiber

subscribers in the world   In South Korea and Japan, where DSL

numbers are falling- fiber is growing/substituting

IPTV Highlights   Mainland China continues to be the IPTV

powerhouse in Asia   Now that regulation in South Korea has

relaxed somewhat, IPTV growth is starting to take off

  The Hong Kong SAR has high IPTV penetration and further growth will be limited

  New growth in Vietnam, Australia and so on will accelerate IPTV growth in the region

Organizations Join Forces to Accelerate Delivery of G.hn Products to Market

Definitive Agreement Signed By HomeGrid Forum and Broadband Forum

Expands resource base working on the commercialization of G.hn and accelerates delivery of silicon and systems to the market

Broadband Forum and HomeGrid Forum Announcement

 HomeGrid Forum and Broadband Forum sign definitive agreement to accelerate the adoption of G.hn technology – ITU-T’s next generation wired networking standard

Recognizes home networking as a key component of the broadband Connected Home, and supports the deployment of G.hn standardized products

About ITU G.hn

  G.hn is a next-generation unified multi-wire home area network standard (powerline, phoneline, coax)

  Scalable for multimedia and smart grid applications (bandwidth, throughput, power)

  G.hn international standard for home networking was approved by ITU-T in 2010

  Open Standards Development organization –  Clear and open IPR policy –  Within the study group that developed DSL/

VDSL standards (>600M DSL ports shipped, 2/3 of all broadband connections worldwide) and the first home networking standard on phone-lines (HPNA), which is G.9954

Coaxial cables

Electrical wires

Telephone lines

G.hn

G.hn Applications and Markets

More than 1.5 Billion Devices Ship Per Year Are Candidates for G.hn Technology Adoption

Consumer Electronics

Service Provider

Computing

Broadband Access

Televisions

DVD Players

PVRs Gaming

Consoles

Optical Network Terminals

Broadband Home Routers

Residential Gateways

PCs

Phones Printers

Storage

AV Components Set-top Boxes

Smart Grid

Smart Meters

In-home Display

Plug-in Electrical Vehicles

G.hn Potential

The next-generation wired home networking standard is complete

More than 190 countries approved G.hn at the ITU-T meeting in Geneva on June 11, 2010 Eight silicon manufacturers announced support for G.hn, first products expected later this year

The market potential for G.hn is enormous

G.hn brings the industry together with a single, anywire networking technology More than 1.5 billion CE, PC, telecom and Smart Grid devices that can use G.hn ship each year

HomeGrid Forum and Broadband Forum will collaborate to help G.hn achieve its potential

Joint marketing and C&I programs will drive adoption and widespread deployment of standards-based products

What does this Collaboration really mean?

 Broadband Forum will assist HomeGrid Forum in defining the testing requirements and test suite for G.hn

 HomeGrid Forum and Broadband Forum will work together on G.hn education and marketing initiatives

 Broadband Forum and HomeGrid Forum will jointly conduct plugfests and other compliance and interoperability events

 HomeGrid Forum will launch the HomeGrid Certification and Logo Program to set the global bar for adherence to G.hn standards

Collaboration Objective

To provide a program that rigorously tests,

certifies and identifies G.hn products

to assure that products deliver the

quality of experience that consumers,

resellers, manufacturers and service providers expect, and

work with other HomeGrid Certified products.

Brief Technology Update

Broadband Forum Engineering smarter & faster connections

Architecting a connected lifestyle –  Defining best practices for global networks –  Enabling service and content delivery –  Establishing technology migration strategies –  Engineering critical device & service management

tools –  Redefining broadband

Broadband Forum Service Provider Members – driving requirements

Broadband Forum Scope

PARTNER APPLICATION

FUNCTION

PARTNER CONTROL FUNCTION

IDENTITY

BILLING

OSS TR-126 IPTV Quality of Experience

TR-176 DSL Profiles for IPTV

Quality of Experience TR-069 (CWMP)

Identity, Accounting and Policy Operations and Network Management

DSL Quality Management

TR-069 ACS Management

CWMP TR-069

Edge Aggregation

Content Network

VoD

TV

SIP

Multi-Service Core Access

Mobile Network

BS

C

RN

C

SG

W

P2P E-FTTx

GPON

EPON

DSL

Multi Service Architecture & Requirements Certification, Test and Interoperability

TR-101, TR-156 Ethernet

Aggregation

Network TR-144 Multi Service Requirements

IP/MPLS

User

Customer Premise Device

Management

Gateway Management

Home Networking Protocols Smart Grid

Connected Home or Office

BroadbandNetwork™

Edge Aggregation

VoD

Content Network

TV SIP

Core Network IP / MPLS

Multi-Service Core Access

  End-to-End Multi-service Architecture –  TR 144 Multi Service Requirements, WT-145 Architecture

  History: TR-058 Requirements, TR-059 (ATM), TR-101 (Ethernet)

  IPv6 Enabled (WT-177,WT-187,WT-242)   MPLS in Carrier Ethernet (WT-224)   MPLS in Mobile Backhaul (WT-221/222)

Mobile Network

BSC RNC SGW

P2P E-FTTx

GPON

EPON

DSL

Multi Service Architecture & Requirements Certification, Test and Interoperability

Aggregation Network

Ethernet/MPLS

BroadbandUser™ TR-069 Remote Management Framework

Connected Home Data, Voice, Video, Energy

IP STB

Auto-Configuration Server (ACS)

Storage

Residential Gateway

TR-069 CPE WAN Management Protocol

TR-131, WT-132: ACS Northbound

Interface TR-142

TR-069 Framework for GPON

TR-143: Throughput Performance Testing

PC

VoIP

Voice ATA

OSS / BSS Call

Center Policy

TR-135: STB

TR-106: Common Data Model Template

TR-140: Storage

TR-104: VoIP

TR-064, TR-133: LAN-Side CPE Mgmt

TR-122: Voice ATA

TR-196: Femto Cell Femto

Cell

TR-98 Internet Gateway Device (IGD)

TR-068, TR-124 RG

TR-111: NAT Traversal

PD-174: Proxy Mgmt

Energy Management Application Server Smart Meter + IHD + Energy devices Utilities Data

Center

AMI Network

Data Network

HPNA MoCA

G.hn Ethernet Wi-Fi

HomePlug ZigBee Z-Wave

LON Flexnet

In Summary

Broadband Forum is doing all it can to engineer Smarter and Faster Connections

In the pipeline

  IPv6 Network & CPE related transition specifications   Testing & Certification Program

–  New! GPON joint testing with FSAN –  New! G.hn interoperability & testing with HomeGrid Forum –  VDSL2 Test Suite & Plugfests –  TR-069 based testing –  MPLS based certification

  E2E Multi-service Architecture specifications   Continue broadening the CWMP TR-069 Suite and

end device management

We Don’t work alone Current Liaisons/Collaboration of BBF

  3GPP (3rd Gen Partnership Project)   3GPP2   Alliance for Telecommunications industry

Solutions (ATIS)   China Communications Standards

Association (CCSA)   Consumer Electronics Assoc. (CEA)   Digital Living Network Alliance (DLNA)   Digital Video Broadcasting (DVB)   European Telecommunications Standards

Institute (ETSI)   Femto Forum   Full Services Access Networks (FSAN)   Home Gateway Initiative (HGI)   HomeGrid Forum

  Internet Engineering Task Force (IETF)

  International Telecommunication Union (ITU-T), multiple SGs

  Metro Ethernet Forum (MEF)   NGMN Alliance: Next Gen Mobile

Network Alliance   MultiService Forum (MSF)   Open Mobile Alliance (OMA)   Open IPTV Forum   OSGi Alliance   TeleManagement Forum (TMF)   Universal Plug and Play Forum

(UPnP)   WiMax Forum

Thank you for taking time to learn more about the Broadband Forum

For more information about joining and contributing, see me at the break or visit us at http://www.broadband-forum.org