bac-15471-ti webinar - (dec 7) · – iptv, voip, home networking, ... set-top box firmware...

© Copyright 2006. Yankee Group Research, Inc. All rights reserved.

• Panelists

Boyd Peterson Senior Vice President, Consumer Research, Yankee Group

Bob BissellConsultant, CTO Group, BT

Kurt EcklesDirector of Marketing, Residential Gateway & Embedded Systems,DSP Systems, Texas Instruments

The Economics of DeliveringTriple Play to the Home

© Copyright 2006. Yankee Group Research, Inc. All rights reserved.

Panelists

Boyd Peterson Senior Vice President, Consumer Research, Yankee Group

Bob BissellConsultant, CTO Group, BT

Kurt EcklesDirector of Marketing, Residential Gateway & Embedded Systems,DSP Systems, Texas Instruments

The Economics of DeliveringTriple Play to the Home

The Economics of Delivering Triple Play to the Home© Copyright 2006. Yankee Group Research, Inc. All rights reserved. December 7, 2006

Agenda

• The Thesis for the Managed Home Experience– Boyd Peterson, Yankee Group

• The Service Provider Perspective– Bob Bissell, BT

• Technical Solutions– Kurt Eckles, Texas Instruments


The Thesis for the Managed Home Experience

• Competition is driving network transformation– IP in the core: future network service platform, cost benefits of single network

• The service provider vision is to enable triple-play services (voice, data and video) and extend into multi-play services

• IP enables new services and new revenue sources extending from the foundation of broadband to the home

– IPTV, VoIP, home networking, fixed-mobile convergence• The IP challenge is cost containment

– Provisioning and configuration– Operational support– Service enablement

• The solution to revenue expansion and cost containment: managed home experience


Voice

Broadband—IP

IPTV

Set-Top Box

PC/Media Center TV

Software-Controlled Application Layer

Service Provider-Controlled

Phone

Terminal Adapter

Home Gateway

Modem

Triple-Play Services

Source: Yankee Group, 2006

Applications

ServiceIntelligence

Network

CPE

The Service Provider Vision – Triple Play

Data


VoIP

IPTV

The Service Provider Vision – Operational Cost Highlights

Data

CPE CostsTerminal adapter and kit - $47Distribution - $10Battery backup - $20

Reasons for Customer Support Calls25% Synchronization issues25% Surfing issues (internet)20% PC issues10% E-mail issues5% CPE15% Other

Operational Costs – 1st 12 MoProvisioning $360First 30 days $6011 months $ 313Total first 12 months serviceCosts = $733

(North America, Europe)

Cost Highlights44% CPE11% Distribution6% Installation40% Ongoing support($129 first year operational expense North America)

Self Install

23% of all VoIP installs (US)50% require support call$36 per support call

Truck Roll Install

77% of all VoIP installs (US)Truck roll (Average) - $65

Ongoing Support Categories66% Network / service issues34% In-home issues

$28.50 per month (average monthly support costs for IPTV)

(North America, Europe)

Ongoing Support SubcategoriesNetwork connectivitySet-top box firmwareApplication failureMiddlewareWiringConnectionsResidential gatewayOther CPE


Why the Managed Home Experience Is Critical to Service Providers

• The service provider’s best opportunity to offset losses from line loss and access competition is to make the consumer experience easier and better for existing and emerging applications

• This requires intelligence in the home

• The challenge associated with the opportunity is the operationalburden assigned to service providers

• Yankee Group data suggests that containing the provisioning and operational expense associated with managing IP services is critical to the business case

• Containing cost requires normalizing installation, remote diagnostic capability and remote management


• Broadband is a commodity

• Churn is a key issue for service providers

• Bundled with voice, mobile and TV services – “FREE!”

• Provide a “Total Broadband” experience– Easy to install and use new services and devices– Single-support desks for all services– Proving highly successful

Competitive Environment


FMC BT Fusion

IPTV – BT Vision

BroadbandTalk

BroadbandTalk Video

HelpDesk

and RemoteDiagnostics

Broadband Data

Security and Surveillance

Source: BT

Products and Services - Today


Products and Services – Tomorrow?

HelpDesk

and RemoteDiagnostics

Broadband Data

Guest Access

EnergyManagement

ManagedWhite

Goods

The Car

Health Monitoring

Source: BT


• Latest Wi-Fi technology

• Fixed-mobile convergence – BT Fusion

• Guest access

• QoS to prioritize services/users/WAN LAN over intra LAN

• Hybrid of wired, wireless and existing wires, Home Network technologies

• Remote management and diagnostics

• Standards:

Key Technical Requirements for the Home Hub


What We Need from a ‘Home Hub’ Supplier

• Leaders in service/technology innovation– Understand the Service Providers business– Time to market with new features and services

• Flexibility of supply– Minimum lead times – Minimum volume commitment– Flexible forecasting

• OEMs vs. ODMs– OEMs for leading innovative products– ODMs once these become commodity

• 3rd Party ‘Middleware’ for Home Hubs?– We need a consistent ‘look & feel’

• For the customer• For the help desk

– We need protocol consistency– Either drive through product specification or by 3rd party middleware– Future role of Open Source ‘Middleware’


Key Challenges

Within aRegulatoryFramework

Within aRegulatoryFramework

ServiceInnovation

Cost-Effective

Ease ofUse

Simple to install and use for the customer

Provide innovative services that customers want

Cost-effective forboth customer

and SP

Source: BT


For the next 10 years we will move from building block or first-generation SOC to true

single-chip service delivery platforms that merge technology from multiple

industry segments to enable new services at ever decreasing

system cost points.

Move from Broadband Building Blocks to Residential Gateway System on Chip (RG SOC) Centric Solutions

During the first 10 yearsof broadband industry, TI has shipped more than 250 million

broadband components (110 million+ DSL/cable CPE modems,

60 million+ DSL CO modems,30 million+ VoIP CPE subsystems,

50 million+ WLAN chipsets).

FIRST 10 YEARS NEXT 10 YEARS


TV

Voice

Internet

Advanced andConvergence

Voice IP Phone

MassStorage

Printing

Music/Radio

Gaming

Remote MedicalMonitoring and

Assistance

Home SecurityIntrusion,Fire and

Gas Leak

HomeRemote

Visioning

Remote Failure Diagnosis

Energy Savingsand “House

Configuration”

ElectricityMetering and

Usage Tracking

Blinds, Doors and Windows

Gas and WaterMetering and

Usage Tracking

Triple Play BeyondTriple Play

Well-Being/ Monitoring

Home AutomationElectric Appliances

Home AutomationElectric-To-Be

Lighting

Source: Texas Instruments

The Target ….. Enabling IP Services and Fully Connected Home


• An open, scalable platform, optimized for home communication and entertainment

• Variants supporting a wide-range WAN– xDSL, DOCSISx, xPON, Ethernet

• Ever-increasing packet performance– TI’s volume solutions 25K-50K pps routing – TI’s 2007 solutions 100K-200K pps routing– TI’s 2008 solutions 500K pps + routing

• Supporting any home LAN– 10/100/1G Ethernet, USB 1 or 2, USB host or

slave, 802.11x, HPNA, MoCA, HomePlug, UPA, wUSB

• Enabling any IP service– HSI, VoIP, IPTV, storage, monitoring

TI Residential Gateway Solutions: Fast, Flexible Processing for Any Application


TI’s Track Record for Enabling Innovation

• TI RG and OMAP Platforms• FMC with home gateway

• TI RG Platforms• Integration of battery backup into RG

• TI DAVINCI Platforms• Single chip programmable STB solution

• TI RG Platforms• Enabled over 30Mu DSL wireless routers

• TI RG Platforms• Enabled over 25Mu Cable EMTA

Enhanced Service Initiatives

• TI RG Platforms• PIQUA for voice delivery (end-to-end QoS)

• TI RG Platforms• Created TurboDOX to speed up FTP transfers over cable

• TI RG Platforms• Support for SNMP1/2/3, Clear EOC and TR-069 on DSL

Manageability Initiatives


Tomorrow’s Services that Are Being Developed Today

• TI RG Platforms• Integration of home automation with Zigbeetechnology utilizing TR-069 for manageability

• TI DAVINCI Platforms• Add transcoding into STB to support mapping of framing formats and local advertisement insertion

• TI DAVINCI Platforms• IP cameras that provide event recognition

Enhanced Service Initiatives

• TI RG Platforms• Wideband voice and GSM codecsembedded in gateways

• TI RG Platforms• Support for EFM framing over DSL

• TI RG and DAVINCI Platforms• PIQUA for video delivery

Manageability Initiatives


Recent and Upcoming Research

Yankee Group DecisionNotesSM

– DSL CPE Shipments Driven by Increased Gateway Functionality, April 2006– Equipment Installation and Support Cost DSL Providers Billions Every Year,

January 2006

Yankee Group Reports– Turning Content into Services: The Next Generation of IPTV, June 2006– Exploring VoIP Lifecycle and Operational Costs, May 2006

Free Whitepaper Offer from Texas Instruments – Download Today!– Residential Gateways and Embedded Systems: Adaptability in a Diverse

Marketplace– www.ti.com/rgwebinar


Thank You

Boyd PetersonSenior Vice PresidentConsumer [email protected]

For schedules, please visit our web site:

www.yankeegroup.com

Come and visit us at one of our upcoming Live! events or tune in to one of our free webinars.

Kurt EcklesDirector of Marketing, Residential Gateway and Embedded Systems DSP Systems, Texas [email protected]

December

• December 4-8 ITU Telecom Forum (event); Hong Kong

January, 2007

• January 8-11, 2007 First Annual Mobile Broadband and Content TechZone at CES (event); Las Vegas, NV

Bob BissellConsultantCTO Group, [email protected]

bac-15471-ti webinar - (dec 7) · – iptv, voip, home networking, ... set-top box firmware...

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