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Bell University Labs

Re-inventing TV in an IP World

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Video Strategy Overview

TV is critical to winning the broadband home

We know video is a critical element− 85% of customers surveyed recently indicated video

would be required for a home bundle to meet their needs

Our strategy is to be Canada’s leading Video Service Provider

ExpressVu is leading the market in growth− Led market in revenue and subscriber growth in 2003

Creation of Bell Video Group

Deliver “Way Better TV” independent of access technology− Digital TV quality/choice, iTV, PVR, VoD, HDTV

Hybrid technology platform required to deliver the growth

Wireline video to complement DTH in addressing core urban markets with high density of MDUs

− MDUs are 40% of Toronto market, 60% of Montreal market (vs. 32% of overall market)

Currently deploying VDSL in large MDUs

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TV Video Centric Services

• Broadcast TV via many technology platforms (DTH, VDSL, ADSL2+, FTTH)• Pay-per-view • PVR (pause live TV, store-and-record, Web based control)• iTV (iWeather, iGames, Hockey Night in Canada choose-your-camera)• HDTV• Video on Demand• Streaming TV to Mobile Devices (2004)

Integrated Media Centre(“Living room edition”)

Media Room

Digital Node(e.g. “Bobsled”)

Master Bedroom

Kitchen

PC with Smart Display (Digital node embedded

into display)

Kid’s Bedroom

Gaming console / other CE devices

(embedded ‘nodes’)

xDSL pipe

Wireless distribution of

video (QoS)

Office

Wireless connection to xDSL

modem/router

Anywhere

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TV Distribution to other IP Devices

Free based PC video content streaming• Sympatico - NHL coolshots, CTV News, Music Videos, Concerts etc.

• MSN video – MSNBC, Music Videos, Discovery, ESPN etc.

Multi-Media Services on Mobile Devices• Send and receive video clips on mobile devices

• Watch video clips from Internet

Exclusive PC video content streaming• Exclusive pre-release movie trailers

• Sympatico Concert Series - exclusive to Sympatico ISP subscribers

Fee based PC Video content streaming• Exclusive broadcasts of CNN, Fox Sports, BBC News etc. (e.g. RealOne)

• VOD thru the PC of movie/video (e.g. CinemaNow. Movielink)

Home Desktop

Modem / Wi-Fi RouterDigital Media Adapter

Mobile Devices

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Recommendations, Rating, Recommendations, Rating, Time Boxing A Guide That Time Boxing A Guide That Actually Guides You! Actually Guides You!

TV2 User ExperienceTV2 User Experience

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Technology Architecture Strategy

ON

U

Equipment Room

EdgeEdgeCoreCore

Current MDU: ATM Moving toward IP QoS will be controlled at

Layer 3

Central Office

Video Content

ATM NETWORK

To Video Headend

OLT

PSTN NETWORK

IP NETWORK

copper

SuiteSuite

Suite

xDSL xDSL

SFU

ON

T

SFU

ON

T

SFU

ON

T

PON PON FTTHFTTH

MDU

AccessAccess

Current MDU Future SFU will be

served by OPI Evaluating FTTH for

greenfields

CPECPE

Current MDU: Proprietary Moving toward IP STB Standards-based enabling

multiple vendors, reduce cost IP will allow more convergent

service creationO

NU

xDSL xDSL

SFU@ OPI

copper

ON

U

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ATM

IP

Content/Apps Network Broadband Home

Video-coax

Data-EthernetData• Internet• Email, IM, Chat

Pre-IPTV • Video and data on

separate networks• Proprietary STB• Video and data

services in “silos”

CurrentVideo• Broadcast TV• PPV

Importance of IP Platform for Video

IP

IP Solution• Video and data on

single IP network• Standards-based IP

set top box • ‘Convergent’ service

creation opportunities

Future Above …Interactive services• Video to PC (e.g.,

remote displays)• Digital photos to TV

(through networked hard drive)

• Music to the stereo (networked hard drive)

IP Ethernet home network

Internet Gateway

IP critical to winning the broadband home – enables cross-platform service creation with cost-effective standards-based approach

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FiberCopper

OLTOLTDirect FiberDirect Fiber

ADSL, G.shdsl, EFM Long reachADSL, G.shdsl, EFM Long reach

ADSL2+, VDSL, EFM Short reachADSL2+, VDSL, EFM Short reach

GPONGPON

HDSLHDSL

Wireless /Wireless /SatelliteSatellite

ACCESSACCESS QoSQoSQoSQoS

IP / PPPoE / EthernetIP / PPPoE / Ethernet

Wireless

Ethernet AccessEthernet Access

• Offer a standard Offer a standard interfaceinterface

• Reduce complexityReduce complexity• Reduce costReduce cost• Easier service Easier service adaptationadaptation

• Allow multiple Allow multiple vendorsvendors

Ethernet Non-Blocking Ethernet Non-Blocking (Engineered)(Engineered)

EthernetEthernet EthernetEthernet CPE /CPE /HomeHome

GatewayGateway

BRAS / BRAS / PEPE

EthernetEthernet/ MPLS/ MPLS

IPIPAppli-Appli-

cationscations

EdgeEdgeCoreCore UserUser

QoS at Layer 3QoS at Layer 3

• Once access pipe size Once access pipe size is determined, QoS is determined, QoS can be controlled at can be controlled at each endeach end

• Eliminate QoS Eliminate QoS complexity in the complexity in the accessaccess

AccessAccess

“Plug and Play” Ethernet Network

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IPTV Advantages

Traditional TV Distribution IPTVProprietary STB lease

• Proprietary systems• Tied to single STB vendor technology

roadmap

Cheaper STB• Scale efficiencies and merchant

components will ensure cheaper devices and better availability

• Thin client will be embedded in various devices (such as XBox)

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IPTV Advantages

Traditional TV Distribution IPTVProprietary STB lease

• Proprietary systems• Tied to single STB vendor technology

roadmap

Cheaper STB• Scale efficiencies and merchant

components will ensure cheaper devices and better availability

• Thin client will be embedded in various devices (such as XBox)

Broadcast architecture• No 1:1 potential without monumental

upgrade cost• Video delivery separate from data• Difficult to integrate with Web/PC content

and services• Would need to shift analog subs to digital

to free up bandwidth for IP video (hence free digital STBs offers to move subs off of analog spectrum)

• Shifting to IP Video requires new IP-STB

1:1 communication will enable• Targeted custom TV services and

commerce• Collection of usage data • Simplified integration of IP content and

services (ITV - weather, games, photos, music etc. on TV)

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IPTV Advantages

Traditional TV Distribution IPTVProprietary STB lease

• Proprietary systems• Tied to single STB vendor technology

roadmap

Cheaper STB• Scale efficiencies and merchant

components will ensure cheaper devices and better availability

• Thin client will be embedded in various devices (such as XBox)

Broadcast architecture• No 1:1 potential without monumental

upgrade cost• Video delivery separate from data• Difficult to integrate with Web/PC content

and services• Would need to shift analog subs to digital

to free up bandwidth for IP video (hence free digital STBs offers to move subs off of analog spectrum)

• Shifting to IP Video requires new IP-STB

1:1 communication will enable• Targeted custom TV services and

commerce• Collection of usage data • Simplified integration of IP content and

services (ITV - weather, games, photos, music etc. on TV)

Little or no interoperability TV integrated with broadband home devices • The IP STB is the TV’s gateway to digital

music, home videos and photos

IPTV Reinvents Entertainment in the HomeIPTV Reinvents Entertainment in the Home

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Bell University Labs

Re-inventing TV in an IP World

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Bell Canada – Nation’s Leader in Communications

Consumer Segment $8B revenue 130M client

interactions/yr 15M client

connections 12K employees

1.4 Million subscribers nationwide 19% revenue growth (03/02) VDSL deployment to MDUs

2 Million Internet subscribers 36% sub growth (03/02) Driving innovation through partnership

(e.g., MSN)

Local and long distance services 8.5 Million local lines 2.1 Billion long distance minutes

3.3 Million subscribers 45% share in Bell franchise; 27% national 15% sub growth (03/02)

Bell is positioned to compete for and win the broadband home