triple play economics and iptv launch informaiton

Copyright © 2006 Juniper Networks, Inc. Proprietary and Confidential www.juniper.net 1

Juniper Networks:The “IP” in IPTV

The 8th Arab Telecom & Internet Forum

Muscat, Oman

24 – 25 May 2006

2Copyright © 2006 Juniper Networks, Inc. Proprietary and Confidential www.juniper.net

Market Drivers


IPTV Opportunity vs. Risks Clear Opportunity exist to add Video to the

existing Voice and Data Services• Expand share of wallet• These help differentiate service offerings, add

subs, and lower churn

IPTV still in its infancy• <2M lines deployed,30M-50M projected in 5

years (Source: Telephony Magazine)

• Presents an opportunity to lead the Market

Competing against Other Video Sources (Cable, Satellite, Internet)• No Differentiation is a recipe for disaster• More importantly cost of delivering the service

in an economical viable way


IPTV and Beyond … IPTV is just one Service

Red = “Triple Play”

Blue = Service differentiator and opportunities for incremental revenue

Choose an architecture that allows rapid intro of any of these services !

Bandwidth Consumption

Late

ncy/

Loss

Se

nsiti

vity

Voice

MusicDownload

GameDownload

VideoConferencing/Telephony

SecureInternet

ConsoleGaming

VideoDownload

Internet

Broadband IM(PC or STB)

The Triple Play

PC-based Streaming VideoVideo

Turbo buttoninternet

Home Surveillance

Potential Multi-Play Services


What Creates Costs in Network? Network complexity is created by:

• Forecasts and number of customers• Number of boxes and facilities• Number of different boxes• Number of required upgrades and installations• Reliability and performance• Complexity of provisioning and customer care process

Complexity results in increases in both CAPEX and OPEX:• Facilities costs• Customer care headcount• NOC Headcount• Training and other costs


Building an Intelligent and Flexible IP Network for Multi-Play Services


Reference Architecture

MPLS Core

BSR/VSO

DSLAM

DSLAM

DSLAM DSLAM

Aggregation

User Edge

Core


Customer Service and Provisioning

IP Backbone

Internet Port

IPTV

VideoHead End

or ASP

DSLAMC-

VLANs

ASP(e.g. IP

Telephony)

ISP(Internet)

VoIPSwitch

VideoHead End

or ASP

DSLAMServic

e VLANs

ASP(e.g. IP

Telephony)

ISP(Internet)

Internet PortIPTV

VoIP

• Customer VLANs enable:• Service Pre-Provisioned

thereby minimizing call to customer care

• Application integration at layer 3 with SDX

• Bandwidth sharing across applications

• Easy addition of new applications such as business services

• Service VLANs Require• A device per service• Application integration at

higher layers in the OSI stack (significant development by vendors)

• Significant additional customer care costs

• Effect will be (5x number of service Connections)

• Higher service provisioning and customer care

• Higher application and future service deployment costs

• Possible reduction in revenue due to limited add-on applications

Single Edge Approach

Multi-Edge Approach


Preferred Architecture (Single Edge):Subscriber-centric approach based on Single Edge / C-VLAN model

AAA

BSR

1 x C-VLAN1 x VCStacked VLAN

MC-VLAN

All subscriber and service provisioning in BSRC-VLAN per subscriber for all unicast servicesShared MC-VLAN for IPTV broadcast services

Per-subscriber policy and QoS centralized in BSRAccess and aggregation focus is on connectivity/transport

1 x VC

1 x C-VLAN

Per subscriber

RG

RGInternet

VoD

VoIP

TV

SDP

Subscriber

Policy Manager


Multi Edge Architecture:Service-centric approach based on Multi Edge / Service-VLAN model

RG

AAA

BRAS

Service VLAN - InternetVC - Internet

Per subscriber

Service VLAN – VOD

Video PE

MC - VLAN

Service VLAN - Voice

VC - VoiceVC - VODVC - BCTV

Subscriber and service provisioning in access/aggregationShared VLAN per service for all unicast services

Shared MC-VLAN for IPTV broadcast servicesPer-subscriber policy and QoS distributed over access/aggregation/BRAS

Access and aggregation is now ‘service-aware’

VC - InternetVC - VoiceVC - VOD

VC – BCTVRG

SDP ?


Subscriber Benefits• Full access to all available bandwidth• QoS for all servicesProvider Benefits:• Eliminates need to statically partition bandwidth per service•Minimizes planning and provisioning associated with rollout of

IPTV

Dynamic Bandwidth Allocation:Bandwidth, Where and When it’s Needed

VOIPIP Video

Data

Internet Port

IPTV

VoIP

Video/Hub Serving Office

Video Head-end

Office

Video Hub

Office

Policy Manager

Customer VLAN shaped to 10Mbps service

Before IPTV is turned on – bandwidth fully allocated to Data/Voice

Upon IPTV activation – Broadband Services Router adjusts BW to ensure IPTV QoE, Voice / Data allocated remaining bandwidth

RG


Static ‘Carve Out’ Models:Bandwidth, Whether it’s Needed or Not

Internet Port

IPTV

VoD

High-speed Internet

Broadcastvideo

VideoOn Demand

RG

Complex/Static provisioning on a per-service basis = Big OPEX $$• What happens when

there is a shift to HDTV? • What happens when a

new service is introduced?

• Migration path to interactive services?

Using a VLAN/VC per service prevents resource sharing


Internet Port

IPTV

VoD

High-speed Internet Broadcastvideo

VideoOn Demand

RG

Network Architecture is Critical Dynamic Bandwidth Allocation between services works because………

A single converged network for all services

Common Service Delivery Point (SDP) provides ability to share resources

Auto Provisioning – zero touch too add new services and customers

Simplifies Access Aggregation by centralizing complex tasks


Operational Cost Savings

• Assumes $12 cost to carrier to provision a service connection (not including ADSL connections) and shows the impact of cutting connection requests in half

• In the highest growth years this represents a $12.5M savings

Video on Demand

High Speed Internet

IP Phone

Broadcast TV Services

2006 2007 2008 2009 2010

Year

0

5

10

15

20

25

30

Mill

ions

Service Provision CostTriple Play Architectures: Working Model, Provision Cost

Video on Demand

High Speed Internet

IP Phone

Broadcast TV Services

2006 2007 2008 2009 2010

Year

0

5

10

15

20

25

30

Mill

ions

Service Provision CostTriple Play Architectures: Working Model, Provision Cost


Any Service, Any Access “Agnostic to Access Method”

• ADSL, ADSL2+, VDSL, FTTN, FTTP (APON, GPON), WiMax

• Access technologies will continue to evolve, physical plant deployments should not impede service delivery

• Intelligence is separate from the physical plant and its upgrades

Invest in infrastructure which builds a framework for scalable and extensible service deployments

A solution that works for residential, small business and large enterprise


Summary

Choosing the right network architecture has far-reaching impact on cost and ensuing success of IPTV service

High-speed Internet Access remains critically important….it’s an early adopter base for IPTV service

A few Customers who chosen Juniper to be the “IP” in their IPTV services

triple play economics and iptv launch informaiton

Technology

iptv opportunity

lower churn iptv

risks clear opportunity

share of wallet

data services

service offerings

existing voice

juniper networks