William Bartholomay, CTO DomaniSystems Corporation2 Trap Falls Road, Suite 106

Shelton, CT 06484

OutlineIntroduction

Problem Statement

Domani Gateway Approach

Domani Gateway Advantage

Technology Differentiators

Summary

Q & A

Bibliography2

Mega-Trends

3

Global Mega-Global Mega-

Trends and Trends and

InfluencesInfluences

Trend 5: Demographics Changing - Aging population means safety, security and services at home

Trend 1: Internet Everywhere - From people to people to Internet of Things

Trend 3: Cloud Computing & Virtualization - Provides scalable access to Servers and E-commerce platforms

Trend 4: Micro-segmentation a New Norm - From Mass Merchandizing to Targeted Marketing

Trend 2: Any Service, Anytime, Anywhere - Personalized Access to Services and Entertainment

Personalized Service, Anywhere, Anytime

Personalized Service, Anywhere, Anytime

Internet of People / Things

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Internet Everywhere

•Personalized video packages

• Many channels subscribed though few viewed per month [300 subscribed vs. 12 viewed]

• Scheduled viewing vs. anytime, anywhere

•Want New Services• IP-TV, Energy management, Surveillance, etc.• Simultaneous access to Web and Linear TV

•Uninterrupted Services

• News Corp. vs. Cablevision = no MLB playoffs

•Prefer relevant Advertisements

• Un-targeted advertising = user annoyance

Customers Seek Personalized Experience

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Unmet needs lead to Point Solutions

• Competition by Satellite/ Telco• “Free” IP-TV like Roku• Voice Solutions like Vonage, Magic Jack

•ARPU Erosion

•À la Carte Solutions cause more erosion

• Netflix, Vudu, Hulu, etc. cherry pick VOD and Pay per View revenue

• Unmanaged delivery = clogged internet

•Weak negotiating position

Cable Operators’ Business Model Needs Transformation

Cable Operators’ Business Model Needs Transformation

• FCC Re-transmission rules• News Corp. (FOX) vs Cablevision, etc.

•Limited Local Adv. Revenue

• Can’t Target Ads• Can’t get useful Analytics• Revenue left on table

Cable Operators’ Current Issues

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Domani Gateway Transforms the Cable Operators’ Business Model

Current : Re-Sell Video Content

New : Provide Multitude of Video and

Non-Video Services

Domani Gateway Platform

• A Central Secure Server Software Suite In Head-end Or Cloud

• A Home Server (Secure Access Node ) Installed In Premises

And

• IP Set-top Box Driving The Video Screen (TV)

Platform is Software CentricPlatform is Software Centric8

Unique Architecture: Supports Multiple Virtual Networks

Secure Access Node(DomaniSystems)

DOCSIS

Cable Operator Server or Cloud(DomaniSystems Secure Access Software Platform)

DOCSIS

Secure Access Node(DomaniSystems)

WAN Infrastructure

Alarm CompanyServer

Wireless ProviderServer

Utility CompanyServer

Platform Securely Shared By Multiple Service Providers

Platform Securely Shared By Multiple Service Providers

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What Does DomaniSystems’ Gateway Do?For The Subscriber

• Transforms Every TV into a Smart TV– Linear plus IP TV– Whole Home DVR to all TVs, Tablets and

Smartphones– Simultaneous Video and Internet Browser

on TV– Tablet or Smartphone as Remote Control or

3rd Screen

• Transforms Every Home into a Smart Home

– VoIP Phone and Video Conferencing on TV– Managed Wi-Fi access– Advanced IT Backup Service– Home Surveillance Everywhere– Managed Home Resource Service for

Subscribers– “Sling” Video and Audio anywhere– Telemedicine and E-Education access– Controllable by a Tablet or Smartphone

anywhere

For The Operator

• Micro-segmented Targeted Advertising

– Banner Ads, Service Alerts and Advanced Scheduling Tools

– Tablet linked to Ads for shared or private shopping

• Advanced Service Provisioning– Remote Software feature upgrades and

downloads– Advanced diagnostics for all features built in

• Unified Portal– Subscriber and Operator Usage & Mgmt– Gateway to Managed Home

• Legacy Compatibility– Works with existing Head End and CMTS;

CableCARD for Linear TV & standard Cable Modem for broadband

– Compatible with existing Set top Boxes and Cable Modems

– Integrates with existing Administration and Billing systems

Domani Gateway = New Business ModelQuadruple Play:Avg. Revenueper Subscriber(ARPU) ~ $120per month fortriple play today

Priority One Features: Deployable by a Primary Service Provider without a partner; = substantialincrease in ARPU

Priority Two Features: Require additionalService Providers as partners; = further increases ARPU

Domani Gateway = New Revenue Streams

Domani Gateway = New Revenue Streams 11

Analytics and LocalAdvertisements further increases ARPU

Security Camera PIP

Home Surveillance While Watching TV

TV PIP

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Motion Sensed Camera PIP

XBox

Personalized Services& Targeted Advertizing

Coaxial Cable Drop

CableModem

Coax

Hom

e N

etw

ork

– An

alog

+ D

igita

l TV

& M

oCA

Domani IPSet Top Box

Domani IPSet Top Box

Hybrid Fiber Coax

Distribution

Hybrid Fiber Coax

Distribution

Internet

Third Party Server

Cable Modem Term. System

Legacy Set top Box

Eth

ern

et

VideoHeadEnd

DomaniSystems’ Advantage

DomaniHome Server

DomaniCentral Server

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DomaniSystems Software Architecture

• Intelligence is in the Software• Existing Services can be upgraded in the field with no truck rolls• New Services can be rolled out on the fly• User is in control of Services through a Secure Portal

Service Multiplexer

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Multitude of New Revenue Streams from a Single, Secure Platform

Multitude of New Revenue Streams from a Single, Secure Platform

Technology Differentiators

“Cloud” Based Virtualized Architecture

Security From Ground Up

Real Time Data Mining And Analytics

Four Patents Granted and Nine Patents Pending

Four Patents Granted and Nine Patents Pending

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16

TR-069 Based Management Infrastructure(Each Service is managed by its provider Using TR-069)

Architecture Compatible with OSGi & Home Gateway Initiative

Architecture Compatible with OSGi & Home Gateway Initiative

Network Operator

ACS

ServiceProvider

#1ACS

ServiceProvider

#2ACS

ServiceProvider

#3ACS

ServiceProvider

#nACS

Home Gateway Core

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TR-

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069TR- 069

TR-069

TR-069

TR -069CPE

XBox

Personalized Services& Targeted Advertizing

Coaxial Cable Drop

CableModem

Hybrid Fiber Coax

Distribution

Hybrid Fiber Coax

Distribution

Internet

Third Party Server

Cable Modem Term. System

Ethe

rnet

VideoHeadEnd

DomaniCom Vision: Wireless Everywhere

DomaniHome Server

DomaniCentral Server

DomaniDongle

DomaniDongle

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DomaniDongle

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Summary DomaniSystems solutions Integrate Video/ Non- Video Services + Apps + Micro-Segmented Advertising + E-commerce in a single platform Architecture Supports Multiple Virtual Networks

–13 patents filed (4 granted)

Solutions trigger new revenue streams for operators—Increases operating profit

Completed the Beta System—Beta in progress with a Cable Operator

Domani Gateway Transforms the Cable Operators’ Business ModelDomani Gateway Transforms the Cable Operators’ Business Model

19Questions?Questions?Questions?Questions?

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Bibliography1) “Getting Over-the-Top Video Right”, by John Barrett | Published by

Parks Associates | © Parks Associates | Dallas, Texas 75248

2) “Cisco Connected Home Solutions Overview”, by Yongsub Lee Solution Manger, Cisco APAC HQ Video Solution Group February 2010

3) “Telco 2.0 solutions for third-party companies hindered by confused operator strategies”, by Chris Barraclough, MD and Chief Strategist, STL Partners/Telco 2.0

4) “The Data-driven Video Discovery Evolution”, by Kurt Scherf Published by Parks Associates © 2011 Parks Associates, Dallas, Texas

5) “Reaping the Benefits of Fused Services”, by Alan Breznick Senior Analyst, Heavy Reading, June 2011