arris technology breakfast

ARRIS Technology Breakfast

May 8, 2007

Las Vegas, Nevada

Converged Voice, Data and Video over DOCSIS® 3.0 and M/I-CMTS

Tom Cloonan

CTO-Broadband Division

ARRIS Group

3 NCTA 2007

Agenda

▪What Is Driving Change in the Cable Industry?

▪How will MSOs Respond?

▪How will Vendors Help MSOs Move Toward Converged VoIP Services?

▪How will Vendors Help MSOs Move Toward Converged Video Services?

▪How will Vendors Help MSOs Move Toward Converged Data Services?

▪Conclusions

4 NCTA 2007

What Is Driving Change in the Cable Industry?

▪ In one word…

COMPETITION !!!

5 NCTA 2007

In More Than One Word…

▪ Voice− VoIP is becoming more widely deployed and accepted− Wireless Providers are using Fixed Mobile Convergence to steer VoIP

calls directly to their subscribers’ homes

▪ Video− Narrowcast VoD & HDTV is more widely deployed and accepted− Satellite Providers are greatly increasing the number of HDTV channels

that they support (ex: DirectTV will offer 100 HDTV channels)− DSL & FTTH Video Providers are offering IPTV services to the PC

▪ High-Speed Data− The possibility of true convergence of Data, Voice, and IP Video Services

is becoming a reality for all service providers− Commercial Services, Video Downloads, IPTV, P2P, P2PTV (ex: Joost &

Vuze), & other applications are becoming commonplace− These new applications are requiring more bandwidth & rapidly-changing

Upstream-to-Downstream channel ratios for HSD service − HSD competitors (ex: DSL & FTTH) are rapidly increasing their

bandwidth capabilities

MSOs have many weapons to use against these competitive attacks

6 NCTA 2007

Agenda






▪Conclusions

7 NCTA 2007

We Predict the Following Changes…

▪ Voice− Fixed Mobile Convergence (FMC) will let MSOs work with WiFi MTAs (in the home)

and cellular providers− More improvements and focus on the high availability, high quality, & customer

support offered by the MSO “wired” voice service− Many more Business Services rollouts using VoIP− Higher take-rates & more ubiquitous deployments of Voice over IP (VoIP)

▪ Video− More digital channels… less analog channels− Switched Digital Video (SDV) for spectrum efficiency− More HDTV & more VoD− Move toward IPTV over DOCSIS to PCs & PDAs− Introduction of fee-based IP video download services and QoS-enabled

partnerships with 3rd-party Internet TV content providers using PacketCable™ Multi Media (PCMM) and DOCSIS®

▪ High-Speed Data− Tighter coupling with WiFi for Business Services− Dynamic sharing of bandwidth between Voice, Video, and Data requiring more

complex network management− Focus on Quality of Experience (QoE) levels− Much higher DOCSIS bandwidth per subscriber using DOCSIS 3.0 Channel

Bonding− Many more Business Services rollouts using DOCSIS

8 NCTA 2007

We Predict the Following Changes…

▪ Voice− Fixed Mobile Convergence (FMC) will let MSOs work with WiFi MTAs (in the home)

and cellular providers− More improvements and focus on the high availability, high quality, and customer

support offered by the MSO “wired” voice service− Many more Business Services rollouts using VoIP− Higher take-rates & more ubiquitous deployments of Voice over IP (VoIP)

▪ Video− More digital channels… less analog channels− Switched Digital Video (SDV) for spectrum efficiency− More HDTV and more VoD− Move toward IPTV over DOCSIS to PCs & PDAs− Introduction of fee-based IP video download services & QoS-enabled partnerships

with 3rd-party Internet TV content providers using PacketCable™ Multi Media (PCMM) and DOCSIS

▪ High-Speed Data− Tighter coupling with WiFi for Business Services− Dynamic sharing of bandwidth between Voice, Video, & Data requiring more

complex network management− Focus on Quality of Experience (QoE) levels− Much higher DOCSIS bandwidth per subscriber using DOCSIS 3.0 Channel Bonding− Many more Business Services rollouts using DOCSIS

Co

nve

rgen

ce o

ver

DO

CS

IS®

9 NCTA 2007

Agenda






▪Conclusions

10 NCTA 2007

Automated In-Premise Loop Diagnostics will accelerate VoIP Rollouts and TroubleshootingEx: ARRIS Touchstone® E-MTA 5.0 Feature

▪ The ARRIS E-MTA is a complex device capable of performing remote tests on the in-home wiring + providing troubleshooting data

▪ Five tests are available to the operator:− Hazardous Potential Test (ie. AC cross-wiring)− Foreign ElectroMotive Force (FEMF) Test (ie. ILEC cross-wiring)− Resistive Faults Test & Receiver-Off-Hook Test (ie. wiring shorts)− Ringers Test (excessive number of phones)

▪ The System Operator can remotely perform these tests, resulting in a simple Pass/Fail result, or a more substantive test report

Proactive, high-quality network management into the subscriber’s homes & businesses

11 NCTA 2007

Automated Call Quality Monitoring will expedite TroubleshootingEx: ARRIS Touchstone® E-MTA Feature

▪ Voice Quality Metrics for last 10 phone calls− Listening Quality and Conversational Quality

(MOS) Scores− RF Signal and Noise Levels− Residual Echo Return Loss scores− Packet Loss Analysis

▪ IP Address (DHCP) Message Logging▪ Call Processing Message Logging

Voice Bearer path

Class 5Local Digital Switch

DS1

Managed IP Network

Media Gateway

Back Office

Systems

Back Office

Systems

CallManager

Permits MSOs to diagnose problems even days after the problem occurred

12 NCTA 2007

Agenda






▪Conclusions

13 NCTA 2007

Sat Receivers

D5™ U-EQAMsStatistical Mux

Element Management Systems

Resource Manager

Bulk Encrypter

Modulator

deModulator

STB

Headend

SDV Server

STB

STBHub

SDV Systems Using Universal Edge QAMs Will Free Up Needed Digital Spectrum for HDTV and Channel Bonding Services

14 NCTA 2007

Denser CMTSs and EdgeQAMs are Being Developed to Carry the Increased Traffic Load Generated by Future IPTV over DOCSIS® services

DocsisMAC

GigabitEthernet Switch

VoDServer

Broadcast Analog Video (45 programs = 45 channels)Broadcast Digital SDTV (200 programs = 20 QAMs = 1 Gbps) & Broadcast Digital HDTV (40 programs = 20 QAMs = 1 Gbps)

Narrowcast VoD(13.6 Gbps / 340 QAM…

17 QAMs per FN)

IPMetroNtwk

RF

RF

RF

RF

D5EdgeQAM

D5EdgeQAM

D5EdgeQAM

D5EdgeQAM

IP Router

HSD & Voice(1 Gbps / 32 QAM

& 128 UpChannels)

RFUSRCV

C4 M-CMTS20KHHPHubw/20

FiberNodes

As IPTV Services are Offered by DSL & FTTx Providers, MSOs may need to add some DOCSIS®-delivered IPTV Channels

15 NCTA 2007

Denser CMTSs & Denser EdgeQAMs are Being Developed to Carry the Increased Traffic Load Generated by Future IPTV over DOCSIS® services

DocsisMAC

GigabitEthernet Switch

VoDServer

Broadcast Analog Video (45 programs = 45 channels)Broadcast Digital SDTV (200 programs = 20 QAMs = 1 Gbps) & Broadcast Digital HDTV (40 programs = 20 QAMs = 1 Gbps)

IPMetroNtwk

RF

RF

RF

RF

D5EdgeQAM

D5EdgeQAM

D5EdgeQAM

D5EdgeQAM

IP Router

HSD & Voice(1 Gbps / 32 QAM

& 128 UpChannels)

RFUSRCV

C4 M-CMTS20KHHPHubw/20

FiberNodes

As IPTV Services are Offered by DSL & FTTx Providers, MSOs may need to add some DOCSIS®-delivered IPTV Channels

Narrowcast IPTV(13.6 Gbps / 340 QAM…

17 QAMs per FN)

16 NCTA 2007

2005 2006 2007 2008 20090

2

4

6

8

10

12

14

16

18

20

Total # Downstreams/SG

Total # Upstreams/SG

Total # Ports for 4-Fiber Node Service Group for One MSO

1

4

2

4

4

4

8

4

12

8

U:D=4:1 U:D=2:1 U:D=1:1 U:D=1:2 U:D=2:3

New Applications Like This Are Demanding Flexible Upstream : Downstream Channel Ratios for DOCSIS®… Vendors Will Provide…

17 NCTA 2007

Agenda






▪Conclusions

18 NCTA 2007

2005 2006 2007 2008 20091

10

100

1000

30 kbps

Avg Bandwidth per subscriber (kbps) proposed by one MSO

100 kbps

1 Mbps

FTTH Competition is Leading MSOs to Realize there is a Near-term Need for Much More DOCSIS® Bandwidth per Subscriber

How can we increase the DOCSIS bandwidth per subscriber?

19 NCTA 2007

Possible Techniques for Increasing the DOCSIS® Bandwidth per Subscriber

“HFC has a lot of legs

left”!

▪ Fiber Node Splits − Reduces # subs per DOCSIS Channel− Limits Tmax to 40 Mbps

▪ Simple Increase in the number of DOCSIS Channels per Fiber Node− Increases BW per sub− Limits Tmax to 40 Mbps − Requires Switched Digital Video or Analog Reclamation or

MPEG-4 Compression to free up Video Channels for DOCSIS use

▪ DOCSIS 3.0 Channel-bonding to increase the amount of bandwidth per DOCSIS Channel− Increases BW per sub− Tmax values higher than 40 Mbps

20 NCTA 2007

MSOs Can Deliver As Much DOCSIS®Bandwidth As They Require in the FutureUsing DOCSIS 3.0 Channel Bonding

New ARRIS Touchstone®Wideband Modem WBM750(160 Mbps downstream120 Mbps upstream)

ARRIS C4™ X-CMTS

40 Mbps

40 Mbps

30 Mbps

30 Mbps

M DS Channels

If M=4 DS Channels, Total Bandwidth to Subscriber = 160 Mbps

If M=10 DS Channels, Total Bandwidth to Subscriber = 400 Mbps

If M=125 DS Channels, Total Bandwidth to Subscriber = 5 Gbps

M*40 Mbps

N*30 Mbps

N US Channels

21 NCTA 2007

Upstream Downstream (116 QAM channels @ 6 MHz each)

54 MHz 552 MHz 654 MHz678 MHz

750 MHz

PP

V C

on

tro

l

HS

D &

Vo

IP

Res

erve

d SDTV Digital TVBcast (17 QAMchannels w/170 programs)

HDTV Digital TVBcast (4 QAMchannels w/8 programs)

SDTV Digital TVNcast (10 QAMchannels w/100 programsshared by 4-10Fiber Nodes)

DO

CS

ISH

SD

& V

oIP Analog TV

Bcast (83 channels w/83 programs)

690 MHz5 10 30 42

DOCSIS HSD & VoIP Ncast (2 QAM channels w/80 Mbps Shared by 4-10 Fiber Nodes)

Where Will The Channels Come From For DOCSIS® 3.0 Channel Bonding?

Typical HFC Spectrum

22 NCTA 2007

54 MHz 552 MHz 654 MHz678 MHz

750 MHz

PP

V C

on

tro

l

HS

D &

Vo

IP

Res

erve

d SDTV Digital TVBcast (17 QAMchannels w/170 programs)

HDTV Digital TVBcast (4 QAMchannels w/8 programs)

SDTV Digital TVNcast (10 QAMchannels w/100 programsshared by 4-10Fiber Nodes)

DO

CS

ISH

SD

& V

oIP Available

Spectrumfrom Eliminationof Analog Bcastand/or SDV

MSOs can re-use this spectrum for HDTV Video and DOCSIS Channel Bonding services

690 MHz5 10 30 42

DOCSIS HSD & VoIP Ncast (2 QAM channels w/ 80 Mbps Shared by 4-10 Fiber Nodes)

Analog TVBcast (30 chls w/30 progs)

234 MHz

Upstream Downstream (116 QAM channels @ 6 MHz each)

Where Will The Channels Come From For DOCSIS® 3.0 Channel Bonding?

Typical HFC Spectrum

23 NCTA 2007

Integrated CMTS (I-CMTS) Architecture

VoD/Cache Servers

10 GbitMetro Ring

C4 I-CMTS

Video Operations

D5™ U-EQAM

Video Resource Manager

ERMI

Network Edge

MPEG Video

CPE Devices

DOCSIS US

Home

Internet

DOCSIS DS

DRFI

WBM 750

ARRIS Will Provide a Full DOCSIS 3.0 Product Suite toSupport I-CMTS and/or M-CMTS Operation

24 NCTA 2007

GigE

VoD/Cache Servers

10 GbitMetro Ring

Video Operations

D5™ U-EQAM

Video Resource Manager

ERMI

Network Edge

MPEG Video

CPE Devices

DOCSIS US

Home

Modular CMTS (M-CMTS) Architecture

Internet

DOCSIS DS DEPI

DRFI

C4 M-CMTS

ARRIS Will Provide a Full DOCSIS 3.0 Product Suite toSupport I-CMTS and/or M-CMTS Operation

WBM 750

25 NCTA 2007

ARRIS Will Offer a Unique “Hybrid CMTS” That Permits MSOs to Provide both I-CMTS & M-CMTS Service in a Single Chassis

ARRIS C4® Hybrid CMTS

Might be valuable for migration between the two technologies

Might be valuable for providing different service offerings

D5™ U-EQAM

Touchstone®Wideband Modem

WBM750

26 NCTA 2007

Edge Resource Mgr

D5 EQAM

D5 EQAM

D5 EQAM

D5 EQAM

D5 EQAM

Router/Switch

C4M-CMTS

VoDServer

SwitchedDigitalBCASTVideoMgr D5 EQAM

CM MTA STB

SG #1 Forward Path

SG #1 Reverse Path

CM MTA STB

SG #2 Forward Path

SG #2 Reverse Path

Another Trend in the Future…Dynamic Sharing of EQAMs between DOCSIS & Video will Reduce Capex & Ensure Efficient Channel Usage

27 NCTA 2007

Edge Resource Mgr

D5 EQAM

D5 EQAM

D5 EQAM

D5 EQAM

D5 EQAM

Router/Switch

C4M-CMTS

VoDServer

SwitchedDigitalBCASTVideoMgr D5 EQAM

CM MTA STB

SG #1 Forward Path

SG #1 Reverse Path

CM MTA STB

SG #2 Forward Path

SG #2 Reverse Path

Another Trend in the Future…Dynamic Sharing of EQAMs between DOCSIS & Video will Reduce Capex & Ensure Efficient Channel Usage

28 NCTA 2007

Cable Equipment Providers Will Offer More Automated Network Management

▪Management of Resources will need to be more Dynamic and more Heavily Automated− QAM Assignment− Load Balancing of Traffic− Identification of Over-subscription Conditions

▪Decisions will be based on many factors− Bandwidth Usage− Quality of Experience for Each User Type

Web-surfing=Download time

P2P= Average Bandwidth

Voice=Constant Bandwidth

Gaming=Latency

29 NCTA 2007

Conclusions

▪Competition is heating up in all areas (Voice, Video, and High Speed Data)

▪Many exciting changes will occur in the Cable Industry to respond to the Competition

▪MSOs and Cable Equipment Providers are working together to capitalize on the incredible potential of the ~5 Gbps HFC Plant to offer Best-In-Class Services in the Future:− High-quality VoIP service− Extensive HDTV offerings− Mixed wired/wireless services− IP Video to the PC and PDA− DOCSIS 3.0 Channel Bonding bandwidths− Etc.

The Future Is DefinitelyBright For Cable

Thank You

Market and Technology Drivers

for Business Services

Mike Emmendorfer

Senior Director, Solution Architecture and Strategy

ARRIS Group

32 NCTA 2007

Business Services – Agenda

▪Market Opportunity and Trends

▪Overview of Business Services and Technology

▪ Solution Architectures for Business Services

▪Conclusions

33 NCTA 2007





▪Conclusions

34 NCTA 2007

U.S. Small and Medium Business (SMB) Market Segments

SMB Market (# of

Employees)

SMB Category

Size

Monthly Spending

Total Spend Monthly

Total Spend Annual

Total Spend Percent (%) of SMB Market

5 to 9 1,006,000 600 603,600,000 7,243,200,000 27%10 to 19 610,000 1,200 732,000,000 8,784,000,000 33%20 to 99 521,000 1,700 885,700,000 10,628,400,000 40%5 to 99 2,137,000 2,221,300,000 26,655,600,000

Sizing U.S. SMB Market For MSO Revenues

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

5 to 9 10 to 19 20 to 99

Number Of SMB Employees

To

tal

Nu

mb

er o

f S

MB

s

$0

$500

$1,000

$1,500

$2,000

Mo

nth

ly S

pen

din

g

SMB Category Size Monthly Spending

Sizing U.S. SMB Market For MSO Revenues

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

5 to 9 10 to 19 20 to 99

Number Of SMB Employees

To

tal

Nu

mb

er o

f S

MB

s

$0

$500

$1,000

$1,500

$2,000

Mo

nth

ly S

pen

din

g

SMB Category Size Monthly Spending

The Cable Industry has a tremendous

opportunity to increase its share of the

estimated annual $27B SMB marketplace

The Cable Industry has a tremendous

opportunity to increase its share of the

estimated annual $27B SMB marketplace

* Source: Stratecast Partners

35 NCTA 2007

Low Bit Rate Transport Revenue Growing

▪ Business Transport Services Market Data− T1s are still growing in numbers− T1s hit $13.7B - Half of U.S. Business transport revenue− These T1s are traditionally used for both Voice and Data services

▪ Position DOCSIS® to Replace Legacy TDM Transport

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2001 2003 2005 2007 2009

DS-1 GrowthSource: Insight ResearchSource:Vertical Systems Group Nov 2006

36 NCTA 2007

The Shift to Ethernet Based Services

$ 2 2 . 5

$ 5 . 9

$ 0 . 0

$ 5 . 0

$ 1 0 . 0

$ 1 5 . 0

$ 2 0 . 0

$ 2 5 . 0

Re

ve

nu

e (

US

$B

)

C Y 0 5 C Y 0 6 C Y 0 7 C Y 0 8 C Y 0 9

C a l e n d a r Y e a r

W o r l d w i d e T o t a l E t h e r n e t S e r v i c e s R e v e n u e

What is Driving the Shift to Ethernet Based Services?

Ethernet has the lowest cost, highest bandwidth flexibility, is ubiquitous and simple (replacing Frame Relay, ATM, and SONET technologies)

Standards Organizations MEF and IETF with membership from MSOs and Equipment Providers

Certification of Equipment as well as Service Providers (MSOs)

Source: Infonetics Research

37 NCTA 2007

Ethernet Service Providers

38 NCTA 2007





▪Conclusions

39 NCTA 2007

Overview of Business Services and Technology

Value Added Services• E-Mail• Web Hosting• Wireless Networking• Bandwidth Management• Data backup• Security Services

• Firewall - IDS/IPS

Data Services• High Speed Internet Access

• Direct Internet Access (DOCSIS®, Wireless and Fiber)• Routed Service (Customer Routes are Advertised)

• TDM Transport Services• Traditional or Circuit Emulation Service (CES)• CES Standards: SAToP, CESoPSN, BSOD

• Layer 2 VPN (L2VPN) Services• Point-to-Point Service Framework

• E-Line Services defined by Metro Ethernet Forum (MEF) • VPWS – Virtual Private Wire Service as defined by IETF

• Multipoint Service Framework• E-LAN Services defined by Metro Ethernet Forum (MEF) • VPLS – Virtual Private LAN Service as defined by IETF

• Layer 3 VPN (L3VPN) Services• Point-to-Point Service

• Technologies implemented GRE and IPSec• Multipoint Service / IP VPN Service

• Technology implemented MPLS BGP – RFC 2547 bis

Voice Services• Hosted / Non – Hosted

• PacketCable / SIP• Business Class Features• IP Handset / Soft Client• IP PBX / Centrex• Unified Messaging

Video ServicesLocal Channels, News, Sports, On-Demand, Pay-Per View, and CD-quality Commercial-free Music

40 NCTA 2007


▪ Market Opportunity and Trends

▪ Overview of Business Services and Technology


▪ Conclusions

41 NCTA 2007

Business Services –Leveraging the Investment

Source: Kagan Research, LLC

U.S. MSOs have invested more than $100B during the past

decade building and upgrading infrastructure

▪ MSO Last Mile Access Network− High capacity coax network

5-6 Gbps of Downstream (forward)Over 100 Mbps of Upstream (return)

− Extensive fiber network close to Business Customers

▪ Next Generation IP/MPLS Network− Supports convergence of all

servicesVoice, Video, and DataResidential and Business Customers

− Carrier Class NetworkRedundancy and High AvailabilityNetwork Operation Organizations and Systems

▪ Incremental Investment− MSOs have the ability to “target”

network capacity expansion where and when needed thus avoiding network-wide upgrades

− Fixed wireless data solutions are portable assets that improve time to market and ROI

42 NCTA 2007

Wireline and Wireless DOCSIS® Solution Architectures

DOCSIS using End-to-End HFC

CMTSPacket

Switched Network (PSN)

DOCSIS using Wireless MAN

Strand-Mounted DOCSIS Wireless Line Extension

CMTS

HFC / DOCSIS

Access Network

Cable Modem EMTA / Cable Modem

EMTA / Cable Modem

Building-Mounted DOCSIS Wireless Line Extension

Wireless DOCSIS Down Stream

Wireless DOCSIS Up Stream

Transceiver/ Antenna

Wireless DOCSIS Up to 20 Mile Range

HFC / DOCSIS

Access Network

HFC / DOCSIS

Access Network

802.1Q VLAN Tagging

Strand Mounted

Multipoint DOCSIS

Wireless for Short

Distances

Multipoint DOCSIS

Wireless for Short

Distances

Building Mounted

Multipoint Tower

Mounted

EMTA / Cable Modem

Leverage ExistingDOCSIS Back-Office

DOCSIS® - OSS

Back Office Systems

Augment HFC NetworkWith DOCSIS Wireless

• Data Services• High Speed Internet• TDM Transport• Layer 2 VPN (L2VPN)• Layer 3 VPN (L3VPN)

• Voice Services• Value Added Services

Multi-line E-MTA

≈ ½ Mile≈ ½ Mile

43 NCTA 2007

DOCSIS® Business SolutionsVoice and Data Services

•Conferencing (>3 ports)•Distinctive Ringing•Automatic Call Distribution•Inter-site feature transparency•Centralized billing •Direct Inward Dial •Direct Outward Dial

ARRIS Integrated Business SolutionsARRIS Integrated Business SolutionsPotentialPotential IP Centrex Features depends on Call Server:IP Centrex Features depends on Call Server:

•Hunt groups•Call park •Call pickup•Network based private dial plan•E911 termination•Local Number Portability•Lawful Intercept •Distinctive ringing

•Hold / Automatic Hold•Inbound Call Delivery•Message Waiting Indication•Outbound Call Routing•Redirect / Transfer

Call Server

Gateway

MSO MSO CoreCore

C4® CMTS

HFC / DOCSIS

Access Network

Home Office / Tele-Worker

Small Business

Medium Business

Multi-Dwelling Units

1-Line or 2-Line E-MTA + Wireless Data Gateway

4-Line E-MTA + Data

8-Line E-MTA or 8-Line E-MTA with Router

12-Line E-MTA

Medium Business +

Back Office OSS and DOCSIS-EMS

12-Line E-MTA + Data

44 NCTA 2007

DOCSIS® and Optical Solutions: L2VPN, Ultra High Speed Data and TDM

Layer 2 VPN

Ultra High Speed Data

TDM Services (Circuit Emulation Services)

Remote Site (L2VPN) to HQ

Layer 2 VPN

Ultra High Speed Data

TDM Services (Circuit Emulation Services)

CMTS

Packet Switched Network (PSN)

DOCSIS® - OSSBack Office Systems

MLSR

WDM Mux/ Demux

Single or Fiber Pair

Dedicated Port (GigE+)

Node

PBX or Key System

Cell Site

T1/E1 MTA

L2VPN Head

Quarters

PBX or Key System

Cell Site

Commercial Service

Gateway

Commercial Service

Gateway

Commercial Service

Gateway

DOCSIS 3.0 Cable Modem

Legacy TDM Switch Internet

EMTA / Wireless Gateway

Commercial Service Aggregator

Router

DOCSIS Fiber

45 NCTA 2007

DOCSIS® 3.0 Features Reduces Fiber Requirements for Business Services

Coax and DOCSIS Network Leveraged

DOCSIS 3.0 Well Positioned for SMB Market

Fiber Required to Serve Business Service Customers

Impacts ROI for Lower Bandwidth Tier

Fiber

46 NCTA 2007





▪Conclusions

47 NCTA 2007

Conclusions

1. The Cable Industry has a tremendous opportunity to increase its share of the Small - Medium Business Market.

2. There is a worldwide industry shift to Ethernet Based Services replacing legacy T1, Frame Relay and SONET based technologies.

3. This shift complements the Cable Industry because they have already built Next Generation Networks capable of supporting Voice, Video and Data for Residential and Commercial Customers.

4. A significant portion of the Enablement Capital for Business Services is already in place, without new network-wide upgrades.

5. Incremental Investment and Success Based Capital will be targeted and tied to New Business Service Revenue.

6. MSOs’ extensive HFC network infrastructure, combined with the arrival of DOCSIS® 3.0, will be sufficient to support the majority of SMB service needs, minimizing costly, additional fiber builds.

Thank You !

The Cable Industry has a tremendous opportunity to increase

its share of the Small - Medium Business Market!

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