© 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. Page 2December 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 Economics of Delivering Triple Play to the Home© Copyright 2006. Yankee Group Research, Inc. All rights reserved. Page 3December 7, 2006
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
The Economics of Delivering Triple Play to the Home© Copyright 2006. Yankee Group Research, Inc. All rights reserved. Page 4December 7, 2006
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
The Economics of Delivering Triple Play to the Home© Copyright 2006. Yankee Group Research, Inc. All rights reserved. Page 5December 7, 2006
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
The Economics of Delivering Triple Play to the Home© Copyright 2006. Yankee Group Research, Inc. All rights reserved. Page 6December 7, 2006
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
The Economics of Delivering Triple Play to the Home© Copyright 2006. Yankee Group Research, Inc. All rights reserved. Page 7December 7, 2006
• 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
The Economics of Delivering Triple Play to the Home© Copyright 2006. Yankee Group Research, Inc. All rights reserved. Page 8December 7, 2006
FMC BT Fusion
IPTV – BT Vision
BroadbandTalk
BroadbandTalk Video
HelpDesk
and RemoteDiagnostics
Broadband Data
Security and Surveillance
Source: BT
Products and Services - Today
The Economics of Delivering Triple Play to the Home© Copyright 2006. Yankee Group Research, Inc. All rights reserved. Page 9December 7, 2006
Products and Services – Tomorrow?
HelpDesk
and RemoteDiagnostics
Broadband Data
Guest Access
EnergyManagement
ManagedWhite
Goods
The Car
Health Monitoring
Source: BT
The Economics of Delivering Triple Play to the Home© Copyright 2006. Yankee Group Research, Inc. All rights reserved. Page 10December 7, 2006
• 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
The Economics of Delivering Triple Play to the Home© Copyright 2006. Yankee Group Research, Inc. All rights reserved. Page 11December 7, 2006
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’
The Economics of Delivering Triple Play to the Home© Copyright 2006. Yankee Group Research, Inc. All rights reserved. Page 12December 7, 2006
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
The Economics of Delivering Triple Play to the Home© Copyright 2006. Yankee Group Research, Inc. All rights reserved. Page 13December 7, 2006
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
The Economics of Delivering Triple Play to the Home© Copyright 2006. Yankee Group Research, Inc. All rights reserved. Page 14December 7, 2006
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
The Economics of Delivering Triple Play to the Home© Copyright 2006. Yankee Group Research, Inc. All rights reserved. Page 15December 7, 2006
• 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
The Economics of Delivering Triple Play to the Home© Copyright 2006. Yankee Group Research, Inc. All rights reserved. Page 16December 7, 2006
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
The Economics of Delivering Triple Play to the Home© Copyright 2006. Yankee Group Research, Inc. All rights reserved. Page 17December 7, 2006
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
The Economics of Delivering Triple Play to the Home© Copyright 2006. Yankee Group Research, Inc. All rights reserved. Page 18December 7, 2006
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
The Economics of Delivering Triple Play to the Home© Copyright 2006. Yankee Group Research, Inc. All rights reserved. Page 19December 7, 2006
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]