May 19 – 21, 2003 Madrid, Spain The Evolving Broadband Home – Coming Challenges for Service Providers Sandy Teger and Dave Waks Co-Founders Broadband Home.

May 19 – 21, 2003Madrid, Spain

The Evolving Broadband Home – Coming Challenges for Service Providers

Sandy Teger and Dave WaksCo-FoundersBroadband Home Central

Copyright © 2003, System Dynamics Inc.

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About Us: Professionally

Sandy– 18+ years with AT&T; multimedia strategy director

Dave– Founder and R&D director, Prodigy Services Company

Together as System Dynamics Inc.– Specialists in residential broadband– Consult for companies affected by residential broadband

• Projects included strategy, business economics, competitive analysis

– Operate BroadbandHomeCentral.com as industry resource– Research and write Report on the Broadband Home

• Free monthly Internet newsletter• 71 active readers in Spain – more than 50% service providers


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About Us: Personally


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Broadband Is Transforming the Home

Broadband access is the foundation for much of what’s changing in home technologies

Broadband access and PC networking are growing

Everything is going digital

The consumer electronics industry has a huge investment in driving sales of networked appliances

The worlds of the PC, home entertainment and telephones are starting to overlap and merge

People are spending their time and money on buying and using “this stuff” because it’s compelling

Keeping up will be a challenge to broadband service providers


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“Broadband Home”

Broadband access and in-home distribution network– Any kind of access– Any kind of network

Multiple broadband devices– PCs and emerging appliances

High speed– Megabits: Millions of bits per second– To the home, in the home and from the home

“Always on” connection– Continuous connection– From the home to the outside world, and to the home

from the outside

The Emerging Broadband Home

ISPServices

DSLCable Modem WirelessFiberSatellitePowerline

BroadbandAccess Home

Gateway


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The Promise of Broadband

Work from home as easily as in the office

Voice and video

conferencing

Digital radio and TV everywhere in the home

Share photos and videos with friends and family

Untethered access

Big jukeboxes of music,

movies, TV and games

Control VCRs, AC, lights from anywhere

Telemedicine


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Broadband Tools and Toys for Work and Play

Connected Devices• Multiple PCs – server, desktops,

notebooks• Digital camera and camcorder• MP3 player and networked digital

audio player• Two PVRs• Several IP phones

Media Applications• Photo and video

software• Audio software• Music on demand

and Internet radio• Shutterfly

Foundation• Broadband modem• Structured wiring• Home gateway• Ethernet switches• Wi-Fi• HomePlug


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Our Broadband Home Movie

Sandy and Dave’sBroadband Home


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Applications Creating Broadband Usage

Application CE Device User Benefits BB Capability Used

Shutterfly Digital camera Professional-looking photo projects

Upload many photos; view projects

Rhapsody Multimedia PC Listen to lots of music you don’t own; burn CDs of songs you like

Always-on streaming downloads

Videowave Digital camcorder Create family videos; share with friends and family

Today, load clips onto Web site

Webcam Webcam View house/garden when traveling

Continuous upstream

Internet on TV Networked media player

Weather, sports scores, etc. on demand on TV

Standard Web page access

DVR capabilities DVRs with big hard drives (e.g., TiVo , RePlay)

TV programs you want, when you want them; set up when away from home

Always-on connectivity to DVR; download video to hard drive

Broadband telephony

IP telephones or MTAs

Inexpensive phone calls, later add video, better voice quality

Symmetric; video will require more bandwidth


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Top Trends

Networked Consumer Electronics– TVs, stereos, digital cameras, digital video recorders, game

consoles, PDAs, etc. being built to connect and communicate

Wireless Networking– 802.11g is “over the bar” for home entertainment– QoS still an issue for broadcast video

Home Gateways– From simple (cable/DSL router) on up (advanced set-top

boxes, Microsoft “Media Center Edition”, Pioneer “Digital Library”)

Increasing Consumer Expectations– Faster, better, cheaper– Cut across gender, age and class


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Everything Is Going Digital

AudioPlayers

VideoPlayers

StillCameras

Camcorders

SatelliteTV

CableTV

BroadcastTV

Telephone

New CE

1992 2002 2012


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Increasing Demands on Broadband Access

New connected consumer devices and services demand more from the broadband access foundation

BroadbandAccess

Home Networking

Gateways and client devices

Applications, content and services


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Home “bandwidth budget” growing

“Bandwidth budget” is total pipe size needed to accommodate all the information being sent around the home– Includes bits from all the things that people want to

interconnect

Just like any budget, it keeps expanding!– People want to connect more devices

•Not just PCs, but digital camcorders, MP3 players, PVRs, games,..

– Each device is getting richer information•Digital cameras going from 4 to 6 to 8 megapixels•TV going from standard definition to high definition•Computer files going from data to incorporate video, special effects

Consumer interest in entertainment will keep driving bandwidth to and within the home


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Challenges – Bandwidth and Symmetry

Most broadband access designed for Web browsing– Relatively low speed both ways– Highly asymmetric, biased downstream

Many new applications symmetric, some require high speed– Telephony– Video conferencing– Exchanging pictures and videos

Optical fiber is good fit for new applications– Very high speed – typically at least 100 Mbps/home– Symmetric


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Challenges – The “Triple Play”

North American cable operators will all offer “full bundle”:– Video: broadcast and VOD– Data: high-speed Internet access– Voice: primary service, largely packet-switched

(PacketCable™)

New optical fiber providers add even more– FastWeb: Videoconferencing

Will be challenge to incumbents– Lost customers are hard to win back– Hard to respond quickly with competitive video services


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Summary

Broadband will be taken for granted - like electricity

Will extend to all media and consumer electronics—becoming integrated into consumers’ lives

The specifics will vary by country and culture

Customer expectations will drive bandwidth and symmetry

Incumbents will face growing pressure from competitors, customers and communities to meet these expectations“Coming events cast their shadows before.” Thomas Campbell


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www.BroadbandHomeCentral.comdave @ bb-home.com

sandy @ bb-home.comwww.BroadbandGurus.com

18 Beaver Ridge Road, Morris Plains, NJ 07950-1901

(973) 644-4739 Fax (973) 538-6003

For More Information:

May 19 – 21, 2003 Madrid, Spain The Evolving Broadband Home – Coming Challenges for Service Providers Sandy Teger and Dave Waks Co-Founders Broadband Home.

Documents

evolving broadband home

daves broadband home

broadband home movie

system dynamics

broadband tools

broadband service providers

residential broadband

home share photos