SMIS Supply Market Intelligence & Services

Technology & Market Report

Developments in Connected Home

Report No. Date Author(s) ST 8005 2008 04 -2 T.Hwa, H.Chung, T.Kamoshida, F.Fang

Keywords

UPnP, Ethernet, Powerline (PLC), WiFi, WiMAX, Femto cell, IPv6, ZigBee, 11n, 3G, ADSL, VDSL, FTTx, EMTA

SMIS China SMIS India SMIS Japan SMIS Korea SMIS Taiwan SMIS E Europe CONFIDENTIAL

All rights strictly reserved. Reproduction or issue to third party in any form whatever is not permitted without written authority from the proprietor.

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Notice
Every effort has been made to ensure the accuracy of this report. However, no responsibility will be accepted for the accuracy of the facts, analysis or forecasts or any part of this report. No reproduction of this document or any subset is to be made without the specific authorization of SMIS. Excerpts for editorial use must be accompanied by full attribution. Information or additional copies may be obtained from SMIS, name, address, mail, telephone.

Released Apr 2, 2008 by Representative author Tommy Hwa (SMIS Taiwan) of SMIS team in collaboration with Haryong Chung (SMIS Korea), Frank Fang (SMIS China) and Toshiya Kamoshida (SMIS Japan)
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Introduction
Research questions
Connected Home What strategies are standardization bodies, operators and vendors following in inter-working and integration of in Home devices ? Which element has the central role in the in Home Environment (RG, STB, ) To what extent are other parties (operators, system integrators) expanding their services to cover management of in home devices. What are their business drivers. What technologies are used to implement such a strategy and what standards (TR-069+, UPnP, proprietary, ..) Scope of devices: Network Terminator, Home Gateways, Residential Gateways, Set Top Boxes, Mobile Handsets, PDAs, Cameras, Printers Scope of integration: in home wiring (Eth, Powerline, WiFi, HSPA, WiMax, ), sharing of content over multiple devices, multiple services on one device, multiple access interfaces on one device (Eth, WiFi, HSPA, WiMax)

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 Scope As the research questions are general and broad, we use 3 case studies to illustrate the developments of the Connected Home Report. To show how Home devices connect to Internet and display (FTV), we firstly discuss Digital home concepts via PLC (Powerline) technology. Secondly, we argue how Fento cell stations may integrate WiFi and GSM technologies and to become a trend. Lastly, the beneficial perspectives of IPv6, the new Internet protocol, will be shown. We would like to update this report quarterly to monitor the latest market trends and discuss in more detail about the strategies of service providers. Purpose Based on the research questions, this report is to discuss what kind of technologies and applications the service providers (Operators/ telecos/ etc) can execute and integrate to provide their services for the home devices. Service providers can take this report as a reference to implement their strategies on their service content. Methodology The data, analysis, and conclusions for these 3 case studies are based on primary and secondary research methodologies. We consulted suppliers and interpreted their presentations and product concepts into our replies for our research questions. We further use desk research to support our interpretation.
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Executive summary
In the Connected home, we apply three case studies about Homeplug (PLC)/ Femtocells/ IPv6 to discuss: 1. Connectivity technology - outdoor (ADSL/ VDSL/ WiMAX/ 3G/ Cable/ etc) - indoor (WiFi/ Bluetooth/ PLC/ HomePNA/ MoCa/ UWB/ ZigBee/ Ziwave/ etc) 2. Connected Home (Digital Home) - Concept - Applications - Market trend 3. Related products Networking devices/ Home gateway/ Media center/ AV Sender/ STB/ Fento cell station/ etc 4. Business related to KPN - Telecommunication - Mobile phone service - Internet - Retail Based on above, we will reply the Research questions in the conclusion section.
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Content
1. Definition of Connected Home 2. Case study 1- Power line backbone Connected Home 3. Case study 2- 3G Femto Cell Base Station in your lounge 4. Case study 3- IPv6 for revenue growth 5. Conclusion 6. Resource 7. Appendix 1- ZigBee Appendix 2- DLNA Appendix 3- Home Media Center

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1. Definition of Connected Home

Connected Home is Linking services to devices for tomorrows lifestyleThe Digital Home is evolving into a network hub, a place where Content is received, consumed, stored, moved to other devices and increasingly, redirected onto other networks.
from The Connected Home Conference 2007

The Smart Home is first of all a Connected Home, and it is clear today that the Internet and the IP Telecoms services are driving the progress made
from The Rise of the Convergent Residential Gateway and the Convergent Residential Services

Networked home is to enable the various consumer electronics products in your home to connect with each other to create a complete solution that enhances each devices capabilities.
by Aaron Feen, director of commercial solutions at AMD

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1. Definition of Connected Home

From outdoor From outdoor

From outdoor

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1. Definition of Connected Home

Connected Home

Wireless PVR

Wireless DVD

Wireless Media Player Wireless Media Adapter Wireless TV Wireless Music Player

Media Center PC Wireless Storage

Broadcasting

Wireless Gateway

Broadband

Connectivity technology - outdoor (ADSL/ VDSL/ WiMAX/ 3G/ Cable/ etc) - indoor (WiFi/ Bluetooth/ PLC/ UWB/ ZigBee/ Ziwave/ etc)
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1. Definition of Connected Home

Categories of Broadband Access Network (BAN)

Wired line ITU-T G.983: APON (ATM passive optical network), BPON (Broadband PON) ITU-T G.984: GPON (Gigabit PON) IEEE 802.3ah: EPON or GEPON (Gigabit Ethernet PON) IEEE 802.3av: 10GEPON (10 Gigabit Ethernet PON) HFC (hybrid fiber coaxial), DOCSIS (data over cable service interface specifications) xDSL: ADSL (Asymmetric digital subscriber line), SDSL (Symmetric DSL), HDSL (High bit rate DSL), VDSL (Very high speed DSL) FTTx: fiber to the node/neighborhood (FTTN), fiber to the cabinet (FTTCab), fiber to the curb (FTTC), fiber to the building (FTTB), fiber to the home (FTTH) Wireless line Wi-Fi (IEEE 802.11a/b/g) Broadcasting WiMAX (IEEE 802.16a/d/e/m) 2.5G/3G/B3G Broadband
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1. Definition of Connected Home

Access Network Reference Model

Economics NT35000 cost per subscriber NT1000/month revenue

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Approaches ADSL HFC FTTC/vDSL FTTH-PON Free Space Optics 3G, Satellite, Fixed Wireless

Subscribers Residential Apartments Business

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Case study 1- Power line backbone Connected Home

Connected Home applications (related services/ products) Service content to Subscribers (approaches: ADSL/ 3.5G/ etc) Powerline can be referred to other Connectivity technologies: WiFI (11a/b/g/n), Moca (Coax), etc Powerline is getting mature in EU (BT: AV streaming- STB + PLC adapters) Integration: PLC + WiFi solutions to build up the Networking home concepts ZigBee (Zigwave): Home Automation (HA), refer to Appendix

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2. Case study 1- Power line backbone Connected Home

(Backbone can be: Power line/ WiFi/ MoCA/ etc)

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2. Case study 1- Power line backbone Connected Home

Home Networking- Connects people and devices with your preferred

mediawireless or wired
Powerline & Wireless Devices Powerline Wireless 11 n Access Point (WiFi Extender) Powerline Wireless 11 b/g Access Point Powerline Wireless 11 b/g AP Router Powerline 4 Ports Switches Powerline Ethernet Bridge Powerline Coaxial Bridge (PLC + Coax)

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2. Case study 1- Power line backbone Connected Home

Entertainment Networking- Streams and plays HD media from your

HD devices, PCs and the Internet
HD Media Adaptor (support Full HD 1080p/HDMI)
Connect HD AV player, HD DVD or home entertainment system to your HDTV

HD Media Center (support Media Center PC/DVI)

Connects PC, network device or media center system to your home network and the Internet

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2. Case study 1- Power line backbone Connected Home

Internet TV @Box- Streams from the Internet to your HDTV

Watch YouTube on your TV Play On-line Gaming with your friend on your HDTV Show your Pictures, Music and Movie on your TV Blog, MSN, Skype, Mail and Brows on your TV

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2. Case study 1- Power line backbone Connected Home

Energy Management & Home Automation- Simplify plug-n-play and

energy saving technology for comfort, convenience and safety home
Energy Monitor Meter Power Saving Meter Home Automation Control Panel (PLC + ZigBee/ Zigwave) Home Automation Terminal Controller

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2. Case study 1- Power line backbone Connected Home

Broadband Solutions Providers- Enable you to delivery reliable digital

home products and converged services for broadband lifestyle
IPTV Adaptors Broadband CPE Networks & System Integration Access Nodes (HE/REP) Terminal CPE (Data\Voice\AP)

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3. Case study 2- 3G Femto Cell Base Station in your lounge

Why Femto-cells?? Put capacity where the traffic is: Roughly one-third of all cellular traffic today is at homeand is growing Customers have low tolerance for poor coverage or availabilityespecially compared with Fixed line service Generating Network coverage and capacity Using mature mobile technology Integrating Internet (Wifi) and 2G/3G coverage With full Operator management

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3. Case study 2- 3G Femto Cell Base Station in your lounge Femto is cellular's answer to voice over Wifi: the Mobile Phone Operators are fighting back against the loss of voice minutes to voice-over-Wifi. The femto cell is a brilliant way for Mobile Network Operators to increase their 3G coverage. The consumer supplies the power and protection for the box plus an xDSL broadband connection which acts as the network backbone. The fixed Mobile Convergence Market (FMC) is starting to gain significant momentum with BT launching its BT Fusion service in the UK and a number of manufacturers recently launching dual mode wireless LAN handsets. But unlike Fusion-type technologies which use Bluetooth or Wifi to create the home network, the femto-cells will use standard 2G or 3G radio technologies. Alcatel-Lucent and Sagem Communications are collaborating on the commercial development of a femto cell base station platform that enables mobile operators to provide consumers and enterprises with the thirdgeneration (3G) UMTS/ HSPA network coverage in their homes or business locations.
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3. Case study 2- 3G Femto Cell Base Station in your lounge Market strategy: Addressing needs of Fixed Mobile convergence market, UMTS (3G) Home Base (Femto-cell) Station enables Mobile Operators to provide coverage in customer's homes and offer mobile voice, video, and data services. It connects to end user's DSL or cable modem and securely routes voice and data traffic to and from Mobile Operator's network via existing broadband link. It allows Operators to offer converged services that work with any existing and future 3G handset.

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3. Case study 2- 3G Femto Cell Base Station in your lounge

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3. Case study 2- 3G Femto Cell Base Station in your lounge

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3. Case study 2- 3G Femto Cell Base Station in your lounge

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4. Case study 3- IPv6 for revenue growth

Is the address shortage for real?? IPv4 (current Internet protocol) addresses are effectively being rationed and will likely run out by 2008-2010 A Global IP Networking eracommunications between billions of devices ranging from home networks to sensors and RFID Status quo would stunt revenue growth

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4. Case study 3- IPv6 for revenue growth

Some Tidbits There is a kind of capacity problem. How is the Net going to support billions of Additional users and devices, and new data-hungry applications?
Vint Cerf (Intel Development Conference, San Franciscosept7-9)

China is planning to adopt IPv6 more rapidly than any other country in the world. And if Huaweis close ties to the Chinese Government help it become the early leader in the technology, it could get the jump on rivals such as Cisco, Alcatel and Lucent..
Business Week sept 27th 2004 issue, Techs future pp82-89

A big chunk of R&D money is being used to develop equipment for an Upgraded version of the Net called Internet protocolvesion6 (IPv6). Beijing is heavily pushingIPv6, an initiative that could help China catch up with the U.S., which has dominated Net development so far.
Business Week 75th Anniversaryissue , oct11th The innovation Economy, p181

"When 26 Chinese share one Internet Protocol (IP) address, each American possesses six IP addresses. This is the quandary facing China in the IPv4 (Internet Protocol Version 4) era,
Zhao Houlin, Director ITU, IPv6 Summit Beijing,april4th2005
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4. Case study 3- IPv6 for revenue growth

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4. Case study 3- IPv6 for revenue growth

Any urgency? Coming out of the telecom recession: An industry desperate for renewed revenue growth Consensus : the next multibillion revenue opportunities imply IP based network convergence, multi-functional end-devices, always on, always p2p reachable, mobile and endowed with end to end security. Continuing pressure on existing carrier business models with the advent of VoIP and new broadband wireless technologies Visions of ubiquitous communications between billions of devices ranging from home networks to global sensor and RFID networks.

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4. Case study 3- IPv6 for revenue growth

What does IPv6 bring to the table? Solves address shortage restores p2p Mobility Better spectrum utilization Better battery life! SecurityIpsec mandatory Multicast Neighbor discovery Ad-Hoc networking Home networks Plug and play Auto configuration Permanent addresses Identity (CLID) Traceability (RFID) Sensors and monitoring

ADSL, cable, 3G, Wi-Fi, Wi-Max provide the always-on

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4. Case study 3- IPv6 for revenue growth

17 billion Traditional Networkable Devices!! Coming soon

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4. Case study 3- IPv6 for revenue growth

Some perceived IPv6 drivers Mobile IP Voice, radio, TV over IP Grid and Infiniband Massive multiplayer games RFID, control and sensor networks Microsoft

Critical mass of: digital communicating end-user devices high speed always on access Research and Education networks National Defense National policies and economic weight
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Disruptive potential on existing carrier business models??

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4. Case study 3- IPv6 for revenue growth

The battle for the communicating living-room

Consumer Electronic Show Vegas January2004 first serious salvos in a titanic battle between the computer industry (Intel, Microsoft) and the electronics industry (Sony, Philips, Toshiba, Panasonic..) Bill Gates called it seamless computing; Panasonics Ohtsubo called it lifestream The essence of the battle is a kind of a home media center with all devices connected in a plug and play mode, preferably wireless.

Consumer Electronic Show January 2005 Sony confirms that all its products will be IPv6 enabled this year under the name New internet Nokia and Panasonic show IPv6 enabled end devices, Kodak promotes a WiFi ready camera Huge stakes: $113 billion consumer electronics market in the US alone for 2005 (Consumer Electronics Association)
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4. Case study 3- IPv6 for revenue growth Market strategy: IPv6 (Internet Protocol Version 6) fixes a number of problems in IPv4 (current Internet protocol), such as the limited number of available IPv4 addresses. It also adds many improvements to IPv4 in areas such as routing and network auto-configuration. IPv6 is expected to gradually replace IPv4, with the two coexisting for a number of years during a transition period. Most carriers/ISPs want to somehow get on the IPv6 bandwagon but with minimum risk and exposure. Twenty two beta customers in 11 countries have been connected. Migration Brokers have been shipped and native connections (dual stack to dual stack) set-up. The uncharted territories are within reach

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5. Conclusion-1
What strategies are standardization bodies, operators and vendors following in inter-working and integration of in Home devices ? A: PLC can enhance the current Ethernet (WiFi) networking in the home environment. There are some potential business models and Networking devices that can be applied for the Connected Home concepts. Femto-cell station is an example with which Operators can integrate the current 2G/3G resources with WiFi networking at home. Which element has the central role in the in Home Environment (RG, STB, ) A: STB/ Media Center/ Networking DVD/ etc can play the central role in the Connected Home to bring content to the living room. Referring to the Media Center PC in the Appendix, some CE companies are developing a powerful CE-based Media Center PC to be the Home Entertainment center. To what extent are other parties (operators, system integrators) expanding their services to cover management of in home devices. What are their business drivers. A: To call over the IP, MSO and Operator are applying IAD (Data/ WiFi/ VoIP) and EMTA (VoIP over Cable) to customers. To enjoy the HD STB and streaming to other rooms, BT is doing a STB + PLC adapter solution.

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5. Conclusion-2

What technologies are used to implement such a strategy and what standards (TR-069+, UPnP, proprietary, ..) A: In the Connected Home, UPnP and DLNA (refer to appendix) are the more common standards that let Networking devices can communicate with each other. PLC can be a WiFi extender to ensure the connectivity quality (QoS). As to GSM network, Femto-cell stations have potential to play the Networking role in the connected home. Scope of devices: Network Terminator, Home Gateways, Residential Gateways, Set Top Boxes, Mobile Handsets, PDAs, Cameras, Printers A: MCPC/ STB/ Networking DVD/ HD PLC Media Center/ Internet TV can be the Networking center in the Connected Home concept. Mass Users are still waiting for a powerful Media center with user-friendly usage.

Scope of integration: in home wiring (Eth, Powerline, WiFi, HSPA, WiMax, ), sharing of content over multiple devices, multiple services on one device, multiple access interfaces on one device (Eth, WiFi, HSPA, WiMax) A: IAD (Data + WiFi + VoIP)/ BTs 4-in-1 solution (IAD+ DECT)/ EMTA (Data + WiFi + VoIP)/ WiFi extender (WiFi + PLC)/ Femto-cell station/ 3G Router (3G + WiFi Router)/ etc. All of the Networking devices above (inc. MID- Mobile Internet Device/ UMPC- Ultra Mobile PC/ etc) are manly produced in Asia. We would suggest to update the product info/ applications and marketing strategies in the next report.
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6. Sources
Global Sourcing EE Times DigiTimes Technology News Daily US Home Network Market- Now and Future from MRG IPTV Home Networking Strategies from MRG Digital Home from Global Information, Inc The Rise of The Convergent Residential Gatewayfrom TELE Analysis ThomasNet Industrial Newsroom TRi- Topology Research Institute Connected Home Media The Connected Home- Digital Lifestyle Store Connected Home Series ITRI-Industrial Technology Research Institute Digital Home Networking Trends report from Thomson ZigBee Alliance Femto Forum IPv6 Forum IPTV World Forum Home-DLNA NAv6TF/ ARIN XV Conference Teleglobe
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7. Appendix 1- ZigBee

7. Appendix
Founding Members Cisco GM Invensys The NewPower Company Panasonic Sears Contributing Members Best Buy Sun
Associate Members ADT Security Services Autco Distributing AVAD Coactive Networks CompUSA Connected Lifestyles Echelon emWare Gatespace Home Director Honeywell Info-linc

Metering Technology N.E.W. Customer Service Companies Qubit Technology Reliant Energy Sage Systems Sempra Energy Connections Ucentric Systems Visteon Western Digital zBox

The Connected Home: The features of a connected home exist today; they are not dreams of tomorrow. This home is connected in the sense that normally independent systems are linked to a centrally controlled system. In a connected home, your home computer, TV, lighting and heating controls, home security system and many appliances within the home can talk to each other via the Internet. These linked systems can be controlled through various devices, including your pager, cellular phone, TV, home PC, PDA, or even your automobile. More specifically, the connected home offers the following: new forms of entertainment; anywhere, anytime communication with family, friends and coworkers; advanced home control and security; new ways to buy over the Internet; safe and secure e-mail and other communications; and always-on, high speed Internet access - all from reliable providers.

Source: Internet Home Alliance the Advantage magazine.

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7. Appendix 1- ZigBee

ZigBee - Bluetooth - PLC Comparison

ZigBee
Cost (BOM) Power Data Rate Complexity Density Interop Ease of Use Latency Interference Security
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Bluetooth
$10 hours 720Kbps Medium 7 Yes Moderate >3s High High

PLC
$15-$40 N/A 3/10 Mbps High 20-250 No Restrictive <15ms High Low
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$5 years 250Kbps Low 255 + Yes Simple 15ms Low High

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7. Appendix 2- DLNA

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7. Appendix 3- Media Center Home Media Center solutions from Gigabyte An ideal device for Multimedia IP-STB IPTV solution (IP+DVB-T) Media Home Center Karaoke Box

Features: Support DVB-T digital TV standard Video on Demand / Video Streaming Support MPEG1MPEG2WMV9 and MPEG4 part2 Karaoke on Demand karaoke processor Smart Card reader Flash card reader DVD Player VFD Display
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