Regulation & Triple Play

Digital STBs Deployed (millions)

 Top Cable MSOs  DBS Operators

 21.5  13M
 10.9M
 11M
 6.3M
 1.5M
•DBS Operators provide Triple
 10.7M Play Today

 5.2M •All Cable operators are Enabled

for Triple Play
Voice, VOD, ITV, HDTV, DVR

Source: Bear Sterns

Broadband: Worldwide Deployment

U.S. Lags Behind in

Broadband
Deployment
 Other countries, led by Korea
and Canada, have strategic
vision for broadband build-out.

 The U.S. slipped from number

11 to number 13 in broadband
deployment between 2003 and
2004.
The Massive C&S Networks in India
serve 90 million households. These will
be HD Capable by 2011. Do we have a
roadmap for their use for triple play?
 83 INSAT 91.5 MEASAT
4A
93.5 INSAT 4B

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OCON DD TV 98.5
ISH
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VIDE

PROTOSTAR-1

INDIAN DTH
SUBSCRIBER DTH SATELLITE
SCENARIO YEAR 2009
 DTH Subscribers in India

Big TV

T-Sky

DD-Direct
Subs
( Thousands)

Dish TV

2003 2004 2005 2006 2007 2008

 Three facets:

IPTV

DTH

Cable TV
Agenda
Introduction- TRIPLE PLAY
Broadband on Cable & DTH
Issues-Technology & Cost
Regulatory issues
Conclusion
 Introduction: Broadband

What Broadband means to

users

                                                                         

Source: Providers’ websites

 Timeline of Take up of Services by Customers

Video PVR Voice

 Video  Video
 VoIP
 Premium Video  Premium Video  Video Conferencing
 Music  Push VoD  Lifeline

Digital Video Digital -PVR Triple Play

DTH
Timeline

ITV Applications Data

Cable  EPGs  Cable Modem
 VOD  128k  45MB
 Active Chs  Managed
 Games  “Always-on”
Agenda

Issues-Technology & Cost

Conclusion
 Current Delivery
Optical
HUB
node

HUB Optical

HFC For Cable node

MCR
Cat 5e Ethernet for Broadband Optical
node
HUB

Coax Coax

Optical
Optical
node
node TWO WAY SPLITTER

TWO WAY SPLITTER

Optical
node

PC TV
PC and TV are Separate.
Cable Modem

PC
Cable Modem
TV
No Convergence
The Technology

DOCSIS 2.0
Upstream: 6.4 MHz
wide, 30Mbps
Why more
bandwidth?
Peer-to-peer
services
Digital
photography
Music
downloads
Authenticated
Services
Agenda

Issues-Technology & Cost

Regulatory issues
Conclusion
Regulatory Issues

 Cable TV is Licensed Under the Cable

Television Networks (Regulation) Act,
1995.
( Ministry of I&B)
 VoIP is not allowed under Cable Acts.
 ISP License Needed for VoIP ( MC&IT)
 Cable Operators are not eligible for
last mile spectrum
Issues With Cable Internet-LCOs

 Last Mile control in

Cable is with LCO
 LCOs are unwilling
to upgrade in most
cases
 Payment and
revenue Share
issues
Commercial Barriers to using
Cable Internet

High Cost of Internet Rs 1.2/MB

No Right of Way ( Cable Act)
Split Nature of Industry-MSO,LCO
Expensive DSL modems
Issues relating to Regulation of
Cable Networks
 Local Cable Operators Not interested in investing
in 2 way Plant
 Internet Services are obtained from a local ISP
rather than MSO
 If VoIP is permitted, MSOs can offer Set Top
Boxes with VoIP
 VoIP- Telephony
 LCOs are unable to provide VoD, which needs the
scale of an MSO
 Viewers Expectations-
Broadband
 Viewers used to Cable
TV
 Expect Full Resolution
for Internet streaming
 For mail and browsing,
viewers expect
Computer resolution
 Broadband on TV does
not meet these
demands
DTH

 DTH is licensed as a standalone

service
 DTH operators not allowed to provide
Internet or even two way
interactivity under DTH license
 DTH has its own separate
interconnect regulation
 Only “VSATs” can provide Internet
What Can Regulators Do?

 Review the Cable TV Act to enable Triple

Play including VoIP
 Encourage initiatives such as HITS for
uniform cable TV offerings across India
 Promote additional investments as
Infrastructure
 Be proactive on standards- we do not
want a host of incompatible
technologies
For Internet to Succeed
 Broaden Scope of Cable TV License to include VoIP,
ISP and IPTV
 Enable DTH Licenses for Internet
 Price Regulations should be tailored for Triple Play
 Enable Bundle of Services just as in DSL landlines
 Cable and DTH operators should be recognized as
infrastructure providers
 Should have right of way as for Phone Lines
 WORLD INTERNET USAGE AND POPULATION STATISTICS

World Regions Population Population Internet Usage % Population World

( 2005 Est.M) % of World Usage, Growth ( Penetration ) Users
Latest Data 2000-2005 %

Africa 896,7 14.0 % 16,174,600 258.3 % 1.8 % 1.7 %

Asia 3,622,9 56.4 % 323,756,956 183.2 % 8.9 % 34.5 %

Europe 731,0 11.4 % 269,036,096 161.0 % 36.8 % 28.7 %

Middle East 260,8 4.1 % 21,770,700 311.9 % 8.3 % 2.3 %

North America 328,3 5.1 % 223,392,807 106.7 % 68.0 % 23.8 %

Latin America/Caribbean 546,7 8.5 % 68,130,804 277.1 % 12.5 % 7.3 %

Oceania / Australia 33,4 0.5 % 16,448,966 115.9 % 49.2 % 1.8 %

WORLD TOTAL 6,420,1 100.0 % 938,710,929 160.0 % 14.6 % 100.0 %

pact of Broadband

How does broadband

impact telecoms
 The Internet enables a separation between
facilities and services
 Broadband allows providers to fully exploit
this separation
 The killer application for broadband may turn
out to be voice
 Traditionally there has been
a service–infrastructure
division in communications
services
Voice: …
Two-way, low volume Broadcast TV: One-way, high volume

Service Telephony Mobile Cable TV TV

Infrastructure PSTN Spectrum Coax Spectrum

 The Internet increases
competition by separating
service provision from
infrastructure ownership
Service Voice, video, and data

Everything over IP

IP

IP over everything

xDSL 3G Cable modem iTV

Infrastructure Copper Spectrum Coax Spectrum

VoIP is available as a
service marketed directly to
 Do it yourself – Skype  Voice over broadband
consumers
 Skype allows
…  this may be linked to
computer-to- the broadband
computer calling provider (Yahoo!BB)
using user-assigned  can also be provided
names instead of as an independent
numbers service (Vonage)
 Skype currently has  in this case it is
100 million users nomadic and can
be used over any
broadband
connection
… or as a technology that
is transparent to end
users
 Carrier internal use
(“BT 21CN”)
 Corporate internal use
 as a low-cost PBX
 this requires a replacement
replacement of all  Asterisk is a VoIP
switches in the
PBX that can be
network
downloaded from
 the result is often
the Internet
referred to as a
Next Generation
Network (NGN)
Agenda
Introduction
Impact of broadband
Broadband In Brazil
Regulatory issues
Conclusion
 How is Brazil doing in
broadband?
Percentage of households with broadband service

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Argentina Brazil Canada Chile Mexico USA
The majority of lines in
Brazil are
Percentage DSL/Cable lines at 31 December 2004
from DSL
100%
90%
80%
70%
60% Cable
50%
40% DSL
30%
20%
10%
0%
Brazil

Mexico

USA

Other
Americas

Argentina

Canada

Chile
 In Europe, wholesale access
has increased DSL
competition…
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

United Kingdom
Netherlands
France

Luxembourg
Denmark

Portugal
Spain

Austria

Sweden
Belgium

Greece*
Germany

Italy
Ireland

Finland
DSL lines incumbent DSL lines competitors
*Greece only has 359 DSL lines, all served by an entrant
Source: European Commission
 … while promoting
deployment
Penetration per 100 Population

30.0
25.0
20.0
15.0
10.0
5.0
0.0
20 0 2

04
1

20 03
1

3
-Q

-Q

-Q

-Q

-Q

-Q

-Q

-Q

-Q
0

20

20
20

20
02

03

03

04
02

02

03

04

04
20

20

20

20

20
20

20
France United Kingdom Netherlands
Denmark Canada United States
Korea Japan
 Net neutrality can promote
competition in Internet
services
 Freedom to Access Content: consumers should have
access to their choice of legal content;
 Freedom to Use Applications: consumers should be
able to run applications of their choice;
 Freedom to Attach Personal Devices: consumers
should be permitted to attach any devices they
choose to the connection in their homes; and
 Freedom to Obtain Service Plan Information:
consumers should receive meaningful information
regarding their service plans

FCC Chairman Michael Powell’s Net Freedoms, 2004

A forward-looking broadband
policy could have several
features
 Enable entrants to build and operate their own
facilities
 Allow entrants to use existing facilities with
their own equipment
 Ensure net neutrality in Internet services and
applications
 Wi-MAX HYPE PEAK
BWA < 2 yrs
Hype & Status 1-3 yrs\
WCDMA
Curve 2-5 yrs
Mesh Net
7 yrs
BLUE TOOTH NET
Obsolete before
plateau
802.11b
Wi-Fi 802.11g
Enlightenment
1X EV-DO
GPRS CDMA 1X RTT
Productivity
EDGE Wi-Fi 802.11a Plateau
Wireless PDA

Blue tooth cable replacement

4G
UWB DISILLUSIONMENT Trough
1X EVDV
Ad Hoc
Trigger
HD Capable Broadband
Subscriber Forecast for
America