Delivering successful IPTV service

JOHN SIHOTANG
TELECOMMUNICATION PLANNING
SPECIALIST
jhotank@yahoo.com / sihotang@telkom.co.id

Bandung, 5 Agustus 2010

Expertise
Empowering
Assured
Progressive
Heart

Contents:

1 Background
2 The Challenge
3 Benchmark
4 Key Consideration
5 Conclusion

Expertise
Empowering
Assured
Progressive
Heart

 Basic IP TV Configuration

Telecom OSS/BSS

Mediator TV Portal

TUT Content
Processor CASCADE

IP Multicast HG STB

IPTV Middleware
IPTV Service and Subscriber
Management System

TV Headend
Live TV Provisioning System
Home Network
STB & HG
IP CORE DSLAM
Bitband Vision Server and
Maestro CND management STB
BRAS/ESR HG
IP Unicast
Broadband Network
CA/DRM Solution MSAN
Content protection
System
VOD/nPVR System
VOD/nPVR Provisioning System
Contents:

1 Background
2
The Challenge
3 Benchmark
4 Key Consideration
5 Conclusion

Expertise
Empowering
Assured
Progressive
Heart

 Meeting the IPTV Challenge
• -Why launch IPTV?
Why • -Regulatory issues?
• -Market environment and opportunities?

• -What service to launch?

What • -What platform to use?
• -What business model to choose?

• -How to develop a content strategy?

How • -How to source suitable content?
• -How to implement the technology?
• -How to market my product?
 Mengapa IPTV ?
• Evolusi akses broadband (“ADSL2+”:25Mbps, “VDSL”:50Mbps)
• Kompresi video lebih baik : H.264, MPEG-4, WMV9
• Penerimaan “Content Production House” terhadap advanced
DRM technology mulai meningkat
• Biaya layanan IPTV per-subscriber terus menurun
• Pendapatan Telco dari voice revenues menurun drastis
• Video menjadi peluang baru untuk untuk
– Retain customers
– Grow ARPU
 Key Factors Impacting a
Successful Service Launch
• Strategy
• Content
• Technology components that work
• Bandwidth/Last mile access
• A large broadband subscriber base
• A favourable regulatory environment
Key Tools – Economic Justification
 Tantangan Implementasi IPTV
• Tantangan aspek bisnis
– Create a better user experience than cable or satellite
– Becoming entertainment provider - major shift for a telco
– The television market is an uphill battle - well established entities
– Get premium content at lower prices than cable or satellite
– Build trust with studios and publishers
– Differentiate business model from cable (On demand? Anywhere access?)
– Set Top Box price <$100
– Accelerate FTTx/ADSL2+/VDSL roll-outs

• Tantangan aspek teknologi

– Build better/cheaper silicon for STB
– Lower cost of DSLAM/FTTx deployments (WiMAX?)
– Further improve video compression rates
– Content recording and distribution control (secure DRM)
– End-to-end QoS monitoring and service assurance
– Integrated customer care, billing, provisioning, activation, self-service
– Multi-services blending (VoIP, IPTV, apps)
– Higher density of VOD play-out farms
Critical Issues – Technical Aspecs:

IPTV Infrastructure
Readiness
• Head End & Middleware

• SDP

•OSS & BSS

• IP Transport (BRAS, Metro-E, IP

Core & IPBB)

• Local Access R2BB ( 3 Mbps )

DSLAM, CPE (HGW) & STB
Contents:

1 Background
2 The Challenge
3
Benchmark
4 Key Consideration
5 Recommendation

Expertise
Empowering
Assured
Progressive
Heart

 Benchmark - Example of IPTV offer in western Europe

2/3Play bundled TV offer. BB speed : 20M XDSL up to 100M for FTTH (France) – no stand alone TV offers
Offer

Basic TV Package Free Channel. IPTV ARPU (no BB) from 3€ (Free IPTV) to 40€ (Premium IPTV). incumbent
Pricing are usually positioned premium price.

Ex: 3Play offer “free” (France) €/month 29.99 (basic TV offer 150 channel, BB speed 28M, WEB TV)

Fee TV (DTT, DTA) ” and DTH “premium offer”. entry level (package base free) from 40 to 100 channels (Free)
Content
Widely increase of free IPTV and basic pay TV IPTV offer on a monthly fee base

Sport and especially soccer are the main driver for the premium

VOD library: flat subscription

Integrated STB IPTV/DTT with PVR e but sometimes also HD (FT e T-Home, Free). Very few proprietary
STB/PVR technology, lots of STB vendors

TV Widget: maps, weather, news, traffic, Finance news, gaming

PVR : time shift and catch up TV
Other services
Download music: flat fee

Video sharing/UGC:

Media Center

Phone on TV: listen to the answer machine on tv (!!)

PVR Remote programming

Multiroom

*benchmark: Free, DT, Orange, Belgacom, TEF, BT,

 Benchmark - Example of IPTV offer in western USA

2/3Play on FTTH, BB speed up to 50Mega, stand alone TV offer . ATT & Verizon are offering
Offer IP/Cable Tv and DTH TV (Direct TV when there is no coverage) as well as mobile TV with Qualcom
MediaFlo.

NO Free IPTV, there are 2 kind of pricing:

Pricing
Basic pay (FiOS TV basic TV channel + STB/DVR + BB 3M): Verizon 84.99$/month (on
promotion)

Premium (U-verse / premium + STBHD + BB20): AT&T 115€/month

TV offer”:

Verizon FiOS TV (package basic pay): 125 HD channels, Over 385 digital channels, VOD: Over
TV content 18,000 Video On Demand titles every month

AT&T U-verse: TV packages start at $49 per month – packages available with up to 390
channels, including local , Access to over 110 HD programming

Basic Channels: Local channels such as ABC, CBS, NBC and Fox, ESPN, Discovery, TNT, USA,
MTV, CNN and more

STB HD
AT&T provides an HD-ready receiver at no additional charge.

TV Widget: maps, weather, news, traffic, Finance news, gaming (lottery), directories

PVR : time shift and catch up TV
Other
Media Center/multiroom
services
Video communication

Remote programming: AT&T 14 days before

Fonte: Rielaborazioni Benchmark TIlab

Contents:

1 Background
2 The Challenge
3 Benchmark
4
Key Consideration
5 Conclusion

Expertise
Empowering
Assured
Progressive
Heart

Business Aspect
 Trend in Asia – Content Strategy

• Start with satellite turnaround signals which already have

an Asian footprint => require little in- house programming
expertise
• Invest in brand-name channels - to build critical mass
and position as a ‘complementary’ and not ‘substitute’
service to traditional PayTV
• In-house content department and capabilities give
operators the edge, e.g. self-programmed channels,
marketing, licensing and legal expertise
• Local content/ self-programming for competing with
traditional Pay TV operators
Key Considerations: The
Content Business
 Trend in Asia – Business Model

• STB subsidies is common - –Free STB to drive service

adoption/lower entry barrier => low-cost STBs critical in
any deployment

• A la carte and/or mini-pack subscription model breaks

down barriers of huge channel bundle with high monthly
fees
 Pertimbangan Akses (1/3)
• IPTV untuk residential area
• IPTV menggunakan Speedy (ADSL 2+ bandwidth s/d 25
Mbps).
• Bandwidth 8-10 Mbps utk layanan HDTV
• Panjang/jarak kabel pelanggan (1 km) jika panjang kabel
tidak dipenuhi disolusi dg menggunakan remote DSLAM
• Perangkat modem ADSL minimal memiliki 4 port
ethernet dan support multi PVC & port mapping.
Technology Aspect
 Pertimbangan Akses (2/3)
• IPTV untuk Office Building
• Menggunakan Metro-Ethernet HRB
• Metro node di HRB (menggunakan fiber optik) ke pelanggan
menggunakan distribution switch (dengan UTP cable standard)
• Panjang/jarak kabel UTP dari switch ke pelanggan maksimum 100
meter
• Bandwidth dari Metro-Ethernet ke distribution switch 1 Gbps.
• Bandwidth tidak ada isu (BW ke pelanggan 100 Mbps/100 FE)
• Kapasitas maksimum 1 unit distribution switch utk melayani 48
pelanggan
• Distribution switch support manageable trunking
 Pertimbangan Akses (3/3)
• IPTV untuk Apartemen
• Menggunakan Remote DSLAM/MSAN di dalam Gedung
• Akses dari Metro-E ke Remote DSLAM/MSAN
menggunakan fiber optik dan distribusi ke pelanggan
menggunakan kabel tembaga standar (pertimbangan
kemdahan instalasi IKG)
• Panjang/jarak kabel tembaga dari Remote DSLAM
hingga 1 km
• Bandwidth minimal 4-6 Mbps utk SDTV & 8-10 Mbps utk
HDTV
• Perangkat modem ADSL minimal memiliki 4 port
ethernet dan support multi PVC & port mapping
 Pertimbangan Network
• Network agregator menggunakan Metro Ethernet
(bandwidth s/d 10 Gbps).
• Network element yang digunakan mendukung IGMP
untuk multicast.
• Format video MPEG4/H264.
 Koneksi IP
• Koneksi : PPPoE
• PPPoE ditangani oleh BRAS tersendiri
(khusus IPTV)
• 1 BRAS untuk menangani 1 regional area
Market & Marketing Aspect
1 IPTV Basic & Free-
Free-mium Service
UGC WEB
Publishing

IPTV BASIC SERVICES :

tools

1. Paketisasi layanan IPTV- HD (DTT)

2. Electronic program guide
3. Channel domestik, LN, Premium
IPTV Web TV
Broadcaster
and Content Set Top Box/Media center
Provider
CONTENT & FREE-MIUM SERVICES :
1. TV Widget: maps, weather, news, traffic, Finance
news, gaming , Sosial media & marketing
2. PVR ++: time shift and catch up TV
3. Download music: flat fee
4. Video sharing/UGC:
VALUE ADDED SERVICES : 5. Media Center (Broadcast media)
1. Video on demand 6. Phone on TV: listen to the answer machine on TV.
2. Web TV access (Seamless & multiscreen)
3. Personal video recorder (PVR) , Time shift 7. PVR Remote programming
4. Application store (music, photo) 8. Multiroom
5. Advertising personalization 9. Chatting on-line
6. Electronic program guide 10. Hot Billing
7. Game
 Fitur Layanan
• The subscriber has the choice of channel selection and pays only for the
channels being subscribed
• A longer-term plan offers a bigger discount to subscribers For example, the HBO
and Cinemax package combo is Rp.85.000 monthly, Rp. 75.000 semi-annually,
and Rp 65.000 yearly.
• A channel subscription plan is available under different terms: monthly, six-
monthly and yearly
• On demand programs are available on a pay per view basis
• Service is available at virtually no startup cost for subscriber
• Telkom provides free installation and decoder Set Top Box (STB) for customers
who subscribe to broadband service.
• Customers do not incur any cost to try IPTV-based television service with fifteen
free channels included, and there is no monthly service fee
• Pause, fast forward, and fast backward features are available only for on
demand programs
• Telkom provides a la Carte pricing models that give much flexibility in the
channel selection, resulting in a tremendous interest from customers.
 STP
• Segmentation
– Kelas ekonomi A-B
• Targeting
– Kelompok Innovators dan early adopters
– Family
– Women as endoser
– Netizen
– Youth sbg influenzer
– Premium customer
• Positioning
– TV Kualitas Tinggi dengan pengalaman berbeda
 TV Ads Market Indonesia
• TV Ads Revenue by TV Station:
– TPI (projected 2010): 800M
– MNC (RCTI, SCTV, GlobalTV): 3950M
• Ad Expenditure Indonesia 2008:
– All Ad: 2626 US$m
– TV Ad: 1661 US$m
 Promosi
• Tahap I: Free trial ke calon pelanggan
terpilih (September-Desember 2010)
• Tahap II: (Soft ?)Launching (Desember
2010)
• Tahap III: Retensi
– Fluktuasi harga (diskon, paket, dll)
 IPTV as Single product
• STP = Premium (ekonomi A-B), kualitas tinggi
• Ada tambahan fitur :
– Channel High Definition
– TV on Demand
– Near VoD
– VoD

Dengan paket setara Pay TV, price lebih tinggi

daripada Pay TV namun pada waktu promosi dapat
diberi price sama dengan Pay TV
 IP TV as Bundling Product
with Speedy
• Pertimbangan :
– Positioning terhadap single product IPTV
– Positioning terhadap single product Speedy
(ND Dir KNS C.Tel. 105/YN 000/COO-
C0000000/2010)
Nama Paket Speed Tarif lama Price Battle Area Price Non Battle Area
N/A (code name : Paket Lite) 128 K N/A Rp 75.000/30 hari N/A
Rp15.000/5 hari
Paket harian, Paket mingguan. 256 K N/A Rp 100.000,-/30 hari Rp 100.000,-/30 hari
Rp 50.000 / 2 weeks Rp 50.000 / 2 weeks
Rp.20.000/ 5hr Rp.20.000/ 5hr
N/A (code name : Speedy-Flash) 384 K N/A Akan ditetapkan max 8 Akan ditetapkan max 8
Juli 2010 Juli 2010
Load 512 K Rp 295.000 Rp 195.000 Rp 295.000
Familia 1M Rp 645.000 Rp 295.000 Rp 645.000
Exe 2M Rp 995.000 Rp 450.000 Rp 995.000
Biz 3M Rp 1.695.000 Rp 650.000 Rp 1.695.000
Fitur Upgrade Line Speed 5M Rp2,010,000
Fitur Upgrade Line Speed 10 M Rp2,795,000
? Peningkatan level of customer experience
• Network and service quality – Packet loss ration
– Picture quality – Packet Latency
– Zap time – Packet Jitter
– Control command response time – Errored packets
– STB startup time – Out-off-order packets
– Audio-to-video synchronization – Bit error rate
delay – Loss of frame
– Authentication Errors – Loss of signal
– Percent error-free seconds

• Transport performance
– Broadcast and Video-on-Demand Number of Video Freeze Events
– Broadcast and Video-on-Demand Number of Skip Events
– Join and Leave Latency
– Interchannel Latency
– Play Response Delay
– Fast Forward, Pause, and Rewind Response Delay
– Broadcast and Video-on-Demand Service Quality Index
Content Business Process
 IPTV Content Services Value Chain
Business & Content Processes.

Production Distribution Delivery Consumer

•IP
•Planning •Rights Aggregation
•License Tracking •Consumer Mgmt
Creative •Contracts •Wholesale Licensing
•Consumption Tracking •Subscriptions
•Windowing Strategy

Commerci •Budgeting Content Retail Delivery,

•Cost Accounting •Wholesale Content
al Tracking, Yield •Relationship Mgmt
Distribution
•Pay per-Unit: Rentals
•Ad Usage Capture
•Ad Insertion
•Animation •Content Streaming
•Production Shoot •Content Management
Content •Xcoding & Library
•Post Production

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Contents:

1 Background
2 The Challenge
3 Benchmark
4 Key Consideration
5
Conclusion

Expertise
Empowering
Assured
Progressive
Heart

6 Conclusion

Embrace - superior capabilities of IP technology

Design - a highly flexible platform for quick and easy addition of new
services, new business and pricing models and new distribution
mechanisms

Learn –how to monitized new trends in content creation and distribution

- across multiple access platforms
–with innovative business models
:
Work closely - with the content community to help them understand
the potential of new and evolving technologies

Beware - the dangers of being a closed proprietary delivery

mechanism vs the internet’s potential to deliver a myriad of free and
pay programming