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The Potential of Broadband Digital Home & Next Generation Services

The Potential of Broadband Digital Home & Next Generation Services. May 25, 2006 Ghazi Atallah Service Providers Emerging Markets. The digital household. Internet/ Broadband Video. Satellite. Cable. Telco. Wireless. Image source: Wall Street Journal. TV. Provider A. Provider B.

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The Potential of Broadband Digital Home & Next Generation Services

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  1. The Potential of BroadbandDigital Home & Next Generation Services May 25, 2006 Ghazi Atallah Service Providers Emerging Markets

  2. The digital household Internet/Broadband Video Satellite Cable Telco Wireless Image source: Wall Street Journal

  3. TV Provider A Provider B PSTN Subscriber Provider C Internet Provider D Mobile IPTV VoIP MP3 Internet Gaming VoD Subscriber Broadband Service Provider DynamicsBroadband Defining New Service Models

  4. The World Today

  5. Coming Together Creates Challenge/Opportunity Convergence of all three galaxies to form a new entity Implications to today’s Telecom SPs

  6. Cable Wireline Experience Provider Mobile Over the Top Convergence of SP SegmentsCan No Longer Be Defined by Access Technology

  7. Custom Ring Tones / MP3 Player High-Speed Internet /VPN Text / Instant Messaging VoIP Push-to-Talk / Intercom Video Conferencing Digital TV / VOD PDA / Email Data Voice Video The New Service Provider Offer:“Many Services to Many Screens” At Work, At Home, On The Move

  8. Business Needs Are Evolving Beyond ConnectivityRequires Highly Available, Secure Managed Services Collaboration Convergence Web Services Applications Storage/Computing IP NGN Infrastructure • 1) High Availability:Managed networks can help ensure business continuity in the face of everyday interruptions and unexpected disasters • 2) Service Security:Providing firewalls and intrusion detection systems (and keeping them updated) and using encryption for all sensitive data • 3) Application Awareness:Allows operators to classify applications, apply application-specific QoS policies while metering / billing for services on a converged network

  9. Consumer Needs Are Evolving Beyond Connectivity:Requires Integrated Voice / Video / Data with Mobility Home Office / VPN Online Gaming IM / Group Chat Internet Access IPTV/VoD IP NGN Infrastructure • Subscriber Personalization:Actively manage the subscribers identity and adjust the service offering/packaging (i.e., different identity in different worlds) • Mass Scalability:Leverage mass-customization principles:Service-bundling; subscriber-grouping and per-group processing • Service Evolution:From transport-based service models (time/distance/volume) to content-based service models

  10. …and consumers are expecting a better entertainment experience… WhatThey Want Where They Want It WhenThey Want It HowThey Want It Broad choice, personalized and simple On demand, available always Everywhere, follow me Flexible, with no platform or access restrictions

  11. Our thoughts on Video • Near term, enhanced and improved “television” plus the value delivered by the “bundle” will drive subscriber growth & retention • Access to more content with more relevancy, more channels, on-demand; • Improved value delivered by the bundle • We believe the next step will be to connect the home and the consumer experience • Content mobility is becoming an important component of consumers’ entertainment experience • Finally, the experience will become more personal and more individual with customization of both applications & navigation

  12. Overall, consumers seem to love the “on-demand” entertainment experience Overall Satisfaction with Service Provider Source: CTAM research conference

  13. Bundling “buy more-get more”

  14. MOBILE MULTIMEDIA Entertainment, Personal Pictures and Video, Services BROADBAND Entertainment, E-Business, Services MEDIA Pre-Recorded Content Personal Media Consumers want their devices to work together and share content BROADCAST Services, Entertainment

  15. With the anticipated complexity, SP’s are well-positioned to offer value through simplicity • Our market research shows consumers (not surprisingly) want video services that are easy to use • Easy access to broadband baseline service • Easy access to and use of On Demand services (DVR & VOD) • Easy to change services • Easy to pay monthly bill Early Adopters Innovators / Visionaries Early Majority Late Majority Laggards

  16. INTELLIGENT INFORMATION NETWORK Cisco IP NGN ArchitectureAchieving a Whole Greater Than the Sum of the Parts IP CONTACT CENTER PRESENCE-BASED TELEPHONY DATA CENTER WEB SERVICES MOBILE APPS GAMING APPLICATION CONVERGENCE Framework for User and Application-Based Control (Data, Voice, Video, Mobility) SERVICE CONTROL CONVERGENCE Service Exchange O P E R A T I O N A L L A Y E R Customer Element Access / Aggregation Intelligent Edge Multiservice Core NETWORK CONVERGENCE Transport

  17. Summary • Competition and consumer demands will drive tremendous change and opportunity • The need to deliver more value will soon drive the need for a more integrated, more connected experience • Expansion of content and greater integration will lead to new dimensions of both personalization and navigation

  18. experiences Poweredbycisco.

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