David Reed Chief Strategy Officer, CableLabs June 8, 2004

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Presentation transcript:

David Reed Chief Strategy Officer, CableLabs June 8, 2004 VoIP Technology David Reed Chief Strategy Officer, CableLabs June 8, 2004

© Cable Television Laboratories, Inc. 2004. All Rights Reserved. Agenda VoIP Technology Review MSO VoIP Deployments and Plans © Cable Television Laboratories, Inc. 2004. All Rights Reserved.

© Cable Television Laboratories, Inc. 2004. All Rights Reserved. Why IP Telephony? Dramatically improves efficiency of bandwidth use for real-time voice transmission Enables the creation of a new class of service that combines the best characteristics of real-time voice communications and data processing IP telephony applications can be based on open standards platforms for reliability and scalability © Cable Television Laboratories, Inc. 2004. All Rights Reserved.

Circuit vs. Packet Networks © Cable Television Laboratories, Inc. 2004. All Rights Reserved.

© Cable Television Laboratories, Inc. 2004. All Rights Reserved. Why Is VoIP Disruptive? © Cable Television Laboratories, Inc. 2004. All Rights Reserved.

PSTN Switching Architecture Class 5 Switch Switch Controller Event Log SS7 I-F SS7 Network LS SM TS Line Trunk Trunk Class 5 Switch Switching Matrix Trunk Trunk Trunk Announcements © Cable Television Laboratories, Inc. 2004. All Rights Reserved.

PacketCable Components Call Management Server CMTS HFC PSTN Gateway CM Managed IP Network PSTN CM MTA Embedded MTA Back Office Servers CM - Cable Modem MTA - Multimedia Terminal Adapter HFC - Hybrid Fiber Coax Network CMTS – Cable Modem Termination System © Cable Television Laboratories, Inc. 2004. All Rights Reserved.

Cable VoIP Deployments Several MSO services using PacketCable Time Warner Digital Phone (Portland, Maine) Cablevision Optimum Voice (New York) Cox Digital Telephony (Roanoke, Virginia) Charter Telephone (Wisconsin) Wide variety of implementations and equipment Current status Core IP technology is working well Multi-vendor interoperability exists Showing economic advantages of VoIP © Cable Television Laboratories, Inc. 2004. All Rights Reserved.

Cable Telephony Economics $267 $527 Data Source: Cox Communications Whitepaper: “Voice over Internet Protocol: Ready for Prime Time”, May 12, 2004, pg. 11 © Cable Television Laboratories, Inc. 2004. All Rights Reserved.

Cable Telephony Subscriber Growth (mil.) 3 6 9 12 15 18 17.1 Total Subs VoIP Subs 13.7 Circuit-Switched Subs 13.3 9.8 9.3 5.3 5.6 3.7 3.8 3.5 3.4 2.8 3.8 3.1 1.9 0.4 2003 2004 2005 2006 2007 2008 © Cable Television Laboratories, Inc. 2004. All Rights Reserved. Source: Kagan Research, 2004 2

Time Warner ‘Digital Phone’ $39.95/month “all in” Unlimited Local, In-state and Long Distance Call Waiting, Caller ID, Call Waiting w/Caller ID Voicemail Billing on existing cable bill w/online call detail Deployed now in 16 systems ~15,000 subs in Portland (10% of homes passed, 30% of HSD subscribers) Most TW markets in 2004 © Cable Television Laboratories, Inc. 2004. All Rights Reserved.

New Service Providers are Flooding the VoIP Market Yahoo lists 42 providers of various types under “Internet Telephony Service Providers” Target market size reaching critical mass 30.7M broadband subscribers and growing* Low barriers to entry due to economics and regulatory environment Consumer Acceptance Low costs and interesting features are attracting consumers willing to accept occasional voice quality issues and other limitations © Cable Television Laboratories, Inc. 2004. All Rights Reserved. *Source: Kinetic Strategies, June 2004

© Cable Television Laboratories, Inc. 2004. All Rights Reserved. CableLabs Next Steps Cable operators well positioned to address legacy voice market with PacketCable Cable gearing up for rapid innovation using PacketCable Multimedia platform Support for new capabilities and clients such as WiFi handsets, video-phones, game-boxes Integration w/cellular networks 10 Hottest Technologies of 2004 PacketCable Multimedia © Cable Television Laboratories, Inc. 2004. All Rights Reserved.