1. Team 2 Cheryl Lee Marisol Cadiz Diana Lee-Akalin Sangtae Lee
Good Afternoon, my name is Tim Page - part of ARC Group - consultancy specialising in Digital Broadcasting, Telecoms and Internet.
I would like to thank IBC UK Conferences for inviting me to speak on the subject of Media Streaming and I will try to answer the question
“How can increasing bandwidth enhance media streaming.”

2. Agenda Introduction Company & Product Overview Core Competencies
Customers & Competition
Critical Issues & Financials
Critical Recommendations
Question?
Introduction
Why Stream? - Basic streaming overview
Network Considerations
Software platforms
Codecs
Internet Access
Streaming to Mobile Handsets
Industry Convergence
Summary

3. Introduction - Phil Condit, Boeing chairman and CEO
Boeing intends to be a leader in the new mobile economy - -and that means helping our airline customers and their passengers stay globally connected at all times. The airplane will begin to look like your home or office and the experience of travel will change
- Phil Condit, Boeing chairman and CEO

4. Air Travel Today Few choice Book Magazine Several movies
New market emerging
3 million people board 42,300 flight a day
48% of air travelers in USA are business travelers
70% of business traveler carry a laptop on board
Limitations of the Internet
The internet is a great information resource and has many benefits over traditional information distribution. However for streaming media there are a variety of limitations.
Dial up speeds
For the consumer dial up connection to the internet is still fairly slow, currently being limited to 28.8k and 56k modems. It will not be possible to send CD quality in real-time because the modem speeds are slow and unreliable.
Poor Audio Quality
As we have seen earlier, the slow connection speeds to the internet limit the amount of data received at the end user. This limits the resulting audio visual quality. Currently 56k modem achieves sounds quality somewhere between AM and FM radio. ISDN is a favorable alternative but the high price is the major barrier.
Low reliability and QoS
Being packet based, data transfer across the internet is not very reliable, being bursty. Sometimes the connection can be a continuous stream but network congestion can be achieved especially when the internet has heavy use.
One means to overcome the internet connection bottleneck is to increase the bandwidth and data reception capability over the “last mile” – the section of the network coming into the home, and we are now going to consider the various available technologies to that do just this.
xDSL - challenge to improve the “last mile”

5. Market size: $70 billion over the next 10 years
Connexion by Boeing
New broadband telecommunication
service in flight
Real time, high speed, two-way connectivity
Real time Internet and Live TV
Service to begin in 2002
Market size: $70 billion over the next 10 years

6. The Capability of Connexion
Internet Surf the Web (80%) Stock trades (49%) Book reservations
AOL/Yahoo
Live TV Entertainment (41%) News reports Weather Sports events
CNN
Destination
Information Plan itinerary
Check weather (75%)
Reservations (45%)
Expedia/
Airlines
Company Intranet (80%) Reports Company news
Indiv Co
E-Commerce Shopping Duty-free
Airline
News & Information
News(63%)
Business Money
CNN/CNBC
Carrier Information Travel planning (46%) Travel support Frequent flier mileage
Airline
Flight Facts Airport maps Flight maps Gate information
Airshow
% :Air traveler’s preference

7. -Deploying large scale
Core Competencies
Technology
- High Speed
- Two way
- Broadband
In Depth Knowledge
-Deploying large scale
-Communication sys.
Financial &
Human capital
- $45 Billion company
- 200,000 Employee
Strategic Alliance
- Industry leader &
Content Provider
Global Relationship
- Airline industry
- Government

8. Alliances Contents Provider Hardware MASC -Live Sports Network
-Satellite and Transponder
-Asia coverage
Contents Provider
-Market News
- Stock
-Satellite and Transponder
-Europe coverage
-Airport
Weather
- City Guide
Hardware
-Satellite and Transponder
-North America coverage
MASC
MATSUSHITA AVI.
SYSTEMS CORP.
-In Flight Entertainment Sys.

9. Customers
Advertising Agencies

10. Competition Connexion In Flight Network Tenzing Comm
Existing IFE Prov.
Deployment
2002
Testing 2001
Testing “Emport”
High Speed
Real Time Y N
Range of Services
Extensive
Basic
Movies
Basic & Web
Internet Movies
Infrastructure Reqmt
Minimal
Cost
$$$$$ $$ $

11. Competition (cont.)
Tenzing's technology is not real-time. Its system compresses batches of messages on the plane and sends them to the ground every several minutes via satellite link. Tenzing's on-board computers cache dozens of selected Websites and offer a menu of services to carriers that passengers will pay for. Tenzing also plans to repackage Web content and sell ads that target specific flight routes, or tout businesses in destination cities.
Waiting for existing satellite provider, Inmarsat, to offer high band-width services soon.l

12. Competition (cont.)
Tenzing's technology is not real-time. Its system compresses batches of messages on the plane and sends them to the ground every several minutes via satellite link. Tenzing's on-board computers cache dozens of selected Websites and offer a menu of services to carriers that passengers will pay for. Tenzing also plans to repackage Web content and sell ads that target specific flight routes, or tout businesses in destination cities.
Waiting for existing satellite provider, Inmarsat, to offer high band-width services soon.l

13. Issues: Cost Up Front Investment: $100M - $200M
Development
Integration of communication, platform
Hardware & Software Installation
Content Development
Est. $17/hour for and net access
Customers willing to pay
Operating Cost
Satellite communication: $20 per call

14. Issues: Technology
Frequency sharing needs regulation authorities approval
Development limits to existing technology & infrastructure
Technology - what’s next?

15. Other Issues Consumer Acceptance Target Markets & Content Offerings
What do they use & how much are they willing to pay?
Target Markets & Content Offerings
Who are they & what do they want?
Airlines, Partnership & Alliance
- They control what to provide & when to implement

16. Rough Financials Assumptions: Revenue sources Expenses:
Analysis
Boeing’s
Estimation
Revenue
Sharing
20%
30%
ROI
5-Years -
Annual
Rev.(m)
$4,600
$8,200
$3,000
Market Share
29%
52%
# of Paid Users (m)
108
192
Assumptions:
Revenue sources
Service fees: 50%
Advertising: 30%
Co-Branding: 20%
Expenses:
Service: $20/call
Revenue sharing
Standard stuff

17. Recommendation: $$$ models
Service Fees
Offer Basic Premium Service
Corporate Accounts
Prepaid Service
Advertising
Charge fees and use the proceeds to reel in Basic service users
Co-Branding
Charge Airlines and Content Providers

18. Recommendation: dis-integration
SBU with tracking stock
Heavy promises require speed, flexibility, and focus
Boeing is a dinosaur
…but Connexion still needs Boeing’s
technological expertise
government and regulatory contacts
customer relationships

19. Recommendation: Focus on Value
Stop comparing yourselves to cellular phones

20. Questions?