1. International Telecommunication Union ITU-T Workshop on Home Networking and Home Services Tokyo, Japan, 17-18 June 2004 Home Networking U.S. Cable Perspective Ralph W. Brown Senior VP, Broadband Access, CableLabs ®

2. ITU-T 2 dates Why Home Networking? o Home networking goes with broadband 50 to 60% of broadband customers have home networks (The Home Network Market: Data and Multimedia Connectivity, Parks Associates, March 2004) o It is more than just Internet Access Sharing It is also multimedia distribution throughout the home (New connections for the Broadband household, CTAM, May 2003) 40% of broadband customers want to share audio over the home network 36% of broadband customers want to share video over the home network

3. ITU-T 3 dates Important Issues For Cable o The important issues for cable in deploying multimedia home networks: Quality of Service (QoS) guarantees Content protection (aka Copy Protection or Digital Rights Management) Content discovery and navigation o These issues cannot be addressed without a secure, managed home network o CableLabs has developed the CableHome™ to provide the secure, managed home network foundation

4. ITU-T 4 dates CableHome™ Evolution o CableHome 1.0 (Basic Internet Connection Sharing) Specification first issued in April 5, 2002 ITU Recommendation J.191 10 certified CableHome 1.0 products to date o CableHome 1.1 (Advanced Internet Connection Sharing) Specification first issued in April 18, 2003 ITU Recommendation J.192 3 certified CableHome 1.1 products to date o CableOffice (Commercial Gateway Device) Specification first issued on March 24, 2004

5. ITU-T 5 dates US Regulatory Issues for Multimedia Home Networks o Cable Operators in the US must comply with specific regulatory requirements for set-top terminals and consequently multimedia home networks o The 1996 Telecommunications Act mandates the “retail availability of navigation devices” or set-top terminals o The FCC issued its Navigation Order in 1998 detailing these regulations o This resulted in July 2000 Point-of-Deployment (POD) Modules for removable security

6. ITU-T 6 dates US Plug-And-Play Agreement o Throughout 2002 – One-way Negotiations between Cable and Consumer Electronics Manufacturers o December 2002 – Memorandum of Understanding (MOU) reached between Cable and Consumer Electronics Manufacturers o OCTOBER 2003 - FCC 2 nd Report and Order establishes MOU as regulation, sets stage for Two-way Negotiations o 2004 - Two-way Negotiations include all interested parties (Cable, CE, DBS, Content…)

7. ITU-T 7 dates Elements of the Plug-And-Play Agreement o Interface specification, based largely on the OpenCable specs as standardized in SCTE o Defines “Encoding rules” to embody a structure for use of digital copy protection o Consumer labeling, not another round of cable-ready TV confusion o Foundation for two-way agreement on a common software platform (OCAP) and rules for how CE devices can support full range of cable interactive services and applications

8. ITU-T 8 dates Encoding Rules Copy NeverCopy OnceCopy Freely Pay-Per-View (PPV) and Video- on-Demand (VOD) Programming Premium Subscription Services (e.g. HBO) and Expanded Basic Re-transmitted Terrestrial Broadcast TV o Protects content according to the release window

9. ITU-T 9 dates Summary o Multimedia home networking is becoming a reality o CableHome (ITU) specifications provide the foundation for these secure, managed networks o US Cable Operators must comply with FCC regulations regarding Plug-and-Play o The two-way negotiations will involve higher value, Copy Never content (VOD and PPV) o Content Protection and DRM are key issues