1. Present Status of IPTV Deployment in Japan
Masahito Kawamori,
NTT

2. Agenda Background IPTV service deployment by NTT Group
Standardized IPTV: NTT’s Approach
Conclusion

3. What is IPTV?
IP-based Video-centric service, usually provided by Telcos
Often coupled with other multimedia services such as text, graphics, and also with more enhanced interactive services like e-commerce
Perceived to have an infinite possibilities, and may encompass broadcasting in the future

4. IPTV Market IPTV Market has grown rapidly in 2006.
IPTV terminals sales increased 150%
Service Provider revenues have increased 178%
Many services based on Channel service and Video-on-demand

5. Market Growth Projection

6. IPTV service deployment by NTT
Hikari TV: NTT’s New IPTV Service
Services provided by Hikari TV
Strategies of Hikari TV

7. Hikari TV: NTT’s New IPTV Service
NTT Group has launched “Hikari TV” service in March 2008.

8. Hikari TV: NTT’s New IPTV Service
It provides Video-on-Demand, Linear channel TV service and others on NTT Group’s FTTH networks “Flets Hikari Premium” and “B-Flets” as well as “Flets HIKARI Next”, NTT’s new Next Generation Network also started in March, 2008.
VOD service is offered by NTT Plala, an NTT subsidiary, while Channel broadcasting is provided by I-Cast

9. IPTV Situation in Japan before 2008
Several Operators are already starting IPTV services since 2004 and 2005.
The services vary, but mostly Video-On-Demand streaming and Channel streaming service
Few, if not no, provide Download service
Most of them received by (proprietary) STB
Terminals are tightly coupled with the service -- Traditional Vertical Model
No standard IPTV in the market yet

10. IPTV in Japan in 2008 Standardized IPTV service specification
TV Terminals in retail shops in addition to proprietary STB
Horizontal as well as Vertical business model
High Definition Video Content with Quality of Service Management
Use of Metadata as Attractors
Strong Interactivity

11. NTT’s IPTV Services Before 2008 Since 2008 NEO Index etc. Content
On demand TV
OCN
Theater
HIKARI TV
4th Media
NEO Index
etc.
Content
aggregator
ITOCHU etc.
ITOCHU etc.
JPC etc.
4thMEDIA
Broadcaster
(on NW)
I-Cast, Inc
I-Cast, Inc
OnlineTV
Carrier
(Access NW)
NTT-East
NTT-West
NTT-West
(NTT-EAST)
NTT-East
NTT-West
NTT-East
NTT-West
Plala Networks, Inc
On Demand TV
Service
Provider
NTT-Com
NTT Plala

12. Services provided by Hikari TV

13. Services provided by Hikari TV
Basic Service: Original Content, Shopping Channel, etc.
Basic VOD Plan “Video Zanmai” : All you can watch from 5000 VOD titles
Basic Channel TV Plan “TV O-susume”: 40 Channels with no additional cost
Value Plan (“O-neuchi”): Basic VOD Plan + Basic Channel Plan
Second subscription of any of the three plans in a household will receive 1,050 discount.
Subscriber to one of the plans can receive the same plan with the tuner-rental fee, if additional subscription with the Basic Service

14. Pricing Initial Price (Basic Service): JPY 5,250 (Free until 2008/9)
Monthly Fee
Basic VOD Plan: JPY 2,625　
Basic TV Channels Plan : JPY 2,625
Basic VOD+TV: JPY 3,675.　
Optional Service
Karaoke : JPY 525/24 hours　or JPY 1,785/Month
Tuner Rental Fee 　JPY 525 /Month

15. Strategies of Hikari TV
Attractive Content Selection – including DTV retransmission
High Definition Video
Efficient H.264
Standard-based
Metadata and attractors

16. Attractive Content Over 10000 VOD titles to choose from
About 5000 titles already included in the “Basic VOD Plan”, which allows one to watch any of them without any additional payment.(The largest number in the industry)
Linear Channel Service includes 40 Basic TV Channels, up to 75
Karaoke Service with more than song titles will start this summer.

17. IPTV Retransmission of Digital Terrestrial Broadcasting
To respond to the requests from the user, as attractive content, the retransmission over IPTV of Digital Terrestrial Broadcasting will be provided for NTT’s NGN subscribers.
The service area will start from Tokyo and Osaka, and will spread to other areas as NTT’s NGN service areas expand.

18. High Definition Video Quality
Efficient and high quality Video compression is achieved by ITU-T H.264, comparable to current high definition videos broadcast in MPEG-2.
High definition with H.264 is provided for Video-On-Demand and Linear Channel services as well as the retransmission of Digital Terrestrial Broadcasting

19. Platform on Standardized IPTV Spec
Platform is based on the specification recommended by IPTV Forum (Japan), comprising CE manufactures and service providers including NTT. This specification is expected to be used commonly for IPTV services in Japan.
This standardized IPTV service of NTT will expand not only for STBs but also for Digital TV sets in the open retail market, which will enhance the serviceability of the platform and improve the user’s benefits.

20. Standardized IPTV: NTT’s Approach
The Background of IPTV services
Why Standards?
Taking Stock of DTV
IPTV Forum Japan

21. Popularity of Internet Access in Japan

22. Broadband Access in Japan

23. FTTH in Japan Subs. [million] 50% of households 20% of households
51 million households
128 million people 23

24. Growth of Large Flat Panel TVs
over 30 [inch] 24

25. Why Standardized IPTV?

26. Pros and Cons of STB approach
More Versatility and Adaptability
More Resources and Control on Terminal
Easier differentiation
Cons
More expensive for the Service provider
More limited number
More control means more responsibility
How to Maximize the Market without losing Differentiation

27. Standardized IPTV as Market Driver
Standardized IPTV will create a big market not only for Content but also for various related services
Standardized IPTV will be the new platform for communication and exchange
Players in the Content Eco-system will benefit from Standardized IPTV
What would be the fast, implementable standardized IPTV that responds to the market?

28. Taking stock of DTV Television sets are currently ubiquitous
Many of the functionalities of IPTV can be covered by Digital TV
Mature technologies are already in place
If those DTV sets are all IPTV-enabled, the market for IPTV service will be propelled
A migration of DTV to IPTV would be one direction in which Standardization should go

29. Standardized IPTV Terminals
Standardized IPTV will be as ubiquitous as present-day telephones and FAX machines
A wide range of selection and variety of terminals will be in the market just like telephones
Consumers can choose as they want; Differentiation is promoted
Low-priced standard terminal would be good for the wide acceptance of IPTV services

30. Example of Standardized IPTV (1)

31. Example of Standardized IPTV (2)

32. IPTV Forum Japan
With the guidance of MIC, Consumer Electronics Venders, Telcos, and Broadcasters in Japan formed a forum for standardizing IPTV
Contents Development Office
Ministry of Internal Affairs and Communications
Next generation broadband
Contents distribution forum
observer
MIC
Steering committee
IPTV Forum
IP Multicast WG
On demand WG
PC distribution WG
・Multicast service
・Re-transmission service
・VoD
・Download service 32

34. Call for Unified IPTV Standard
Carriers are expecting “Unified IPTV Service Specification” would accelerate IPTV market development
– TV equipped with IPTV functionality sold in retail market is a key accelerator
• Government is now enforcing to develop this unified IPTV specifications being able to cover terrestrial retransmission
– IPSP, IP Service Platform for IPTV over Smart pipe, managed network Re-transmission will be integrated
– acTVila for IPTV over Dumb pipe, unmanaged network

38. Hikari TV Portal

39. An IPTV Implementation based on DTV functions
Communication process
BML browser
Demax
Video decoder
Decrypter
Storage Device
UDP
TCP
RTSP RT P
/FEC
IGMP/MLD IP
HTTP/TLS
Physical Data link
VOD player
EPG
ECG
Presentation process
Remote control
Select program process
Communication I/F
Audio output I/F
Remote control I/F
Descrumbler
CAS card
TTS decoder
Video output I/F
Audio decoder
Caption decoder

40. Conclusion NTT has started a new IPTV service, Hikari TV, in 2008
The growing popularity of Broadband and FTTH services provide a mature environment for IPTV services in Japan.
Hikari TV basic strategies:
Standards-based platform
high definition, high quality content
Versatile and attractive content
Standardized IPTV is an important step for a wide acceptance of IPTV.

41. Thank you!!