1. Cable and the Internet Rick Cimerman NCTA June 7, 2010

2. Consumer Use Evolving… 1996 – HTML and XML Web Pages No video streaming File sharing non-existent Now – Video rich content web pages Video streaming, video blogging, podcasting Very large download files

3. Cable Broadband Service Evolution Enabling AppNext GenerationCurrent3-5 Years High-speed Internet access Email Newsgroups Online gaming DOCSIS 1.0 and 1.1 (1997 – 1999) Online gaming Voice over IP Music download Home networking Distance learning Robust gaming Blogs Video Mobile backhaul Mobile access Business services Streaming video (inc HD) Picture phone Video conferencing Social media DOCSIS 2.0 (2001 – 2007) DOCSIS 3.0 2008 - current IPTV Convergence apps

4. Higher Data Rates of DOCSIS 3.0 Network Downstream Capacity bonding of 6 MHz channels – Four channels = 152 Mbps – Eight channels = 304 Mbps Upstream Capacity bonding of 6.4 MHz channels – Two channels = 54 Mbps – 27 Mbps per bonded channel Can choose to bond any number of channels – Channels ≠ adjacent – Legacy cable modems supported Many vendors implementing 8 bonded channels in the downstream

5. Managing the Network is More Than Just Transmitting Data Provisioning services: Provisioning services: –Dynamic Host Configuration Protocol – DHCP –Trivial File Transfer Protocol – TFTP –Time Of Day – TOD –Domain Name Service – DNS –Simple Network Management Protocol – SNMP (network monitoring and management) –Internet Protocol Data Record – IPDR (usage reporting) –Billing and customer support systems Additional necessary services: Additional necessary services: –Email Servers –Web Servers –Virtual Private Networking (VPN) –SIP Trunking –Firewalling the cable management network –Obtaining IP Address allocation from IANA –Lawful Broadband Intercepts (CALEA obligations) –Anti-SPAM –Anti-Virus –DOS attacks protection (DNS cache poisoning, etc).)

6. Cable Broadband Usage Growing 40% Annually in the United States January 2007 — September 2009 Growth Rate of Broadband Usage over U.S. Cable Systems 39% The top quartile of subscribers uses 114 times more data than the lower quartileThe top quartile of subscribers uses 114 times more data than the lower quartile –In DOCSIS 3.0 systems, the top quartile of subscribers uses 180 times more data than the lower quartile –Half of the broadband subscribers use less than 5% of the data carried on cable systems

7. Heavy Users Dominate Consumption Percentage of consumption by Top Talkers constant since 2003 1% of subscribers use 20% of data 5% of subscribers use 50% of data 20% of subscribers use 80% of data