Cable TV Head-Ends: Fixed Mobile Convergence (FMC) Powers Cable TV Counterpunch to IPTV

Table of Contents

Executive Summary

Methodology

• Previous Reports That Provide Useful Background Information

Cable TV Responds to the TelcoTV (IPTV) Challenge

• Telcos Are Emerging From Ten Years of Deregulation
• Triple Play and Quad Play Coming from Telcos
• Telcos Are Rolling Out Flexible Internet Protocol Infrastructures
  • Cable TV Operators Need to Respond In Four Ways
    • Defend Their Existing Customer Base
    • Expand Their Service Offerings to Include Mobility
      • US Cable Operators in Joint Venture with Sprint Nextel
      • NTL Acquires Virgin Mobile to Launch Quad Play
    • Expand Their Revenues Due to Advertising
    • Expand Their Customer Base to Include Businesses
    • Cox Communications as a "Thought Leader" for Cable TV Business Services
  • A Quick Look at North America's Cable TV Triple Play Market: RGUs and ARPU
  • Revenue Generating Units (RGUs)
  • Average Revenue per Unit (ARPU)
  • Snapshot of North America Triple Play Service Subscribers
    • Plenty of Room Left for Long-Term Growth
    • Approximate Value of North American Triple Play Feature Offerings

Quad Play Puts All Content into a Blender of New Opportunities

• Professional Content
  • Three Kinds of Professional Content Companies
• Personal Content
  • Personal Content Usage Rights Controlled by Consumers
    • Personal Content Also Being Accepted Onto Professional Content Services
  • Communications Content
    • Triple Play Depends on Communications Content
    • Quadruple Play Further Expands the Importance of Communications Content
    • Session Initiation Protocol (SIP) Will Benefit All Three Kinds of Content
  • Communications Services Are Blending with Professional Content Services
    • Content Aggregators Ride on Communications Services
    • A Natural Yin and Yang between Content Aggregators and Communications Services Will Push, then Pull, the Market Forward in Multiple, Overlapping, Steps
    • High Definition Content Changes the Playing Field, Will Force Network Upgrades
      • By 2010, Some Homes Will Need 100Mb/s

Comcast is the Bellwether of the Cable TV Industry

• Comcast Is a Major Content Aggregator and Distributor with Multiple Nation-Wide Networks, Both Via Satellite and Via Fiber Optic
• Comcast Can Lead Cable TV into Mobile Services

Net Insight's Digital TV Platform: An Automated Approach to Cut Costs

• Nimbra-Enabled Solution Is an Example Super Headend
• Net Insight-Enabled Norkring Network for DVB-T in Norway
• Nimbra Platform Designed for Quality of Service
• Net Insight Solution Supports Voice and Mobile Video Services
• Maintains GPS-Accurate Timing for All Network Edge Points

CableLabs Initiatives Will Spur Continued Growth

• Society of Cable Telecommunications Engineers (SCTE)
  • SCTE Standards Provide International Reach

Why Cable TV Mobile Services Will Be Disruptive

• Cable TV Operators Are More Nimble than People Think they Are

Cable Infrastructure Forecasts

• Cable TV Systems Are Emerging as Full Service Telecommunications Providers
• Key Industry Trends
  • Increasing Use of High Definition TV Programming
  • Expanding Video-On-Demand Infrastructure
    • Advertising Insertion
    • Upgraded Cable Modem Video Services with Targeted Advertising
    • Video Content and Targeted Advertising for Mobile Services
  • Switched Digital Video to Conserve Bandwidth
  • Increase to 1GHz Bandwidth in the Final Mile
  • Channel Bonding for Cable Modems
  • Special Approaches to Support Business Users
  • Eventual Move to 100% Digital Final Mile
  • Fixed Mobile Convergence (FMC)
  • Mid-Stream Upgrades to Create Opportunities for New Players to Approach the Cable TV Industry
• Super Headends by Region
• Local Headends by Region
• QAM Channels by Region
  • Broadcast QAM, VOD QAMs and IP-QAM Channels
  • Newly Built QAM Hubs by Region
  • Upgraded QAM Hubs by Region
  • Estimate of QAM Units Shipped by Region, by Category
• Fixed Mobile Convergence Infrastructure by Region
• North American Cable Infrastructure Equipment Forecast by Category
• European Cable TV Infrastructure Equipment Forecast by Category
• Asian Cable TV Infrastructure Equipment Forecast by Category
• ROW Cable TV Infrastructure Equipment Forecast by Category
• Regional Summaries and Comparisons
• Worldwide Summaries by Category

Profiles of Key Companies

• Cisco Systems
  • Cisco-Linksys
    • Linksys Home and Small Business Media Gateways
      • Media Gateways Enable Managed Services
  • Scientific Atlanta Acquisition
    • Scientific Atlanta Provides Four Growth Vectors
  • Cisco Acquires Arroyo Video Solutions, Inc.
    • Arroyo Provides Low-Cost, High Performance, Video On Demand
  • Cisco Announces CRS-1 Core Router Improvement
    • Wideband Channel Bonding
• Motorola, Inc. Connected Home Solutions
  • Kreatel IPTV Set Top Box Acquisition
  • Broadbus Technologies Video Server Acquisition
  • An Ever-Expanding Portfolio of Solutions
    • MediaCipher™ IP
    • Channel-Bonding Solutions for Very High Speed Data
    • Cable MESH for Metropolitan Area WiFi Services
    • 1GHz Products with Enhanced Upstream Bandwidth
    • Switched Digital Video Network Architecture
• Juniper Networks, Inc.
  • Juniper Partners with Motorola on Modular CMTS
    • Juniper's Expanding Portfolio of IP Solutions for Cable TV Multiplay
    • Expanding Business with Cox Communications
    • SDX-300 Service Deployment System for Packet Cable Multimedia (PCMM)
  • Juniper's Open IPTV and Multiplay Initiative
    • Four Vectors of Growth Enabled by Juniper Networks
• TANDBERG Television ASA
  • Any Platform to Any Device Solutions
    • World Leader for Advanced Video Codecs (AVC) and IP Networking Enables Video to Any Device Over Any Platform
    • OpenStream Digital Services Platform® Enables VOD Delivery
    • AdPoint On-Demand Advertising Platform® Supports Zones
  • SkyStream Acquired by TANDBERG Television
• ARRIS Group, Inc.
  • ARRIS Labs Provides Unparalleled Interoperability Expertise
  • ARRIS FlexPath™ and Cadant® C4™ CMTS Enable Wideband
    • FlexPath™ Protects Investment in DOCSIS® 1.1 and 2.0 Modems
  • Cadant® G2 IMS™ Intelligent Management System
    • Fixed Mobile Convergence Is On the Way from ARRIS
• Lucent Technologies
  • Merger with Alcatel
  • Lucent Delivers Value over IP™
    • Lucent Advantages for Cable TV MSOs
    • Lucent Working with CableLabs, SCTE, CTAM, NCTA
      • Lucent's Leading IMS Technology Being Adapted for PacketCable 2.0 and Open Cable Applications Platform (OCAP)
    • Communications Applications in the Home, and On the Go
    • Lucent IMS is an Enabler for Sprint Nextel Joint Venture
    • Success with Voice-over-IP Offerings
    • Managed and Hosted Services
    • Lucent Worldwide Services Organization
    • Lucent's MiViewTV™ Concept May Enable Personalized TV Delivery across Wired and Wireless Boundaries
• Alcatel
  • Alcatel Merger with Lucent Technologies
  • Alcatel Partnership with Microsoft TV for IPTV
  • IPTV and IMS Fixed Mobile Convergence for TDC Denmark
  • Triple Play Service Delivery Architecture for Cable TV MSOs
    • Alcatel's 7750 Service Router
    • Alcatel's 7450 Ethernet Service Switch
    • Alcatel's 7342 G-PON
• C-COR, Incorporated
  • C-COR Driving Forward with Success in Europe
  • Four Main Focus Areas
• Harris Broadcast Communications
  • Focusing On Pulling "Content" Into the Future- Profitably
  • Cable TV Systems Will Need Local Content
    • Cable TV Systems Will Need Local Control of Their Local Content
    • Analog Cut-Off to Impact Local TV Broadcasters, and Cable TV Can Benefit
    • Local Cable Can Host Community-Based Content Sharing Services
    • Community-Based Content Could Go to TV Sets, PCs, or Cell Phones
  • Harris H-Class Platform Enables Local Content for Cable TV
    • Cable TV MSOs with Nationwide Fiber Optic Backbones Could Benefit
  • Harris Also Provides Mobile TV Capabilities
  • Harris has Been Delivering Targeted Advertising for Decades
    • Local Cable TV Ad Sales Already Supported by Harris Broadband Solutions Novar Traffic and Billing Software
• BigBand Networks
  • BigBand's Platform Approach to Digital Cable and IP Services
  • Switched Digital Broadcast is Big Band's Forte'
  • Big Band Cuda? CMTS Demonstrates 100Mb/s at IBC
• Harmonic
  • ProStream™ 8000 Digital Mosaic Wins International Award
    • Tiling Multiple Video Streams Will Become a Service Enhancer
  • Harmonic Acquires Entone Video Networking Software
• Scopus Video Networks Ltd.
  • Scopus' Intelligent Video Network™
  • Digital Ad Insertion with IVG 7500 Intelligent Video Splicer
  • Scopus UID-2912 Dense Edge IP Decoder
  • Network Management and MPEG-4/AVC for IP Video Networks
• ECI Telecom
  • Metro Area Networks for All Service Providers
  • Europe's Cable TV Systems Building Metro Area Networks
  • Fixed Mobile Convergence Driving Growth
• Telcordia®
  • Telcordia® Maestro™ IMS Portfolio
  • Telcordia Cable TV Solutions Enable a Competitive Edge
• Huawei Technologies Co., Ltd.
  • Huawei Digital Media and Entertainment (DME) Solutions
  • Huawei Mobile Networks and IMS for Fixed Mobile Convergence
• Nortel Networks Corporation
• Optibase
  • Optibase Demonstrates Picture-in-Picture with UTStarcom
• RGB Networks
  • RGB Announces Third Round Venture Funding
• Terayon Communication Systems, Inc.

List of Tables

• Table 1. Worldwide Forecast for Cable TV Infrastructure Equipment (US$ Millions, Annual Growth Rate, Compound Annual Growth Rate)
• Table 2. Snapshot of North America Triple Play Service Subscribers (Subscribers by Service Taken)
• Table 3. Relative Penetration of Triple Play Services (Number of Subscribers by Service, Percent of Total Subscribers)
• Table 4. Approximate Value of North American Triple Play Feature Offerings (Annual Value in US$ Thousands, Annual Growth Rate)
• Table 5. Cable TV Newly Built Super Headends by Region (Units, Annual Growth Rate, Percent of Total, CAGR)
• Table 6. Typical Equipment Costs for Newly Built Super Headends by Region (US$ Millions, CAGR)
• Table 7. Annual Value of Equipment in Newly Built Super Headends by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)
• Table 8. Cable TV Upgraded Super Headends by Region (Units, Annual Growth Rate, Percent of Total, CAGR)
• Table 9. Typical Equipment Costs for Newly Built Super Headends by Region (US$ Millions, CAGR)
• Table 10. Annual Value of Equipment in Upgraded Super Headends by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)
• Table 11. Annual Value of Newly Built and Upgraded Super Headends by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)
• Table 12. Cable TV Newly Built Local Headends by Region (Units, Annual Growth Rate, Percent of Total, CAGR)
• Table 13. Typical Equipment Costs for Newly Built Local Headends by Region (US$ Millions, CAGR) 38
• Table 14. Annual Value of Equipment in Newly Built Local Headends by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)
• Table 15. Cable TV Upgraded Local Headends by Region (Units, Annual Growth Rate, Percent of Total, CAGR)
• Table 16. Typical Equipment Costs for Upgraded Local Headends by Region (US$ Millions, CAGR)
• Table 17. Annual Value of Equipment in Upgraded Local Headends by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)
• Table 18. Annual Value of Newly Built and Upgraded Local Headends by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)
• Table 19. Calculations of Costs for Newly Built QAM Hubs in North America (QAMs per Hub, Cost US$, # of Digital QAM Channels)
• Table 20. Calculations of Costs for Newly Built QAM Hubs in Europe (QAMs per Hub, Cost US$, # of Digital QAM Channels)
• Table 21. Calculations of Costs for Newly Built QAM Hubs in Asia (QAMs per Hub, Cost US$, # of Digital QAM Channels)
• Table 22. Calculations of Costs for Newly Built QAM Hubs- ROW (QAMs per Hub, Cost US$, # of Digital QAM Channels)
• Table 23. Cable TV Newly Built QAM Hubs by Region (Units, Annual Growth Rate, Percent of Total, CAGR)
• Table 24. Typical Equipment Costs for Newly Built QAM Hubs by Region (US$, CAGR)
• Table 25. Annual Value of Equipment in Newly Built QAM Hubs by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)
• Table 26. Calculations of Costs for Upgraded QAM Hubs in North America (QAMs per Hub, Cost US$, # of Digital QAM Channels)
• Table 27. Calculations of Costs for Upgraded QAM Hubs in Europe (QAMs per Hub, Cost US$, # of Digital QAM Channels)
• Table 28. Calculations of Costs for Upgraded QAM Hubs in Asia ((QAMs per Hub, Cost US$, # of Digital QAM Channels)
• Table 29. Calculations of Costs for Upgraded QAM Hubs in ROW Countries (QAMs per Hub, Cost US$, # of Digital QAM Channels)
• Table 30. Cable TV Upgraded QAM Hubs by Region (Units, Annual Growth Rate, Percent of Total, CAGR)
• Table 31. Typical Equipment Costs for Upgraded QAM Hubs by Region (US$, CAGR)
• Table 32. Annual Value of Equipment in Upgraded QAM Hubs by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)
• Table 33. Annual Value of Newly Built and Upgraded QAM Hubs by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)
• Table 34. Number of QAM Modulator Units Shipped by Region, by Category (Number in Units, Annual Growth Rate, Percent of Total, CAGR)
• Table 35. Cable TV Newly Built FMC Service Infrastructure by Region (Units, Annual Growth Rate, Percent of Total, CAGR)
• Table 36. Typical Equipment Costs for Newly Built FMC Infrastructure by Region (US$ Millions, CAGR)
• Table 37. Annual Value of Newly Built FMC Service Infrastructure by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)
• Table 38. Cable TV Upgraded FMC Service Infrastructure by Region (Units, Annual Growth Rate, Percent of Total, CAGR)
• Table 39. Typical Equipment Costs for Upgraded FMC Infrastructure by Region (US$ Millions, CAGR) 61
• Table 40. Annual Value of Upgraded FMC Service Infrastructure by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)
• Table 41. Annual Value of Newly Built and Upgraded FMC Service Infrastructure by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)
• Table 42. North American Cable Infrastructure Equipment Value by Category (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)
• Table 43. European Cable Infrastructure Equipment Value by Category (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)
• Table 44. Asian Cable Infrastructure Equipment Value by Category (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)
• Table 45. ROW Cable Infrastructure Equipment Value by Category (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)
• Table 46. Value of Cable Infrastructure Equipment Value by Region (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)
• Table 47. Worldwide Value of Cable Infrastructure Equipment Value by Category (US$ Millions, Annual Growth Rate, Percent of Total, CAGR)

List of Figures

• Figure 1. Relative Annual Value of North American Triple Play Feature Offerings (Annual Value in US$ Thousands)
• Figure 2. Net Insight's Remotely-Operated Digital Terrestrial Network System
• Figure 3. Annual Value in Newly Built and Upgraded Super Headends by Region (US$ Millions)
• Figure 4. Annual Value of Newly Built and Upgraded Local Headends by Region (US$ Millions)
• Figure 5. Annual Value of Newly Built and Upgraded QAM Hubs by Region (US$ Millions)
• Figure 6. Annual Value of Newly Built and Upgraded FMC Service Infrastructure by Region (US$ Millions)
• Figure 7. North American Cable Infrastructure Equipment Value by Category (US$ Millions)
• Figure 8. European Cable Infrastructure Equipment Value by Category (US$ Millions)
• Figure 9. Asian Cable Infrastructure Equipment Value by Category (US$ Millions)
• Figure 10. ROW Cable Infrastructure Equipment Value by Category (US$ Millions)
• Figure 11. Value of Cable Infrastructure Equipment Value by Region (US$ Millions)
• Figure 12. Worldwide Value of Cable Infrastructure Equipment Value by Category (US$ Millions)