Transcript Americas Strategy Q208 Update

Unlimited mobile TV: the multiscreen
experience
Jorge G. Pascal
Technical Sales Mgr – Applications BD
1
Multi-Screen & mobile TV
2 | Multiscreen Media Delivery |July 2008
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Unlimited Mobile TV: Everywhere and on every device
Indoors
Handheld
TV
PC
TV
Outdoors
On the
Road
Vehicular
TV
A key enabler for multi-screen mobile TV
3 | Multiscreen Media Delivery |July 2008
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Business Drivers for Multi-Screen
 Clearly a Multi-Screen Lifestyle is in-demand
 Alcatel-Lucent Primary Research Confirms
Multi-Screen Demand
 Service Providers demand is forming, but
confusion reigns
 Content Industry is willing to explore
 Advertising community interested if it brings
more eyeballs
 Consumer demand and willingness to pay established
 Service Providers See Multi-Screen Bringing Real Opportunities
 Spur uptake in New Services
 Grow ARPU by bringing more value to subscribers
 Generate stickiness/loyalty amongst subscriber base
 Create Interactive relationships with subscribers
5 | Multiscreen Media Delivery |July 2008
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“Two Sided” Business Model
Upstream customers
Revenue side 1
Downstream customers
Revenue side 2
Developers
Service Provider Platform
Government
Brand Advertisers
Channel Partners
Retailers
Distribution
Platform
VAS
Platform
Content Owners
Telco - Retail
6 | Multiscreen Media Delivery |July 2008
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Millions of
customers
Thousands of
segments
Operators have the ability to offer a truly converged experience
Multi-Screen is not about
adding TV to Mobile or the PC.
It’s about fulfilling the
promise of media availability
on any device at anytime
anywhere.
7 | Multiscreen Media Delivery |July 2008
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Mobile TV: still nascent but a reality today
Over 220 operators have already launched
mobile video services, ~110 Live TV (+40 in 12 months)…
Broadcast
Unicast 3G
FRANCE
Orange: ~1M subs with Mobile TV option (Dec. 07)
SFR: ~350k subs with Mobile TV option (Jan. 08)
6 to 12€/month options
Unicast 3G
International (MobiTV sources)
Started Nov 03
3M subs in October 07 (+1M in 6 months)
Retail (ATT 06) monthly fee $19.99
KOREA
Launch May 05 (S-DMB), Dec 05 (T-DMB)
1.3M subs (S, Dec. 07)
8.7M receivers (T, Dec. 07)
~50% vehicular/GPS (T)
Average consumption: > 50’ per day
Monthly subscription (S): €5-€10
Broadcast
ITALY (Tre sources)
Started June 06
850k subscribers (Jan. 08)
~10€/month (average)
Broadcast
Broadcast
USA (Verizon sources)
Started March 07
280k MediaFLO subscribers (August 07)
$15-$25/month (basic / select)
8 | Multiscreen Media Delivery |July 2008
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JAPAN
Launch March 06
1 out of 2 handsets sold in Japan is MTV
ready (Oct. 07)
10.6M phones purchased (Sept. 07)
(i.e. 6% mobile penetration)
18.8M receivers put on the market (Nov. 07)
Operators Cannot Wait to Act
Threat: Consumers adopt “over the top” services, yet Operators cannot monetize





10% of ALL internet traffic is streamed from YouTube.
37% of ALL internet traffic is P2P content sharing.
In May 2007, 6 out of the top 10 movies sold on Xbox LIVE were in HD.
ABC.com offers its hot programs in HD (Lost, Grey’s Anatomy, Ugly Betty).
In Nov. 2006 Verizon/YouTube Team up to deliver content over Vcast.
(sources:Torrentfreak.com, Yankee group 2007)
Response: Operators develop multi-screen strategies and are looking for solutions
– Scott Helbing, EVP ATT Entertainment, “Service Providers are looking to the TV, internet,
and wireless devices to reach consumers with targeted relevant messages…”
– Fancast.com: Leverages its broadband customer base to extend and blend its traditional
cable offering to the web.
– “Hulu” launches as response to domination to YouTube. Backed by NBC and News Corp.
and $100M of private equity, for a total valuation of $1 B.
Multiple Screen Content Delivery will be a Mega-trend across the Industry, not just Telco
12 | Multiscreen Media Delivery |July 2008
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2
Challenges & Network Evolution
13 | Multiscreen Media Delivery |July 2008
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Service Provider Challenges
 Make the Service Experience Compelling for the End User
 Ensure Service Usability with Transparent Service Handoff
across clients
 Provide Security across devices and services
 Support Integrated Advertising & Electronic Sell Through
across clients
 Requires more Holistic Approach to Service Delivery
 Today, Multiple service-specific SDPs with limited interaction
 Service Delivery Environment for interworking of existing, new and 3rd party assets
 Navigate the Complex Transformations Required
 Parallel Business, Network & Service Transformations
 Program Management of Transformation Journey
 Embrace the New Business Models that Multi-Screen Enables/Demands
 Quickly develop simple to use, simple to sell services
 Enable Third Party Application Development & Hosting
 Be Careful to Align Business Model to Consumer Behavior
 Cozy up to the Content Industry
14 | Multiscreen Media Delivery |July 2008
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Infrastructure Challenges for Mass Market Mobile TV
Mobile TV is seen as a key service and revenue generator
 “Press & Watch”: a 50 years old TV viewer habit
 “Works everywhere”: a 10 years old Mobile user habit
 Tellabs survey (Feb. 07): “nearly a quarter (24%) of users who tried
mobile video and TV stopped using the services due to concerns about
service quality and reliability” (including indoor coverage)
Not providing such expectations  Big market risk
Among top criteria, service availability is key for success
Key Challenges
 WHAT CONTENT?
 WHAT BUSINESS MODEL?
 WHAT COVERAGE / QUALITY OF SERVICE?
 WHAT SPECTRUM / CAPACITY?
 WHAT INVESTMENT NEEDED?
15 | Multiscreen Media Delivery |July 2008
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Multiscreen Media Delivery
User & Community
Generated Content
Broadcast & VOD
Content
E-Commerce &
Payment
Target Advertising
Campaigns
Common Enablers of Multiscreen Media Delivery
Converged Network
16 | Multiscreen Media Delivery |July 2008
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Defining Multi-Screen Delivery
Real-time Transcoding
DRM Brokerage
Content Management &
Streaming
Metrics, Measurement & QA
Policy, Payment & Content
Delivery
Media Control Applications
Identity and Seamless Sign-on
Home Service Gateway
Each Layer Represents Unique Demand Drivers & Opportunities
17 | Multiscreen Media Delivery |July 2008
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Broadcast or Unicast ?? Both !!!
Cost-Effective Delivery Satisfying Market Requirements
Cost
per user
Unicast
is cheaper
Broadcast is
cheaper
CHOICE of
LOCATION
Cellular
Delivery
Broadcast
Delivery
Mixed Cellular and Broadcast
Source: O2
Audience
Audience
CONTENT CHOICE
Top-100 Metro.
coverage
Nationwide
coverage
Long Tail
Fat Tail
Channels
•
BROADCAST + UNICAST
•SATELLITE + TERRESTRIAL
(3G/LTE)
18 | Multiscreen Media Delivery |July 2008
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Service Provider Network: Leveraging an Early Adopter Model over 3G…
…to a Mass Market TV Service through Broadcast
Broadcast Head-End
TV Head
End
MiTV
SDP
Mobile TV Service Platform

Broadcas
t
Networks
Broadcast
UMTS
MBMS
Mobile Network
2.5G, 3G, HSDPA



Unicast
Multicast
Interactivity
 Full integration of TV experience across 3G and broadcast networks
19 | Multiscreen Media Delivery |July 2008
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What technologies to deliver Mobile Video Traffic?
DVB-SH / DVB-H / ATSC-M or H MediaFLO
+
+
DVB-SH / MBMS
+
+
+
Dedicated Mobile Broadcast? Under What Regulatory Framework?
+
+
3G / 3G+ / LTE
+ / WIMAX
+
Mobile Network?
DVB-T / ISDB-T
+
Fixed Wireless Broadcast Network?
Sync. / WIFI
Fixed Network extension? (Broadband or Broadcast)
21 | Multiscreen Media Delivery |July 2008
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Network Design
Two Options to Deliver Broadcast Mobile TV…
OPTION 1) BROADCAST NETWORK: FROM FIXED TV …
+18 dBi
Minimum Signal
for rooftop antenna
reception
Tower A
Tower B
OPTION 2) MOBILE NETWORK: FROM MOBILE UNICAST …
+
+
+
+
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+
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Network Design
..both leading to Cellular Broadcast
OPTION 1) BROADCAST NETWORK: FROM FIXED TV … TO MOBILE TV
Minimum Signal
for mobile indoor
reception
-8 dBi
Repeater 1
Repeater n
OPTION 2) MOBILE NETWORK: FROM MOBILE UNICAST … TO MOBILE TV
+
+
+
+
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+
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Common Service Enablers
Applications
Alcatel-Lucent Multi-screen: Ready For Any Evolution From Any Starting Point
Content
Providers
Web TV
Internet
IPTV
Platform
IPTV
Network
Roaming
Partners
Mobile
TV
Platform
Mobile
Broadcast
Network
IMS
Platform
Mobile
Network
End-Users
3G/HSPA/
WiMAX/LTE



Unicast
Multicast
Interactivity
End-to-end integration to maximize quality of experience
24 | Multiscreen Media Delivery |July 2008
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www.alcatel-lucent.com
25 | Multiscreen Media Delivery |July 2008
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