Transcript No Slide Title

Broadband
By Land, Sea or Air
Richard Callahan
Chairman and CEO
Broadband Wireless Forum
San Francisco - February 19,2001
Broadband is on the verge of an explosion
• The internet is a key driver of broadband demand in the SME and
Residential market
• Broadband Delivers what customers want - have rising
expectations
– Speed, quality, quantity, customization
• Promised technologies have left the drawing boards and moved
into operation.
• Regulators are driving alternative solutions and operators
• Always-on, high bandwidth Internet connectivity has created a
new, distributed service environment
• Applications constrained only by our imagination
Applications driving broadband needs
10
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10
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10
10
10
10
9
8
Imaging
Synthetic Environments
Visualization
VOD
7
Video
Conferencing
6
5
4
Packet
Voice
File
Transfer
3
2
Analog
Voice
1
Steady
Client Server,
Design
Remote
Sensing
Networked
Multimedia
Gaming
WWW,
Multimedia
Mail
Streaming
Media
Text-based
Email
Remote Host
Login
Bursty
Multiple network solutions
Technology
Target Customers
• DSL
• Res/SME
• Fixed Wireless
• SME
• Cable
• Res/SME
• Satellite
• Large Business/Res Entertainment
• Third Generation Mobile
• PIM/Messaging/Voice
• Fiber
• Large Business
The Challenges for Carriers
Continuing to deploy capital for upgrades and expansion
Driving higher margin traffic through the networks
Establishing a strong, differentiated competitive position
Re-engineering operational processes to enable the
delivery of “next generation” application services/
Broadband Value Chain
Access
Value Added
Services
Applications
Aggregator
Portal/Vortal
Content
Focus on three lines of Business
Cable Communications
Broadband Wireless
Applications Infrastructure
Services
Callahan Associates is one of the
largest cable communications
operators in Europe*
Germany - Baden-Württemberg
North Rhine Westphalia
France - Numéricâble
Spain and
Portugal - ONO
* Post closure of Baden Württemberg acquisition anticipated early 2001, subject to certain closing conditions.
Callahan Associates is one of the largest
cable communications operators in Europe*
• Approximately 20 million franchise homes
• Approximately 12 million homes passed
• Approximately 7 million subscribers
• Operations in 4 of western Europe’s top markets
• Operational control in all ventures
• Building or upgrading all networks for broadband
communications
* Post closure of Baden Württemberg acquisition anticipated early 2001, subject to certain closing conditions.
Our current environment
Multiple Broadband Access Alternatives…
Public policy
Stimulate competition and
encourage multiple networks
Technology Interactive Networks with
IP capabilities
Competition
Multiple Broadband network providers
Creates a new market need … customers seek product
packages to meet lifestyle needs and simplify choices
… moving us to customer centred model
The Customer Centered Business Design
Access Technology
Determine network capabilities required… perform make/buy
analysis
Deploy rapidly to achieve time to market
Cost Approach
Invest in capabilities to meet high value needs
Management Objective Maximise share of available cash in the market
Value driven by focusing on the customer
Key Beliefs
• Broadband Access Demand Will Be Strong
• Execution on operations is paramount
• Geographic clusters of broadband access
properties will create additional value for
individual properties
• Opportunities for expansion will come from
consolidation and selective new licensing
• Partnerships with IDC/ASP’s to provide solutions
to SME customers is critical
Three Market Segments
Developing Markets
Developed Medium markets – the city state
Developed large metro markets.
Phillipines market --- Developing Market
• Huge number of businesses unable to satisify their
access demands
• High pricing for 64 kbps dedicated circuits
• High Dial up penetration and high interest in
dedicated services at the right price
• PLDT focused on increasing teledensity and
financial restructuring
• Other landline providers less prevalent and have a
focus on meeting POTS build out obligations.
Swiss Market --- Develped Medium Market
• Up to now:
• Less than *2% of
Swiss SME have a
– Too few applications
permanent high speed
for broadband
connection to the
– Prices were too high
Internet
– No competition in the
local loop
– Not actively marketed
by Swisscom
– Market education
required
We plan to be a Broadband Services Provider,
not a WLL Access Company
• Chose Broadband Fixed Wireless Access (TDMA
LMDS Point-to-Multipoint) equipment for our entry
technology, focusing on the SME market.
• In the future, other wired broadband access solutions
such as DSL or Fiber, or wireless solutions in other
frequency domains will be added to our existing
broadband access network.
Simplified ASP Revenue Sharing
Commission
Incl. Hosting fees
ASP
Partners
onSpirix
Usage
Customer
Usage
Carriers and “Higher Layer” Services
Carriers entering the applications market have to
address a number of key issues:
Will I risk “losing relevance” in the business services value chain?
Do I want to be in the software distribution business?
Can my BSS/OSS support for service delivery of software
applications?
Will I be able to hire and retain entrepreneurial, IP-aware staff?
What is my core business, anyway?
Broadband access carriers need to build, buy
or lease applications management
infrastructure
Moving up the OSI Stack
Application
Application
Management
Platform
Presentation
Session
Transport
Carrier
Access
Networks
Network
Data Link
Physical Network
• Provisioning
• Security
• SLA Mgnt.
• Billing
• ASP Services
(OSI Layers 4-7)
(OSI Layers 1-3)
The Functionality of the Middleware
Provisioning
and Service
Activation
Dynamic
Customer
Portal
Security
Services
Reliable Messaging
Transformation
Network and
Application Fault
Management
CRM
Trouble
Ticketing
Workflow
Billing
Nupremis -- A next-generation Internet and IP
Infrastructure Provider
•
Providing infrastructure outsourcing (managed security,
storage and high-availability servers) along with
application/content hosting for internal IT departments,
ISVs/ASPs and Carriers
•
Enabling turn-key
solutions for broadband
network service providers to capitalize on the telecoms
industry shift in value from access and dial-tone related services
to enabling the delivery of real-time applications, content and
multi-media from the Internet and private sources to consumers
and business
“Computers in the future may weigh no
more the 1.5 tons”
Popular mechanics, 1949
“ “I think there is a world market for maybe
five computers”
Thomas Watson, Chairman IBM – 1943
“But what is it good for?”
Engineer at the Advanced Computing
Division of IBM regarding the Microchip – 1968
“ “ There is no reason anyone would want a
computer in their home”
Ken Olson, president, chairman
and founder of Digital Equipment –1977
“ This “telephone” has too many
shortcomings to be seriously considered as
a means of communication. The device is
inherently of no value to us”
Western Union internal memo – 1876
“”640k ought to be enough for anybody”
Bill Gates – CEO Microsoft - 1981