Transcript Alternate Digital Content Distribution for the Last Mile

Alternate Digital Content
Distribution for the Last Mile
Mark Fratrik, Ph.D.
Vice President
BIA Financial Network
Broadband Wireless Forum
San Francisco, CA
February 21, 2001
Fund Raising
Strategic Consulting
Data Management
Expert Valuations
Research
Agenda
 Who is SpectraRep?
 Bandwidth capacity challenged.
 Bandwidth Demand is growing but supply is
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not keeping up.
DTV and satellite datacasting advantages
and case studies.
The digital television roll-out in the U.S.
Benefits of DTV datacasting.
Summary
www.spectrarep.com
In Conjunction with
BIA Financial Network
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SpectraRep
Research
Investment Advisory
Consulting
Industry Information
& Software
Investment Banking
& Advisory
Financial &
Strategic
Leading Valuation Firm in Broadcasting & Telecom
Premier Industry Research Publisher
Established Communications Investment Advisor
www.spectrarep.com
Who is SpectraRep?
www.spectrarep.com
’s Mission
We live in a world in which consumer and
enterprise demand for last mile bandwidth
will continue to exceed supply.
Our mission is to be a leading developer and
provider of innovative and cost-effective
digital content distribution solutions for
businesses and consumers, using bandwidth
provided via satellite and television.
www.spectrarep.com
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DTV and Satellite IP
Datacasting
Services company
Broadband, wireless,
multicast, last mile to the
customer
Scalable solutions
Solutions designed around
customer requirements
Open partnerships
The SpaceConnection, Inc.
www.spectrarep.com
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Programming-related
satellite transmission
services
 Satellite space segment
on a contractual,
recurring, and occasional
basis
 C-Band and Ku-Band
satellite transmissions,
analog and digital
fixed and transportable uplinks
TVRO downlinks and
terrestrial facilities
domestic and international
distribution
www.spectrarep.com
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One of the largest
inventories of C-Band and
Ku-Band transponders
worldwide for video, audio,
data and internet services.
ABC, CBS, FOX, NBC,
PBS); cable programmers
(e.g., CNN, HBO, MTV)
Transmission services for
events such as: The Super
Bowl, World Series, Winter
and Summer Olympics,
World Cup Soccer Matches,
Space Shuttle Launches,
among the tens of thousands
of events arranged each
year.
The Internet is bandwidth challenged.
www.spectrarep.com
“The demand for bandwidth grows 100
times faster than we can deliver it.”
www.spectrarep.com
Bandwidth supply not pacing
demand.
 Bandwidth being rolled out at frantic pace, but uses
growing faster.
 Internet backbone having trouble scaling to
broadband use by mass user base.
 Broadband suppliers starting to use private high
capacity networks.
 Bandwidth limitations affecting offerings.
 Streaming media offerings strained to serve “flash events”
 For each broadband user, 50 narrowband users
 Last mile broadband an issue
 Broadband cable service designed to serve 10,000
user base, serve 5-10% of this base.
www.spectrarep.com
Customer Need Segments
Applications
Business to
Business (B2B)
Business to
Employee (B2E)
Business to
Consumer (B2C)
Streaming media
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Distance learning
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HTML email
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Webcasting
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Intranet/VPN
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Multimedia catalogs
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Cache updates
Database updates
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TV program-related data
Software updates
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www.spectrarep.com
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Connectivity Options
Service Type
Download
Upload
Dial-up
53 kbps
33.6 kbps
ISDN
128 kbps
128 kbps
Satellite
400 kbps
Modem
DSL
350 – 500 kbps
350 – 500 kbps
Cable modem
1.54 Mbps
300 kbps
Wireless
128 kbps to
1.54Mbps
128 kbps to
1.54 Mbps
DTV
1-10+ Mbps
Modem
www.spectrarep.com
Pros and Cons of Services
Service Provider Advantage
Vulnerability
Cable
Robust, 2-way,
video centric,
owns set-top
MSO service,
truck roll
Satellite
QoS, TV centric,
remote areas
Weather issues,
return path
DTV
High concurrent
use media
Return path
DSL
Broadband,
availability
PC centric,
remote areas
Wireless
Build-out cost,
remote areas
Limited coverage,
return path
Dial-up
High penetration
Low data speeds
Source: Adapted from Deutsche Banc Alex Brown, January 28, 2000
www.spectrarep.com
Market Supply Segments
Wireless
Cellular
PCS
DTH
ISM
DTV
MMDS
LMDS
UHF
Hybrid Network Deployments
Wired
Dial-up phone
Narrowband
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DSL
Cable
T-1
Broadband
Cost
Point-to-Multipoint Scale Advantages
Wireless
added
value
Wireless 1-to-Many
Wired or Wireless 1-to-1
Customers
www.spectrarep.com
Broadcasting is Push from
Video to Data
www.spectrarep.com
DTV Datacasting Pros & Cons
Assets
Limitations
Broadband
Quality of service
Wireless
Mobility
Scalable
Transmission scheme
Multicast
Receiver penetration
Coverage
One-way
www.spectrarep.com
DTV Datacasting Benefits
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Wireless Broadband
Local, Regional, Nationwide
Last mile solution
One-to-many economies
Scalable infrastructure
Does not require cellular-like
build out
Significant through-put up to 15+
Mbps
Security, encryption, conditional
access
www.spectrarep.com
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Satellite Data
Distribution Advantages
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National coverage
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Substantial capacity available in
non-peak periods
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Satellite receive infrastructure in place or
easily installed
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Network is flexible
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Digital technology handles video, audio and
data
www.spectrarep.com
SpectraRep Digital Content
Alternate Distribution Network
www.spectrarep.com
Satellite Backbone to DTV
SpectraRep
Designs the Solutions,
Assembles and Manages
the Alliance for
Digital Content
Delivery
Satellite
Satellite dish
Satellite dish
DTV Tower
Satellite Direct to Customer
DTV to Customer
Satellite
Satellite dish
Satellite dish
Preparation
Optional
Return Path
First
Mile
Acquisition
DTV Tower
Content
Satellite to the Edge
Satellite
Satellite dish
Satellite dish
Internet
www.spectrarep.com
ISP or
Cable System
Case Studies
 NATPE 2001
 National Association of Television & Program
Executives
 Northern Virginia Technology Council
 “Titans of Technology” keynote address by Dan
Akerson, XO Communications
www.spectrarep.com
 January 2001
 Live streaming video
 DTV datacast at 512
kbps
 Simultaneous HDTV
 Technology Partners
Sun Microsystems Real
Networks
Triveni Digital
KLAS-DT
www.spectrarep.com
 February 22, 2001
 “Titans of Technology”
Keynote speech by Dan Akerson,
XO Communications
Hilton McLean, Tysons Corner,
VA
 Technology Partners
Streampipe.com
Wavexpress
WETA-DT
NJN Public Television
EFX Media Services
www.spectrarep.com
Real Format
Encoder
100 + 500 Kbps
Internet
“Titans”
Tysons Corner, VA
Stream
Server
GE-3
Fiber
Satellite
Encapsulator/
Uplink
GE Americom
GE Americom
Feed
WETA
Wavexpress
Receiver
NJN
Wavexpress
Receiver
Transmitter
Transmitter
Modulator
Modulator
Skystream
Skystream
Fiber
Distribution
Encoder
Fiber
Distribution
Encoder
Washington, DC
Trenton, NJ
www.spectrarep.com
The DTV Roll-Out in the U.S.
www.spectrarep.com
DTV Building Blocks
 DTV conversion timetable
 DTV devices in the market
 HDTV programming
 Program related data services
 Non-program related data applications
 Standards and interoperability
 Market acceptance
www.spectrarep.com
Digital TV
U.S. Transition Schedule
Category #Stations Markets
Type
Air Date
% USTVHH
0
24
Top 10
Voluntary
Nov 98
--
1
40
Top 10
Network
May 99
30%
2
80
Top 30
Network
Nov 99
53%
3
~1,037
All
Various
May 02
100%
4
~365
All
Non-comm
May 03
www.spectrarep.com
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Category #Stations Markets
Type
0
24
Top 10 Voluntary
1
40
Top 10
Network
2
80*
Top 30
Network
3
~1,037
All
Various
4
~365
All
Non-comm
November 1, 1998
Air Date
Nov 98
May 99
Nov 99
May 02
May 03
% USTVHH
-30%
53%
100%
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May 1, 2002
*177 stations on the air in 61 markets as of 1/21/2001
Serving 2/3 of the U.S. population
www.spectrarep.com
Broadcasters and New
Business Models with DTV
 Digital Bit Stream Resource
 19.38 Mbps
 Service Types
 HDTV (12-18 Mbps)
 SDTV (4 Mbps)
 Data (Opportunistic and/or Fixed)
 Business Models
 HDTV
 SDTV Multicasting
 Program related/enhanced data
 Non-program related data
www.spectrarep.com
DTV Ancillary Data Opportunity
 What is the opportunity for broadcasters in
DTV ancillary data?
 Market supply segments
 Broadband
 Wireless
 Internet
 Datacasting
 Mediacasting
 Customer need segments
 B2B: Business to Business
 B2E: Business to Employees
 B2C: Business to Consumers
www.spectrarep.com
Datacasting
 Real Time
 Internet Broadcasting
 Mediacasting
 Non-Real Time
 Filecasting
 Cachecasting
 Wireless webcasting
 Etc., etc.
www.spectrarep.com
Market Opportunity for DTV
Ancillary Data
 Internet Broadcasting
 Fiber & Copperl networks are not multicast-enabled.
 Need exists for delivering content in “multicast mode.”
 Multicast = point-to-multipoint.
 Bandwidth intensive applications increasing.
 ISPs and others trying to meet demand, contain costs.
 Looking for multicast, broadband solutions.
www.spectrarep.com
Datacasting:
Customers and Benefits
Benefits
Customers
 Publishing
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 ISPs
 Streaming Media
 Distance Learning
 Messaging
 Corporate Comm
 Cable Modem
Providers
 Building Owners
www.spectrarep.com
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Last mile broadband
Wireless
Multicast
Scalable
Packetized
Benefits of Datacasting
 Content accessible to larger real-time
audience.
 Increase revenue and market presence
 Reduces bandwidth needed
 Cost savings
 End users enjoy higher QoS
 Avoid network congestion from last mile
 Enables new service offerings
 Streaming media
 Bandwidth intensive applications
 E-commerce
www.spectrarep.com
Data Streaming Service
IP Video Streaming Service
18
Mbps
HDTV & Audio
www.spectrarep.com
19.38
Mbps
Opportunistic Data Capacity
Opportunistic Data Capacity
19.38
Mbps
HDTV & Audio
www.spectrarep.com
SDTV Data Services
Programming
related data
services
Multiple
SDTV &
Audio
19.38
Mbps
www.spectrarep.com
Summary
 Digital television provides wireless, broadband, last
mile multicast infrastructure today.
 Satellite opportunities exist for direct to end-user,
bypassing Internet cloud, and as backbone for
regional and national DTV links.
 Wireless, one-to-many, satellite and DTV broadband
solutions allow digital content companies and their
customers a cost-effective and technically
compelling solution to scaling business models.
 “Some Assembly Required” – solution requires
planning and managing various components into
one seamless system
www.spectrarep.com