CCBN Cable Digital TV Operator International Summit. March 21, 2014 Beijing
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1 CCBN Cable Digital TV Operator International Summit March 21, 2014 Beijing Rob Gelphman VP, Marketing and Member Relations
2 The Connected Home
3 Chinese Homes
4 Introduction Who we are: International industry technology standard consortium Established: January members from the global pay TV ecosystem 148 certified products What we do: MoCA technology enables the distribution of multiple streams of high definition (HD) video and data over existing, in-home coaxial cabling. We make wireless better.
5 Home Network Environment Challenge Consumers want HD content on multiple screens, anytime and anywhere. Urgent need for disruption-free HD video delivery Which networking technology is most cost-effective? Wireless and powerline technologies are ubiquitous but prone to interference. Coaxial cabling is built for video but is not available in every room. Opportunity Provide seamless home network using existing wireless and wired technologies and mediums to accommodate all devices and applications.
6 Video Will Dominate Internet Traffic EB per Month Consumer Internet Traffic Forecast x By % 2% 21% 54% 22% Internet Video File Sharing Web/Other Data Online Gaming Voice Communications Video Communications Source: Cisco VNI One Exabyte (EB) = 1 Billion GB Internet Video Streaming, Downloads and Video Calling CAGR = 54% 76% traffic is on fixed network Home networking is the key for in-home video distribution
7 Bandwidth Consuming Applications
8 Bandwidth Consuming Applications
9 China: Cable Pay TV Subscribers Pay TV Subs (M) China US Europe
10 China: HD Subscribers Pay TV HD Subs (M) China US Europe
11 China: Cable Digital TV & IPTV Items Nationwide Paid TV subscriber 25, , , ,817.0 Nationwide Cable TV subscriber 22, , , ,907.0 Nationwide Cable Digital TV subscriber 16, , , ,480.0 Nationwide Cable Digital Penetration 71.9% 76.8% 80.0% 82.2% Nationwide Cable HDTV subscriber 2, , , ,400.0 Nationwide Cable HDTV penetration 12.99% 18.92% 24.70% 29.71% Units: Ten Thousand Households Source: Guideline Research, Feb. 2014
12 China: Cable Digital TV & IPTV Development Trends E 2015E 2016E Nationwide cable digital TV subscriber Nationwide IPTV subscriber Source: Guideline Research, Feb. 2014
13 China: Cable Digital TV Development Trend , % 23, % 17,850 24, % 19,280 24, % 20, % 90.00% 80.00% 70.00% , % 50.00% % 30.00% % 10.00% E 2015E 2016E Cable TV subscriber Cable Digital TV subscriber Cable Digital Penetration 0.00% Source: Guideline Research, Feb. 2014
14 China: Top Five Cable Operators Operator Cable TV Household Cable HDTV Household HDTV Penetration Cable TV Household Cable HDTV Household HDTV Penetration Cable TV Household Cable HDTV Household HDTV Penetration Jiangsu Broadcasting TV Network Corporation Ltd. 1, % 2, % 2, % Shandong Broadcast & TV Network Co. Ltd. 1, % 1, % 1, % Sichuan Broadcast & TV Network Ltd. 1, % 1, % 1, % Guangdong Province Broadcast & TV Network Ltd. 1, % 1, % 1, % Hebei Province Broadcast & TV Information Network Ltd % % % Units: Millions Households Source: Guideline Research, Feb. 2014
15 Connected Entertainment Devices
16 The Connected Home Narrative Standard Value Proposition Drawbacks Wireless (Wi-Fi ) Powerline (HomePlug ) Coax (MoCA) Mobility Only solution for portable devices Ubiquity of outlets & ease of use Only proven technology over power line Shielded medium. Works over any existing coax. Not prone to hacking or interference with other devices Originally designed for video Proven performance & reliability leader Reliability (QoS) is a challenge Prone to interference. Shared medium Not designed for video. Prone to interference. Qality of wiring could affect performance Dependent on coaxial outlet penetration and wiring scheme in the home. Cat 5/6 (Ethernet) The Connected Home nvoy (IEEE P1905.1) Attaches directly to device Extremely high performance Known and accepted worldwide standard Mobility, ubiquity, ease of use and reliability. Engineering standard that unites all technologies. Firmware download that identifies and connects existing technologies and devices in network. Not an existing wire. New installation. New wire required every time when upgrading specification. The same as and possibly more costly to install than coax. Need a wire for HD video and whole home coverage. No single solution. No significant drawbacks.
17 Harmonize the Hybrid Home Network / nvoy Technology MAC/PHY MAC/PHY 1901 MAC/PHY MAC/PHY MoCA ETHERNET
18 Comcast Connected Home
19 Verizon FiOS Connected Home
20 Cox Whole Home Video Network
21 DirecTV Connected Home
22 1H13 Home Networking Device Revenue Up 6% $20 $18 Worldwide Home Networking Device Revenue Home networking device revenue totaled $5.4B in 1H13, up 6% from 2H12 Revenue (US$ Billions) $16 $14 $12 $10 $8 Revenue for STBs with MoCA grew 23%. Revenue for MoCA adapters grew 108% : $6 $4 $2 $0 CY11 CY12 CY13 CY14 CY15 CY16 CY17 Broadband Routers Residential Gateways HomePlug Powerline Adapters MoCA Coax-Ethernet Adapters STB MoCA ONT HPNA/G.hn Adapters $18.8 billion (CAGR of 13.8%) 318 million units shipped (CAGR of 6.3 %) Source: Infonetics Research Oct 2013
23 North America is The Home Networking Leader North America; 43% of worldwide home networking revenue in 1H13 revenue EMEA: 27% APAC: 22% CALA: 7% Revenue US$ Billions $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 Home Networking Device Revenue by Region CY11 CY12 CY13 CY14 CY15 CY16 CY17 North America EMEA Asia Pacific CALA Source: Infonetics Research Oct 2013
24 Wi-Fi Routers Dominate; MoCA Routers Grow Wi-Fi broadband routers made up 98% of total broadband router revenue in first half of % of all routers will support some radio technology by WiFi with MoCA units will be 7% of all routers by Units (Millions) Worldwide WiFi Broadband Router by Home Networking Type (Units) CY11 CY12 CY13 CY14 CY15 CY16 CY17 WiFi w/moca WiFi w/homeplug WiFi w/hpna/g.hn Source: Infonetics Research Oct 2013
25 Cable, Satellite Providers Beginning MoCA STB Upgrade Cycle $6,000 Worldwide MoCA STB Revenue Revenue (US$ Millions) $5,000 $4,000 $3,000 $2,000 1H13 revenue increased 23% to $1.1B, units increased 13% to over 7.0 million $1,000 $0 CY11 CY12 CY13 CY14 CY15 CY16 CY17 Source: Infonetics Research Oct 2013
26 MoCA Trials and Deployments Trials in Europe: Liberty Global/UPC, Telenor, Ziggo, Zon, FineComm, KPN Trials in China Trials in Canada: Rogers, Shaw, Cogeco, Videotron U.S.: Comcast, Cox, DIRECTV, DISH Network, Time Warner Cable, and Verizon, among others Trials in South Africa: MultiChoice Trials in Latin America: DIRECTV, DISH Network Net in Brazil CableVision in Argentina MegaCable in Mexico
27 Summary The home network is a blend of wireless and wired technologies. Need a wire for reliable delivery of HD content and data. Coax is the best medium for video. MoCA is the technology standard over coax.
28
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