By John Antonchick, NCN Associates (June 29, 2011)

Moderator: Brett Sappington, Parks Associates
Panelists:
- CISCO, Vikas Butaney
- Pace, Jaime Fink
- Hitachi Communications, David Foote
- HomePNA and Sigma Designs, Keith Jack
- Samsung Electronics, Roger Towne

This session is focused on the technical aspects of content delivery. Brett pointed out that if the consumer can’t get their service working, the service provider will ultimately get support calls. Brett discussed the use of various devices to obtain internet and local connectivity and the growth in usage of various types of devices, e.g. broadband connected game devices. He also reviewed the interest in (non-TV) content from Parks surveys. Middleware now includes support from the cloud and other types of support for multi-screen service is enabled with other devices and systems. Not all of these solutions can “win”.

CISCO’s Vikas presented CISCO’s Videoscape system while reviewing market dynamics and how that is changing the ecosystem. Service providers are driving video across multiple platforms. CISCO believes that video will drive more than 90% of broadband content. A key question is how connectivity is implemented across many types of devices and locations. CISCO is supporting efforts to use managed and unmanaged networks with uniform access. The Videoscape system spans the cloud, network and client devices.

PACE’s Jamie Fink said that PACE is the largest set top box supplier in the world. They also have acquired Latens and have gateway technology. Gateway technologies are key to controlling the consumer experience. Jamie said that Pay TV improves the OTT experience while OTT improves the Pay TV experience, i.e. consumers don’t like to have to switch between different boxes. Rejection of OTT products has often resulted because of loss of convenience with “linear TV” service(s), i.e. if you have to search for everything. Locked in sports content, e.g. formula one and football, are key content in many small countries that don’t have their own regional sport content. Migrating content to these environment is key.

Hitachi’s David reviewed application delivery platforms (incliuding connected home, M2M, and Smart Grid). Consumers interests include more than video, e.g. gaming, home health care, etc. Creating a unified consumer experience is needed. Service providers need additional applications beyond the typical “triple play” due to competition, customer churn, etc. Enabling multiple applications is becoming more practical due to increasing processor power. Hitachi is focused on middleware that enables multiple applications. This resulted from their experience with home gateways, networking gear and consumer electronics. David showed a variety of devices that are “app enabled” that support multiple applications.

Sigma Designs' Keith said that they supply HPNA chips/technology (as well as other technologies) to support IPTV. The HPNA products meet the needs for OTT and IPTV service, e.g. data rate. Recent trends are little debate by service providers and new support for home networks. Tier 2 and 3 service providers can also implement these services. The home is the service provider’s third network; and also provides connectivity to the cloud. There is controversy regarding the best option(s) for deployment. Regional tailoring of requirements dictates some of the actual implementation(s). Sigma is developing various reference designs with HPNA integrated directly into their chips.

Samsung’s Roger agreed with his colleagues and discussed the IP video transition. Consumers spend about half their leisure time watching TV provided by major networks. This suggests that some form of Pay TV will be available in the future. The challenge is how to accommodate that environment, e.g. a set top box that provides interconnectivity with other devices but also evolves into a whole home system.

Questions and Discussion
Brett asked about major obstacles that limit delivery of content in the home today. Pace suggested that delivery over coax works well, e.g. in the US, but is not available as a transport media in many countries. So, centralization of up/down stream access, e.g. using WiFi, may improve but operators are still questioning the quality of service using non-coax systems. CISCO’s Bukaney said that broadcast quality content is important to consumers but that convenience is also a major issue. Samsung’s Town said the cost of delivering video is still high with many systems so MPEG and similar systems will continue to be preferred. Hitachi’s Foote said that software platforms that can integrate various types of content and deliver them for content providers and developers is necessary. CISCO’s Bukaney said that a holistic system to support many types of screens is needed although the ecosystem is not mature and operators are testing new approaches.

Jamie mentioned that there was a rush to get applications running on the iPad last year. Brett asked if there is anything being left out or consequences from this rushed approach. Samsung’s Towne suggested that there are some challenges with delivering a large number of channels. Sigma’s Keith said that there is also a push to get support on Android-based tablets with similar issues.

Brett noted that even though STBs have greater power and capability this seems to go against the trend to cloud services. Pace’s Fink pointed that there were several recent announcements, e.g. at NCTA, about enhanced STBs that are being supported by major companies like Comcast; and that both QAM and IP-based systems have their advantages in providing video quality of service. CISCO’s Butaney said that in the short-term it will be a mix but in the long-term they believe delivery will migrate to cloud-based IP systems and delivery. Samsung’s Towne also agreed that there will be a transition that will take some time while Sigma Designs Jack indicated that they continue to see needs for upgraded traditional STB functions (as well as cloud service).

Hitachi’s David commented that there will always be a need for multiple communication network technologies and that the application developers who are developing for devices like iPads face challenges to support that environment. He suggested that standards like OSGI may provide the basis for making applications and gateways more ubiquitous.

DRM service(s) capability were questioned. CISCO’s Butaney suggested that this would be supported by service providers for multiple platforms. Pace’s Fink said that some types of app stores “do not work” in terms of the pipes and devices.
Brett asked how difficult it is for operators to implement these types of systems today. Several panelists indicated that it is still difficult for operators to implement (e.g. due to software), even though the raw technology is close to being capable.