News 3

The latest in a continuing stream of terminology impacts facing the user is “Triple Play” for it affects virtually all user environments -- cell, handheld devices, laptops, and the desktop for both the consumer and business sectors – and the IT infrastructure. Many are actually using triple play activities but are not aware of the term, the technology implications, or the enterprise operational needs – just the results. Opportunities abound in this arena but vendors are well advised to use an applications approach – “What the techniques can do for my user or business experience” versus “A great new technology enablement for the mass market searching for a reason to garner more dollars from the user”.

Triple play, in its’ simplest, is the delivery of multiple media formats – voice, video, and data -simultaneously to the user typically over an IP enabled infrastructure. Currently each media type uses a different delivery system. A telephone is used for voice; a video system for video conference calls; and various data collaboration systems for data sharing. In a triple play approach, all the three media formats are combined. For example – Viewing an email to open a session with the sender; easily switching between voice and video and voice only or vice versa; sharing desktop applications during the session, or viewing entertainment on the ubiquitous cell phone after reading email or taking a photograph. In essence, a single device – smart phone, laptop, desktop, or handheld -- to handle all communications applications - TVoIP/TVoDSL, VoD, PVR, and DVR.

There are numerous drivers fostering this emergence. Video deployment has improved with better video codecs (H.263, MPEG4, and H.264); cheaper LCD and memory components; improved battery life for handhelds; and cheaper and lower power processors. Cellular 3G, Wireless (WiFi and WiMax), Wireline IP and Wireline PSTN can all be converged today. Cellular 3G is in mass deployment in at least 70 countries. Video streaming is routine and video on demand is available. Messaging such as IM, MMS, and Video Mail has become ubiquitous. Video telephony and online multi-participant gaming are commonplace on 3G cellular networks and will spill into other applications. Wireless IP connectivity is gaining in acceptance and with converged networks the triple play is enabled. Wireline activity is also present to add to the sector.

Convergence is no longer a vision but is a reality in the global market. Convergence (triple play now) is happening at the network level with transport of voice, video and data. VoIP has promised convergence but Voice and Data tend to remain unrelated entities with no end point convergence. However, the end points are becoming both voice and data aware and data and voice converge at the application level and business workflow operations. Voice and Data are becoming available anywhere, anytime and anyplace. End points are exchanging data with the network to access applications. Further, PBX functions are available via “Web Services” leading to increased convergence of voice and data. Video is added to the mix and now streaming video is available on the desk top and can be accessed anywhere by using a web connection. All are transmitted over the same network but typically not interwoven in most applications. That is where “Triple Play” enters the picture and will be discussed in subsequent paragraphs.

When one transport such as TCP/IP is used for all communications and networked applications (voice and multimedia plus data), a converged network is achieved. Traditional applications on the converged networks include fax (now using ITU standards T.37 and T.38) for Fax over IP (FoIP), fire and burglary systems, surveillance systems, video conferencing, voice mail, IVR (interactive voice response), CT, and E911. Additional applications are white board applications, instant text messaging, and video streaming to mention a few. New applications are merely a function of one’s imagination for the transport can deliver what is needed in most cases with the exception of bandwidth and processing power limitations.

Service providers – Telcos – are actively rolling out IPTV [Telcos who are not at least investigating the technology will be left by the wayside] and IP Video on Demand. Cable operators are marketing video calling services. Wireless operators are investigating and in some cases offering initial video services for convergence is not a captive of one mode of infrastructure but is suitable (with some limitations) across all transport modes. The key will be quality, efficiency, applications, and most importantly, the correct price points to appeal to the mass market not just the early adopters who will pay nearly any price for the latest technology.

Historically, and to a significant degree today, voice, video and data were delivered over different infrastructures. For example, Telco copper for voice and data, Cable (MSO) coax for video or data, and Fiber. Currently, satellite TV has about 25% market share from the MSOs. The MSOs have captures about 30-35% of the broadband Internet market and under 5% of the local telephone market. All the providers feel the pressure to offer voice, video, and data over their respective infrastructures or to acquire new systems. Globally, the growth rate in residential DSL subscribers is expected to be 15 to 20% from 2005-8 while the number of subscribers for enhanced IP service is expected to expand at 130-150% for the same time period.

IPTV is becoming a high priority telecom service as the Telcos define their offering in the triple play marketplace. Several industry pundits forecast a global market for IPTV subscribers to grow from about 4 million in 2005 to approximately 30 million in 2008. We may not necessarily agree with the numbers but the key factor is the substantial driving facet of IPTV and strong growth potential. However there are problems in that the lack of defined standard interfaces creates system integration problems. This however offers significant opportunities for hardware and software suppliers in aiding 1. The integrated subscriber experience, 2. Management systems. 3. Scalable and converged network equipment, 4. Multiple access technologies, 5. Data Management (Storage and Retrieval) for Compliance requirements and 5. Service creation capabilities. Another key facet is the definition of adaptable and flexible business models to ensure market penetration, minimal churn and maximize profitability while maintaining the legacy systems.

Current triple play market early adopters and initial mass market are in the Enterprise and the 3G Mobile sectors. Also, in the broadband and PSTN areas, video applications are increasing rapidly to complement the voice and data services and offer a true “triple play” service offering.

Key players adding video capabilities over the past 24 months include NTT DoCoMo, Hutchison 3G, Skype (now a subsidiary of E-Bay), Vonage, and Voice Pulse. Video over the PSTN existed in the UK and Italy plus several other countries in 2004-5.

Mobile operators are moving forward with triple play bundles as well. Much is being fostered by the increasing sophistication of the handsets from Nokia, Motorola, SonyEriccson, Samsung, LG and virtually all handsets purveyors. Typical bundles offer seamless services through a unified access portal that yields one triple play package for fixed and mobile lines. Also, the higher user “friendliness and stickiness” from the cross play and cross network services. Services include voice and video communication, messaging services, media services such as broadband IP-TV and Mobile IP-TV. As noted previously, the networks include PSTN, Broadband IP, 3G, and Wi-Fi. The question does remain of how much bandwidth can be provided via the mobile network given the high bandwidth demand of the converged information flows particularly video. Compression technology would appear to offer a high potential for some vendors in this arena.

The largest triple play deployment in Europe has more than 600,000 subscribers (estimated) using a mix of fiber and copper access. The service offerings here include VoIP, IPTV (live TV, pay per view, VOD, Interactive TV and nPVR. Additional integrated services are being continually added and the subscriber base is expanding dramatically.

As the service operators increase the connectivity between networks and offer cross network services such as Voice/Video mail, Multimedia Server services, Voice/Video recording capabilities, and Video Portals, additional applications will be developed at price points that are acceptable to the mass markets and for broad business applications. Certainly, entertainment delivery offers another massive potential revenue stream using triple play techniques.

A robust next generation architecture is needed to provide the ever increasing convergence demands for high performance to improve the user experience. IMS (IP Multimedia Subsystem) is an architecture designed to support multimedia convergence of voice, video, messaging, and data. It also addresses the wireline and wireless network convergence. [We will cover this technology in greater detail in a future newsletter]. Here we will focus upon the key aspects rather than the technical details.

Service/app Layer --- Application and Content Servers

Service Control Layer – Manage subs, multimedia processing, manage interconnects

Terminals and transports – Cellular handsets, PDAs, PCs, Telephones

The operator benefits of IMS include lower OPEX. Lower CAPEX, and ability to develop new services and applications. Services that can be readily implemented using this architecture encompass VoIP, multiparty gaming, pus to talk, push to view, push to video, audio web conferencing, videoconferencing, mobile IP Centrex, VPNs, group chat, multimedia advertising, instant messaging, unified messaging, video streaming, interactive voice response, personal information services, calendars, alerts, and combined video/data calls. These are just some examples of services that can be offered. Time will tell if this approach or another will become the standard.

With the increasing mix of Data, Voice, and Video formats in the business environments, ease of information storage, management, security and retrieval to meet business and compliance reporting needs has added significant complexity as well as information overload. Voice messages, emails, IMs are now required to be managed and be retrievable to meet compliance issues in addition to ERP, SCM, and CRM tasks. Storage is relatively inexpensive but software complexity for meeting the evolving business needs is inevitable and a major challenge at all levels. It will be interesting to view how Oracle, SAP, CA and others address such needs while meeting legacy and emerging demands.

Our clients are advised to research and assess the opportunities in VoIP, Convergence and Triple Play arenas for all offer significant potential. The Product Marketing and Product Management functions need to conduct sufficient market and product research to identify the areas of the highest potentials and matches to the organizations strengths Service definition for entertainment delivery, gaming, music delivery (think MTV on a cell phone) as well as business applications offer massive revenue potentials for those will to push boundaries and think outside the traditional service box. Tailoring software to the needs of Enterprise, Service Provider, and SMB environments to meet operational and compliance issues will play a crucial role in the market evolution.

Addressing any areas in improving the Quality of Service (QoS), User Interfaces on the screen (Nortel soft phones are an example of an easy to use system in our opinion), Simplified handsets with USB connection for the users (we feel that many users in the SOHO and SMB will prefer handsets for the computer connection), Technology to connect disparate networks, Interoperability between systems and Converged network management through web connections are opportune areas for investigation. We also advise our clients to investigate the IPLAY3™ consortium as another reference point. The organization was formed to address the needs for IP based triple play voice, video, and data services. They do have a number of tools and models that can be of interest.

If there are questions about the content or opinions expressed, contact Ed Poshkus, Technology Editor at edposhkus@creativestrategiesvc.com