Enabling The Broadband Home Sandy Teger and David Waks System Dynamics Inc. Voice On the Net Asia 2000 November 15, 2000 Copyright © 2000 System Dynamics

Enabling The Broadband Home

Sandy Teger and David WaksSystem Dynamics Inc.

Voice On the Net Asia 2000November 15, 2000

Copyright © 2000

System Dynamics Inc.

Copyright © 2000 System Dynamics Inc. Slide 2

The “Broadband Home” Initiative

•Joint effort between System Dynamics and pulver.com – Web site– Monthly newsletter– Conferences

•Broadband Home Conferences– BBH Fall 2000, Oct 3-5, San Jose– 230 people,110 companies, 17 countries– All industry sectors– Industry perspectives and breakout sessions– Visions, requirements, issues

•Future conferences– BBH Spring 2001: February 27 - March 1, Miami, Florida– BBH Europe Summit 2001: May 15-16, Amsterdam

www.TheBroadbandHome.com


Conference Themes - BBH Fall 2000

•The Broadband Home is “The Next Big Thing”

•Technology is sexy only for techies– It’s really all about applications and content

•Minimize customer hassle–Should be easy to learn and use–Customer needs help in installation and support

•We’ll grow the pie faster by working together– It’s not a zero-sum game– It hurts us all if products and services don’t work together and disappoint the customer


The Emerging “Broadband Home”

•Broadband access to the Internet– Many choices

•Broadband distribution network within home– Wired (CAT 5, phone line, power line, 1394, …)– Wireless (HomeRF, 802.11, Bluetooth, …)

•New applications and content– Content and communications applications – Audio and video as well as data

•PCs and much more– Phones - voice and video– Home entertainment center and other TVs– Home stereos– Video game consoles– New Internet appliances


“Broadband Home”

•Broadband access and in-home distribution

•Multiple broadband devices

•High speed access– Megabits: Millions of bits per second– To the home, in the home and from the home

•“Always on” connection– Continuous connection– From the home to the outside world– To the home from the outside - can “see” the home from

the outside


The Emerging Broadband Home

ISPServices

Cable ModemDSLFixed WirelessFiberSatellitePowerlineDigital Terrestrial

BroadbandAccess

HomeGateway


Elements of the Broadband Home

Devices and appliances

Home Networking

Home Gateways

and Servers

BroadbandAccessISP

Services

ASP Services

Backbone Networks

Broadband Content

Broadband Applications


Interconnected Industry Sectors

Content

Backbone Networks

Broadband Access

Networks

Home Gateways

and Servers

Home Networks

Broadband Appliances

Hardware and software enablers

Applications and services


Industry Collaboration Is Required

•All business sectors are inter-dependent

•Appliances and applications depend on one another

•Audio and video quality -- for telephony and streaming audio and video -- needs QoS in every element

Jacques Carelman: "Convergent Bicycle"


What Do People Want?

Fast access to information, shopping, entertainment, education

Voicemail,“follow me” service, PBX extension

Video on demand, enhanced TV

Personal radio and music

Games and software

Untethered access to content

Transparency in and out of home

Audio & video content


Conference Themes

•The Broadband Home is “The Next Big Thing”

•Technology is sexy only for techies

•Minimize customer hassle

•We’ll grow the pie faster by working together


The Dream

“They walk into a store, buy a device -- fully loaded -- bring it home, plug it in, and they’re ready to rock & roll.”

Dan Somers, CEO AT&T Broadbandon his dream experience for consumersFortune 10/9/2000


One Family’s Experience

•Our “quasi-broadband” home–ISDN today

•Rewired for broadband in 1996–PCs–Telephones–Audio and video

•Illustrates today’s realities


First, Some Background

•Sandy and Dave–Math degrees–Assembly language programmers–Always worked in technology–Always fascinated by “the next big thing”–“Walk the talk”

•Dave–Hands-on–“If I can’t buy it, I’ll build it”–“Keeping it working is half the fun!”

•Sandy–“What can it do for me?”–“It drives me crazy when it doesn’t work!”

Our Quasi-broadband Home

Our Quasi-Broadband Home

Dave’s PC

Sandy’s PC

Card scanner and camera

Rex interface

Sandy’s portable

The old 386

Scanner

The server room

The Plumbing – router and hubs

Master LAN patch panel

Attic plumbing

Our NT server

Fax machine

Four-line phone

Telephone and modem wiring

Attic telephone wiring block

Room ports

Ports in the kitchen

WebTV in the kitchen

Master bedroom TV

Master bedroom jacks

Video plumbing

Attic video plumbing

Entertainment center

Video projector

A. Lower the Screen

•On the switch panel (under thermostat near bar) find the screen switch on the upper left. Push to lower the screen. It will stop automatically when the screen is fully lowered

B. Turn on the VCR

•Find the VCR remote control (it’s labeled “RCA” on the bottom). Push the red VCR1 button to power on the RCA VCR (the upper VCR on the left). The VCR is on if you see the channel number on the right of the VCR display (the time is displayed on the left whether the VCR is on or off).

C. Turn on and set up the Receiver

•Find the receiver remote control (it’s labeled “Denon” on the upper left). Push the red POWER button to turn on the receiver (upper box on the right). The receiver is on if you see the display lit up.

•Select VCR1 as receiver input device: If VCR1 is not shown on the receiver display, push the yellow VCR1 button (number “5”) on the receiver remote control. After a few seconds, you should hear sound from the loudspeakers if a video channel has been selected.

•Set receiver mode to STEREO - push blue STEREO button on the remote control.

Instructions for turning it on

D. Turn on the Projector

•Remove the lens cap from the projector (if it is on).

•Plug in the projector if the line cord is disconnected (at the right rear).

•Turn on the projector - the switch is just above the line cord at the rear of the projector. The projector will warm up in about a minute. You will first see a test pattern, and then the video picture corresponding to the sound. If you see a blue screen without a picture, open the control door on the top right of the projector, and push the VIDEO button. You should now see the picture.

E. (During daytime) Lower the Shades

•The room is set up with six room darkening shades. Lower them to block out the sunlight.

F. To Change the Channel

•Use the cable box remote control to change the channel. Push the white CABLE button on the top of the remote control, and then push the channel number. Note that all channels are three-digit numbers; use 004 for channel 4.

Instructions for turning it on - 2

Audio and video components

Remotes

Audio and video plumbing

Switch boxes

Dining room stereo

Dining room control boxes

Dining room wiring

AV wiring diagram

Living room plant lights

Downstairs plant lights

The lighting controller

Sandy in the garden

LAN card in garden

Wireless LAN base station

Rex and cellphone

Navi system map

Navi address

Rex


The Broadband Home

Much of the technology is available now -- but it’s too damn complex!

•Skill and time to set it up

•Needs sophisticated trouble-shooting skills

•Seemingly simple things are hard to do


Industry Challenges

•Make it easy for the user

•Allow flexibility without increasing complexity

•Satisfy both early adopters and mass market

•Facilitate interworking of products and services–Needs to be “a symphony, not a solo”


Home Networking Overview

•Key drivers– Multi-PC households– New applications - home control, appliance maintenance,

distribution of phone, audio and video– New net appliances - Webpad, game console, Internet

radio, ...

•Sharing Internet access and home resources– “People don’t want a network, they want to share”

•Many competing technologies– Ethernet over Category 5 structured wiring– Phone line (HomePNA)– Wireless (HomeRF, 802.11 family. Bluetooth)– Powerline (HomePlug)

•Uncertainty as to “winners” and timing


~20 Million US Homes: More Than One PC Fastest Growing PC Segment!

~20% two or ~20% two or more PCsmore PCs

~45% no PCs~45% no PCs ~35% one PC~35% one PC

6.5M Homes have a laptop as the second PC.6.5M Homes have a laptop as the second PC.

Source: Gary Matos, Intel


~1 Million Home Networks

~45% no PCs~45% no PCs ~35% one PC~35% one PC

~1% Networked~1% Networked

~19% two+ PCs~19% two+ PCsNo NetworkNo Network

In ‘2004, 60% of new PCs will ship with home networking.In ‘2004, 60% of new PCs will ship with home networking.



Home Network Benefits

Share: • Internet

– Simultaneous access from one account

• Printers– Print to any printer from any PC

• Files and Drives– Transfer files from one PC to another

• Multi-user Applications– Intercom, games, and digital jukebox



3%

20%

14%

60%InternetSharing

SharingPrinter

Sharing Files

Multi-userGames

Source: Survey of AnyPoint Home Network purchasers, 6/99Source: Survey of AnyPoint Home Network purchasers, 6/99

InternetInternet

Source: Gary Matos, IntelSource: Gary Matos, Intel

Why Do People Buy a Network?


How Are People Using It?

21%

65%

70%

73%InternetSharing

SharingPrinter

Sharing Files

Multi-userGames

Source: Survey of AnyPoint Home Network purchasers, 6/99Source: Survey of AnyPoint Home Network purchasers, 6/99

Source: Gary Matos, IntelSource: Gary Matos, Intel


SoftwareSoftware

‘‘No Network Admin.’No Network Admin.’

• Easy to InstallEasy to Install• Easy to ConfigureEasy to Configure• Intuitive to useIntuitive to use

HardwareHardware

‘‘No New Wires’No New Wires’

• WirelessWireless• PhonelinePhoneline• PowerlinePowerline


A Network Designed for the Home…


What is ‘No New Wires’?

• Wireless– Ideal for Notebook PCs–Offers best mobility; range = 150’–More expensive than phoneline

PhonelinePhoneline– Perfect for Desktop PCsPerfect for Desktop PCs– Most [US] PCs are near a phone jackMost [US] PCs are near a phone jack– FastFast and value priced! and value priced!

PowerlinePowerline– Great for Home Network AppliancesGreat for Home Network Appliances– Electrical outlets are everywhereElectrical outlets are everywhere– Available ‘2001Available ‘2001



Home Network Shipments

0

2

4

6

8

10

12

14

16

1999 2000 2001 2002 2003 2004

Node S

hip

ments

(millions) Other

PowerlineEthernetRFPhoneline

Source: Intel HNO – Q2’00Source: Intel HNO – Q2’00

World Wide Nodes by TechnologyWorld Wide Nodes by Technology


Wireless Networking

•Very attractive home networking solution

•Too many competing flavors

•Reconcile home and office–Like to use same wireless LAN in both

•Reconcile personal area network with home network–Will Bluetooth work with other wireless LANs?

•Broadband home is more than PCs –Need to provide adequate bandwidth–10 Mbps for PC-to-PC communications–25 Mbps for video distribution


Home Networking - Our Forecast

•Near term (next year or two)– Different markets will develop differently– New construction - Fast Ethernet over Cat 5– Existing MDUs: HomePNA for vertical risers, Bluetooth within unit

– Single family: Wireless (probably 802.11b) and HomePNA

•Longer Term (two years plus)– HomePlug and HomePNA for backbone with wireless within rooms

– 802.11a (25 to 55 Mbps) for integrated distribution of data, audio and video within home


Home Gateway - Overview

•Simplifies in-home broadband distribution

•Hides complexity

•Platform for new services

•No clear definition of “gateway” requirements and features

•Many vendors developing early products for DSL and cable


Home Gateway - Components

BroadbandModem- Cable or- DSL or- …

Cable/DSL Router- Router- NAT, DHCP- Firewall- Ethernet hub

Home Networking- HomePNA or- HomeRF or- HomePlug or- ...


Home Gateway - Integrated

Core- Router- NAT, DHCP- Firewall

BroadbandModem- Cable or- DSL or- …

Bridge to multiple transports- Ethernet and- HomePNA or- HomeRF or- HomePlug or- ...

Applications- Home web server- Media server- Telephone services- Home security and control- ...


Integrated versus Component Gateway

•Component gateway– Great for installed base but– Integration problems– Who ya gonna call?

•Integrated gateway– Put it in the closet and forget about it

Source: Peter Buechler, Motorola


Set Top Box as Gateway

Coax Wireless (1394 or other) MediaWire

HomeGateway

Bedroom

Bedroom

Home Office

Living Room

Bedroom



Home Gateway Evolution

•First generation gateways – Broadband (cable/DSL) modems with built-in home

networking for Internet sharing– Locally powered multi-line Multimedia Terminal Adapters

•Will soon evolve into full-fledged residential gateways– Network-powered integrated voice/data gateways– Intelligent device and service management– Modular architectures

•With multiple form factors – Outside the house – Stand-alone inside the house– Integrated into the set-top box



User Needs Drive the Home Gateway

User Needs Gateway Solution

Fast access to information andcontent

Broadband modem (DSL,cable, wireless)

Shared access across multiplePCs and/or appliances

LAN base station - wireless,power line, phone line

Device addressing DHCP, NAT

Information security, privacy Firewall, authentication,router, packet filtering

Personalization, control, homeapplications

Embedded web server,personal portal

Multiple phone lines and features IP Voice

Music and video jukebox Home media server

Home security and control Home control interface

Telecommuting VPN, PBX extension


Telephony-specific Needs and Features

•Sometimes user needs are in conflict– “Support my existing phones and phone-connected

devices such as fax machines and PCs” versus– “Provide new features not possible with today’s phones”

•…and result in different vendor responses– connect to existing house wiring, phones, and modem-

equiped devices versus– connect to new phone devices in new ways

•Service providers influence gateway telephone features– Main market for many gateway vendors– Gateways packaged as part of their service package– Their needs and their perception of end user needs

influences vendor implementation of features

Documents

Enabling The Broadband Home Sandy Teger and David Waks System Dynamics Inc. Voice On the Net Asia 2000 November 15, 2000 Copyright © 2000 System Dynamics