Transforming Broadband into Services TANE IPTV Seminar October 25, 2006

Transforming Broadband into Services

TANE IPTV SeminarOctober 25, 2006

Tut Systems Background

Founded in 1991; IPO 1999 NASDAQ: (TUTS)

Headquartered in Lake Oswego, OR• Regional operations in:

– Pleasanton, CA – Chicago, IL– Oxford, England– Hong Kong– Beijing, China

November, 2002, acquired VideoTele.com from Tektronix

• 25-year video heritage, 1500 video patents

• First to deliver broadcast-quality video over fiber optic network (NBC, 1980 Winter Olympics)

• MPEG-2, MPEG-4, ITU Standard Committees

• Today, world’s leading provider of DHEs for delivering digital TV over xDSL networks

201755

1,662

3,064

5,692

9,759

14,305

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2002 2003 2004 2005 2006 2007 2008

The Telco Drive to Survive

Telco Video Subscriber Growth Worldwide 2002-2008*

Worldwide Market(Subscribers in Thousands)

Source: InStat/MDRMay 04

Tut provided the first IOC Switched Digital Video Headend in 1999

Tut powers the largest SDV provider in the world

Tut customers serve more than 50% of this market as of 2005

Tut Systems Business Landscape

Middleware, Management, & Professional Services


Digital Video Headend Components

IPTV Product Categories

Dishes and Antennas Receivers Video on Demand (VOD) Ad Insertion Encryption Switches/Routers Access Platforms (DSLAMs) Set top Boxes (STB) Emergency Alert Systems (EAS) Middleware Systems Billing Systems Provisioning Systems

Digital Headend Video Edge

Middleware

Encryption/CA

EAS

Caller ID

VOD

Ad Insertion

Off-Air

Satellite

DSL

FTTH

Cable

Complete Ecosystem of IPTV Components

STBAccess

ContentRights

IRDs

EncodingDTA

Local Off-Air

and PEG Channels

RegionalATM or IPBackbone

Digital Headend

Middleware

Encryption/CA

Satellite

Digital Headend Functions

ContentRights

EncodingDTA

Digital Headend Functions• Acquire national content

– Convert to digital (if required)

• Condition content for transport over access network(s)

– Optimize and manage tradeoff between bandwidth and quality

• Conditional access


ReceiversIRDs

Video Edge

DSL

FTTH

Cable

Video Edge Functions

STBAccess

Middleware

Encryption/CA

EAS

VOD

Ad Insertion

Complement headend functions providing differentiation and additional revenue sources

Video Edge Functions• Acquire local content

– Convert to digital, if required

• ATM/IP protocol conversion• Convert digital content for

transport over RF– For FTTH and coax

• Conditional access• Others (local customization)

– Emergency Alert– Ad insertion– VoD

Local Off-Air

and PEG Channels


Functional System Framework

Off-Air

&

Satellite Receive

Content Aggregation

Off-Air

&

Satellite Receive

Content Aggregation

Content Processing

Content Processing

EncryptionEncryption

EAS

& Character Generation

EAS


Ad Insertion

- Optional

Ad Insertion

- Optional

Distribution Network

Section 3.h

Diagnostics, Management & MiddlewareDiagnostics, Management & Middleware

VOD

- Optional

VOD

- Optional

Satellite 101 – The Machine

Highly specialized tool

Categories:1. Communications

• EchoStar 3 (TV signals)

2. Earth Remote Sensing• Study Earth's Surface

3. Weather– TRIOS – forecast weather – track storms

4. Global Positioning– latitude, longitude, and altitude

5. Scientific Research• SOHO (Solar and Heliospheric Observation) - Study the SUN

Content Acquisition

Satellite Delivery • National broadcast• Premium channels

Off-Air Antennas• Networks/Affiliates• Public, Education,

Government (PEG)

Off Air Receivers

Videotek DM145• 1-Channel analog demodulator • 154 channel tuning (VHF/UHF/Cable)• Simultaneous stereo and SAP audio outputs• Frequency synthesized channel selection• SAP and Stereo presence indicators• Front panel memory retained for one week in event of power loss• Optional Ghost Cancellation Circuitry

Videotek DDM-500• Multi-channel, digital demodulator, decoder• SMPTE 310M, DVB-ASI, DVB-SPI transport stream inputs and outputs• CAV, SVGA, SDI, NTSC outputs• Signal to Noise Ratio and Segment Error• Rate information available• HD/SDI output (option)• AC-3TM and Stereo Audio outputs

Integrated Receiver Decoders

Scientific Atlanta IRD – 9660–1-Channel analog receiver and descrambler (VideoCipher)

Scientific Atlanta IRD – 9850–1-Channel digital receiver, decoder, and descrambler –Dig. Prog. Replacement providing uplink control of program replacement in

blackout areas

Scientific Atlanta IRD – 9228–Multi-channel, digital receiver, decoder and descrambler (PowerVu)

Motorola 4402/4400MD–1-channel and multichannel, digital receiver, decoder and descrambler

(DigiCipher) MPEG-2

Motorola 4500 IRD–Multi-channel, digital receiver, decoder and descrambler (DigiCipher) –8 RF Inputs; ASI and DHEI Outputs


Off-Air

&

Satellite Receive

Off-Air

&

Satellite Receive

Content Processing

Content Processing


EAS


EAS


Ad Insertion

- Optional

Ad Insertion

- Optional


Section 3.h


VOD

- Optional

VOD

- Optional

ADSL

VDSL

FTTP

CABLE

VBR Video CBR Video

DHE Content Processing for Broadcast TV

Content Processor

AnalogVideo

DigitalVideo

DigitalAudio

AnalogVideo

ATM or IP

ATM

IP or RF

IP or RF

BB Analog Video

IP, IP/ATM, ATM, DVB-ASI

Analog EncodeOff Air Analog

Digital Satellite

NBC

DeMux – separate/extract channels from MPTS / pass-through SPTSTranscode – convert MPEG-2 stream into MPEG-4 AVC streamRate Control – Optimally package all Video/Audio/PID and (re)calculate clocking requirementsProtocol Mapper – Optimally map the the stream and apply clocking to the downstream I/FEncode – convert analog RF input into MPEG-4 AVC or MPEG-2 digital streamRate Convert – compress MPEG-2 in digital domain either single or multi-pass

HBO, TNT, CNN

VBR

ENCODEAVC or MPEG-2

CBR/VBR

RATECONTROL

RATE CONVERT

HBO

ConstantStream™

1% Variance

PROTOCOLMAPPER

CBR

TRANSCODE

SINGLEPass

MULTIPass

Digital Turnaround (DTA)

TNT

CNN

NBC

DEMUX

Audio / PIDs

Plan Deploy Market Maintain

Astria® CP Content Processing Technology

MULTIPASS MPEG-4 AVC

What’s an Astria® Content Processor?

Rear Transition Modules:Input/Output for Analog & Digital

Audio and Video

Processing Modules:MPEG-4 & MPEG-2 Encoding &

DTA (Transcode & Rate Convert)

QualView® Applications:Advanced processing on DSP-based Stream Processor Cards

Power Supplies:Hot-Swappable, Redundant, Load-Sharing

(AC or DC)

Hot-Swappable Modules:Dual 2.1 Gbps Backplanes

Network Interface Cards:OC-12/STM-4 SM, OC-3c/STM-1c

SM & MM, GigE-C/F

Management:Control via Aveon® EMS, or Aveon® Device Manager GUI

Robust Chassis:Carrier Class, Industry Standard Chassis with Full Redundancy


Off-Air

&

Satellite Receive

Off-Air

&

Satellite Receive

Content Processing

Content Processing


EAS


EAS


Ad Insertion

- Optional

Ad Insertion

- Optional


Section 3.h


VOD

- Optional

VOD

- Optional

(AM, FM, VHF, NOAA)

EAS Receiver

EASMessaging

System

Astria® – Emergency Alert System

FCC Requirements:- Monitor at least two off-air (AM, FM or VHF) sources for EAS information - Have the ability to decode the EAS message - Be able to override the audio with the EAS message on all programming channels - Transmit a complete visual EAS message on at least one channel - Provide a video override or a video interrupt on all channels.

CharacterGenerator

Video Overlay

Force Tune to Channel x

AlertActiveMsg

Local - Channel 2 Channel 2w/EAS

Msg

Normal Video Path Alert MessagePath

IP Middleware Path (physically across the Gig-e switch)

Alert!!!

iViewTV

Centralized Headend Digital Video Feed


Off-Air

&

Satellite Receive

Off-Air

&

Satellite Receive

Content Processing

Content Processing


EAS


EAS


Ad Insertion

- Optional

Ad Insertion

- Optional


Section 3.h


VOD

- Optional

VOD

- Optional

Ad Insertion, A New Source of Revenues

Cable MSOs generate 7-12% of revenue from ads

Local ads differentiate your offering

Leap from delivering 30 second local ad to providing 30 minute local programs is minimal


Analog and Digital Ad Insertion

Ad ServerLocal Ads

Analog Transport

Primary Video and Ad Streams Toggled by Analog Video Switch

Primary

Video

MPEG

Ba

se

ba

nd

Ba

se

ba

nd

Access Networ

k

Access Networ

k

Video Switch

Astria® Encoder

Today

Ad ServerLocal Ads

Astria®

Splicer

Digital Transport

Primary Video and Ad Streams spliced in Astria® CP

Access Networ

k

Access Networ

k

Primary

Video

MP

EG

MP

EG

MPEG

Astria® CPs bridge the gap between analog and digital

Also, Today



Off-Air

&

Satellite Receive

Off-Air

&

Satellite Receive

Content Processing

Content Processing


EAS


EAS


Ad Insertion

- Optional

Ad Insertion

- Optional


Section 3.h


VOD

- Optional

VOD

- Optional

Encryption Solutions

Encryption is a requirement for VOD content deliveryEncryption is becoming a requirement for Broadcast content delivery

Widevine• Amino 110• *i3Micro in final stages• *Entone integration underway

Verimatrix• i3 Micro • Amino 110• *Entone final stages

The following will be evaluated on an opportunity basis• Secure Media• NDS• Latens• Irdeto• Nagravision

Tut Systems provides VOD systems as part of the turnkey solution


Off-Air

&

Satellite Receive

Off-Air

&

Satellite Receive

Content Processing

Content Processing


EAS


EAS


Ad Insertion

- Optional

Ad Insertion

- Optional


Section 3.h


VOD

- Optional

VOD

- Optional

Tut Systems utilizes VOD servers from Kasenna,

Entone, and Concurrent

Video on Demand servers

Example VOD Revenue/Splits

Based upon 9/2003 VOD Avails

Content Category Approx Hrs / mo.

SRP % Split to Content Supplier

$ Minimum Content Supplier

$ Operator Revenue

New Release 100 $3.95 65% $2.57 $1.38

Studio Library 120 $2.99 55% - 65% $1.64 - $1.94 $1.05 - $1.35

Independent 20 $3.95 65% $2.57 $1.38

Events 60 $3.95 - $29.95 50% $1.98 - $14.98 $1.97 - $14.97

Tune-In Classic 15 $1.95 55% $1.07 $0.88

Children 20 $0.79 - $2.95 55% $0.43 - $1.62 $0.50 - $1.33

ESPN 20 $1.99 - $2.95 65% $1.29 - $1.92 $0.70 - $1.03

Hot Body 20 $5.95 15% $0.89 $5.06

Adult (X-XXX) 150 $8.95 - $10.95 15% $1.34 - $1.64 $7.61 - $9.31

TOTAL 525 Hours

Centralized DigitalHeadend

Metro / RegionalHeadend

Regional Network

Central Office

Local Content

Ad Server

Video On DemandOff-Air

Satellite TV

Content ProcessorRemote ContentProcessor

AFC

Calix

Zhone

Motorola

Occam

OSI

Telstrat

Allied TelesynParadyne

Alloptic

AFC

ADSL

VDSL

FTTP

CABLE

Winning Partnerships for the Last Mile

Cisco

Teleste

Zhone

Catena Pannaway

Motorola

Alcatel

Deliver More Services to More Customers

ADSL Down

S=1/2 Down

ADSL2 Down

ADSL2+ Down

28M

26M

24M

22M

20M

18M

16M

14M

12M

10M

8M

6M

4M

2M

00 5000 10000 ft 15000 ft 20000 ft 25000 ft

MPEG-2

HD

Internet / VOIP

HybridApproachup to 8k ft

Pure MPEG-4Approachup to 15kft

24 AWG Cu

MPEG-4

AVC

HDMPEG-4

AVC

HD

MPEG-4

AVC

HDMPEG-2

MPEG-2

MPEG-2

MPEG-2 MPEG-2

MPEG-2

MPEG-2

MPEG-4 H.264

MPEG-4 H.264

MPEG-4 H.264

MPEG-4 H.264

MPEG-4 H.264

Internet / VOIP Internet / VOIP Internet / VOIP Internet / VOIP


Off-Air

&

Satellite Receive

Off-Air

&

Satellite Receive

Content Processing

Content Processing


EAS


EAS


Ad Insertion

- Optional

Ad Insertion

- Optional


Section 3.h


VOD

- Optional

VOD

- Optional

Generically speaking, middleware systems are responsible for four things:

The subscriber's service experience

The definition of services, service packages, pricing and service bundles

Interfaces to external systems

The management of transactions, media assets, physical assets and subscribers, and the underlying data about them

What is Middleware?

Subscriber Side

JAVA Client Software Digital TV (DTV) Pay-Per-View (PPV) Video on Demand (VOD) Subscription VOD (SVOD) Interactive Guides – Favorites, Reminders

Client-side Personal Video Recorder

Network-based Personal Video Recorder

TV Portal, Walled Garden, Internet

Caller ID on TV Digital Music (with title,track, artist info)

Parental Controls/Settings – Hide/Delete Channels

IP-based EAS

The Middleware – STB Maze

Broadcom

Conexant

Intel CPU

Sigma

STMicro

TI DSP

Chip VendorsAmino

I3 micro

Kreatel

Scientific Atlanta

Thomson

Wegener

Set-top Vendors

AlcatelMinerva

MyrioKasenna

ConklinMiddleware Vendors

Microsoft

MPEG-2 PVR

AVC SDAVC PVR

AVC HDAVC HD PVR

Application/Formats

MPEG-2 HD

MinervaMyrio

KasennaConklin

Middleware Vendors

Microsoft

MPEG-2 PVR

AVC SDAVC PVR

AVC HDAVC HD PVR

Application/Formats

MPEG-2 HD

Add the OS and Browser Elements

OS Platform

AntEspialXYZ

Browser Vendors

Alcatel

LinuxWindowsVxWorks

Broadcom

Conexant

Intel CPU

Sigma

STMicro

TI DSP

Chip VendorsAmino

I3 micro

Kreatel

Scientific Atlanta

Thomson

Wegener

Set-top Vendors

MinervaMyrio

KasennaSeaChange

Middleware Vendors

Microsoft

MPEG-2 PVR

AVC SDAVC PVR

AVC HDAVC HD PVR

Application/Formats

MPEG-2 HD

Add the Broadcast and VOD Conditional Access Maze

OS Platform

AntEspialXYZ

Browser Vendors

Alcatel

LinuxWindowsVxWorks

Broadcom

Conexant

Intel CPU

Sigma

STMicro

TI DSP

Chip VendorsAmino

I3 micro

Kreatel

Scientific Atlanta

Thomson

Wegener

Set-top Vendors

•WidevineWidevine•Secure MediaSecure Media•LatensLatens•VeriMatrixVeriMatrix•MicrosoftMicrosoft

It’s complicated!

The Middleware – STB Maze

Only you can prioritize the business parameters

that will guide you through the maze

Characteristics of local cable competition Relative importance of low-cost SD STBs versus

features of higher cost HD PVR STBs Relative importance of price versus performance Time to market Risk of deployment delays

Amino AmiNET110

I/O• 10 / 100 Mbps Ethernet

• Composite Video

• S-Video

• Component Video (RGB)

• Stereo Audio, Dolby 5.1

• RF output with loop-through

Video• MPEG-1

• MPEG-2 MP@ML

External Power Supply Size 4.4” x 3.9” x 1.4”

Amino AmiNET120


• Composite Video

• S-Video

• Component Video (YPbPr)

• Stereo Audio, Dolby 5.1


Video• MPEG-1

• MPEG-2 MP@HL (HDTV)


Amino AmiNET124


• Composite Video

• S-Video

• Component Video (RGB)

• Stereo Audio, Dolby 5.1 (Electrical)


Video• MPEG-2 MP@L3 D1 (up to 10Mb/s)

• MPEG-4 H.264 MP@L3 D1 (up to 2Mb/s)


Amino AmiNET500


• Composite Video

• S-Video

• Component Video (YPrPb)

• Stereo Audio, Dolby 5.1 (Electrical)


80GB Hard drive for approximately 40 hours of PVR storage Video

• MPEG-1

• MPEG-2 MP@ML


Entone – Hydra IP Video Gateway

I/O• ADSL2, ADSL 2+ Modem• 10 / 100 Mbps Ethernet• S-Video (Mini-DIN),• Composite Video (RCA)• Component Video (YPrPb)• Stereo Audio (2 x RCA)• Digital audio with Dolby™ passthrough (electrical and optical)• RF ouptut (supports three TVs)

Standard Video (three simultaneous decoders)• MPEG-1• MPEG-2 MP@ML

External Power Supply Size: 13.8” x 9.8” x 2”

Tut Systems: Experienced IPTV Pioneer

1999: First Telco TV deployment with M2 product line

2001: Launch of Astria CP – First Carrier-Class, Single-chassisVideo Processing System

2002: 50th TelcoTV customer; First Consortium IPTV network

2003: First IPTV User Group Formed

2004: 100th IPTV service provider powered by Tut

2005: First MPEG-4 AVC Advanced Compression Launch

2006: Market Leader with 160+ IPTV service providers powered by Tut

Winning with U.S. Telcos

Enabling over 100 Service Providers to Deliver TV

Our largest deployment worldwide has more than 500K video subscribers serviced by our headend


Thank you

Documents

Transforming Broadband into Services TANE IPTV Seminar October 25, 2006