Executive Summary

This report describes the strategic importance of the Home Network for IPTV (IP TV) operators. It describes how a Home Networking strategy can improve the competitiveness of an IPTV service against Cable and Satellite services, and position the IPTV operator well in the looming battle against the PC and CE (consumer electronics) industries.

Today’s Typical Home Networks
The Home Network connects both the home computer(s) and the IP TV Set-Top Boxes to a broadband service. The broadband service is typically an ADSL, a VDSL, or a Fiber to the Premise (FTTP) from an incumbent or competitive carrier. This network may also support Voice over IP (VoIP) services. This network may also provide communication between a media center computer and the IP TV Set-Top Box. In the simplest case the media center computer can act as a server that stores and plays both video and audio content on the network-connected home entertainment system.

Table 1-1: Home Network Bandwidth Requirements

Source: MRG, Inc.

The wireline home networking technologies are all appropriately targeting speeds in the range of 100 Mbps or higher. This will make them appropriate choices for both VDSL and FTTP broadband access services.

There is no single physical layer home networking technology available today that can serve all of the subscribers’ homes that a service provider might serve with an IP TV service.

Managing the Home Network
The next generation of services has created the new requirements for the Home Gateway to fulfill:

• Providing a remote management service for the Home Gateway & the devices beyond.
• Allowing the right device or application to connect to the right service platform with the right service class / Quality of Service.
• Recognizing and potentially uniting devices’ capabilities.
• Playing a role in the local network to implement device capabilities and offer customers a better “integrated home environment”.

Telephone companies have developed sophisticated systems for managing broadband services that reach as far as the DSL modem in the subscriber’s home. Previous to broadband services, the managed domain did not extend past the end serving office. The standard analog telephone is a dumb device that has little or no capability for supporting remote testing; consequently there was technically no way for the service provider to manage this POTS service out to the home.

ISDN services did include the ability to perform loop back and other tests out into the subscriber’s home, but little use was made of this except after trouble was reported by the subscriber. Typically there was no way of logging or gathering other information available from devices in the subscriber’s home to monitor and anticipate problems on the line.

DSL started with the same approach. The DSL loop itself was not managed. This generated a significant number of issues for the DSL service providers in the early days of the service. Interference with pre-existing T1 and ISDN services were a particular problem. Service providers such as SBC developed management systems that gave them the ability to use information available from DSL modems to monitor the performance of each line even if the subscriber has not registered a complaint. These service providers use this information to optimize the over-all operation of the network by minimizing interference between neighboring DSL services as well as DSL services and other services such as T1 and ISDN services. These systems have proved that they can significantly improve the performance of the broadband network and increase customer satisfaction and reduce the number of problems reported.

Today’s broadband services stop at the DSL modem. If the subscriber uses this service with a single computer, then only a short cord is required to connect the computer to the DSL modem. If the subscriber sets up a LAN in the home, then managing this network is his or her responsibility.

This situation becomes much more complex with IP TV. Sharing a broadband connection between several IP TV Set-Top Boxes and even only one computer requires a Home Network. In addition, this Home Network sits on the critical path of the IP TV service. If it is not capable of supporting the required IP TV traffic, it will result in the degradation of the IP TV service and may generate considerable customer dissatisfaction.

It appears that IP TV services will require higher quality than either voice or data services. Mobile telephones have shown that there is considerable tolerance to reduced voice quality. The standard for voice is that the connection is maintained and that the other party be understood. Data services tend to be robust in the face of transmission quality issues, so that it generally takes severe degradation before a data service is noticeably affected. In fact, data services can typically operate when voice services may be seriously degraded.

On the other hand, the person that has invested $10,000 or $15,000 on an HD home theater system will not be very tolerant of degradation of video quality. First of all, the eye is a sensitive detector of image problems. Secondly, cable and satellite service already provide high quaility video and audio services; people will not move to IP TV unless they believe that IP TV will provide quality that is as good or better. They will quickly move back if they find IP TV to be disappointing.

Advanced Home Network (Future)
Many IP TV service providers have concluded that they must provide some level of management of the Home Network in order for their IP TV services to be successful. In fact, this will give them a competitive advantage because cable and satellite service providers are not able to directly manage the service in the home. The cable and satellite companies rely on the subscriber to describe the quailtiy of the service and to make any adjustments that may be appropriate to resolve problems that arise from the Set-Top Box or the network in the home.

The real question is the role that the Home Gateway and the IP TV Set-Top Box will play in the home network. These devices are well positioned to become the media server and the media controller in the home. It appears that nearly all homes in many areas will install IP TV Set-Top boxes with hard drives. These Set-Top Boxes will be the media server and media controller for these homes.

The question is whether or not the IP TV service providers will be able to maintain that position as more advanced architectures become available. It appears that the relationships with content providers that the IP TV service providers have may be a strategic advantage. The IP TV Set-Top Box will include a stong content protection/digital rights mangement system that content providers will trust to protect valuable assets.

It is likely that content providers will provide some of their most current content to both the IP TV and the cable VOD services. There is discussion that the content providers may adjust their release windows so that the VOD release happens closer to or is made at the same time as the DVD release.

This can create another significant strategic advantage for the service providers. If the content provider releases VOD content to the IP TV service providers before they release it to Internet outlets, such as Google or Yahoo!, then the subscriber will need the IP TV Set-Top Box to receive this content. If these content providers permit “push” services using this content, then the subscriber will need the hard disk. The availability of this content can guarantee the position of the IP TV Set-Top Box as a media server and media controller in the home.

Clearly, the IP TV service providers need to monitor the progress of Internet based video content. The availability of this content creates a competitor for their services. The ability to access current TV programs and films over the Internet creates an alternative for the subscriber that may make computer based or consumer device home media systems more attractive and displace some or all of the functions of the IP TV service and the IP TV Set-Top Box.

1 Executive Summary
1.1       Physical Layer Technologies
1.2       Managing the Home Network
1.3       Advanced Home Network Architectures

2 The Elements of the Home Network
2.1       The Physical Network
2.2       The IP TV Set-top Box
2.3       The Home Gateway
2.4       Computers

3 The Physical Layer
3.1       Ethernet
3.2       Wireless
3.2.1    802.11n for IP TV Applications
3.2.2    Ruckus Wireless Technology
3.3       Coaxial Cable
3.3.1    MoCA/Entropic Technology
3.3.2    Coaxsys Technology
3.4       Telephone Wiring
3.5       Powerline
3.5.1    Intellon and the Home Plug Alliance
3.5.2    DS2 and the Universal Powerline Alliance
3.6       Selecting the Physical Layer

4 IP TV Home Gateways
4.1       Home Gateway Configurations
4.2       Home Gateway Standards Efforts
4.2.1    Home Gateway Initiative
4.2.2    DSL Forum

5 IP TV Set-Top Boxes
5.1       Set-Top Box Configurations
5.2       IP TV Set-Top Box Service Delivery
5.3       Internet Content Integration
5.4       Standards for Set-top Boxes
5.4.1    MPEG Standards
5.4.2    SMPTE VC-1
5.4.3    DSL Forum WT-135
5.4.4    DVB Content Protection and Digital Rights Management

6 Managing the Home Network
6.1       Management Strategies
6.1.1    Passive Management Strategies
6.1.2    Active Management Strategies
6.2       Trends in Managing Home Networks

7 Advanced Home Network Architectures
7.1       Standards in Advanced Home Networking Architectures
7.1.1    UPnP Specifications
7.1.2    DLNA Specifications
7.1.3    CEA Specifications
7.2       Industry Advanced Home Network Architectures
7.2.1    Microsoft Media Connect
7.2.2    Intel Viiv
7.3       Near Term Advance Home Network Architectures
7.4       Long Term Directions in Home Network Architectures
7.5       Strategic Implications of Advanced Home Network Architectures
7.5.1    Service Provider Strategies
7.5.2    Microsoft vs. The IP TV Service Provider?

8 Opportunities, Risks, and Recommendations
8.1       Opportunities
8.1.1    Opportunities for Service Providers
8.1.2    Opportunities for Systems and Software Companies
8.2       Risks
8.2.1    Risks for Service Providers
8.2.2    Risks for Systems and Software Companies
8.3       Recommendations
8.3.1    Recommendations for Service Providers
8.3.2    Recommendations for Systems and Software Companies

9 Appendices

Table of Figures

Figure 1-1: Typical Home Network
Figure 2-1: Typical Home Network
Figure 3-1: Effect Interference from Microwave Oven
Figure 3-2: Ruckus Performance in a Noisy Apartment
Figure 3-3: Ruckus Performance in a 3,000 sq. ft. U.S. Home
Figure 3-4: MoCA Field Test Performance
Figure 4-1: TR-069 Auto Configuration
Figure 7-1: Near Term Advanced Home Network Architecture
Figure 7-2: Long Term Advanced Home Network Architecture

Table of Tables

Table 1-1: Home Network Bandwidth Requirements
Table 3-1: Home Network Bandwidth Requirements
Table 4-1: TR-069 Managed Parameters
Table 9-1: Organizations Interviewed for this Report