Executive Summary


This report examines the issues that may occur as the number of IP TV networks become very large, and as single IP TV networks exceed one million subscribers. It identifies potential bottlenecks and describes strategies for avoiding them.

• A super video headend that acquires the national broadcast channels and the video on demand (VOD) content.
• Regional headends that acquire local channels and include the VOD servers.
• The access network that includes ADSL and VDSL DSLAMs, or the systems that provide fiber services to the individual subscribers.
• An IP/MPLS network that carries the encoded national broadcast channels and the video on demand content to the regional video headends.
• An Ethernet aggregation network that carries the broadcast content from the regional video headends to the access network that distributes it to the subscribers.
• Software systems that include the middleware that manages the IP TV service, the content protection/digital rights management (DRM) systems that protect IP TV systems, along with the back office systems that are used to manage and provision the IP TV network.
  

Size of IP TV Networks
The database used to create MRG’s Market Leader Report published in August 2005 identifies five service providers that have more than 100 thousand IP TV subscribers today. Three of these service providers have less than 200 thousand subscribers and the largest has over 650 thousand. From this, it is clear that nearly all service providers are just beginning to address scaling issues.

This situation is likely to change significantly over the next several years. The model used for MRG’s IP TV Global Forecast 2005 – 2009, published in September 2005 indicates that at end of 2009, 40 service providers are likely to have over 100 thousand subscribers, and that eight of these service providers will have more than one million subscribers. The largest deployment identified in the forecast is expected to have three million subscribers at that time. It is clear that many service providers will be addressing significant IP TV scaling issues over the next few years.


Factors Affecting IP TV Scaling
There are a number of factors that will influence the scaling of IP TV networks:

• The number of IP TV subscribers is the overriding factor, and is the basis for most of the other factors.
• The number of IP TV subscribers using VOD services.
• Channel change behavior for broadcast services.
• Use of services that generate transactions such as use of TV-based Internet portals, or video-based e-mail or commerce portals.
• Use of games and other interactive content.
• Viewing of High Definition TV (HDTV) content.
• Depth of the electronic program guide (EPG).
• Dependence of middleware on network services.
• The distribution of VOD servers in the network.

Table 1: Bandwidth Requirements in a Triple-Play Network

Source: MRG, Inc.

Table of Contents

1 Executive Summary

2 Factors in Scaling in IP TV Networks
2.1 IP TV Networks
2.2 Scaling Factors in IP TV Networks
2.2.1 Number of Subscribers
2.2.2 Other Subscriber Based Scaling Factors
2.2.3 Content Based Scaling Factors
2.2.4 Architecture Based Scaling Factors
2.3 Bandwidth Requirements for IP TV Services

3 Scaling of IP TV Broadcast Video Networks
3.1 Bandwidth Requirements for Broadcast Channels
3.2 The Importance of IP Multicasting
3.3 Broadcast Channel Scaling Issues in the Video Headends
3.4 Broadcast Channel Scaling Issues in the Aggregation Network
3.5 Broadcast Channel Scaling Issues in the Access Network

4 Scaling of IP TV Video On Demand Networks
4.1 Subscriber Demand for Video On Demand Services
4.2 Video On Demand Scaling Issues in the Video Headends
4.3 Video On Demand Scaling Issues in the Aggregation Network
4.3.1 Capacity Requirements in the Aggregation Network
4.3.2 Traffic Mix in an IP TV Aggregation Network
4.3.3 Bottlenecks in the Aggregation Network
4.4 Video On Demand Scaling Issues in the Access Network
4.4.1 Bandwidth Requirements in the Access Network
4.4.2 Bottlenecks in the Access Network
4.5 Optimizing the Video On Demand Network
4.5.1 Using Distributed Video On Demand Systems
4.5.2 Optimizing the Optical Network

5 Scaling of IP TV Software Systems
5.1 Middleware Software
5.2 Content Protection & Digital Rights Management Software
5.3 Back Office Systems
5.4 Integrated Systems
5.5 Optimizing Software Systems

6 Planning for Growth in IP TV Networks
6.1 IP TV Penetration
6.2 The Service Mix
6.3 Broadcast Video Strategies are Straightforward
6.4 Distributed Video On Demand is a Key Strategy
6.5 Network Link Capacity in the Access Network
6.6 Video On Demand is Key to the Aggregation Network
6.7 Significance of Software Architecture
6.8 Advances in Technology

7 Opportunities, Risks, and Recommendations
7.1 Opportunities
7.2 Risks
7.3 Recommendations

8 Appendices
8.1 System Integrators
8.1.1 Alcatel
8.1.2 Siemens
8.1.3 Thales Broadcast and Multimedia
8.2 Access Systems
8.2.1 ECI Telecom
8.2.2 Lucent
8.2.3 Motorola, Inc.
8.3 Transport Networks
8.3.1 Cisco Systems
8.3.2 Juniper Networks
8.4 Video Headends
8.4.1 Harmonic Inc.
8.4.2 Skystream Networks
8.4.3 Tut Systems
8.5 Video On Demand Servers
8.5.1 Bitband Inc.
8.5.2 C-Cor
8.5.3 Entone
8.5.4 Kasenna
8.6 Middleware and other Software Systems
8.6.1 Orca Interactive
8.7 Content Protection and Digital Rights Management
8.7.1 Latens
8.7.2 Nagravision
8.7.3 Widevine Technologies
8.8 Back Office Systems
8.8.1 Agilent
8.8.2 IneoQuest
8.8.3 Motive
8.9 Integrated Software Systems
8.9.1 IBM
8.9.2 Microsoft

Table of Figures

Figure 1-1: Aggregation Network Bandwidth Savings from a Distributed Network
Figure 2-1: Basic IP TV Network Architecture
Figure 2-2: Large IP TV Network
Figure 3-1: Total Bandwidth Requirements for a Broadcast Offering
Figure 3-2: Operation of IP Multicast in an IP TV Network
Figure 3-3: Channels Views by a  Population of Subscribers
Figure 4-1: 10 Gigabit Ethernet Links Required for Video On Demand
Figure 4-2: Aggregation Network Bandwidth Required for IP TV
Figure 4-3: Level of Best Effort Internet Traffic in a 3Play Network
Figure 4-4: Verizon's View of Access Network Bandwidth Requirements
Figure 4-5: Bandwidth Required for a Distributed Video On Demand Network
Figure 4-6: Aggregation Network Bandwidth Savings from a Distributed Network
Figure 8-1: Alcatel's IP TV/Triple Back Office System Architecture
Figure 8-2: Alcatel's View of Triple Play Network Capacity
Figure 8-3: Bandwidth Conversation Using H-VPLS
Figure 8-4: IP TV Transport Architecture
Figure 8-5: Video Network Architecture
Figure 8-6: SDX-300 Service Activation
Figure 8-7: Video Stream/Channel Capacity for Juniper Routers
Figure 8-8: Entone StreamLiner Video On Demand Architecture
Figure 8-9: Orca's Test Platform
Figure 8-10: Nagra IP System Architecture
Figure 8-11: Architecture of the Microsoft TV IPTV Edition

Table of Tables

Table 1-1: Bandwidth Requirements in a 3Play Network
Table 1-2: IP TV Software Systems
Table 2-1: Current Size of IP TV Networks
Table 2-2: Expected Size of IP TV Networks in 2009
Table 2-3: Bandwidth Requirements in a 3Play Network
Table 3-1: IP TV Per Channel Bandwidth Requirements
Table 4-1: Video On Demand Storage Requirements
Table 4-2: Switching Capacity of Switching and Routing Systems
Table 4-3: Typical Access Speeds
Table 4-4: Uplink Capacity on Access Systems
Table 4-5: Approximate Break Points in a Video On Demand Network
Table 5-1: Scaling of Middleware Software Packages
Table 5-2: Scaling of Content Protection Packages/DRM Systems
Table 5-3: Scaling of Integrated Software Applications
Table 8-1: Companies Profiled in this Report
Table 8-2: System Integrators Profiles
Table 8-3: Alcatel Financial Results
Table 8-4: Alcatel IP TV Products
Table 8-5: Channel Capacity of Alcatel's Systems
Table 8-6: Channel Capacity of Alcatel's Systems
Table 8-7: Triple Play Per Subscriber Bandwidth Requirements
Table 8-8: Alcatel IP TV Deployments
Table 8-9: Siemens’ Financial Results
Table 8-10: Siemens’ IP TV Products and Services
Table 8-11: Channel Capacity of Siemens’ Systems
Table 8-12: Siemens/Myrio IP TV Deployments
Table 8-13: Thales Financial Results
Table 8-14: Thales IP TV Products
Table 8-15: Thales IP TV Deployments
Table 8-16: IP TV Access Systems Profiles
Table 8-17: ECI Financial Results
Table 8-18: ECI IP TV Products
Table 8-19: Channel Capacity of ECI's Products
Table 8-20: ECI IP TV Deployments
Table 8-21: Lucent Financial Results
Table 8-22: Lucent IP TV Products
Table 8-23: TV Channel Capacity of Lucent's Products
Table 8-24: Lucent IP TV Deployments
Table 8-25: Motorola Financial Results
Table 8-26: Motorola IP TV Products
Table 8-27: Channel Capacity of Motorola's Products
Table 8-28: Motorola IP TV Deployments
Table 8-29: IP TV Transport Network Company Profiles
Table 8-30: Cisco Systems Financial Results
Table 8-31: Cisco Systems IP TV Products
Table 8-32: Channel Capacity for Cisco Router Products
Table 8-33: Channel Capacity for Cisco Optical and Ethernet Switching Products
Table 8-34: Video On Demand Bandwidth Requirements
Table 8-35: Cisco Systems IP TV Deployments
Table 8-36: Juniper Networks Financial Results
Table 8-37: Juniper Networks IP TV Products
Table 8-38: Juniper Networks IP TV Deployments
Table 8-39: Video Headend Company Profiles
Table 8-40: Harmonic Financial Results
Table 8-41: Harmonic IP TV Products
Table 8-42: Harmonic IP TV Deployments
Table 8-43: Skystream Networks IP TV Products
Table 8-44: Skystream Networks IP TV Deployments
Table 8-45: Tut Systems Financial Results
Table 8-46: Tut Systems IP TV Products
Table 8-47: Packet Loss Improvement Using Forward Error Correction
Table 8-48: Ethernet Interface Capacity Limits
Table 8-49: Tut Systems IP TV Deployments
Table 8-50: IP TV Video On Demand Server Company Profiles
Table 8-51: Bitband IP TV Products
Table 8-52: Bitband IP TV Deployments
Table 8-53: C-Cor Financial Results
Table 8-54: C-Cor IP TV Products
Table 8-55: C-Cor IP TV Deployments
Table 8-56: Entone IP TV Products
Table 8-57: Entone IP TV Deployments
Table 8-58: Kasenna IP TV Products
Table 8-59: Kasenna IP TV Deployments
Table 8-60: IP TV Middleware and other Software System CompanyProfiles
Table 8-61: Orca Interactive Financial Results
Table 8-62: Orca Interactive IP TV Products
Table 8-63: Orca Scaling Test Database
Table 8-64: Orca Interactive IP TV Deployments
Table 8-65: IP TV Content Protection and Digital Rights Management Profiles
Table 8-66: Latens IP TV Products
Table 8-67: Latens’ Scaling Test Results
Table 8-68: Latens IP TV Deployments
Table 8-69: Nagravision Financial Results
Table 8-70: Nagravision IP TV Products
Table 8-71: Nagravision IP TV Deployments
Table 8-72: Widevine Technologies IP TV Products
Table 8-73: Widevine Technologies IP TV Deployments
Table 8-74: IP TV Back Office System Company Profiles
Table 8-75: Agilent Financial Results
Table 8-76: Agilent IP TV Products
Table 8-77: Agilent NETeXPERT Deployments
Table 8-78: IneoQuest’s IP TV Back Office Products and Services
Table 8-79: IneoQuest IP TV Deployments
Table 8-80: Motive Financial Results
Table 8-81: Motive IP TV Products
Table 8-82: IP TV Middleware and other Software System Company Profiles
Table 8-83: IBM Financial Results
Table 8-84: IBM IP TV Products
Table 8-85: IBM IP TV Deployments
Table 8-86: Microsoft Financial Results
Table 8-87: Microsoft IP TV Products
Table 8-88: Microsoft IP TV Deployments