IPTV Back Office Systems

July 2005

This report discusses the Back Office systems that IP TV service providers are deploying. It discusses how these systems solve immediate business problems as well as resolve long-term strategy issues. It covers middleware, content management, billing and customer service, service fulfillment, and service assurance systems.

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Executive Summary

IPTV service deployment is at an inflection point, and has all appearances of becoming commonly offered by service providers globally. IPTV is finding broad acceptance across a broad range of service providers among the largest incumbents such as SBC, Verizon, France Telecom, and BT, among the smallest incumbents such as Cyprus Telecom Authority and the U.S. independents; and including a range of competitive carriers, especially in Europe, such as FastWeb in Italy, Free and Neuf in France, and Video Networks in the UK.

Some markets have very strong competition from cable companies. This is particularly true in North America and parts of Europe, such as the Benelux countries and Austria. In many of these areas the cable companies are becoming strong competitors for telephony services. For example, the leading incumbents in the U.S. have lost as much as 25 percent of their switched access lines in the last five years.

In Europe and Asia, where competition is less intense, many service providers are introducing IPTV services to take advantage of what its an open market for IPTV services. In the U.S., the large incumbents are responding to this competitive pressure with bundling strategies that include voice, broadband data, TV services, and mobile services, which takes them beyond the cable companies’ “triple play” to a “quadruple play” or “grand slam” strategy.

Bundling strategies are less common outside of the U.S., but are likely to be of real interest to these carriers because bundling can increase customer spending by encouraging the sale of service features.

This report examines the back office system deployment strategies of IPTV service providers globally. Their back office strategies extend beyond just IPTV and incorporate bundling and multiservice strategies that encompass IPTV, broadband data, and Voice over IP (VoIP) as well as other bundle elements such as mobile voice services. This report examines four categories of back office systems:

• IPTV middleware

• Content management systems

• Service fulfillment and service assurance

• Billing and customer service

IP TV middleware supports the basic functioning of the IP TV system with functions such as subscriber authentication, channel selection, an electronic program guide, and VOD services. It may also support other services such as e-mail, instant messaging, web browsing, and TV-based online commerce. This middleware also provides the primary interface to back office systems for many functions that include subscriber management, device management, content management and billing or billing mediation. At this time smaller carriers are taking advantage of the built in back office capabilities of these IP TV middleware systems, while larger carriers are utilizing their interfaces to back office systems.

Content management software is required to support the management of Video-on-Demand (VOD) content. These systems receive the content and allow the service provider to edit the metadata to better fit its needs. These systems also make the content available to subscribers based on the contract with the content supplier as well as manage marketing and promotion campaigns for the content.

Many of the VOD system providers offer content management systems that provide the basic functions needed to operate a VOD service. Many of the smaller service providers use these systems while many of the larger service providers use more sophisticated systems from third-party vendors.

Service fulfillment and service assurance systems are key to the success of IPTV systems. These systems will help service providers to offer a well-supported service from the time of its introduction. This is important so that IP TV services compete favorably with existing cable and satellite services.

The service providers have an opportunity use their service fulfillment and service assurance systems to improve the subscriber’s installation and problem resolution experience. An IP TV network allows the service provider to reach into the home and diagnose problems on the subscriber’s network. This can provide the IP TV service provider with an advantage over its cable competitors.

These service fulfillment and service assurance systems also need to manage both the service gateway and the IP TV set-top box in the subscriber’s home. This management includes service activation, configuration, and software downloading. These devices and the home network are complex, and will be difficult for many subscribers to manage without help from the IP TV service provider.

A key issue is how IPTV service providers will manage end-to-end video quality on their IP TV networks. There are tools becoming available that can rate the quality of the video to be presented to each subscriber, and that can relate video quality issues with packet-level performance issues. Tools like these will be required so that IPTV service providers can provide a high level of quality to their subscribers.

Service providers will be adding new systems to their networks to support IPTV, including middleware, video headends, and VOD servers. Some of these systems have not been designed to meet standard telecommunications practices that separate element management from network management. Examples include video headends and middleware. Service providers will need to adapt these systems to their environment.

Billing and customer care are key to deploying self-service environments and in implementing IPTV triple and quadruple play strategies. Self-service will become an important aspect of IPTV system and will give the subscriber the ability to order new services and features as well as receive customer support and technical support. These systems will also be important for providing integrated triple or quadruple play package billing and for integrated customer care across all services in the bundle.

There are two strategies that service providers can use for developing and deploying IPTV back office systems:

• A minimalist strategy that uses the minimum investment to deploy back office systems for an IPTV network.

• A transformational strategy that is for service providers that are changing the basic nature of their businesses so that they are based on broadband and strong bundling strategies.

Figure: Kasenna LivingRoom Architecture – Sample

Table: Microsoft’s IP TV Customers – Sample

Service Provider	Locations	Services
SBC	USA	IP TV video service
Verizon	USA	RF broadcast and IP TV VOD service
Swisscom	Switzerland	IP TV video service
BellSouth	USA	IP TV video service
T-Online	France	IP TV video service
Bell Canada	Canada	IP TV video service
Reliance Infocomm	India	IP TV video service
Telecom Italia	Italy	IP TV video service
BT	UK	IP TV video service

 

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Table of Contents

1 Executive Summary

2 Current IP TV Market Environment

2.1 North American IP TV Back Office Strategies

2.1.1 Large U.S. Incumbents

2.1.2 Large U.S. Independent and Canadian Incumbents

2.1.3 Small U.S. Independent Incumbents

2.2 European and Asian IP TV Back Office Strategies

3 IP TV Middleware Software

3.1 Transaction Reporting and Reporting

3.2 Back Office Functionality

3.3 Interfaces to Back Office Systems

4 Content Management Software

4.1 Content Ingress

4.2 Asset Management

4.3 Content Distribution

4.4 Content Marketing and Promotion

5 Service Fulfillment and Service Assurance

5.1 Service Fulfillment

5.2 Device Management

5.3 The Home Network

5.4 Video Quality Management

5.5 Service Assurance

6 Billing and Customer Care

6.1 Self Service

6.2 Billing and Billing Mediation

6.3 Customer Care

7 Service Provider Back Office Strategies

7.1 Minimalist IP TV Back Office Strategy

7.2 Transformational IP TV Back Office Strategy

8 Opportunities, Risks, and Recommendations

8.1 Opportunities

8.2 Risks

8.3 Recommendations

9 Appendices

9.1 Service Providers

9.1.1 Manitoba Telecom Services

9.2 IP TV Middleware

9.2.1 Kasenna

9.2.2 Microsoft

9.2.3 SeaChange International

9.2.4 Siemens/Myrio

9.3 Content Management

9.3.1 Cauldron Solutions

9.3.2 IMAKE Software and Services

9.3.3 Tandberg Television

9.3.4 TVN Entertainment

9.4 Service Fulfillment and Service Assurance

9.4.1 Agilent

9.4.2 Bridge Technologies

9.4.3 IneoQuest

9.4.4 MetaSolv

9.4.5 Miranda Technologies

9.4.6 Motive

9.4.7 Operax

9.4.8 Psytechnics

9.4.9 Spirent

9.4.10 Telcordia

9.4.11 v.1 Labs

9.5 Billing and Customer Care

9.5.1 Amdocs

9.5.2 ETI Software, Inc.

9.6 System Integrators

9.6.1 Alcatel

9.6.2 IB

List of Figures

Fig 1-1: LivingRoom System Architecture

Fig 9-2: SeaChange's Software Architecture

Fig 9-3: Cauldron Solutions' Product Architecture

Fig 9-4: AMS System Architecture

Fig 9-5: OpenStream System Architecture

Fig 9-6: Trends in On Demand Content

Fig 9-7: Adoniss System Architecture        

Fig 9-8: Bridge Technologies Probe Insertion Points

Fig 9-9: Amdoc's System Architecture

Fig 9-10: Alcatel's IP TV/Triple Back Office System Architecture

List of Tables

Table 2-1: Significant Incumbent IP TV Deployments and Trials

Table 9-1: Table 4: IPTV OSS suppliers

Table 9-2: Service Provider Profiles

Table 9-3: Manitoba Telecom’s Fiscal 2004 Financial Results

Table 9-4: Manitoba Telecom’s IP TV Back Office Products and Services

Table 9-5: IP TV Middleware Profiles

Table 9-6: Kasenna’s IP TV Back Office Products and Services

Table 9-7: Microsoft’s Fiscal 2004 Financial Results

Table 9-8: Microsoft’s IP TV Back Office Products and Services

Table 9-9: Microsoft’s IP TV Customers

Table 9-10: Microsoft’s TV Technology Partners

Table 9-11: SeaChange’s Fiscal 2004 Financial Results

Table 9-12: SeaChange’s IP TV Back Office Products and Services

Table 9-13: SeaChange’s IP TV Back Office Deployments

Table 9-14: Siemens’ Fiscal 2004 Financial Results

Table 9-15: Siemens’ IP TV Back Office Products and Services

Table 9-16: Siemens’ IP TV Back Office Deployments

Table 9-17: Siemens’ IP TV Back Office Technology Partners

Table 9-18: IP TV Content Management Software Company Profiles

Table 9-19: Cauldron Solutions’ IP TV Back Office Products and Services

Table 9-20: Cauldron Solutions’ IP TV Back Office Technology Partners

Table 9-21: IMAKE’s IP TV Back Office Products and Services

Table 9-22: IMAKE’s IP TV Back Office Technology Partners

Table 9-23: Tandberg Television’s Fiscal 2004 Financial Results

Table 9-24: Tandberg Television’s IP TV Back Office Products and Services

Table 9-25: Tandberg Television’s IP TV Back Office Deployments

Table 9-26: Tandberg Television’s IP TV Back Office Technology Partners

Table 9-27: TVN Entertainment’s IP TV Back Office Products and Services

Table 9-28: TVN Entertainment’s IP TV Back Office Deployments

Table 9-29: Service Fulfillment and Service Assurance Software Company Profiles

Table 9-30: Agilent’s Fiscal 2004 Financial Results

Table 9-31: Agilent’s IP TV Back Office Products and Services

Table 9-32: Agilent’s IP TV Back Office Deployments

Table 9-33: Agilent’s IP TV Back Office Technology Partners

Table 9-34: Bridge Technologies’ IP TV Back Office Products and Services

Table 9-35: Bridge Technologies’ IP TV Back Office Deployments

Table 9-36: Bridge Technologies’ IP TV Back Office Technology Partners

Table 9-37: IneoQuest’s IP TV Back Office Products and Services

Table 9-38: IneoQuest’s IP TV Back Office Deployments

Table 9-39: IneoQuest’s IP TV Back Office Technology Partners

Table 9-40: MetaSolv’s Fiscal 2004 Financial Results

Table 9-41: MetaSolv’s IP TV Back Office Products and Services

Table 9-42: MetaSolv’s IP TV Back Office Deployments

Table 9-43: MetaSolv’s IP TV Back Office Technology Partners90

Table 9-44: Miranda Technologies’ IP TV Back Office Products and Services

Table 9-45: Motive’s Fiscal 2004 Financial Results

Table 9-46: Motive’s IP TV Back Office Products and Services

Table 9-47: Motive’s IP TV Back Office Deployments

Table 9-48: Motive’s IP TV Back Office Technology Partners

Table 9-49: Operax’s IP TV Back Office Products and Services

Table 9-50: Psytechnics’ IP TV Back Office Products and Services

Table 9-51: Psytechnics’ IP TV Back Office Technology Partners

Table 9-52: Spirent’s Fiscal 2004 Financial Results

Table 9-53: Spirent’s IP TV Back Office Products and Services

Table 9-54: Spirent’s IP TV Back Office Technology Partners

Table 9-55: Telcordia’s Fiscal 2004 Financial Results

Table 9-56: Telcordia’s IP TV Back Office Technology Partners

Table 9-57: v.1 Labs’ IP TV Back Office Products and Services

Table 9-58: v.1 Labs’ IP TV Back Office Technology Partners

Table 9-59: IP TV Billing and Customer Care Software Company Profiles

Table 9-60: Amdocs’ Fiscal 2004 Financial Results

Table 9-61: Amdocs’ IP TV Back Office Products and Services

Table 9-62: Amdocs’ IP TV Back Office Deployments

Table 9-63: ETI Software’s IP TV Back Office Products and Services

Table 9-64: ETI Software’s IP TV Back Office Deployments

Table 9-65: ETI Software’s IP TV Back Office Technology Partners

Table 9-66: IP TV System Integrator Profiles

Table 9-67: Alcatel’s Fiscal 2004 Financial Results

Table 9-68: Alcatel’s IP TV Back Office Products and Services

Table 9-69: Alcatel’s Five Most Recent IP TV Back Office Deployments

Table 9-70: Alcatel’s IP TV Back Office Technology Partners

Table 9-71: IBM’s Fiscal 2004 Financial Results

Table 9-72: IBM’s IP TV Back Office Products and Services

Table 9-73: IBM’s IP TV Back Office Deployments

Table 9-74: IBM’s IP TV Back Office Technology Partners

IPTV Back Office System is 118 pages and available in the following editions:

Printed edition - $1,995.00 US
PDF departmental-level license - $2,995.00 US
PDF corporate-level license - $3,995.00 US