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© 2009 Adara Technologies Inc.

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IPTV & Switched Digital Video

Hosted Options for Maximum ROI

CommTech, Kelowna

May 12, 2009

www.adara-tech.com

© 2009 Adara Technologies Inc.   2

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Seminar Outline

Business Drivers for IP Video 

IPTV & SDV Converging Architectures

Business Model Options & ROI

Conclusions and Q & A

© 2009 Adara Technologies Inc.   3

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Provider to User Dynamic

Rise of the Empowered ConsumerEvolutionary Phases of Experience

BroadcastOne Service Fits All

TransactNetwork Responsiveness

InteractPersonalization, Socialization

EmpowerComplete Customization

User to ProviderDynamic Experience

PassiveWatch Broadcast TV

PickVideo On Demand

ParticipateCommunity Services

ProduceCreate/Remix Content

© 2009 Adara Technologies Inc.   4

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Traditional STB

IP STB

Internet

Mobile

Service Provider Content Delivery System Video Experience Defined

Any ContentAny DeviceAny LocationAny Time

Linear

On Demand Time Shifted

Personalized

On-Demand TV

Games and Music

Broadcast TV

Online Video

ContentDeliverySystem

© 2009 Adara Technologies Inc.   5

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Content Portability

DOCSIS

xDSLHSDPAWiMax

Open Systems:  USRM and Portable CAS

Advanced Video Codecs (e.g. MPEG4)

Set of standards and protocols  (TCP/IP, W3C, RTSP, DTCP‐IP...)

Emerging Applications

RESULT:

Agnostic Access Layer

© 2009 Adara Technologies Inc.   6

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Increasing Video Competition

Growing variety of video content 

programmers, portals, self‐supplied, etc.

100s of HD channels

Emerging terrestrial and wireless video options

Increased offering from OTT providers

© 2009 Adara Technologies Inc.   7

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IP Video Bandwidth ManagementSwitched Digital Video

© Adara Technologies Inc. 2008

3x – 5xIncrease

in NetworkCapacity

WITHOUTa costlyrebuild!!

© 2009 Adara Technologies Inc.   8

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How SDV WorksSame as IPTV

© Adara Technologies Inc. 2008

Only requested channels sent

Spare bandwidth

Switched Digital Video

SDVSystem

Cable CompanyProgramServices

Capacity for more HD channels than you ever thought possible !

© 2009 Adara Technologies Inc.   9

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How SDV WorksSame as IPTV

© Adara Technologies Inc. 2008

Only requested channels sent

Spare bandwidth

Switched Digital Video

SDVSystem

Cable CompanyProgramServices

Capacity for more HD channels than you ever thought possible !

© 2009 Adara Technologies Inc.   10

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How SDV WorksSame as IPTV

© Adara Technologies Inc. 2008

Only requested channels sent

Spare bandwidth

Switched Digital Video

SDVSystem

Cable CompanyProgramServices

Capacity for more HD channels than you ever thought possible !

© 2009 Adara Technologies Inc.   11

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How SDV WorksSame as IPTV

© Adara Technologies Inc. 2008

Only requested channels sent

Spare bandwidth

Switched Digital Video

SDVSystem

Cable CompanyProgramServices

Capacity for more HD channels than you ever thought possible !

© 2009 Adara Technologies Inc.   12

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ASIDE:  SDV for BW Management

Alternatives: Upgrade (1 GHz), all‐digital, MPEG4

Economics of SDV versus AlternativesCosts: 

All‐Digital reclaims ½ of existing spectrum

SDV (3‐to‐5 times the bandwidth)

MPEG4 via codec‐aware SDV Server

Approach Cost per HP

Capacity Plant Upgrade $30‐50

All Digital $20‐40

Switched Digital Video $5‐10

© 2009 Adara Technologies Inc.   13

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Seminar Outline

Business Drivers for IP Video 

IPTV & SDV Converging Architectures

Business Model Options & ROI

Conclusions and Q & A

© 2009 Adara Technologies Inc.   14

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© Adara Technologies Inc. 2008

IP open standards basedSDV Architecture

Universal Session and 

Resource Manager (USRM)

SettopBox

VODPump

Bulk Encryptor

SettopBox

Hub

IP/GbESwitch/Router

Headend

IP/GbESwitch/Router

Headend    Hubs

SDVServer/ResourceManager

SDV Manager

UEQAM X

“Movie”37

12SDV ch8 (HD)

SDVStagingProcessor

© 2009 Adara Technologies Inc.   15

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SDV Components Staging Processor

Universal Session and 

Resource Manager (USRM)

SettopBox

VODPump

Bulk Encryptor

SettopBox

Hub

IP/GbESwitch/Router

Headend

IP/GbESwitch/Router

Headend    Hubs

SDVServer/ResourceManager

SDV Manager

UEQAM X

“Movie”37

12SDV ch8 (HD)

SDVStagingProcessor

© 2009 Adara Technologies Inc.   16

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IP MPTS(Network video transport)

ASI MPTS(Satellite receiver)

ASI SPTS(8‐VSB Off‐air receiver)

IP SPTS(Video Encoders)

IP SPTS(Rate Limited)

IP cloud

•Aggregates multiple MPEG sources

•Clamps VBR programs to CBR

•Converts MPTS to SPTS

•Encapsulates MPEG to GigE/IP

•Output unicast or multicast

SDV Components Staging Processor

© 2009 Adara Technologies Inc.   17

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IP Video MPEG‐2 TS UDP Encapsulation

© 2009 Adara Technologies Inc.   18

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Optionally when RTP/RTCP used, MPEG2 TS is encapsulated as RTP payload

Encapsulated into IP  packets MPEG content can be delivered to recipients via unicast or multicast

IP Video MPEG‐2 TS RTP Encapsulation

© 2009 Adara Technologies Inc.   19

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© Adara Technologies Inc. 2008

Universal Session and 

Resource Manager (USRM)

SettopBox

VODPump

Bulk Encryptor

SettopBox

Hub

IP/GbESwitch/Router

Headend

IP/GbESwitch/Router

Headend    Hubs

SDVServer/ResourceManager

SDV Manager

“Movie”37

12SDV ch8 (HD)

SDVStagingProcessor

UEQAM X

SDV Components Bulk Encryptor

© 2009 Adara Technologies Inc.   20

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© Adara Technologies Inc. 2008

6) IGMPv3:multicast

membershiprequestfor ch8

Join: here is UDP port #

of ch8

VODPump

SettopBox

4) RequestSDV ch8

SDB ch8 SDB ch8

0) set up SDB broadcasts

Hub

IP/GbESwitch/Router

Headend

IP/GbESwitch/Router

Headend    Hubs

SDBServer/ResourceManager

SDVServer/ResourceManager

SDV Manager

SDBProgramSelectRequest /response:Channel Change Requests from STBs

In mini carousel?Yes=tune it here

No=wait for response

5) QAM Control Protocol:Use sess 12 for ch8Provide actual BW andmulticast addresses

Set up SDV broadcast streams

USRMApp‐Independent 

Session and Resource Manager

2) Take sessions 1-620 on QAM X

Establish SDV QAM Pool sizes

Vendor specific setup protocol

1) Give me 10x 3.75Mbps sessions

TWC SSP-SIS

3) Reserve 1-620

shell sessions for SDV

Join reported

7) ch8 bound

SDV Architecture

SDVStagingProcessor

UEQAM X

Bulk Encryptor

© 2009 Adara Technologies Inc.   21

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© Adara Technologies Inc. 2008

6) IGMPv3:multicast

membershiprequestfor ch8

Join: here is UDP port #

of ch8

UEQAM X

VODPump

SettopBox

4) RequestSDV ch8

SDB ch8 SDB ch8

0) set up SDB broadcasts

37

Hub

IP/GbESwitch/Router

Headend

IP/GbESwitch/Router

Headend    Hubs

SDBServer/ResourceManager

SDVServer/ResourceManager

SDV Manager

SDBProgramSelectRequest /response:Channel Change Requests from STBs

In mini carousel?Yes=tune it here

No=wait for response

8) SD

B c

h8

SDB ch8

Set up SDV broadcast streams

USRMApp‐Independent 

Session and Resource Manager

2) Take sessions 1-620 on QAM X

Establish SDV QAM Pool sizes

Vendor specific setup protocol

1) Give me 620x 62.5kb/s sessions

TWC SSP-SIS

3) Reserve 1-620

shell sessions for SDV

Join reported

8) UpdateMini Carousel

5) Use sess 12 for ch8Provide actual BW andmulticast addresses

Mini carouselcached

7) ch8 bound

SDV Architecture

SDVStagingProcessor

Bulk Encryptor

© 2009 Adara Technologies Inc.   22

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MPEG & IP Transport in SDV and IPTV

IPTV & SDV deliver encoded video to enabled clients:a. In MPEG‐2, MPEG‐4, VC‐1 or future formats

b. Clamped Single Program Transport Stream (SPTS)

c. Encapsulated in UDP or RTP

d. Over IP Multicast (linear) or IP Unicast (exclusive)IGMP v.3

PIM‐SM & PIM‐SSM

© 2009 Adara Technologies Inc.   23

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Sample IPTV Architecture

SuperHeadEnd

Live B’cast & VoDAsset Dist.

Aggregation and Distribution network

DistributionEdge

Routers

Video HeadendOffice

VoDServers Video

SwitchingOffice

AggregationRouter

+STB

+STB

SHE / VHE•Antenna Farm•Terrestrial•VoD Library IPTV Service Delivery

Platform (ISDP)

Service Integration

•Encoding•Decoding•Switching

DSLFTTx

CablePON

Service Center

STBHAGeMTAWiFi

Core, Edge, Aggregation

From SHE and Service Center to VHE to VSO etc

HA, mCast, QoS

Video Content Acquisition and Serving

Content Service Control Quad-play IP-NGN Access Connected Home

OSS, BSS (+Performance, Policy, Provisioning, Inventory)

ISDS

MPLSCore

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© 2009 Adara Technologies Inc.   24

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May 09

Sample IP + RF Set‐top Box

SD and HD (MPEG‐2, MPEG‐4)IPTV and RF DTVMulti‐PIP (multi‐angle)IP – 100BaseT and MOCA for Home NetworkingChoices of OS, Middleware and Renewable security with DCAS/DRMDVR w 160/320 GB HDD + eSATA expansion

© 2009 Adara Technologies Inc.   25

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May 09

Sample IPTV Set‐top Box

SD and HD (MPEG‐2, MPEG‐4)

16 PIP (multi‐angle)

System‐On‐Chip (SOC)

IP – 100BaseT and HPNA 3.0 for IP‐over‐Coax

Choices of OS, Middleware and Renewable security with DCAS/DRM

DVR w 160/320 GB HDD

© 2009 Adara Technologies Inc.   26

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Seminar Outline

Business Drivers for IP Video 

IPTV & SDV Converging Architectures

Business Model Options & ROI

Conclusions and Q & A

© 2009 Adara Technologies Inc.   27

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Example Roadmaps To IPTV

Analog Cable   Digital Cable   SDV   IPTV

Non‐video Operator   IPTVIncremental integration considerations

© 2009 Adara Technologies Inc.   28

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New Broadcast Headend & content relationships

Middleware (EPG, Broadcast Services and Interactive Apps)

Control Platform

CPE devices SW client

Conditional Access / DRM

Billing System

Set‐top box HW & SW

Visual Quality Experience (VQE) on IP delivery network

Video Admission Control for some access layer challenges

MPEG 4 and Rapid Channel Change

Video‐on‐Demand (VoD) Subsystem

Etc.

IPTV Integration Considerations

© 2009 Adara Technologies Inc.   29

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Business Model Options & ROI

A. Stand‐Alone Option

1 ‐ 2 million active CPE Devices

Dedicated/Specialized staff

© 2009 Adara Technologies Inc.   30

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Business Model Options & ROI

B.  Hosted / Managed Option

Share CAPEX & OPEX 

Maintain operator independence & control

Maintain service uniqueness

100 – 50,000+ CPE devices per operator

© 2009 Adara Technologies Inc.   31

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Cisco Digital Network Control System (DNCS)

Adara Facility151 Front St. West. Toronto, ON

AlarmMain

PSBackup PS

Continuum DVP Digital Content Manager

Digital Content Manager

Rx EncoderRx

BFS

ASI ASI

GigE Video VLAN

10/100 BaseTControl VLAN

MUXOther feeds/Interconnects

POWERRUNL

OADRESETMINOR

ALARMMAJOR ALARM

NetCrypt

GigE Encrypted

Video

ASI/GigE

SDV Server

MC

ControlVLAN

VideoVLAN

HFC750 MHz

MAJOR ALARMMINOR ALARMCW

GQAM MODULATOR MODEL D9479

FREQ

LEVEL CW OPTIO

NSENTER

RF SEL

PowerKEY

Edge QAM

MAJOR ALARMMINOR ALARMCW

GQAM MODULATOR MODEL D9479

FREQ

LEVEL CW OPTIO

NSENTER

RF SEL

PowerKEY

Edge QAM

MAJOR ALARMMINOR ALARMCW

QPSK MODULATOR MODEL D9482

FREQ

LEVEL CW OPTIO

NSENTER -

20dBTEST

QPSK MODULATOR

QPSK DEMODULATORATM 25

10/100BaseT

GigE

EXPLORER 8300HDPOW

ER

CH+ VO

L+VOL- C

H-SELECT

GUIDE

INFOEXI

TL

AUDIO R

VIDEO

AUXINPU

T

LIST

EXPLORER 8300HDPOW

ER

CH+ VO

L+VOL- C

H-SELECT

GUIDEINF

OEXIT

L AUDIO R

VIDEO

AUXINPU

T

LIST

EXPLORER 8300HDPOW

ER

CH+ VO

L+VOL- C

H-SELECT

GUIDEINF

OEXIT

L AUDIO R

VIDEO

AUXINPU

T

LIST

DHCT

DHCT

DHCT

Analogue Customers(no set-top

box)

DTV with CableCard or

DCAS

MAJOR ALARMMINOR ALARMCW

QPSK MODULATOR MODEL D9482

FREQ

LEVEL CW OPTIO

NSENTER -

20dBTEST

QPSK DEMODULATOR

Analogue NTSC

Sun Fire V240

microsystems

RNCS

1 - 2 Mbps

VPN

Operator Local Site City, Province

MAJOR ALARMMINOR ALARMCW

QPSK MODULATOR MODEL D9482

FREQ

LEVEL CW OPTIO

NSENTER -

20dBTEST

ApplicationServers

CASComponents

© 2009 Adara Technologies Inc.   32

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Sun Fire V240

microsystems

© 2009 Adara Technologies Inc.   33

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Business Model Options & ROI

18 – 24 months15 years ‐ NEVERPayback Time

$40K/yr + “pay as you grow”

$150K ‐ $200K / yr“Talent” OPEX

$150 ‐ $450K(+ leasing options)

$1 ‐ $1.5 MillionCAPEX

Hosted/ManagedIPTV / SDV

Stand‐AloneIPTV / SDV

Easy Future Migration

© 2009 Adara Technologies Inc.   34

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Seminar Outline

Business Drivers for IP Video 

IPTV & SDV Converging Architectures

Business Model Options & ROI

Conclusions and Q & A

© 2009 Adara Technologies Inc.   35

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Conclusions

RF Digital TV (SDV) & IPTV converging

SDV much more than just BW Management

Stand‐alone option for 50K+ CPEs

Hosted/Managed option for 100 – 50K+ CPEs

© 2009 Adara Technologies Inc.   36

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www.adara-tech.com

Questions?

© 2009 Adara Technologies Inc.   37

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Contact Information

Joseph D. Nucara, P.Eng., M.B.A.

Co‐founder & CEO

Adara Technologies, Inc.123 Yorkview DriveToronto, ON  M2R 1J9

Tel:   +1 (905) 330‐0208Fax:  +1 (905) 582‐5980E‐mail:  joseph.nucara@adara‐tech.com

Stan KoukarineCo‐founder & CTO

Adara Technologies, Inc.123 Yorkview DriveToronto, ON  M2R 1J9

Tel:  +1 (647) 274‐5504E‐mail:  stan.koukarine@adara‐tech.com

www.adara-tech.com