Appendix J: New Generation Networks C NGNs. 2 Major Bell Strategies. 2. AT&T: aggressive DSL+, Fiber to the neighborhood. 1.

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1 Appendix J: New Generation Networks C NGNs 1268 Telco executives estimate they can pass about 3 million homes per year. They won t bring fiber-to-the-home to every household in America, but to reach 60 million households (a good competitive number), we re still talking about 20 years. Homes passed has absolutely nothing to do with subscribers. It simply means that the telco has the ability to turn on the service if you decide to subscribe. Palmer, Shelly Television Disrupted, NAB Executive Technology Briefings. Focal Press, Major Bell Strategies 1. Verizon: FTTH 2. AT&T: aggressive DSL+, Fiber to the neighborhood h

2 Verizon plans to pass 12 millions homes within 4 years, pass 1/3 of its subs 3 mil add l homes passed each year $20 bil investment Wall Street nervous; Verizon / shares perform sub-average 1272 Comparing FiOS TV Service Broadcast HD On-Demand Broadband FiOS 180 Digital Channels basic channels 47 music channels 100+ add l video channels Up to 20 HDTV channels Access to up to 1,800 On Demand titles 5/2 Mbps Down/Up 15/2 Mbps Down/Up 30/5 Mbps Down/Up Typical Satellite 150 Digital Video and Music Channels 6-10 channels but few local No On-Demand 500K Down 50K Up Typical Cable 75 Expanded Basic Analog Channels Digital higher price 8-18 channels Digital buy-up Access only after Digital buy-up ~ 3 to 5 Mbps Down < than 1Mbps Up 1274 TV Operate fiber network first as a regular cable TV network Rollout 2005 in Texas Full Array of Content

3 Simple Packaging Drives Acquisition Core Package Premium Add-ons Expanded Movies: 45 Basic channels 180 all-digital channels Sports: $11.95* 15 channels 20 HDTV channels HBO*, Basic 1800 VOD titles * + Cinemax*, = $5.95 $39.95 V l 30 Playboy*: channels International: 27 channels All digital 15 $14.95 channels option w/ VOD Standard High Def Digital Video Prices Vary Def STB STB Recorder $3.95 $12.95 $9.95 $12.95 og m Pro ram min ng Equi pme nt *Includes SVOD FiOS TV The Best Value in Entertainment! 1276 Verizon had 522,000 FiOS Internet customers at the end of Verizon s all fiber network passes more than 6 million homes and business in parts of 16 states. The company also delivers its all digital FiOS TV service over the network in parts of ten states

4 TV Verizon continues early deployments on Fiber Optic Television systems with expanded capabilities to a Massachusetts community. Offering: 1) broad collection of all digital it programming 2) 350 total channels with more being developed, 180 digital video and music channels, 20 high-definition channels AT&T s Project Lightspeed AT&T is currently shifting more to the fiber-to-the-premise (FTTP) approach, a technology originally used by Verizon in increasing its coverage to household areas. S TV A il blit i M h tt 1280 Gubbins, Ed, AT&T gets fiber envy, Telephony, October 23, p TV 3) More then 2,200 On-Demand titles expected to increase to more then 3,500 by mid-summer ) Interactive Programming Guide 5) Dual-Tuner High-Definition DVR with freedom to pause, rewind TV, record and fast forward - 6) Offers Internet downloads of up to 30Mbps and uploads of 5Mbps ; , Verizon expands FiOS TV Availablity in Massachusetts 1281 New Emerging WIFI MIMO New WIFI standard called MIMO rated at 108Mbs (raw) Stands for multiple-input inp t multipleoutput soon n Old standards of WIFI are a and g at rated at 54Mbspractical at 20-30Mbs

5 WIFI MIMO cont. Enables faster mobile video IPTV in the home, faster Video podcasting, Audio, more efficient reception around furniture. Linksys ships MIMO wireless access-point Fall WiMAX WiMAX High Speed Wireless access for QoS mobile broadband WiMAX also enables higher* bandwidth wireless streaming video IEEE Air Interface Standard See: *up to