technology breakfast at scte cable-tec expo...
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TECHNOLOGY BREAKFASTat SCTE Cable-TEC Expo 2006
Denver Press Club
Denver, ColoradoJune 22, 2006
Bob Stanzione, Chairman & CEOJim Lakin, President BroadbandJim Bauer, VP Investor Relations
Todd Kessler, VP Product ManagementTom Cloonan, CTO Broadband
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Safe Harbor
This presentation contains forward-looking statements concerning projections of revenues, income and other financial items; plans and objectives for future operations, products and services; future economic performance; and the assumptions underlying or relating to the foregoing. The statements in this presentation that use such words as ”believe," "expect," "intend," "anticipate," "contemplate," "estimate," or "plan," or similar expressions are also forward-looking statements. Actual results may differ materially from those contained in any forward-looking statement or from those which could be expected to accompany such statements. Specific factors which could cause such material differences include the following: the timing of the introduction and the performance factors of certain new ARRIS products; design or manufacturing defects in our products which could curtail sales and subject us to substantial costs for removal, replacement and reinstallation of such products; manufacturing or product development problems that we do not anticipate; an inability to absorb or adjust our costs in response to lower sales volumes than we anticipate; loss of key management, sales or technical employees; decisions by our larger customers to cancel contracts or orders as they are entitled to do or not to enter into new contracts or orders with us because of dissatisfaction, technological or competitive changes, changes in control or other reasons. Other risks involve capital spending levels by our customers based in part on demand for broadband services, customer adoption of our technologies, the development and marketing of technology by our competitors and the risks associated with potential acquisitions of competitors, additional lines of business and/or product and services offerings. The above listing of factors is representative of the factors which could affect our forward-looking statements and is not intended as an all encompassing list of such factors. We disclaim any obligation to update publicly or otherwise these statements, whether as a result of new information, future events or otherwise.
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ARRIS FlexPath™ Solution Agenda▪ Market Situation for Wideband Service▪ FlexPath™ Technology History and Overview▪ Migration to FlexPath Service▪ Conclusion
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Agenda
▪ Market Situation for Wideband Service▪ FlexPath™ Technology History and Overview▪ Migration to FlexPath Service▪ Conclusion
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Market Trends Driving Wideband in the 2006-2007 Timeframe▪ High-bandwidth applications are becoming real
− Increased Data, Voice, and IP Video traffic requires more bandwidth per subscriber
− Commercial services, video downloads, IPTV, & other applications will all require more bandwidth
▪ PacketCable™ Multimedia (PCMM) allows operators to monetize dynamic bandwidth needs (i.e., bandwidth on demand)
▪ DOCSIS® 2.0 physical layer improvements are enabling higher upstream throughput
▪ Telco competitive threats are increasing
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New Services Create More Traffic and Consume More Bandwidth….
Digital MusicVoIP
DigitalPhotos
PodcastingOnline-Games
VideoMail
VideoBlogs
All Video on DemandUnicast per Subscriber
WebBrowsing
Video onDemand
High DefinitionVideo on Demand
Advanced Services Demand More Bandwidth
Video Mail
0 102030405060708090
100
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Agenda
▪ Market Situation for Wideband Service▪ FlexPath™ Technology History and Overview▪ Migration to FlexPath Service▪ Conclusion
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ARRIS FlexPath™ Solution Provides Immediate Answer to Higher Bandwidth Needs
▪ Competition is increasingly fierce, requiring MSOs to address competitive threats on market-by-market basis today
▪ DOCSIS® 3.0 wideband support, along with many other important functions, may still be 2 years off
▪ ARRIS FlexPath technology enables MSOs to meet the competitive challenges TODAY!− Wideband deployments now through software-only
upgrade on the C4 CMTS− Forward compatibility – C4 CMTS support for both
FlexPath and DOCSIS 3.0 in the future
Protect revenues by addressing competitive threats more quickly
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ARRIS FlexPath™ Packet-basedChannel Bonding Demo & Trial History
2004 2005 2006 2007
2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
World’s 1st Channel Bonding Demo (FlexPath System at NCTA)
Lab & Field Trials of ARRIS FlexPath Technology(ex: ntl, Hanaro and others)
World’s 2nd Channel Bonding Demo (FlexPath System at SCTE)
GeneralAvailability
(August 2006)
This road map is subject to change.
Tested and reliable solutions speed deployment and reduce
operational costs
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ARRIS FlexPath™ Solution –Wideband Now!▪ What is the FlexPath Solution?
− DOCSIS 3.0-based channel bonding software solution for higher bandwidths downstream and upstream
▪ ARRIS FlexPath Design Goals − Leverage C4® CMTS hardware already deployed
Software-only upgrade to launch service− Implement downstream and upstream bonding that
Addresses primary marketsDelivers a solution early in the market window
▪ Provides additional speeds MSOs require before DOCSIS® 3.0 products become available− Available before DOCSIS 3.0 spec is finalized
Cost effective solution ready today!
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ARRIS FlexPath™ Operation Utilizes Existing Cadant® C4® CMTS with Software Update
New Touchstone®
Wideband Modem with FlexPath software(160 Mbps downstream120 Mbps upstream)
Any legacy DOCSIS®
Cable modem on any downstream or upstream
Up to four separate downstreams from multiple Cadant C4 Cable Access Modules (CAMs)
Up to four separate upstreams to Cadant C4
CAMs
Today’s Cadant C4 CMTS with a FlexPath Software Upgrade
40 Mbps
40 Mbps
40 Mbps
40 Mbps
30 Mbps30 Mbps30 Mbps30 Mbps
Deployed Cadant C4 CMTS Chassis Are FlexPath Solution Hardware Ready!
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Mainstream Adoption of New Applications Requires Increased Upstream Bandwidth
▪ Markets require increased upstream bandwidth− Increasing upstream throughput has great value for
enterprise subscribersLeased Line SubstituteSmall Office/Home Office (SOHO)
− Residential customers also need more upstream bandwidth due to adoption of new broadband applications
▪ ARRIS FlexPath™ solution implements an upstream channel aggregation scheme that
Addresses these primary marketsDoes not impact overall delivery schedule
Capture revenues from mainstream residential and business subscribers quickly
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Example Subscriber Using FlexPath™Upstream Channel Aggregation
• Video Chat
• Send E-Mail Attachment
• VPN Connection
• Sling Video
• Video Phone
• Etc.
Multiple Applications, spread across four upstream channels
Home RouterNetwork Address
Translation (NAT)
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Agenda
▪ Market Situation for Wideband Service▪ FlexPath™ Technology History and Overview▪ Migration to FlexPath Service▪ Conclusion
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MSO Migration to FlexPath
▪ Most wideband solutions require the MSO to dedicate downstream channels to wideband cable modems
▪ ARRIS FlexPath™ solution was designed to evolve from the MSO’s existing architecture− FlexPath solution allows all channels to be shared with
standard DOCSIS 1.0/1.1/2.0 cable modems− Cost effective for early deployments− Can also be deployed in a dedicated manner
▪ Software upgrade only− No new hardware investment needed
Protect existing hardware investment
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Simplified DS Combining Network Example — Standard Service
Node1
Node2
Node3
Node4
DS DS DS DS
2Dx12U CAM #1(in existing C4® base)
2Dx12U CAM #2(in existing C4 base)
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Simplified DS Combining Network Example — FlexPath Wideband Service
Node1
Node2
Node3
Node4
2Dx12U CAM #1(in existing C4® base)
2Dx12U CAM #2(in existing C4 base)
DS DS DS DS
SplittersSplitters
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FlexPath™ Enables Easy and Cost-effective Migration to Wideband Today
▪ Revenue from early adopters pays for additional capacity▪ No new downstreams required for currently deployed C4®
CMTS▪ Same number of downstreams cover the same number of
nodes for the initial deployment− Very low incremental cost to initially deploy wideband services
▪ FlexPath modems and the existing population of standard DOCSIS® modems can coexist
▪ As FlexPath take rates increase, additional capacity can be added
Use existing downstreams and generate new revenues
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ARRIS FlexPath™ Solution Provides Major MSO Benefits
▪ More bandwidth per subscriber▪ Technology surpasses xDSL data rates▪ Decreases incremental cost to achieve higher speeds by permitting
large-scale statistical multiplexing▪ Permits new services
− IPTV over DOCSIS®− Fast Video Downloads
Touchstone®Wideband Modem
WBM650
Cadant® C4® CMTS
ApplicationServers
PC w/Video Download App
HFC
For a typical encoded movie (2 GB file):
< 3 minutes !!!~100 Mbps89 minutes~3 MbpsDownload TimeDownload Speed
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Agenda
▪ Market Situation for Wideband Service▪ FlexPath™ Technology History and Overview▪ Migration to FlexPath Service▪ Conclusion
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New Revenues From High Bandwidth Applications Today!▪ FlexPath™ Technology
− More mature with more field experience than any other wideband solution
− Easy and spectrum efficient to deploy− Available today for field deployments
▪ ARRIS has worked through the technical issues− Maintaining high availability with bonded channels− Achieving high-throughput over cable networks− Tuning of the system, including PCs and servers
▪ ARRIS enables easy migration from FlexPath to DOCSIS® 3.0− C4® CMTS will support FlexPath even as DOCSIS 3.0 support is
added
Reliable solution delivers new revenue opportunities and
enables easy migration to DOCSIS 3.0
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A Few Quick Notes
▪ Roadmaps described in this talk are still evolving & subject to change.
▪ All CMTS & CM vendors participating in the DOCSIS® 3.0 standardization process are bound by the CableLabs® NDA agreement & are not permitted to discuss details of the DOCSIS 3.0 and DOCSIS 2.0b features (other than details available in the public domain).
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Next-Generation CMTS Solutions:M-CMTS & I-CMTS Agenda
▪ Introduction▪Traditional CMTS, I-CMTS, & M-CMTS▪Predictions▪Conclusions
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Introduction
▪ MSOs are planning for many changes in the future
▪ Let’s consider a few quick examples…
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2005 2006 2007 2008 20091
10
100
1000
30 kbps
Avg. Bandwidth per subscriber (kbps)
100 kbps
1 Mbps
Example of Bandwidth Changes Proposed by one MSO
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Example of CMTS Bandwidth Changes Proposed by one MSO
DOCSIS MAC
GigabitEthernet
Switching
VoDServer
Broadcast Analog Video (45 programs = 45 channels)Broadcast Digital SDTV (200 programs = 20 QAMs = 1 Gbps) & Broadcast Digital HDTV (40 programs = 20 QAMs = 1 Gbps)
Narrowcast VoD &IPTV
(13.6 Gbps / 340 QAM)
IPMetroNtwk
RF
RF
RF
RF
D5EdgeQAM
D5EdgeQAM
D5EdgeQAM
D5EdgeQAM
IP Router
HSD & Voice(1 Gbps / 32 QAM
& 128 Up Channels)RFUS
RCV
C4 M-CMTS20KHHPHub
Shift from MPEG-delivered Video to DOCSIS-delivered IPTV
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2005 2006 2007 2008 20090
2
4
6
8
10
12
14
16
18
20
Total # Downstreams/SG
Total # Upstreams/SG
Total # Ports for 4-Fiber Node Service Group
Begin Channel Bonding
1
4
2
4
4
4
8
4
12
8
U:D=4:1 U:D=2:1 U:D=1:1 U:D=1:2 U:D=2:3
Example of DOCSIS Upstream:DownstreamRatio Changes Proposed by one MSO
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Next-Generation Architectures Must Deliver Key Improvements to Permit MSOs to Evolve their HFC Networks
IPv4 – Address Management
• Complicated management due to limited available IP addresses
IPv6 – Address Management
• Simpler network operations and more IP devices per subscriber
Standard bandwidth
• Single channel limits the services that can be offered
Channel Bonded bandwidth
• Channel bonding increases usable bandwidth enabling new services
Fixed upstream / downstream ratio• Capital invested in unused capacity
as US/DS ratio changes
Flexible upstream / downstream ratio
• Align investment with revenue opportunity
Today
Traditional (DOCSIS® 2.0)Next Generation Network Architecture
M-CMTS and DOCSIS 3.0
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Agenda
▪ Introduction▪Traditional CMTS, I-CMTS, & M-CMTS▪Predictions▪Conclusions
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Block Diagram of Traditional CMTS
L3/L2 ForwardingC4® CMTS DOCSIS® Apps
System Controller
DOCSIS Resource Mgr
Timing
To HFC Network
To Internet
Fixed 1:6 Ratio of Downstream to Upstream Channels
RFProtection Switch Matrix
Blades
2 DN PHYs&
12 UP PHYs
2 DN PHYs&
12 UP PHYs
MAC
MAC
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Block Diagram of Integrated CMTS (I-CMTS)
L3/L2 ForwardingC4® CMTS DOCSIS® Apps
System Controller
DOCSIS Resource Mgr
Timing
To HFC Network
To Internet
Flexible Ratio of Downstream to Upstream Channels
DownstreamModules
UpstreamModules
MAC
MAC
MAC
MAC
MACUPPHYs
UPPHYs
RFProtection Switch Matrix
DNPHYs
DNPHYs
DNPHYs
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Edge Resource Mgr
Router/Switch
TraditionalCMTS
orI-CMTS
NCast VoDServer
SwitchedDigitalBCastVideoMgr
CM MTA STB
SG #1 Forward Path
SG #1 Reverse Path
CM MTA STB
SG #2 Forward Path
SG #2 Reverse Path
EQAM
EQAM
EQAM
EQAM
HFC Network Topology based onTraditional CMTS Architecture or Integrated CMTS (I-CMTS) Architecture
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Modular CMTS (M-CMTS) Standards History
2003 2004 2005 2006
2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06
Comcast, Cox, & Time-Warner began studies of NGNA
Several vendors injected ideas & proposals
Comcast, Cox, & Time-Warner definedthe desired NGNA reference architecture
CableLabs took over spec creation &renamed it the M-CMTS effort
4 CableLabs committeesdeveloped the DTI, DEPI,DRFI, & ERMI specs
Interops
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Block Diagram ofModular CMTS (M-CMTS)
• Management Control• Data Traffic• Timing Control• RF Switching Control
MAC
Session Resource Managers
Application Managers Edge
Resource Manager
Switching Control
IP MetroNetwk
Resource Manager
Fiber Node
Fiber Node
Fiber Node
Router
Timing Clock Master
UpstreamPHYs
RF Switch Matrix
DnstreamPHYs
Distributed Architecture
RF Switch Matrix
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Cadant® C4® M-CMTS Core
Separating Downstream PHYs (as Edge QAMs) Permits DOCSIS & Video to Share Resources
MAC
Session Resource Managers
Application Managers Edge
Resource Manager
Switching Control
IP MetroNetwk
Resource Manager
Fiber Node
Fiber Node
Fiber Node
Router
Timing Clock Master
UpstreamPHYs
RF Switch Matrix
DnstreamPHYs
RF Switch Matrix
Use of Edge QAMs as DOCSIS® PHY elements could yield lower DOCSIS CAPEX costs for MSOs
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Edge Resource Mgr
D5 EQAM
D5 EQAM
D5 EQAM
D5 EQAM
D5 EQAM
Router/Switch
C4®
M-CMTSCore
NCast VoDServer
SwitchedDigitalBCastVideoMgr D5 EQAM
CM MTA STB
SG #1 Forward Path
SG #1 Reverse Path
CM MTA STB
SG #2 Forward Path
SG #2 Reverse Path
This “Universal Edge QAM”approach could reduce the
cost & increase the flexibility of migrating from MPEG-TS video distribution
to IPTV video distribution
Separating Downstream PHYs (as Edge QAMs) Permits DOCSIS® & Video to Share Resources
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Agenda
▪ Introduction▪Traditional CMTS, I-CMTS, & M-CMTS▪Predictions▪Conclusions
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MSOs Will Select From Multiple DOCSIS®
Architectures in the Near Future
▪ Integrated CMTS (I-CMTS)− Architecture has all required CMTS modules in one chassis− Supports flexible Downstream-to-Upstream Channel Ratios− Permits support for full redundancy within a single chassis− Offers simpler management (MSO manages only one network
element)▪ Modular CMTS (M-CMTS)
− Architecture separates the downstream PHY (EdgeQAM) from the MAC and upstream PHY
− Supports flexible Downstream-to-Upstream Channel Ratios− Allows network elements from multiple vendors if desired− Permits sharing of Edge QAMs for VoIP, Video, & Data services
▪ ARRIS will offer products supporting both types of architectures
MSOs will be able to select the architecture that best suits their needs
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Fixed U:D Ratio
Integrated CMTS (I-CMTS)
Modular CMTS
(M-CMTS)
Flexible U:D Ratio
Next-Gen CMTS Evolutionary Paths
DOCSIS 2.0
DOCSIS® 3.0
DOCSIS 2.0bTests (if defined)
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Fixed RatioIntegrated2.0 CMTS
Fixed RatioIntegrated2.0 CMTS
Flexible U:D Ratio DOCSIS® 3.0/2.0b
Flexible Ratio 3.0/2.0bM-CMTS
Next-Gen CMTS Evolutionary Paths
Integrated CMTS (I-CMTS)
Modular CMTS
(M-CMTS)
DOCSIS 2.0
Flexible Ratio Integrated 3.0/2.0b I-CMTS
Fixed U:D Ratio
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Quick review of past DOCSIS® Spec Releases & 1st Successful Cert Waves
1997 1998 2001 2002 20031999 2000 2004 2005 2006
DOCSIS 1.0Spec Issued
1st Qualified1.0 CMTS
DOCSIS 1.1Spec Issued
1st Qualified1.1 CMTS (ARRIS)
DOCSIS 2.0Spec Issued
2nd Qualified2.0 CMTS (ARRIS)
1st Qualified2.0 CMTS (Terayon)
2007
DOCSIS 3.0Spec Issued
???
M-CMTSSpecs Issued
???
When will these new CMTS Architectures be Deployable?
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Industry Predictions: 2006-20082006 2007
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08
2008
Interops (2.0/2.0b)
Deployments
Interops Lab/FieldTrials
Deployments
Interops Lab/FieldTrials
Lab/FieldTrials
(since 1Q05)
This does not reflect ARRIS product plans. It is a representation of general industry milestones by all Vendors.
Pre-Standard(e.g. FlexPath)
M-CMTS
DOCSIS 2.0b(if defined)
DOCSIS® 3.0
Lab/Field Trials
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Industry Predictions: 2008-20102008 2009
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10
2010
Deployments
Deployments
This does not reflect ARRIS product plans- It is a representation of general industry milestones by all Vendors.
Pre-Standard(e.g. FlexPath)
M-CMTS
DOCSIS 2.0b(if defined)
DOCSIS® 3.0
Lab/FieldTrials
Lab/FieldTrials
Deployments
Deployments
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Agenda
▪ Introduction▪Traditional CMTS, I-CMTS, & M-CMTS▪Predictions▪Conclusions
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Do MSOs need a Next Gen CMTS?
▪ Flexible bandwidth allocation needed to reduce CAPEX/sub− Discrete deployment of Upstream and Downstream capacity
allows new cost-effective services like IPTV▪ Competition from DSL and FTTX is driving Channel Bonding▪ IPv6 is needed to resolve IP address exhaust for large MSO
or interconnected IP networks▪ Triple play is moving to converged IPTV, VoIP, and HSD
− This requires more bandwidth, security, and IP addresses to facilitate this shift to everything IP, everywhere
Answer: Yes…
• to reduce CAPEX in new hardware and OPEX in complex network management
• to increase revenues from new services
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Conclusions
▪ DOCSIS® 3.0, I-CMTS, and M-CMTS will all be available in the near future
▪ With DOCSIS 3.0 & I-CMTS & M-CMTS, the cable industry is creating a long-term infrastructure that will dominate the edge for years to come