Deploying IPTV. Loyd Benson, President. Pioneer Telephone Cooperative, Inc.
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1 Deploying IPTV Loyd Benson, President Pioneer Telephone Cooperative, Inc.
2 About Pioneer Telephone Fourth largest U.S. telephone cooperative 150,000 customers in 30 Oklahoma counties 17,000 broadband subscribers 6,500+ IPTV subscribers 60% of IPTV customers subscribe to Triple Play Businesses include - Digital TV, Wireless, Internet, Long Distance, Business Solutions, Security Covering over 10,000 square miles
3 Market Evaluation Market Evaluation in 2003 identified: High speed broadband services for delivery of Internet and other broadband content as customer requirements The market defined the primary services that meet the customers demand are voice, data and video
4 Objectives Utilize existing infrastructure in delivery of services Be first to market with bundle to increase the likelihood of acquiring and retaining the customer Require dial tone to have bundled service
5 Decision Process Business Plan Financial Plan Market Analysis Operations Plan Organizational and Legal Plan Engineering Plan Human Resources Plan
6 Key Financial Drivers Revenues Packaging Revenue Additional Set Top Box (STB) Revenue Video on Demand/Pay Per View Premium Channel Revenue
7 Key Financial Drivers Capital Expenditures Network Configuration Headend Equipment Middleware Startup Video on Demand Server DSL Line Cards
8 Key Financial Drivers Operating Expenses Programming Customer Premise Equipment Network Costs Advertising & Marketing Human Resources Depreciation Installation
9 Findings Existing personnel New support processes and adjusting embedded mind sets Marketing of Video in particular requires Telcos to approach this product differently than traditional Telco products Process and work flow different
10 Findings Availability of Content and Pricing Acquiring content as small independent is difficult Associations with purchasing power are controlled by the cable industry Prices are high due to lack of volume and industry association Regulatory and Franchising Lengthy process seeking approval of each community Certain cable regulations don t apply to IPTV Contracts are written around cable operator
11 Findings Early provider of commercial IPTV services 8 Phase deployment July 2004 to January ,000 homes passed 72 communities across Central and Western Oklahoma 169 IPTV channels (MPEG-2) 3 Streams Video & High-Speed Data 8,000 feet loop
12 Findings Copper and Fiber broadband infrastructure to the home Video Network 8 fiber rings using 1,455 miles of fiber transport serving 76 communities Primary delivery ADSL2+ over copper Majority of Fiber To The Premise (FTTP) are Greenfield builds 15 Mbps for voice, IPTV and data (1) Video Headend, (1) Mini Headend to deliver 2 nd DMA off-air programming
13 Findings Installation Two different truck rolls required Installs are time consuming and costly Five-day timeline from order to install Two field techs 3 ½ hours each per standard install Use of Contractors
14 Findings Subscribers reluctant to rewire Liability of having techs attic crawl and wall fish wire Concern of unsightly cable and wiring Environmental concerns for techs i.e. heat in attics; space limitations
15 Findings Interoperability & Integration of equipment/vendors IPTV is new, no standards Transport, encoder, billing, middleware, VoD, etc. Set Top Boxes, Modems Integration is driven by the operators, not the vendors
16 Findings Customer expectations are different than Telco customers Television is more important than the telephone Business Office hours do not apply Value Customers expect at least as much as cable for same or less money
17 More Content IP rights - contractual Smart Home Management Local and Delivery Future Needs Remote Management Ability to manage customers equipment trouble shoot, new service Customer Install Plug n Play
18 Future Products Add Insertion Deployment in process MPEG4 Hi-Definition Digital Video Recorder (DVR)
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