WHO ARE THE ECHO BOOMERS?

WHO ARE THE ECHO BOOMERS?
Echo Boomers are the generation born between the early 1980s and the
mid 1990s. They are the children of the baby boomer generation of the
1950s and 1960s. There are over 250 million of them and the oldest are
now moving into adulthood to become the first true digital citizens.
They are also known as: ‘Generation Y’, ‘Bridgers’ or ‘Millennials’. Most
have grown up in a world where they’ve never ridden in a car without a
seat-belt, spent a day at the beach without sun cream or left home without
a mobile phone.
Real World Quadruple Play:
Converging Fixed and Mobile
Broadband
25
25 September
September 2006
2006
Jeremy Steventon-Barnes
jeremy.barnes@tellabs.com
Key Message
Consumers demand
services that are
instant, intelligent, and
indispensable
Converged services
require deep fibre for
high quality triple play,
plus bandwidth scaling
for mobile broadband
Agenda
> Convergence trends
> Triple play and deep fibre
> Mobile broadband
About Tellabs
> Over 30 years’ experience
> Leader in North American
fibre access
> Over 40% of EMEA mobile
operators rely on Tellabs
> Solutions in about
300 networks in about
100 countries
> About 3,700 employees
> 2005 annual revenue $1.9B
Operator Challenges
Fixed Operator Business Challenges
Source: Infonetics, “Service Provider Plans for IP, MPLS, and ATM”
Reducing opex and creating new services are key to
growing revenues and beating the competition
Operator Challenges
Mobile Operator Business Challenges
Source: Infonetics, “Service Provider Plans for Next Gen Mobile and Wireless Broadband”
Again: creating new services and reducing opex
Convergence Vision
Converged Network
Residential
Access
Business
Access
Mobile
New services, opex synergies, lower churn…
Convergence by Orange
31st
31stMay
May2006
2006
Orange
OrangePioneers
PioneersTotal
TotalCommunications:
Communications:
Integration
of
Mobile,
Fixed-Line
Integration of Mobile, Fixed-Lineand
andBroadband
Broadband
plus
plusbusiness
businesscommunications
communicationsservices
services
--Orange,
Orange,Wanadoo,
Wanadoo,Equant
Equantand
andEtrali
Etraliunite
uniteunder
underthe
theOrange
Orangebrand
brand
--AAsingle
singlecustomer
customerexperience
experiencefrom
fromsales
salesto
toservice
service
--Launch
of
free
Orange
broadband
for
Orange
Launch of free Orange broadband for Orangemobile
mobilePay
PayMonthly
Monthlycustomers
customers
--Free
Freefixed-line
fixed-linecalls
callsto
toOrange
Orangemobiles
mobileswith
withnew
new"Anytime"
"Anytime"broadband
broadbandtalk
talk
service
service
--Future
Futureconverged
convergedservices
servicesannounced,
announced,including
includingOne
OnePhone,
Phone,single
singleemail
emailand
and
one
oneaddress
addressbook
bookacross
acrossmobile
mobileand
andbroadband
broadband
--Orange
Business
Services:
a
single
banner
Orange Business Services: a single bannerfor
forall
allbusiness
businessservices
services
Convergence by Sky
18
18July
July2006
2006
BRITISH
BRITISHSKY
SKYBROADCASTING
BROADCASTINGPLC
PLC
Free
FreeBroadband
Broadbandfor
forSky
SkyCustomers
Customers
Launch
Launchsets
setsnew
newstandards
standardsin
inquality,
quality,ease
easeand
andsavings
savings
Convergence by Vodafone
30
30May
May2006
2006
Vodafone
VodafoneGroup
Group
Strategy
Strategyupdate
updatefrom
fromVodafone
Vodafone
“In
“Inthe
thecontext
contextof
ofchanging
changingcustomer
customerrequirements
requirementsand
andthe
thegrowing
growing
convergence
convergenceof
ofmobile,
mobile,broadband
broadbandand
andthe
theinternet,
internet,Vodafone's
Vodafone'sthird
third
strategy
strategyobjective
objectivewill
willbe
beto
toinnovate
innovateand
anddeliver
deliveron
oncustomers'
customers'total
total
communications
communicationsneeds.”
needs.”
> 1 September: “Vodafone Germany launched … flat rate …
fixed, mobile and DSL services”
> 11 September: “Vodafone to deliver fixed-line broadband
services in the UK”
> 15 September: “Vodafone Italy and Fastweb announce joint
broadband initiative”
Convergence by Telecom Italia
Thanks to
broadband, telecoms
and the media are
converging
and that is where we
are moving
Marco Tronchetti Provera
ex-Chairman, Telecom Italia
[“The Economist”, 14 Sep 2006]
3play and 4play defined
Triple
Tripleplay
play(telecommunications)
(telecommunications)
From
FromWikipedia,
Wikipedia,the
thefree
freeencyclopedia
encyclopedia
In
Intelecommunications,
telecommunications,the
theTriple
TriplePlay
Playservice
serviceisisaa
marketing
marketingterm
termfor
forthe
theprovisioning
provisioningof
ofthe
thethree
three
services:
services:high-speed
high-speedInternet,
Internet,television
television(Video
(Videoon
on
Demand
Demandor
orregular
regularbroadcasts)
broadcasts)and
andtelephone
telephone
service
serviceover
overaasingle
singlebroadband
broadbandconnection.
connection.
Triple
TriplePlay
Playhas
hasled
ledto
tothe
theterm
term"Quadruple
"Quadrupleplay"
play"(or
(or
4play)
4play)where
wherewireless
wirelesscommunications
communicationsisisintroduced
introduced
as
asanother
anothermedium
mediumto
todeliver
delivervideo,
video,Internet
Internetand
and
voice
voicecontent.
content.The
Thegrouping
groupingtogether
togetherof
ofservices
services(as
(as
triple
tripleor
orquadruple
quadrupleplay)
play)isiscalled
calledmulti-play.
multi-play.
Multi-play bandwidth needs
High Speed Data and VOIP = 5Mbps
Gaming Stream = 4Mbps
AoD/VoD Stream = 4Mbps
PVR Stream = 4Mbps
SDTV Stream 1 = 4Mbps
SDTV Stream 2 = 4Mbps
Premium HDTV Stream = 12Mbps
HDTV in multi-play Æ need for deep fibre
FTTx Options
FTTP
100M
BPON/GPON
VDSL2
150m
GE
Local
Exchange
100M
FTTC
1.2-2.4km
ADSL2+/
VDSL2
10-20M
FTTN
Fibre costs in for
greenfield deployments
FTTP Per Home Capital Costs
Fiber
Copper
1980s
1990s
Source: In-Stat/MDR
YE-99
YE-00
YE-01
YE-02
YE-03
Parity with Cost of
Deploying New Copper
Triple play summary
> 3play is as old as cable modems
> 1st generation 3play with IPTV over
ADSL2+ only delivers SDTV
> Satellite, cable and competitive
operators are offering a growing
menu of HDTV plus instant Internet
> To compete, incumbent operators
need deep fibre, ie FTTP or FTTC
Mobile Broadband
> 4play is more than just
adding mobile voice to 3play
> Mobile broadband is being
realised through 3G HSPA
> Data traffic grows rapidly
Æ large bandwidth upgrades
> Revenue growth is slower
> Operators must decouple
bandwidth from cost…
Europe: Mobile Revenue Trends
300
US$ Bn
250
200
18%
21%
2004
2005
24%
27%
30%
32%
2006
2007
2008
2009
150
100
50
0
Voice
Data
Source: Pyramid Research
Data revenue grows steadily…
But data traffic grows dramatically…
Mobile Margin Trends?
Money
es
u
n
e
v
e
R
r
to
ra
e
p
O
e
Mobil
Margin Squeeze
h)
ha
k
c
a
B
ul
itio
d
a
r
t
s(
t
s
o
C
ac
o
r
p
p
nal a
Time
Cost-effective backhaul OR margin squeeze?
Mobile Network Evolution
> Wireline broadband as a precedent
> Minimise backhaul opex
> Reduce leased line bandwidth for 3G data
with statistical gain
> Substitute Metro Ethernet & DSL for
expensive TDM leased lines
> Deploy Ethernet Microwave with adaptive
modulation
> Converge with wireline broadband
infrastructure where possible
> Anticipate new standards
and services
Summary
Consumers demand
services that are
instant, intelligent, and
indispensable
Converged services
require deep fibre for
high quality triple play,
plus bandwidth scaling
for mobile broadband