Broadband Home Fall 2000Welcome and

Industry Perspective

Sandy Teger and Dave Waks

Copyright © 2000

System Dynamics Inc. brought to you by

pulver.com

Slide 2

Goals of the conference

•Understand what’s happening – In the market today –Emerging for tomorrow –Relevant across industry sectors

•Surface issues to be worked on

•Encourage collaboration across industry sectors–Ask us for introductions

Slide 3

Conference Themes

•The Broadband Home is “The Next Big Thing”

•Technology is sexy only for techies– It’s really all about applications and content

•Minimize customer hassle–Should be easy to learn and use–Customer needs help in installation and support

•We’ll grow the pie faster by working together– It’s not a zero-sum game– It hurts us all if products and services don’t work together and disappoint the customer

Slide 4

It’s “The Next Big Thing”

•“Broadband: The $1 Trillion Bet” – (Fortune 10/9/2000)

•More than just PCs and high-speed Internet

•Transforms our lives

•Impacts many industries (infrastructure, products, services, content, applications)

•Global

Slide 5

The Emerging Broadband Home

ISPServices

Cable ModemDSLFixed WirelessFiberSatellite

BroadbandAccess

HomeGateway

Slide 6

Transforms Our Lives

Fast access to information, shopping, entertainment, education

Voicemail,“follow me” service, PBX extension

Video on demand, enhanced TV

Personal radio and music

Games and software

Untethered access to content

Transparency in and out of home

Audio & video content

Slide 7

Interconnected Industry Sectors

Content

Backbone Networks

Broadband Access

Networks

Home Gateways

and Servers

Home Networks

Broadband Appliances

Hardware and software enablers

Applications and services

Slide 8

Global

•Broadband access happening everywhere

•Broadband Home Report subscribers–70 countries–21 countries with 20 or more subscribers

•Conference delegates–17 countries

AustraliaBelgiumBermudaBrazilCanadaGermany

Hong KongIndiaIsraelItalyKoreaMexico

NetherlandsSwedenSwitzerlandUnited KingdomUnited States

Slide 9

Participating Companies

2Wire3ComAirSwitchAP EnginesAT&TBlueprint VenturesBrink's Home SecurityBroadband Access SystemsBroadband GatewaysBroadbandLiving.comBroadcomCABACableLabsCahnersCanal+ TechnologiesCeonCiscoClearBandCoactive NetworksCom21ComcastConcurrent Computer Corp.

CyberManorEarthLinkEfficient NetworksEmperativeEnikiaEricssonExcite@HomeGeocast Network SystemsGilat Satellite NetworksGlobal IP SoundHewlett-PackardHome Phoneline Networking

Alliance (HomePNA)HomePlug Powerline Alliance

(HomePlug)Hughes Network SystemsIBMICTVIgnite Sports MediaIncantaInktomiInnoMedia

Slide 10

Participating Companies - 2

IntelInto NetworksInvensysIshoni NetworksiSKYKobalt InteractiveLauder PartnersThe Lightspan PartnershipMassive Media GroupMicrosoftMotorolaM-TEC WIRELESSMusic Reports, Inc.NetplianceNorthPoint CommunicationsOpenTVPace Micro TechnologyPortalProximQwest CommunicationsRadioCentralRespondTV

RioPortSandstream CommunicationsSega.comShareGateSoftBook PressSony Online EntertainmentSprintSystem Dynamics Inc.Telcordia TechnologiesTelocityTexas InstrumentsTiVoTrident Consulting GroupUcentric SystemsVerizonViaLightViciniumWinfireWinkYAS CorporationZatso

Slide 11

It’s Just Starting

•Focus has been on installing BB access, hooking up one PC

•Future is–Home networking–New appliances–New applications and content–Making it all work well together–Making it simple for “real folks”

Slide 12

Conference Themes

•The Broadband Home is “The Next Big Thing”

•Technology is sexy only for techies

•Minimize customer hassle

•We’ll grow the pie faster by working together

Slide 13

The Dream

“They walk into a store, buy a device -- fully loaded -- bring it home, plug it in, and they’re ready to rock & roll.”

Dan Somers, CEO AT&T Broadbandon his dream experience for consumersFortune 10/9/2000

Slide 14

One Family’s Experience

•Our “quasi-broadband” home

•Rewired for broadband in 1996–PCs–Telephones–Audio and video

•Illustrates today’s realities

Slide 15

First, Some Background

•Sandy and Dave–Math degrees–Assembly language programmers–Always worked in technology–Always fascinated by “the next big thing”–“Walk the talk”

•Dave–Hands-on–“If I can’t buy it, I’ll build it”–“Keeping it working is half the fun!”

•Sandy–“What can it do for me?”–“It drives me crazy when it doesn’t work!”

Our Quasi-broadband Home

Slide 17

The Broadband Home

Much of the technology is available now -- but it’s too damn complex!

•Skill and time to set it up

•Needs sophisticated trouble-shooting skills

•Seemingly simple things are hard to do

Slide 18

Industry Challenges

•Make it easy for the user

•Allow flexibility without increasing complexity

•Satisfy both early adopters and mass market

•Facilitate interworking of products and services–Needs to be “a symphony, not a solo”

Slide 19

Some Specific Challenges

•Accommodate diversity in the home

•Get wireless networking into the market

•Engineer for traffic before the customer complains

•Make it easier for application and content developers

Slide 20

Diversity in the Broadband Home

•One broadband access network from many choices

•Multiple devices–Each suited to application and room

•Multiple home networks–Wired and wireless each have place

•“One size fits all” won’t work

Slide 21

Wireless Networking

•Very attractive home networking solution

•Too many competing flavors

•Reconcile home and office–Like to use same wireless LAN in both

•Reconcile personal area network with home network–Will Bluetooth step on wireless LANs?

•Broadband home is more than PCs –Need to provide adequate bandwidth–10 Mbps for PC-to-PC communications–25 Mbps for video distribution

Slide 22

Deliver On The Promise

•Broadband isn’t living up to the hype

•Congestion is a reality in every network

•Many points of congestion - not just in first mile–The user sees the weakest link

•Doctor Erlang worked it out in the 1920s–Telephone traffic measured in Erlangs

•Networks need “traffic engineering”–Many telephone people have it in their blood

•Everyone needs to learn it and apply it to satisfy the customer

•Shouldn’t promise “50 times faster” until we can deliver it

Slide 23

Make It Easier for Content Developers

•New applications and content are central to long-term success

•Video is most attractive broadband application, but production is expensive

•Diversity fragments opportunity

•Need to work together to simplify development environment

•Applaud multi-vendor efforts to encourage content development–The Broadband Content Delivery Forum–“The Bandies”

Slide 24

Making “The Next Big Thing” Real

•Reduce complexity

•Facilitate new applications and content

•Collaborate between sectors

Let’s Work Together to Speed The Reality!

Slide 25

Conference Logistics

•Schedule–General sessions–Breakout sessions–Tracks

•“Internet lounge” in Balboa room–Email, Web access

•Breakfast, lunch and breaks in Portola Suite and hotel restaurant

•Party Wednesday night at Kuletos Trattoria–Bus operating 6:00 to 10:00

•Feedback please!– Dave, Sandy, pulver.com staff

Slide 26

Follow-on Broadband Home Events

•BBH Spring 2001–February 27 - March 1–Miami

•BBH Europe 2001–May –Amsterdam

•For more details: www.theBroadbandHome.com