The State of the Art and Evolution of Cable Television and Broadband Technology Andrew Afflerbach, Ph.D., P.E. CEO and Director of Engineering CTC Technology & Energy October 8, 2013

Report Outline Evolution of underlying infrastructure DOCSIS and PON over Coax Internet protocol (IP) migration and convergence Evolution of applications and video content presentation Evolution of video production © CTC 2013

Summary of Findings Cable the primary access to residential and business broadband for foreseeable future for most of U.S. Hybrid fiber/coax has significant limitations relative to fully fiber optic networks Rapid increases in demand Over-the-top video, gaming, streaming media Cable operators seek to keep up while limiting capital expenditures Electronics, processes, software Cost-effective approaches for PEG production and needs in cable franchise © CTC 2013

Limitations of Coaxial Cable Current coaxial cable systems limited to 1 GHz bandwidth In practice 750-860 MHz due to electronics Typical data speeds low hundreds Mbps for premium users Typical data speeds tens of Mbps Scalable by adding fiber and upgrading electronics (limited) Single strand of fiber 10,000 GHz bandwidth Typical backbone speeds hundreds of Gbps Typical access network speeds Bidirectional 1 Gbps (active Ethernet) Tens to hundreds of Mbps (PON) (depending on service) Scalable with faster electronics Cable industry strategy is to add fiber incrementally © CTC 2013

Evolution of Underlying Infrastructure From DOCSIS 3. 0 to 3 Evolution of Underlying Infrastructure From DOCSIS 3.0 to 3.1 and beyond Data over Cable Service Interface Specification (DOCSIS) – Cable modem standard DOCSIS 1.0 cable modem introduced by industry in late- 1990s to increase standardization and reduce costs Counterpart to Ethernet and WiFi Later versions increased speed, security and functionality DOCSIS 3.0 now standard (many 2.0 still in use) bonds multiple cable channels © CTC 2013

Evolution of Underlying Infrastructure Today’s Cable-TV infrastructure © CTC 2013

Evolution of Underlying Infrastructure DOCSIS 3.1 To be introduced in 2014-2015 Bonds 200 MHz channels 5 to 10 Gbps shared by neighborhood 100/25 Mbps average with appropriate planning and segmentation Requires new modems and hub electronics Would benefit from reallocation of upstream © CTC 2013

Evolution of Underlying Infrastructure Ethernet PON over Coax (EPOC) and beyond Replace DOCSIS with “Fiber PON” type equipment Comparable to Verizon FiOS but with RF coaxial interfaces Economy of scale with FTTP providers Optimized for IP Ethernet Virtual dedicated connections for each home Can coexist with non-EPOC use 10 Gbps per node area – 100/25 Mbps average per user Faster speeds require outside plant work Deeper fiber More coaxial capacity (> 1 GHz) (drops) Higher modulation signals (1024 and 4096-QAM) (drops) Reuters

IP Convergence Toward an Internet-Based Approach Current system divides channel spectrum Television channels (fixed digital QAM channels) Video-on-demand (servers connected to digital QAM channels) Data/cable modem channels Assignment is “nailed down” Evolving “CCAP” approach Unified headend equipment for video, data More flexibility to reassign channels Evolution path to putting VoD on IP in future Reduces cost and complexity Currently being introduced © CTC 2013

Evolution of Underlying Infrastructure Converged Cable Access Platform (CCAP) © CTC 2013

Evolution of Underlying Infrastructure Converged Cable Access Platform (CCAP) © CTC 2013

Other Evolution of Infrastructure to IP IPv6 introduction Large global address space (no need for NAT) Like migrating from extension (216-555-0000 ext 1234) to direct dial (216-555-1234) Benefits interactive video, games, embedded devices Being introduced by Comcast– “dual stack” Moving VoD to IP Greater centralization Comcast and over-the-top on same set top converter Set top converter with open apps (X1 and X2) © CTC 2013

Evolution of Infrastructure to IP Current Internet media mostly unicast (separate copy for each viewer © CTC 2013

Evolution of Infrastructure to IP Multicast networks carry single copy of a program viewed by multiple people Critical for migrating “television” to IP © CTC 2013

Other Evolution of Cable-Related Infrastructure Migration from MPEG-2 to MPEG-4 Standard used in Blu-ray and FiOS HDTV Double compression ratio Migration to H.265 Better quality video than MPEG-4 at half the bit rate Facilitate use of UHDTV 4K and 8K – 60 degree field of view 4K in 2014 in cable trials No clear path to open cable set top boxes © CTC 2013

Estimated Development Timeline © CTC 2013

Usage of Cable System Operator Content vs. Over-the-Top (OTT) Rapid growth of OTT to $15 billion in 2016 Google Chromecast, Roku, Apple TV, XBox growing device and software ecosystem Comcast and operators hosting content locally (Akamai) to manage backbone bandwidth OTT challenges capacity in access layer (oversubscription) Cable operator has full control over delivery of OTT Can prioritize traffic Can determine amount of available backbone or access Internet traffic Can establish data caps Neutrality issue © CTC 2013

Integration of Wireless Comcast outdoor WiFi in several metropolitan areas Many options for working with wireless service providers Fiber mobile backhaul to cell sites/antennas Cable content on LTE network (eMBS) Picocells on cable modems © CTC 2013

Integration of Wireless © CTC 2013

Evolution of Video Production Typical full studio equipment costs $500,000 to $1,500,000 -- $3 to $5 million over 15 years Falling costs and improving technology create more options outside studio remote controlled cameras and pre-wired facilities virtual sets portable production equipment network connectivity – fiber and wireless Need for trained staff continues Need for storage © CTC 2013

New approaches to local programming HDTV now expected by viewers VoD well-suited to PEG High bandwidth network Remote origination Centralized storage/production/switching Shared staff Social media integration Access to electronic programming guide Training public – who can generate content at home and at the studio Interaction through Skype, Google Hangouts Enhanced portable video production equipment that minimizes time and staff need and operating costs © CTC 2013

Conclusion Cable systems sit in the middle of the broadband ecosystem Rapid growth of bandwidth demand pushes limits of cable technology Cable industry using incremental model to meet demand with existing infrastructure All data, video media moving toward converged IP Significant wireless/cable synergy Rich opportunities for PEG – need network connectivity, training, VoD, HDTV, programming guide placement © CTC 2013