1. - Community Broadband Networks - Successful Multi-Service Deployments And Emerging Video Technologies Craig Bender VP – Marketing and Corporate Development Tut Systems craig@tutsys.com

2. Presentation Outline Successful Multi-Service Deployments Lots of Them Variety of Last-Mile Technologies Emerging Video and IP Technologies IP vs. RF for Broadcast TV High-Definition Television MPEG-4 and VC-1 Content Protection Ad/Program Insertion When Everything is IP

3. Successful Broadband Multi-Service Deployments > 40 Municipalities > 40 Housing Developments > 100 Independent Telcos Non-cable-MSO Terrestrial Deployments in the United States

4. Projected Consumer Adoption of Telco Video Telco Video Subscriber Growth Worldwide 2002-2007* 2002 2003 2004 2005 2006 2007 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 10,890 4,733 1,603 572 211 19,012 Worldwide Market (000’s of Subscribers) * InStat/MDR

5. Enabling over 90 Service Providers to Deliver Broadcast TV Service Tut’s Experience in Delivering Broadband Services

6. ATM or IP Regional Network Ad Server Video On Demand Off-Air Satellite TV Content Processor Remote Content Processor Local Content Local Ads Centralized Video Headend Local Distribution Headend Power Line Wireless Lots of Choices for the Last Mile AFC Calix Zhone Next Level Occam Net-to-Net Telstrat ADTRAN Paradyne Alloptic ADSL VDSL FTTP CABLE Scientific Atlanta Ciena Panaway Motorola Cisco AFC OSI Wave 7 Alcatel Teleste ATM – IP/ATM – IP - RF Typical Consortium Ring

7. ADSL VDSL FTTP CABLE VBR Video CBR Video Content Processor Analog Video Digital Video Digital Audio Analog Video ATM or IP ATM IP or RF Constant Video Format Regardless WirelessPower Line Broadcast Or Video-on-Demand

8. Initial VBR Stream Rate Shape Rate Shape – “Fold” the video peaks into the valleys to produce a CBR stream Rate Convert – Pull “bits” out of the video to reduce the CBR stream size Transcode Transcode – Video bit stream format conversion from source (MPEG-2) to target (MPEG-4) 1.5 Mbps CBR MPEG-4 AVC Rate Convert 3.2 Mbps CBR MPEG-2 7.0 Mbps CBR MPEG-4 AVC 9 Mbps VBR MPEG-2 7 Mbps CBR MPEG-2 Applying Rate Conversion and Transcode

9.  IP versus RF for Broadcast TV  High-Definition Television  MPEG-4/VC-1  Content Protection  Ad/Program Insertion  When Everything is IP A Few Technologies of Interest, and Concern

10. IP versus RF for Broadcast TV Advantages/Disadvantages of RF No need for a STB for RF modulated Analog channels Limited (proprietary) interactivity for advanced services Potential for service theft via spoofing filters and pirate STBs Advantages/Disadvantages of IP Common format regardless of service Large opportunity for interactivity Large opportunity for cross-media services Limited potential for theft of service In sync with FCC push to all-digital TV Set-top box per TV or multi-TV gateway required Potential for theft of digital content

11. Format Index Vertical Resolution Horizontal Resolution Aspect Ratio Refresh Rate [Hz] Type 1 480 6404:3 30 224 EDTV 330 460 5 7044:3 30 624 730 860 9 70416:9 30 1024 1130 1260 13 720128016:9 24 HDTV 1430 1560 16 1080196016:9 30 1724 1830 SDTV Of which 6 are High Definition For instance, ABC uses 720/30p, CBS transmits in 1080/30i, while film masters are often 1080/24p Format Index Vertical Resolution Horizontal Resolution Aspect Ratio Scan Type interlaced progressive interlaced progressive interlaced progressive interlaced progressive Scan Type Refresh Rate (Hz) Type ATSC has defined 18 formats for television HDTV – Just What is It, Technically Speaking?

12. 0 10 20 30 40 50 60 70 HHR SDTVSDTV720p-24720p-601080i-30 Required Information Rate in Megapixels/sec HDTV HDTV – That’s a Lot of Pixels!

13. Typical Bit Rates in Mbps for MPEG-2 Compression 0 5 10 15 HHR SDTVSDTV720p-24720p-60 1080i-30 20 HDTV HDTV – That’s a Lot of Bits!

14. ADSL VDSL FTTP CABLE Digital Headend Metro / Regional Headend Central Office Local TV Local Ads Video On Demand Off-Air Satellite TV Regional Network Local Ads TV Over Last-Mile Networks with MPEG-2 HDSD HD SD HD SD HD SD HD SD HD SD HD SD HDTV – Available Today

15. From a July, 2003 IEEE paper on H.264 The Coding Advantage of MPEG-4/H.264/AVC vs. MPEG-2 For Entertainment Content in HD HDTV – Tomorrow’s Compression Advantage

16. Content Protection Theft of Service Major issue in RF deployments due to downstream only nature Hijacked analog taps and STB Filters Pirate STBs (multi-settops in the home) Minor issue in IP deployments due to two way acknowledgment Middleware closed loop STB provisioning Difficult to emulate a STB with a PC (MAC Addr + Client ID) Theft of Content in an IP World All content is high quality digital until it exits the STB Need to protect both Stored and Premium Broadcast video Content encryption + middleware = conditional access (CA)

17. ATM or IP Regional Network Regional Ads Video On Demand Off-Air Satellite TV Content Processor ADSL VDSL FTTP CABLE Regional and Local Ad/Program Insertion Remote Content Processor Local Content Local Ads Centralized Video Headend Local Distribution Headend Power LineWireless Regional Ad/Program Insertion Local Ad/Program Insertion

18. 204/408 Ad Server SCTE 30 Aveon® EMS Analog Video Regional Network For channels that do not contain SCTE 35 signalling, Astria will convert analog cue tones to digital cue tones for transmission to downstream splice points SCTE 35 Analog Cue Tones IRD 1216 Digital Ad Standards-Based Ad Insertion Digital Cue Tone Insertion

19. Website Hosting There’s a Lot Going On VoiceVideoData Video Conferencing Broadcast TV Caller ID VoIP Instant Messaging VPNWeb Surfing VOD Video Phone HD When Everything is IP Multiplayer Gaming

20. Grandma is on the Video Phone There May be Mayhem in the Home Brother Bernard is hosting a website Catherine is watching an interactive game show Mom is telecommuting Sister Sarah is swapping files Dad is watching PPV soccer Today’s Solution – May Not Play (or Pay) in Today’s Home

21. HSIA Broadcast TV VPNVoIP VOD Gaming Last Mile Distribution Regional POP Application Sources Services ISP-B VSP-B VSP-A Corp-B Corp-A ISP-A Manages the last Mile for New Services, New Revenues Leaving Existing BRAS for Existing Dumb Pipe Services BRAS HSIA Intelligent IP Service Control IP Service Controller Internet VoIP

22. 2005 2006 2007 2008 2009 2010 $$$$$ $$$$ $$ $ 0 The Key to Transforming Broadband into Services Intelligent IP Service Control

23. Summary Exciting Video and IP Technologies are Emerging IP vs. RF for Broadcast TV High-Definition Television MPEG-4 and VC-1 Content Protection Ad/Program Insertion IP Service Control Leading to Even More Successful Deployments

24. Transforming Broadband into Services Any Content - Any Network – Any Device - Any Time Craig Bender VP – Marketing and Corporate Development craig@tutsys.com - Community Broadband Networks - Successful Multi-Service Deployments And Emerging Video Technologies