Cable Telephony Business Case and North American Forecast - 2004 to 2007

1 Executive Summary

2 The Opportunity for Cable Telephony

2.1 Incumbent Telephone Companies

2.2 Early Success with Circuit Switched Cable Telephony

2.3 Packet Voice Technology Overview

2.4 Voice Service Requirements

2.5 Market Drivers

2.6 Market Strategies

3 Packet-based Cable Telephony Technologies

3.1 CableLabs PacketCable Specifications

3.1.1 DOCSIS 1.1 Specification

3.1.2 DOCSIS 2.0 Specifications

3.1.3 PacketCable 1.0 Specifications

3.1.4 PacketCable 1.1 Specifications

3.1.5 PacketCable 1.2 Specifications

3.1.6 PacketCable 1.3 Specifications

3.2 PacketCable Architecture

3.3 PacketCable Functional Components

3.3.1 Hybrid Fiber Coax (HFC) Access Network

3.3.2 Cable Modem Termination System (CMTS)

3.3.3 Call Management Server (CMS)

3.3.4 Media Gateway Controller (MGC)

3.3.5 Signaling Gateway (SG)

3.3.6 Media Gateway (MG)

3.3.7 OSS Back Office Components

3.3.8 Announcement Servers (ANS)

3.3.9 Embedded Multimedia Terminal Adapter (eMTA)

3.4 Home Gateway Architecture

3.5 Hybrid Packet/Circuit Switched Architectures

3.6 Non-PacketCable Voice over IP Architectures

4 The Business Case for Cable Telephony

4.1 The Business Case for Building a Cable Telephony Network

4.2 The Business Case for Outsourcing a Cable Telephony Network

5 The Outlook for Cable Telephony in North American

5.1 Legacy Circuit Switched Services

5.2 The PacketCable Rollout

5.3 Outlook for the Major Cable Companies

5.3.1 Cablevision Systems Corporation

5.3.2 Charter Communications

5.3.3 Comcast Corporation

5.3.4 Cox Communications

5.3.5 Insight Communications

5.3.6 Mediacom Communications

5.3.7 Time Warner Cable

5.4 Network and Service Deployment Strategies

5.4.1 Deploying PacketCable Networks

5.4.2 Outsourcing Cable Telephony Networks

6 North American Cable Telephony Market Forecast

6.1 Forecast Assumptions

6.2 Consolidated North American Forecast

6.3 U.S. Forecast

6.4 Canadian Forecast

6.5 Alternate U.S. Forecast

7 Future Trends and Drivers

7.1 Technology Trends and Drivers

7.2 Service Deployment

7.3 Market Trends and Drivers

8 Opportunities, Risks, and Recommendations

8.1 Opportunities

8.2 Risks

8.3 Recommendations

8.3.1 Service Provider

8.3.2 System Integrators

8.3.3 System Suppliers

9 Appendices

Appendix I: Cable Company Profiles

Adams Cable Service

Advanced Cable Communications

Armstrong

Cablevision Systems Corporation

Charter Communications

Comcast Corporation

Cox Communications

Insight Communications

Mediacom Communications

Time Warner Cable

Appendix II: System Integrators

8x8, Inc.

Gemini Voice Solutions

Net2Phone

Volo Communications

Vonage

Appendix III: Systems Manufacturers

AudioCodes Ltd.

Cedar Point Communications

Cisco Systems, Inc.

Gallery IP Telephony, Inc.

General Bandwidth

IP Unity

Nortel Networks

Nuera

Siemens

Syndeo Corporation

Appendix IV: Customer Equipment

Arris Group, Inc.

Motorola

Terayon Communications Systems

Toshiba Corporation

Appendix V: Operational Support Systems (OSS) Providers

Alopa Networks

Convergys

CSG Systems

Interactive Enterprises

Lemur Networks

Liberate Technologies

Primal Solutions

Table of Figures


• Figure 1-1: Cable Telephony Subscriber Forecast for North America

• Figure 1-2: Forecast for Cable Telephony Service Revenue in North America

• Figure 1-3: Forecast for System Revenue for Cable Telephony in North America

• Figure 2-1: Circuit Switched Cable Telephony Network Architecture

• Figure 3-1: PacketCable Network Architecture

• Figure 3-2: Typical PacketCable Network

• Figure 3-3: PacketCable Functional Component Reference Model

• Figure 3-4: Hybrid Circuit Switched/PacketCable Network Architecture

• Figure 3-5: Alternative to the PacketCable Architecture

• Figure 6-1: North American Cable Telephony Subscribers

• Figure 6-2: North American Cable Telephony Service Provider Revenue

• Figure 6-3: North American System Revenue

• Figure 6-4: U.S. Cable Data Homes Passed

• Figure 6-5: U.S. Cable Data Subscribers

• Figure 6-6: U.S. Cable Telephony Homes Passed

• Figure 6-7: U.S. Cable Telephony Subscriber Forecast

• Figure 6-8: U.S. Cable Telephony Service Revenue

• Figure 6-9: U.S. Cable Telephony System Revenue

• Figure 6-10: Cable Forecast for Canada

• Figure 6-11: Canadian Cable Telephony Subscribers

• Figure 6-12: Canadian Service Revenue

• Figure 6-13: Canadian System Revenue

• Figure 6-14: U.S. Telephony Homes Passed in the Alternate U.S. Forecast

• Figure 6-15: U. S. Cable Telephony Subscribers in Alternate U.S. Forecast

• Figure 6-16: Cable Telephony Service Revenue Alternate U.S. Forecast

• Figure 6-17: Cable Telephony System Alternate U.S. Forecast

• Figure 9-1: Cablevisions’ Service Area

• Figure 9-2: Volo Communications Interconnection Points

• Figure 9-3: Cisco’s Packet Cable Product Architecture

• Figure 9-4: General Bandwidth Circuit/Packet Architectures

• Figure 9-5: Alopa Cable Telephony OSS Provisioning Architecture

• Figure 9-6: Convergys Infinys System Architecture

• Figure 9-7: Primal Solutions’ Access IM Mediation System Architecture

Table of Tables


• Table 2-1: Relative North American Market Positions and the End of 2002

• Table 2-2: Major U.S. Telephone Company Unlimited Long Distance Packages

• Table 2-3: Calling Features included in Unlimited Long Distance Packages

• Table 2-4: Alliances between U.S. Telephone Companies and DBS Companies

• Table 4-1: Business Case for Building a Cable Telephony Network

• Table 4-2: Business Case for Outsourcing a Cable Telephony Network

• Table 5-1: North American Cable Telephony Services

• Table 5-2: Cablevision Network

• Table 5-3: Charter Communications Network

• Table 5-4: Comcast Consolidated Network.

• Table 5-5: Original Comcast Network (without AT&T Broadband)

• Table 5-6: AT&T Broadband Network

• Table 5-7: Comcast’s Cable Telephony Subscription Packages

• Table 5-8: Cox Communications Network

• Table 5-9: Cox Communication’s Cable Telephony Subscription Packages

• Table 5-10: Insight Communications Network

• Table 5-11: Insight Communication's Bundling Pricing

• Table 5-12: Mediacom Communications Network

• Table 5-13: Time Warner Cable Network

• Table 9-1: Adam Cable Service’s Cable Network

• Table 9-2: Adam Cable Service’s Telephony Offerings

• Table 9-3: Advanced Cable Communications Cable Telephony Subscription Packages

• Table 9-4: Armstrong’s Cable Network

• Table 9-5: Armstrong’s Cable Telephony Offerings

• Table 9-6: Size of Cablevisions’ Network

• Table 9-7: Cablevision’s Cable Telephony Subscription Package

• Table 9-8: Cox Communications Voice Features

• Table 9-9: Charter Communications Top Ten Markets

• Table 9-10: Opera