Managing IP-TV Business

Delivering PTV Service Successfully

John Sihotang
Email : sihotang@telkom.co.id

Bandung, 5 Agustus 2010

Expertise  Empowering  Assured  Progressive  Heart

Contents:

1 Overview
2 Business & Technical Strategy
3 Telkom’s Capabilities Analysis
& Solution
4
Conclusion

Expertise  Empowering  Assured  Progressive  Heart

 KOMPETISI
Background • Tingkat Kompetisi Tinggi
• Price War

INDUSTRI
Kompetisi
Strategi
Korporasi
TEKNOLOGI

Broadband
Industri
IPTV
KORPORASI
Tripple Play
TV over IP It is possible!!
VoD PELANGGAN
Advertising
Teknologi
LIS Speedy: 1,4 juta (Mar 2010)
Pelanggan
“Grow New Wave”
Voice of customers:
-Tertarik asal harga kompetitif dan performansi bagus
(source: In depth interview broadband 2008)
 The Challenge
• Business Challenge
– Create a better user experience than cable or satellite
– Becoming entertainment provider - major shift for a telco
– The television market is an uphill battle - well established entities
– Get premium content at lower prices than cable or satellite
– Build trust with studios and publishers
– Differentiate business model from cable (On demand? Anywhere access?)
– Set Top Box price <$100
– Accelerate FTTx/ADSL2+/VDSL roll-outs

• Technology Challenge
– Build better/cheaper silicon for STB
– Lower cost of DSLAM/FTTx deployments (WiMAX?)
– Further improve video compression rates
– Content recording and distribution control (secure DRM)
– End-to-end QoS monitoring and service assurance
– Integrated customer care, billing, provisioning, activation, self-service
– Multi-services blending (VoIP, IPTV, apps)
– Higher density of VOD play-out farms
 Benchmark - Example of IPTV offer in western USA
2/3Play on FTTH, BB speed up to 50Mega, stand alone TV offer . ATT & Verizon are offering
Offer IP/Cable Tv and DTH TV (Direct TV when there is no coverage) as well as mobile TV with Qualcom
MediaFlo.

NO Free IPTV, there are 2 kind of pricing:

Pricing Basic pay (FiOS TV basic TV channel + STB/DVR + BB 3M): Verizon 84.99$/month (on
promotion)
Premium (U-verse / premium + STBHD + BB20): AT&T 115€/month

TV offer”:
Verizon FiOS TV (package basic pay): 125 HD channels, Over 385 digital channels, VOD: Over
TV content 18,000 Video On Demand titles every month
AT&T U-verse: TV packages start at $49 per month – packages available with up to 390
channels, including local , Access to over 110 HD programming
Basic Channels: Local channels such as ABC, CBS, NBC and Fox, ESPN, Discovery, TNT, USA,
MTV, CNN and more

STB HD AT&T provides an HD-ready receiver at no additional charge.

TV Widget: maps, weather, news, traffic, Finance news, gaming (lottery), directories
PVR : time shift and catch up TV
Other Media Center/multiroom
Video communication
services Remote programming: AT&T 14 days before

Fonte: Rielaborazioni Benchmark TIlab

Contents:

1 Overview
2 Business & Technical Strategy
3 Telkom’s Capabilities Analysis
& Solution
4
Conclusion

Expertise  Empowering  Assured  Progressive  Heart

Strategy Map of IPTV
Financial Perspective
Shareholder Value:
Productivity Revenue Generator Growth

Eksploitasi & Pemberdayaan a. Ekspansi pasar

Aset Eksisting b. Profitability pasar eksisting

Price Quality Availability Service Brand

a Kerjasama a. Konten menarik/ Cakupan jaringan a. Customer Care yang a. Brand unggulan
supplier bermutu yang luas dan handal b. Operator mobile
b Tarif yang b. Jaringan yang tersebar b. Distribution channel unggulan
terjangkau handal
Customer Perspective

Operation Mgmt Customer Mgmt Innovation Proc. Reg. & Social

Menjamin kelancaran a. CRM : akusisi & retensi Inovasi melalui kerjasama a. Membentuk komunitas
proses value chain b.Introduksi promosi dengan PT. Telkom RDC b. Konten sesuai norma
sosial
Internal Perspective

a. Pelatihan yang berkesinambungan c. Rekrutasi tenaga ahli

b. Transfer knowledge dan partnership d. Investasi teknologi baru

Learning & Growth Perspective

Services Delivering Strategies
1 2
Stage-1 : TELKOM as Platform Provider Stage-2 : TELKOM as Platform Provider + Cont Age

DivMM as Platform Provider DivMM as Platform Provider

 Platform access (QOS)+ SDP + CRM  Platform access (QOS) + SDP + CRM
User Interface - UI User Interface - UI
Editorial remote usage Editorial remote usage
Profiling Profiling
Billing, caring Billing, caring.
Content transportation Content transportation
 Interactivity-widgets, voting function Interactivity-widgets, voting function
 3 Screens Capability 3 Screen Capability
 Set up Box (STB) – Cooperation with PT.PIN  Application Store (Integrated)
 Set up Box (STB) – Cooperation with PT.PIN
INDONUSA as TV Content Aggregator
 Manage CP TV TELKOM as Content Aggregator
 Application Store  Manage CP inluding INDONUSA
 Legal Contract  Legal Contract
 FTA TV content  FTA TV content

TELKOM & INDONUSA as Sales channel TELKOM & INDONUSA as Sales channel

8
Services Delivering Stage

November 2010 June 2011 June 2012

IP TV Rel. 1
TELKOM as Platform Provider +
INDONUSA as Content Agg
IP TV Rel. 2
TELKOM as Platform Provider +
TELKOM Content Aggregator
IP TV Rel. 3 (Enhanced)
TELKOM as Platform Provider
(+IMS) +
Internal TELKOM Content +
INDONUSA as Content Agg

Q2 -2010 2011 2012

CHARACTERISTIC CHARACTERISTIC
CHARACTERISTIC
• 3 Screen (TV, PC, Mobile)
• TV Home • 3 Screen (TV, PC, Mobile)
• TELKOM IPTV Content Agg
• Home Network (Speedy) • TELKOM IPTV Content Aggr
• IP Multimedia Subsystem (IMS)

Stage-1 : TELKOM as Platform provider only

Stage-2 : TELKOM as Platform provider (+IMS) + Content
Agg
Business Delivering Strategy

Consumer
INDONUSA Electronics TELKOM

Offer Diversification 
New Device Sales 
Offering Diversification

Better market 
Defence of native 
Incentive to broadband
Target segmentation aimed egemony on the home subscription upgrades
at increasing its value environment 
Finding new revenue sources


Premium Content 
User Experience  QoS

Brand Control 
Client base and tools to manage it
Expertise 
Brand (CRM, billing…)


Lock-in on exclusive 
Lock-in on Devices, 
Pay: two-side business model
content, keeping allowing selective offering differentiated QoS to
control on the user openings to Widgets Independent and/or not vertically
experience on online and OTT Applications integrated Content Providers
Strategy content 
Partnership with 
Free: Best Effort and Rev-Share
(intermediation) Telcos, aimed at from Context & Targeted Ads
offering Quality of 
App Store with Open SDK
Service 
User Experience as leverage
between Premium and Open Sea
Infrastructure Deployment Model

Residensial HRB/Office Building Apartemen/Hotel


ADSL 2++ 
Metro-Ethernet 
GPON

FTTx 
FTTH 
Remote DSLAM
access 
Wireless BB 
Wireless BB 
Wireless BB

 8 – 10 Mbps 
100 Mbps (to user) 
8 – 10 Mbps

1 Gbps (to network)
bandwidth


1 km (DSLAM to 
100 meter (switch to 
1 km (Remote DSLAM to modem
distance modem ADSL) user) ADSL)


Homegateway + STB Distribution switch +

Homegateway + STB
CPE 

STB
Marketing Strategy
Marketing Mix
• The subscriber has the choice of channel selection and pays only for the
channels being subscribed
• A longer-term plan offers a bigger discount to subscribers For example, the
HBO and Cinemax package combo is Rp.85.000 monthly, Rp. 75.000 semi-
annually, and Rp 65.000 yearly.
• A channel subscription plan is available under different terms: monthly, six-
monthly and yearly
• On demand programs are available on a pay per view basis
• Service is available at virtually no startup cost for subscriber
• Telkom provides free installation and decoder Set Top Box (STB) for
customers who subscribe to broadband service.
• Customers do not incur any cost to try IPTV-based television service with
fifteen free channels included, and there is no monthly service fee
• Pause, fast forward, and fast backward features are available only for on
demand programs
• Telkom provides a la Carte pricing models that give much flexibility in the
channel selection, resulting in a tremendous interest from customers.
Contents:

1 Overview
2 Business & Technical Strategy
3 Telkom’s Capabilities
Analysis & Solution
4
Conclusion

Expertise  Empowering  Assured  Progressive  Heart

Telkom’s Capabilities Analysis as a Service Provider
• Indonusa telah berperan sebagai content provider sekaligus content aggregator,
Content • kompetensi content aggregator tidak harus dimiliki Telkom pada tahap awal dan akan
Aggregation dibutuhkan saat PT. Telkom membuka kemungkinan kerjasama dengan content provider
lainnya selain Indonusa.

• Telkom belum berpengalaman melakukan fungsi content packaging seperti mengemas

Content
konten sesuai target pasar dan karakteristik pelanggan
Packaging • Telkom perlu menyiapkan kompetensi ini

• Telkom telah cukup kuat di bidang marketing dan CRM layanan legacy,
Marketing & • Perlu kemampuan komunikasi massa yang lebih melibatkan emosi pelanggan dan
CRM pemahaman call center terhadap layanan IPTV.

• Proses billing atau pencatatan penggunaan akses telah dilakukan Telkom pada layanan
legacy namun sangat berbeda dengan layanan proses billing IPTV yang lebih kompleks
Billing karena diintegrasikan dengan proses autentikasi dan advertisement (pembelanjaan).

• Kompetensi layanan advertising atau iklan belum menjadi kompetensi Telkom.

Sell & Integ. • Dalam persiapan implementasi IPTV yang akan banyak membawa program advertising,
Adv maka pengembangan kompetensi perlu dilakukan Telkom, terutama dalam kaitannya
dengan proses penjualan (autentikasi dan pembayaran).
Telkom’s Capabilities Analysis as a Network Operator

• Kompetensi content delivery telah melekat pada PT. Telkom

Content
Delivery sebagai service provider sekaligus network operator layanan suara,
data dan internet.
• Namun untuk mengelola layanan IPTV perlu adanya
pengembangan kompetensi dalam hal content delivery melalui
jaringan IPTV.

Content • Dalam implementasi layanan data dan internet, PT. Telkom

Storage & menyediakan fasilitas storage dan hosting.
hosting
• Kompetensi dan sumber daya ini dapat dimanfaatkan dan
digunakan dalam layanan IPTV.
Network
• Network operation and maintenance: Kompetensi ini sangat
Operation &
Maint. berkaitan dengan sistem dan teknologi yang digunakan
Contents:

1 Overview
2 Business & Technical Strategy
3 Telkom’s Capabilities Analysis
& Solution
4
Conclusion

Expertise  Empowering  Assured  Progressive  Heart

6
Conclusion
Produk IPTV berperan strategis dalam peningkatan revenue
TELKOM melalui peningkatan utilisasi dari jaringan
broadband serta sebagai driver untuk new revenue stream.
Tahapan Delivery Layanan IPTV Telkom sebagai Platform, yang
didukung oleh Indonusa sebagain Content Agregator. Selanjutnya
Telkom mengambil peran sebagai Content Agregator.
Telkom akan mensinergikan 3 potensi revenue yaitu melalui
platform revenue stream, content revenue dan Advertising.

Layanan IPTV akan dikembangkan kearah triple screen,

Tvinteraktif,Tvphone serta Integrated dengan webTv.
IPTV diposisikan sebagai produk HD dan internet TV
Target market medium to high yang merupakan pelanggan speedy
Sebagai Complementary dari PayTV nasional
Implementasi akan dimulai dari pengenalan secara trial pada
segment dan area terpilih, dan dilanjutkan dengan rollout secara
bertahap sesuai dengan implementasi jaringan NGN.