Cable Tech

Verizon: HD VOD Is Coming

CHICAGO -- NXTcomm -- What's the next big thing that's going to ride down Verizon's FiOS network to consumer homes? High-definition video on demand, according to the company's executives attending the NXTcomm show this week.

After a press dinner on Monday, Verizon Communications Inc. (NYSE: VZ) CTO Mark Wegleitner remarked that a high-def VOD service was "in the lab stage" and that the current fiber network "could support it right now."

Wegleitner added that "there is an internal time table for its launch that is currently being debated." So the launch date's not clear, the service specifics are still being refined, but Verizon is solidly moving toward the biggest, best offering possible in VOD.

During the NXTcomm related event in Chicago, Wegleitner also outlined to a room full of press the reasoning for the decision to go with an FTTP network and shed some light on future technological changes that will be coming, including a move beyond GPON.

"We are looking beyond GPON with a three- to five-year timeframe," said Wegleitner. The next step will be a move to wavelength-division multiplexing (WDM), a technology that would give each customer its own wavelength to its home which translates to about 1 Gbit/s for each individual household. "WDM is ahead of us."

Wegleitner also said that Verizon is moving toward IPTV and that it has an evolution plan in place that would take "two years minimum" to begin. "It's going to be an all IPTV world within a three- to five-year time frame."

— Raymond McConville, Reporter, Light Reading

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^Eagle^ 12/5/2012 | 3:06:32 PM
re: Verizon: HD VOD Is Coming OK,

How about some real discussion about the technology mentioned in the story instead of every one grandstanding with opinions about macro trends how our culture is entertained.

Some things I would like to understand about Verizon's announcements and that are mentioned in the story.

1) Verizon says that an all "IPTV" world is coming in 2-3 years. What does this say about their investment BPON? As we know, BPON based on tri-plexors at the customer premise is what VZ has been deploying these last few years. That triplexor based design was put in to carry standard video signals (Analog and QAM) down the fiber to the house. If VZ is going to all IPTV, did they waste their money on those ONT's based on triplexors?

2) HD VOD. What technology will they use to deliver this? Again, VZ states this can be delivered over the EXISTING pon infrastructure. To my knowledge, the existing BPON does not have enough bandwidth to have HD VOD delivered over the "IP" portion of the pon architechture. NOTE: I said the "IP" part. The IP part is the data stream to the house. In the current VZ designs, as stated above, the video goes down it's own analog path.

Therefore I ask, are the two statements: HD VOD and IPTV referring to 2 different efforts? I do not see how they deliver HD VOD over the current IP part of their PON. Perhaps they are actually going to deliver HD VOD over the ANALOG / QAM part of the network in order to deliver HD VOD over the current architechture and currently deployed systems. This would imply a nice win for someone like SA / Cisco or Motorola or Arris, or Harmonic or someone to install a robust QAM and SDV network overlay to feed the HD VOD to the OLTs.

And is the move to IPTV implying that they will move to GPON sooner than the market believes?

3) WDM PON. They state they will be there in 5 years. 5 years in our industry is relatively fast, especially for massive changes in the access network. Does this imply that VZ will have to make once again massive investments to upgrade the PON network they just built in a time period as short as 5 years???? They haven't even finished the first build out. From my read of this, in 5 or 6 years VZ will have old legacy (Legacy by 5 years from now) BPON systems based on triplexors, GPON systems using all IP to deliver everything and WDM PON systems.

Sounds like a LOT of capital equipment being deployed that will almost immediately have to be replaced or upgraded.

What does this mean for VZ's budget, stock price, etc.?

Are the VZ CTO statements / goals realistic?

Be kind of cool if they could really deliver on this. Would mean LOTS of capex spending and all of us who work in the communications industry will see larger flows of money.

anyone care to comment on the real technical and business aspects of VZ statements about IPTV and HD VOD and DWDM PON?

rjmcmahon 12/5/2012 | 3:06:32 PM
re: Verizon: HD VOD Is Coming Be kind of cool if they could really deliver on this. Would mean LOTS of capex spending and all of us who work in the communications industry will see larger flows of money.

So if VZ pisses away rate payer's monies but it goes into your pocket that's cool?
deauxfaux 12/5/2012 | 3:06:33 PM
re: Verizon: HD VOD Is Coming I think Semel got whacked because Google fileted Yahoo in virtually every category where success could be measured.

Plain and simple the GOOG guys "cracked open a can of whup-a**" on Yahoo
deauxfaux 12/5/2012 | 3:06:34 PM
re: Verizon: HD VOD Is Coming I am sure that Murdoch built 2 all HD satellites and retrofitted the other 2 with as many HD transponders as he could in order to make sure that he could beam YouTube everywhere. I can see him cutting ties with all of the content guys as we speak.

Hollywood is probably trying to beat him to the punch, because I am equally sure that they want YouTube to be their primary distribution.

Ditto that for sports and PPV.

Samsung, LG, SONY, Hitachi, Mitsubishi, Sharp, etc. are also completely screwed up with chasing this HD thing. 1080P is overrated, as is 720P. What they really need are big screen sets that take 70P and blow it up to display YouTube in its full glory.

YouTube has its place, but it won't be prime-time for years. Broadcast video over Sat, Cable, and Fiber is going to be around for a very, long, long time. Uverse is a piece of garbage

rjmcmahon 12/5/2012 | 3:06:34 PM
re: Verizon: HD VOD Is Coming deauxfaux;

While I agree with your analysis and enjoyed the sarcasm it's also topical that Semel is no longer CEO of Yahoo. This suggests that the guys chasing professional broadcast content aren't necessarily winning either.
rjmcmahon 12/5/2012 | 3:06:35 PM
re: Verizon: HD VOD Is Coming I'm not a big believer in IPTV or YouTube as end all be alls. Steve Case sold these visions to Time Warner but most forgot to notice that the infrastructure piece of the problem wasn't being solved. No infrastructure improvements than we stay exactly where we are (though that won't stop Wall Street financiers from pushing fantasy onto naive shareholders.)
paolo.franzoi 12/5/2012 | 3:06:35 PM
re: Verizon: HD VOD Is Coming

So, cable companies and sattelite companies will be out of business in 2 years?

Wow, hope you are shorting those stocks.

materialgirl 12/5/2012 | 3:06:36 PM
re: Verizon: HD VOD Is Coming "2 years minimum" to begin IPTV with an "all IPTV world in 3-5 years" is quite a laugh. Those two just don't work together. It will be a YouTube world in 2 years.
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