Ultra-Broadband to Further Boost HD Services
Currently, operators in various countries are formulating ultra-broadband development strategies to meet the demand for HD services. In recent years, video services have gradually become an important form of broadband services, with video websites emerging rapidly and other Internet services gradually incorporating video into their original business models. The implementation of China's new Triple Play policy will further drive the development of video services. While all parties regard video as a highlight of future business development, HD has become an important means of attracting users and is also considered the commanding height of future development and competition. As a result, many video websites have launched HD channels.
The development of HD is not only driven by expectations of future demand, but also by the impetus of the industry chain and the potential economic benefits it may bring. In terms of industry chain coordination and driving forces: first, HD content has increased significantly — foreign telecom operators have begun offering 3D video services on IPTV, and the number of global HD content channels has grown to over 500; second, HD terminal prices have begun to decline, and it is expected that over 70% of broadband video STBs (set-top boxes) sold in the future will feature HD capabilities. The affordability of terminals will also be one of the main driving forces behind the growth of HD services. In addition, the development of HD will effectively increase user ARPU. Based on current overseas HD service operations, HD boosts ARPU by more than 30%, drives content consumption, and enhances user stickiness.
HD services require 2 to 3 times more bandwidth than traditional standard-definition services, with each HD channel requiring an average bandwidth of up to 8M. Therefore, the development of HD will drive a sharp rise in traffic and multiply the demand for network bandwidth. To seize the commanding height in future competition, ultra-broadband has become a common goal for global telecom operators, and major operators have formulated ultra-broadband plans. "Fiber replacing copper" addresses the HD shortcomings of telecom operators, who will leverage FTTx plus IPTV to launch a broadband counteroffensive and a battle for the living room.
In addition, smart pipes help establish tiered and classified management objectives, though the technology and business models are still being explored. The development of the Internet and mobile Internet has brought tremendous impact and challenges to operators, with network bandwidth being rapidly consumed and users accessing Internet services through pure data channels. The pressure on network bandwidth and the pipelining of services have prompted operators to seek new pipe models to increase user ARPU.
"Smart pipes" encompass two levels: the bearer transport pipe and the service delivery pipe. Currently, packet bearer networks mainly rely on an over-provisioning approach to guarantee network service quality, resulting in relatively low efficiency in network resource utilization. By enhancing bearer transport control capabilities on the network, intelligence in network resource control can be improved. In addition to the ITU-T Resource and Admission Control Function (RACF) mechanism for fixed access and the 3GPP Policy and Charging Control (PCC) mechanism for mobile access, the new development trend is to combine RACF/PCC with Deep Packet Inspection (DPI) technology. Based on identifying standard session-based services at the application layer, DPI technology is incorporated to achieve deep identification of service flows, thereby meeting the requirements of refined bearer operation.
The way for future telecom networks to enhance competitive advantage should be to provide more specialized and profitable service delivery pipes, improve differentiated service capabilities for different types of data, and meet the needs of various service providers, IT enterprises, and industry applications. Currently, service delivery pipes are mainly narrowband in form — for example, the SMS pipe delivers text services from the Internet to users, the MMS pipe delivers image services from the Internet, and the WAP pipe delivers browsing services from the Internet. These narrowband service delivery pipes are unable to meet users' demands for accessing broadband multimedia service applications, prompting operators to continuously advance various new service delivery pipes. For instance, IPTV and Mobile TV provide video service delivery pipes, while M2M (machine-to-machine, i.e., the Internet of Things based on telecom networks) provides service pipes for IoT applications.
Smart pipes enable operators to schedule resources across the entire network, design more targeted pipe services, and optimize and enhance pipe value. However, the smart pipe model is still being actively explored.