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ITU Workshop on “ Bridging the Standardization Gap ” (Vientiane, Lao People’s Democratic Republic, 30-31 July 2012). Telco CDN interconnection for Global Content Exchange . Youngseok Lee Director, KT Network R&D Laboratory goleeys@kt.com. Table of Contents. CDN Market Status

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Telco cdn interconnection for global content exchange

ITU Workshop on

“Bridging the Standardization Gap”(Vientiane, Lao People’s Democratic Republic, 30-31 July 2012)

Telco CDN interconnection for Global Content Exchange

Youngseok Lee

Director, KT Network R&D Laboratory

goleeys@kt.com


Telco cdn interconnection for global content exchange

Table of Contents

  • CDN Market Status

  • Global CDN Market Expectation

  • End User Requirement about Content Delivery

  • Key Issue for End User Requirement

  • Telco CDN based on Smart Pipe

  • Why Telco CDN Interconnection ?

  • Global Telco CDN interconnection status, use cases and issues

  • KT Global Telco CDN interconnection status

Vientiane, Lao People’s Democratic Republic, 30-31 July 2012


Cdn market status and expectation
CDN market status and expectation

  • Global CDN market status

    • 2011 Global CDN Total market: 1.9B$

      • Number 1 Global CDN Povider : Akamai

        • Rev: 63.2%, Customer Vol.: 20%

  • 2015Global CDN Expectation

    • Frost & Sullivan Research: ~6B$

    • Cisco IBSG: Premium Contents Delivery and Telco CDN Federation: ~12B$

Vientiane, Lao People’s Democratic Republic, 30-31 July 2012


Global cdn market expectation
Global CDN Market Expectation

  • CDN Market Big 3 Parties

    • GlobalCDN Providers: Akamai, Limelight Networks, CDNetworks, …

    • Global CPs: Google, Microsoft, Yahoo,…

    • Telco CDN and Telcos: Telco CDN federation, IETF CDNi wg

    • And, Others : BitTorrent, P2P CDN providers, …

  • CDN marketpossible 3 scenarios

    • Telco Last mile + Global CDN Providers

    • Telco Last mile + Global CPs

    • Telco CDN interconnection/Federation based on ‘Smart Pipe Concept’

  • Keyissues in CDN market

    • Mobile optimized ? : Acceleration, Mobile CDN

    • GlobalCoverage ?

    • Low Cost, High Quality, and Premium Delivery ?

Vientiane, Lao People’s Democratic Republic, 30-31 July 2012


End user wants freemium service
End User wants Freemium Service !

  • Ready for providing ‘Freemium’ Service ?

    • End User’s need: ‘Freemium = Free + Premium’ Low Cost/High QualityPremium Content Delivery Service

      • Any content + With Low Cost and High Quality + In Any time + On N-Screen terminal

    • But current status of Content Delivery market

      • EUs: No Freemium service environment  They usually use ‘illegal Web hard download’, and they think ‘Every service from internet is Free’. But it’s not convenient and complex. [Time consuming + So many terminals and contents to manage]

      • Content Producers: 1~2B$ annual loss in Korean Contents exchange market by illegal download

      • Content Providers/Aggregators: They have their own interest only in getting Money instead of providing Freemium service for End-user with the collaboration of NSP

      • NSPs: NSP is philanthropist ?

  • Network issue point for Freemium service

3G/4G MBH

3G/4G Radio area

Gold $$$

IX/Overseas area

Operator BB

Silver $$

Bronze $

Wired Access net

: Big point for Premium CD

Free

Riding

: Small point for Premium CD

Vientiane, Lao People’s Democratic Republic, 30-31 July 2012


Mobile cdn for premium cd
Mobile CDN for PremiumCD

  • Mobile CDN Design issue for Premium Content Delivery

    • The optimization of mobile data traffic transmission

    • Highway for premium mobile data traffic in mobile area to provide QoS guarantee

    • Automatic and Dynamic Caching for premium mobile data traffic in the MBH for overcoming the QoS issue of IX/Overseas area

Operator BB

Wired Access net

Highway for Gold, Silver mobile data

Low Cost, High Quality, Premium Delivery

By automatic and dynamic caching of premium mobile content

Gold $$$

  • How to make ‘Automatic/Dynamic caching of Premium mobile contents’ in MBH?

    • With the collaboration of Global CDN Provider like Akamai, but..

    • With the collaboration of Global CP like Google, but…

    • With Telco CDN interconnection based on Smart Pipe

IX/Overseas area

Gold $$$

Silver $$

Silver $$

Bronze $

Free

Riding

Vientiane, Lao People’s Democratic Republic, 30-31 July 2012


Telco cdn interconnection for global content exchange

How to make successful B2B2C business, Killer Service?

Revenue-generatingContents delivery service based on CP/OTT collaboration

Distributed/Dynamic storing

and transmission of

Revenue- generating contents

based on Distributed Cloud infra

Open API

(Service Layer)

Service Layer

+

SmartNode

Network Layer

Cloud in the Net

Smart Gateway

Smart Pipe

(Big Collaboration,

Big Profit)

(IPNetwork Layer)

Open collaboration HD/High qualityContentstransmission Service

(Open IPTV, SNS, Smart TV, absolutely based on collaboration contract)

Vientiane, Lao People’s Democratic Republic, 30-31 July 2012


Smart network benefits
Smartnetworkbenefits

AS-IS

TO-BE

B2C, One-side market based on Dumb pipe

B2B2C, Two-side market based on Smart pipe

CP

Dumb pipe

internet

$$$

CP

OTTs

Smart

node

$$

$$

$$

Service

Oriented

Smart

Network

Smart

node

$

$

$$$

Apple

Smart

node

OTTs

Small subscriber group

(limited market)

QoS,

Big Profit

Amazon

No QoS,

Small Profit

$$$

-Online Ad

-Target Ad

Big subscriber groups

(Economies of scale)

$$$

$$$

Vientiane, Lao People’s Democratic Republic, 30-31 July 2012


Smart network benefits1
Smartnetworkbenefits

Vientiane, Lao People’s Democratic Republic, 30-31 July 2012


Kt smart network poc and global telco interconnection status
KTSmartNetwork PoC and Global Telco interconnection status

  • Low Cost & High Quality Content Delivery with SNPoC

  • CDNi Pilot Phase2(~April.2012), CDNi Pilot Phase3(~November.2012)

Seoul #2

Seoul #1

PoC CP

DJ. #4

Lab. #3

Smart Pipe: $$

Vientiane, Lao People’s Democratic Republic, 30-31 July 2012


Why telco cdn interconnection
Why Telco CDN interconnection ?

  • For the QoS guarantee of inter ISP Content Delivery, we needTelco CDN interconnection.

  • Economy of scale for content exchange market

    • No economy of scale in Walled Garden content delivery market, but Big economy of scale in Open content exchange market

    • Big economy of scale for ‘Not only CP/OTT, but also for micro CP’

  • Revenue sharing between Telcos from content exchange

    • Dumb Pipe Best Effort internet interconnection  Free of Charge status  ‘Traffic Increase, Revenue Decrease’ This miserable status keeps going!

    • With Telco CDN interconnection, we can make ‘Revenue Sharing and Traffic decrease of dumb pipe interconnection’.

NTT

Low Cost/ QoS guarantee

($)

IX

Content exchange($$$)

Telco CDN Interconnection

CP

kt Telco CDN

IX

Economy of Scale

IX

($)

CT

Revenue Sharing

Vientiane, Lao People’s Democratic Republic, 30-31 July 2012


Why telco cdn interconnection1
Why Telco CDN interconnection ?

  • Current IX/Overseas traffic status

    • IX traffic ratio in TelcoBackbonekeep increasing (60%70% during last 5years)

    • No QoS guarantee for inter ISP Content Delivery in peak time

Inter Telcotraffic

Keeps increasing

Telco2

Telco3

Others

60% 70%

IX(ISP)

IX

IX

IX

IDC

Congestion in peak time

32%24%

IX

TelcoBackbone

Core

Telco 1

  • We can Reduce IX/Overseas traffic increase with Telco CDN interconnection and guarantee QoS for such Inter ISP Content Delivery service.

Vientiane, Lao People’s Democratic Republic, 30-31 July 2012


Global telco cdn interconnection use case
Global Telco CDN interconnection use case

  • BT is providing Telco CDN Wholesale service(WCC: Wholesale Content Connect) for some Operators in UK.

  • What is BT WCC Service?

    • BT’s own cache in BTnetwork Edge for Inter ISP content delivery

    • QoS guarantee between end-user point and cache server point, by using of network QoS.

ISP1’s Backbone

CP2

(Origin)

.

.

Internet

(IX/Transit)

No WCC Service case

User2

CP1

BT IP/MPLSBackbone

(Origin)

Cisco

CDS-IS

Cisco

CDS-IS

Guaranteed traffic

Caching

(WCC service case)

Caching

User1

  • Better quality of CD service from ‘BTCD platform and QoS guaranteed network’

  • Each ISPs can reduce videotrafficincrease in their BB and provide better quality of CD service for customers.

Vientiane, Lao People’s Democratic Republic, 30-31 July 2012


Global telco cdn interconnection use case vendor interworking
Global Telco CDN interconnection use case (Vendor interworking)

  • Telco CDN interconnection between FT-Orange and Poland PT with different vendors

    • FT-Orange is using Cisco’sCDS solutionfor Telco CDNService

    • PT(TPSA) is using Coblitz’sCDN solutionfor Telco CDNService

  • Successful trial case of Telco CDN interconnection by using of different Vendors

    • No special issues even in different vendors for Telco CDN interconnection

Coblitz

Cache

PT CDN

(Coblitz)

CP

Origin

Server

CDS-IS

Cache

FT CDN

(CDS-IS)

Vientiane, Lao People’s Democratic Republic, 30-31 July 2012


Global telco cdn interconnection issue network neutrality issue
Global Telco CDN interconnection issue (Network Neutrality issue]

  • Conflict between Level3(CDN provider) and Comcast

    • Level3 is making originally ‘free peering contract’ with Comcast for the Global CDN service and CDN traffic transmission.

    • After Netflix was changing their CDN provider from Akamai to Level3, Level3 CDN traffic is makingexplosive increase. It is making Big burden and Big Load to Comcast

    • So, Comcast is asking another Payment for that Traffic increase to Level3. But Level3 claim that they can’t pay from the FCC’s Open Internet Rule.  This is making Another type of Big issue of Network neutrality.

    • Charging issue of Content Delivery Inter ISPs  Time critical issue !

Transit

Transit Division

Free Peering

CDN Division

Huge traffic injection

with Free peering

Paid Peering

25% in US total traffic Vol.

Vientiane, Lao People’s Democratic Republic, 30-31 July 2012


Kt global telco cdn interconnection status
KT Global Telco CDN issue]interconnection status

  • CDNI CFP(Cisco Federation Project) Introduction

    • KT is actively participating in CDNi CFP Pilot2 with 10 Global ISPs for testing technology interworking issue and for finding Business Model

    • Who?: 10 GlobalISP(KT/Telecom Italia/Telstra/KDDI/SFR/Bytel/ Swisscom/BT, etc.) andVendors(Cisco/BICS)

  • Roadmap of CFP

    • CDNI CFP Phase 2 test(Dec. 2011 ~ April. 2012)

      • Set up test environment (Network, DNS, Portal, Dec. 2011~Jan.2012)

      • Definition of Test item andTest of Content Delivery between KT and TI(Jan.~Feb.2012)

      • Extension of Test set/group and test features of whole case Content delivery(~March. 2012)

      • Deliverables of test result (~April.2012)

    • Weekly meeting for Technical Track and Business Track (By using of WebEx)

    • KTis supposed to join CDNI CFP Phase 3 also(May.2012~November.2012)

Vientiane, Lao People’s Democratic Republic, 30-31 July 2012


Global telco cdn interconnection poc test items
Global Telco CDN issue]interconnection PoC test items

  • Major test items for CDNi technology

  • Inter-CDN Contents Routing

  • VoD & Live contents delivery, MassiveSoftware Distribution

  • Differentiated Delivery (QoS test)

  • Content delivery over IPv6 Network

  • CDN Exchange(3rd party interworking)

  • Measurement test of Inter-CDN content delivery quality

Vientiane, Lao People’s Democratic Republic, 30-31 July 2012


Conclusions and recommendations
Conclusions and Recommendations issue]

  • Big transform from dumb pipe to smart pipe

  • Big Power shift of current competitive market from players like CPs/OTT to Telco

  • Telco CDN Alliance with {NTT, Telstra, TI, Porange} and KT.

  • Development of Business Model in Global Telco CDN interconnection

  • Actively Participation in IETF CDNi wg

  • For the Korean Major 3 Telco CDN interconnection, KT made ‘Korean CDNi Research Project' funded by Korean Government.

CDNi Europe 1

Smart

Network

CDNi Asia

CDNi America

CDNi Europe 2

  • * CDNi: CDN Interconnection

Vientiane, Lao People’s Democratic Republic, 30-31 July 2012


Telco cdn interconnection for global content exchange

Discussion issue]

Q & A

Thank you!