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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. Table of Contents. CDN Market Status

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Telco CDN interconnection for Global Content Exchange

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  1. 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

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

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

  10. 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

  11. 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

  12. 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

  13. 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

  14. 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

  15. 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

  16. KT Global Telco CDN 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

  17. Global Telco CDN 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

  18. Conclusions and Recommendations • 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

  19. Discussion Q & A Thank you!

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