A Telecom CDN deployment in Latin America: facts and lessons

learnt

Jacques Le MancqCEO

Martin Ortiz,Product managerCDN

The rationale for an Operator CDN

Solution architecture

Results, benefits and next steps

Telecom @ Argentina’s Market (NYSE : TEO)

FixedBroadbandMobile Pay TV

Com

petit

ors

Penetration Argentina

Latam129%97%

vs population

67%55%

vs households

37%23%

vs households

65%27%

vs households

lines

(in

MM

)

Source: Pyramid Research Dec.2010

Cable

Modem

Total regionIP Internet Capacity

Argentina’s Total, Telecom Argentina estimations

Argentina’s and borders countries traffic growth

Gbps

100 Gbps

200 Gbps

300 Gbps

How far of that are we ?

A potential Online video explosion ?

200

9

201

1

201

3

201

5

201

7

201

9

202

1

202

3

202

5

202

7

202

9

203

1

203

3

203

5

kbps

1,000 kbps

2,000 kbps

3,000 kbps

4,000 kbps

5,000 kbps

6,000 kbps

7,000 kbps

CAGR/sub promedio total, 25% Target 5Mbps/sub

Target en 5 años, CAGR 152% Multimedia Actual, CAGR 75%

Target en 10 años, CAGR 60%

Target: 50% of broadband households

doing HD streaming @10Mbps

@ peak hours

Target reach in 20 years CAGR at

the average current apps mix

But if the CAGR of current multimedia transfers dominate

in the mix, the target is about 6

years

Average traffic

per user

So now, the local variables scopes

Resources efficiency – (moving the bits thousands of miles

away doesn’t make no sense)

Multimedia experience maximized - (latency & throughput)

Scalability– (multiples nodes)

¿Why TelecomCDN ©?

Throughput < 500 kbps

Throughput < 500 kbps

Martin Ortiz Intelectual Property * TelecomCDN© is a Trade Mark of Telecom Argentina

TheTraffic Matrix for Latam/South Cone

Argentina’s Internet users(Uruguay, Paraguay, Chile, etc)

Content, Carriers and ISP overseas

Local content owners

Overseas Internet users

20%

80%

100%

International local destination!

Local content owners

Content, Carriers and ISP overseas

Argentina’s Internet users

Overseas Internet users

80%

20%

100%

Local origin –> local destination !

Martin Ortiz Intelectual Property

There are many local content owners adressing local audiences

IP Internet Capacity

Argentina’s Total País. Telecom Argentina estimations

Argentina’s and borders countries traffic growth

No operator can support this growth with the current business model and current infrastructure

Gbps

250 Gbps

500 Gbps

750 Gbps

1000 Gbps

Today

Need for a change

The best is the complementarity

Internet(Web

Hosting)

CDN(Broadband)

Live

On Demand

Massive(One to Many)

Niche(One to One)

Air/Cable/Sat(Broadcasting)

AudienceHits

Popularity

Items CatalogMartin Ortiz Intelectual Property

Cable/IPTV/broadcasting

Close TV vs. Internet Media (aka. “new media”)

Rights SubcriptionRevenue

• Internet Video (CDN & OTT)

Content rights

Traffic Subcription

One side revenue flow Two side revenue flow

Content owner and producers

Agregator

Head End Operator & Distribuitor

(Cable / IPTV / Sat) Clients = subcriptors

=Usuers

Private network

Content owner and producers

(CDN Customers)

Grids de DCenters & CDNs Content owner’s Clients

Broadband subscriptorsInternet Users

Public & Private Internet

Martin Ortiz Intelectual Property

TelecomCDN© services portfolio

IRIS @ CDN (since early 2005 ) LIVE

CPE ENCODING @MEDIA

ONDEMAND IRIS DRM IRIS EVENTOS

Resellers / Content Aggregators/ Solution Integrators

ARNET PLAY (since Oct 2011)

LIVE ONDEMAND

CPE ENC @MEDIA

7x24 Eventos

DRM

Agregadores

Martin Ortiz Intelectual Property TelecomCDN© is a TM of Telecom Argentina

The rationale for an Operator CDN

Solution architecture

Results, benefits and next steps

Statistics server

Content Management

System

Service / web portal

Rights server

BkM100 CDN Mediator

BkS200 / 300 Multi-format

Streaming server

Live encoder

Encryption server

Offline encoder

Encryption server

FTP provisioning

server

File content

Live channels

Billing server

Backbone network

Fixed ADSL

VOD

Live

Digital head-end

Application Platform

Mobile network

Data

Delivery Architecture

Business logic

3 different access levels

◦ Resellers

◦ Content Providers

◦ Services: Live or On Demand

For each level

◦ Quotas

◦ Billing

◦ Analytics

Turnkey Solution

Telecom CDN 2011

Main features 2011

Concurrents sessions 100k -> 500k

Nodes 5 -> 15

Capacity (Gbps) 80 -> 300

Streaming HD yes

Streaming Multi protocolWM – Flash - 3GP

Smooth S – A. Dynamic SApple HLS -> google HTML5

Storage 500TB->1PB @ 2 central pops/25 TB @ edge nodes

Multi Operator Going borders countries for 2012

Delivering La Copa América

92% played from Argentina

97% played from Latin America

Proves there is a true rational for Operator

CDNs

5%

92%

3%

Copa America: content consumption

LATAM without Argentina ArgentinaOther

What Broadpeak can provide to Network Service Providers

Web content redirected by the

operator

“Advanced caching” offer

Live

CDN Service (eg. Akamai)

VOD

Operator’s Internet Network

Operator’s Internet Network

Web content monetized by the

operator

“Operator CDN” offer

LiveVO

D

We bring content providers and network operators together to maximize end-user experience

Content negotiated by the operator

Operator’s Private and/ or

internet Network

IPTV/OTT offer

VOD

Live