Telco CDN interconnection for Global Content Exchange

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

Telco CDN interconnection for Global Content Exchange

Youngseok LeeDirector, KT Network R&D Laboratory

[email protected]

ITU Workshop on “Bridging the Standardization Gap”

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

Table of ContentsTable 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


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%

2015 Global CDN Expectation

Frost & Sullivan Research: ~6B$

Cisco IBSG: Premium Contents Delivery and Telco CDN

Federation: ~12B$


4

Global CDN Market Expectation

CDN Market Big 3 Parties

Global CDN 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 market possible 3 scenarios

Telco Last mile + Global CDN Providers

Telco Last mile + Global CPs

Telco CDN interconnection/Federation based on ‘Smart Pipe

Concept’

Key issues in CDN market

Mobile optimized ? : Acceleration, Mobile CDN

Global Coverage ?

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 Quality

Premium 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

Gold $$$

Silver $$

Silver $$

Bronze $

FreeRidingFree

Riding

Operator BB

3G/4G Radio area

3G/4G MBH

Wired Access net

IX/Overseas area

: Big point for Premium CD

: Small point for Premium CDVientiane, Lao People’s Democratic Republic, 30-31 July

2012

6

Mobile CDN for Premium CD

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

Gold $$$

Silver $$

Silver $$

Gold $$$

Silver $$

Silver $$

Bronze $

FreeRidingFree

RidingWired Access net

IX/Overseas area

Highway for Gold, Silver mobile data

Low Cost, High Quality, Premium Delivery

By automatic and dynamic caching of premium mobile content

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

7

Open APIOpen API

Cloud in the NetSmart Node

Revenue-generating Contents delivery service based on CP/OTT

collaboration

Distributed/Dynamic storing

and transmission of

Revenue- generating contents

based on Distributed Cloud infra

Open collaboration HD/High quality Contents transmission Service (Open IPTV, SNS, Smart TV, absolutely based on collaboration contract)

Smart Gateway

(IP Network Layer)

(Service Layer)

How to make successful B2B2C business, Killer Service?

Service Layer

Network Layer

+

Smart Pipe

(Big Collaboration,

Big Profit)


8

Smart network benefits

AS-ISAS-IS TO-BETO-BE

benefits As-Is To-Be

End UserPerspective

s

•Just BE internet access No Killer

App

•Quality degradation of HD

Emerging Service QoS needs !

•Enjoy Huge # & various Emerging

Service

•Prosumer, Open, Freemium Service

•Target Ad can save internet access

fee.

Service OrientedSmart

Network

CPCP

AmazonAmazon

OTTsOTTs

AppleApple

QoS, Big Profit

QoS, Big Profit

B2B2C, Two-side market based on

Smart pipeSmart node

Smart node

Smart node

Dumb pipe

internet

CPCP

OTTsOTTsNo QoS,

Small ProfitNo QoS,

Small Profit

B2C, One-side market based on

Dumb pipe

$$ $$

Small subscriber group(limited market)

$$$$$$

$$$$$$

$$$$$$

Big subscriber groups(Economies of scale)

-Online Ad-Target Ad

-Online Ad-Target Ad

$$$$$$$$$$$$

$$$$$$

$$$$$$


9

Smart network benefits

benefits

As-Is To-Be

CP/OTT/

Cloud

ProviderPerspectiv

es

•Only B2C, Retail business for

limited user group from Current BE

IP network (W/O QoS guarantee)

•BE Internet No Killer Service

•B2B2C business possible(Two-side

market) with QoS guarantee Smart

network

•Comparing with Retail business, SN

can make Opex saving effect > 50%

Big Margin[Amazon case study]

Network Provider

Perspectives

•Dumb pipe environment: Traffic

increase, Revenue decrease

•No more investment from NSP??

•Revenue sharing from New & Big

business market, which is providing

Open, Collaboration business

environment

•CAPEX/OPEX saving architecture

with Distributed Computing

technologies$

Time

Traffic

Revenue

$

Time

Traffic

Revenue


10

Low Cost & High Quality Content Delivery with SN PoC

CDNi Pilot Phase2(~April.2012), CDNi Pilot

Phase3(~November.2012)

KT Smart Network PoC and Global Telco interconnection status

CDNi(유럽1)

CDNi(아시아)

CDNi(호주)

CDNi(유럽2)

Smart Pipe: $$

Smart Network(PoC)

양재지사

북대전지사대전연구소SmartTV/STB/Mobile

(N-Screen)

SNSN

SNSN

SNSN

혜화지사

CA

SG

SN

Platform

Seoul #1

Seoul #2

Lab. #3 DJ. #4PoC CP


11

For the QoS guarantee of inter ISP Content Delivery, we need Telco

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’.

CP kt Telco CDN

NTT

CT

IXIX

IXIX

IXIXTelco CDN Interconnection

Content exchange($$$)

Low Cost/ QoS guarantee

Low Cost/ QoS guarantee

Economy of Scale

Economy of Scale

Revenue SharingRevenue Sharing

($)

($)

Why Telco CDN interconnection ?


12

Why Telco CDN interconnection ?

Current IX/Overseas traffic status

IX traffic ratio in Telco Backbone keep increasing (60% 70% during last

5years)

No QoS guarantee for inter ISP Content Delivery in peak time

IX(ISP)

IDC

Telco Backbone

60% 70%

Inter Telco trafficKeeps increasing

32%24%

Telco2

IXIX

IXIX

IXIX IXIX

Telco3 Others

Telco 1

Core

Core

Congestion in peak time

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

CiscoCDS-IS

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 BT network Edge for Inter ISP content delivery

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

network QoS.

User1

CP1(Origin)

ISP1’s Backbone

BT IP/MPLSBackbone

Guaranteed traffic

CiscoCDS-IS

Internet(IX/Transit)

No WCC Service case

CachingCaching

Better quality of CD service from ‘BT CD platform and QoS guaranteed network’ Each ISPs can reduce video traffic increase in their BB and provide better quality of CD service for customers.

Better quality of CD service from ‘BT CD platform and QoS guaranteed network’ Each ISPs can reduce video traffic increase in their BB and provide better quality of CD service for customers.

User2

CP2(Origin)

(WCC service case)

.

.


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’s CDS solution for Telco CDN Service

PT(TPSA) is using Coblitz’s CDN solution for Telco CDN Service

Successful trial case of Telco CDN interconnection by using of

different Vendors

No special issues even in different vendors for Telco CDN interconnection

OriginServer

FT CDN(CDS-IS)

CDS-ISCache

PT CDN(Coblitz)

CoblitzCache

CP


15

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 making explosive 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 !

Global Telco CDN interconnection issue (Network Neutrality issue]

Transit Division

CDN DivisionFree

Peering

Transit

Paid Peering25% in US total traffic Vol.

Huge traffic injection with Free peering


16

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 Global ISP(KT/Telecom Italia/Telstra/KDDI/SFR/Bytel/ Swisscom/BT, etc.)

and Vendors(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 and Test 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)

KT is supposed to join CDNI CFP Phase 3 also(May.2012~November.2012)

KORNET INTERNET

oversea

CACDSM

SR

CACDSM

SR SE

KT Pilot Network

SE

10개ISPs

WWW

OS

WWW

OS

KT Global Telco CDN interconnection status


17

Inter-CDN Contents Routing

VoD & Live contents delivery, Massive Software

Distribution

Differentiated Delivery (QoS test)

Content delivery over IPv6 Network

CDN Exchange(3rd party interworking)

Measurement test of Inter-CDN content delivery

quality

Global Telco CDN interconnection PoC test items

Major test items for CDNi technology


18

SmartNetwork

CDNi AsiaCDNi Europe 2

CDNi Europe 1

CDNi America

* CDNi: CDN Interconnection

Conclusions and RecommendationsConclusions 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.


19

Discussion

Telco CDN interconnection for Global Content Exchange

Documents

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