Telco CDN interconnection for Global Content Exchange

1
Telco CDN interconnection for Global Content
Exchange
ITU Workshop on Bridging the Standardization
Gap(Vientiane, Lao Peoples Democratic
Republic, 30-31 July 2012)

• Youngseok Lee
• Director, KT Network RD Laboratory
• goleeys_at_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 Peoples 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
• 2015 Global CDN Expectation
• Frost Sullivan Research 6B
• Cisco IBSG Premium Contents Delivery and Telco
  CDN Federation 12B

Vientiane, Lao Peoples Democratic Republic,
30-31 July 2012
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 Peoples Democratic Republic,
30-31 July 2012
5
End User wants Freemium Service !

• Ready for providing Freemium Service ?
• End Users 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 its not convenient and complex. Time
  consuming So many terminals and contents to
  manage
• Content Producers 12B 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

Vientiane, Lao Peoples 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

• 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

Vientiane, Lao Peoples Democratic Republic,
30-31 July 2012
7
How to make successful B2B2C business, Killer
Service?
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 API
(Service Layer)
Service Layer

Smart Node
Network Layer
Cloud in the Net
?
Smart Gateway
Smart Pipe (Big Collaboration, Big Profit)
(IP Network Layer)
Open collaboration HD/High quality Contents
transmission Service (Open IPTV, SNS, Smart TV,
absolutely based on collaboration contract)
Vientiane, Lao Peoples Democratic Republic,
30-31 July 2012
8
Smart network benefits
AS-IS
TO-BE
B2B2C, Two-side market based on Smart pipe
B2C, One-side market based on Dumb pipe
CP

CP
OTTs
Smart node

Service Oriented Smart Network
Smart node



Apple
Smart node
OTTs
Small subscriber group (limited market)
Amazon
QoS, Big Profit
No QoS, Small Profit

-Online Ad -Target Ad
Big subscriber groups (Economies of scale)


benefits As-Is To-Be
End User Perspectives 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.
Vientiane, Lao Peoples Democratic Republic,
30-31 July 2012
9
Smart network benefits
benefits As-Is To-Be
CP/OTT/ Cloud Provider Perspectives 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 gt 50 ? Big MarginAmazon 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
Vientiane, Lao Peoples Democratic Republic,
30-31 July 2012
10
KT Smart Network PoC and Global Telco
interconnection status

• Low Cost High Quality Content Delivery with SN
  PoC
• CDNi Pilot Phase2(April.2012), CDNi Pilot
  Phase3(November.2012)

Vientiane, Lao Peoples Democratic Republic,
30-31 July 2012
11
Why Telco CDN interconnection ?

• 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.

NTT
Low Cost/ QoS guarantee
()
IX
Content exchange()
Telco CDN Interconnection
kt Telco CDN
IX
Economy of Scale
IX
()
CT
Revenue Sharing
Vientiane, Lao Peoples Democratic Republic,
30-31 July 2012
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

Inter Telco traffic Keeps increasing
Telco2
Telco3
Others
60? 70
IX(ISP)
IX
IX
IX
IDC
Congestion in peak time
32?24
IX
Telco Backbone
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 Peoples 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 ?
• BTs 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.

ISP1s 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 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.

Vientiane, Lao Peoples 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 Ciscos CDS solution for Telco
  CDN Service
• PT(TPSA) is using Coblitzs 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

Vientiane, Lao Peoples 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
  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 cant pay from the FCCs 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 Peoples 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 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. 2011Jan.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.2012November.2012)

Vientiane, Lao Peoples Democratic Republic,
30-31 July 2012
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Global Telco CDN interconnection PoC test items

• Major test items for CDNi technology

• 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

Vientiane, Lao Peoples 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.

Vientiane, Lao Peoples Democratic Republic,
30-31 July 2012
19
Discussion
Q A Thank you!