Vientiane, Lao People’s Democratic Republic, 30-31 July 2012
Telco CDN interconnection for Global Content Exchange
Youngseok LeeDirector, KT Network R&D Laboratory
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
Vientiane, Lao People’s Democratic Republic, 30-31 July 2012
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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$
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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
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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 $$
Bronze $
FreeRidingFree
Riding
Operator BB
3G/4G Radio area
3G/4G MBH
Wired Access net
IX/Overseas area
: Big point for Premium CD
: Small point for Premium CDVientiane, Lao People’s Democratic Republic, 30-31 July
2012
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Mobile CDN for Premium CD
Mobile CDN Design issue for Premium Content Delivery
The optimization of mobile data traffic transmission
Highway for premium mobile data traffic in mobile area to provide QoS
guarantee
Automatic and Dynamic Caching for premium mobile data traffic in the MBH
for overcoming the QoS issue of IX/Overseas area
Operator BB
Gold $$$
Silver $$
Silver $$
Gold $$$
Silver $$
Silver $$
Bronze $
FreeRidingFree
RidingWired Access net
IX/Overseas area
Highway for Gold, Silver mobile data
Low Cost, High Quality, Premium Delivery
By automatic and dynamic caching of premium mobile content
How to make ‘Automatic/Dynamic caching of Premium mobile
contents’ in MBH?
With the collaboration of Global CDN Provider like Akamai, but..
With the collaboration of Global CP like Google, but…
With Telco CDN interconnection based on Smart PipeVientiane, Lao People’s Democratic Republic, 30-31 July 2012
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Open APIOpen API
Cloud in the NetSmart Node
Revenue-generating Contents delivery service based on CP/OTT
collaboration
Distributed/Dynamic storing
and transmission of
Revenue- generating contents
based on Distributed Cloud infra
Open collaboration HD/High quality Contents transmission Service (Open IPTV, SNS, Smart TV, absolutely based on collaboration contract)
Smart Gateway
(IP Network Layer)
(Service Layer)
How to make successful B2B2C business, Killer Service?
Service Layer
Network Layer
+
Smart Pipe
(Big Collaboration,
Big Profit)
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Smart network benefits
AS-ISAS-IS TO-BETO-BE
benefits As-Is To-Be
End UserPerspective
s
•Just BE internet access No Killer
App
•Quality degradation of HD
Emerging Service QoS needs !
•Enjoy Huge # & various Emerging
Service
•Prosumer, Open, Freemium Service
•Target Ad can save internet access
fee.
Service OrientedSmart
Network
CPCP
AmazonAmazon
OTTsOTTs
AppleApple
QoS, Big Profit
QoS, Big Profit
B2B2C, Two-side market based on
Smart pipeSmart node
Smart node
Smart node
Dumb pipe
internet
CPCP
OTTsOTTsNo QoS,
Small ProfitNo QoS,
Small Profit
B2C, One-side market based on
Dumb pipe
$$ $$
Small subscriber group(limited market)
$$$$$$
$$$$$$
$$$$$$
Big subscriber groups(Economies of scale)
-Online Ad-Target Ad
-Online Ad-Target Ad
$$$$$$$$$$$$
$$$$$$
$$$$$$
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Smart network benefits
benefits
As-Is To-Be
CP/OTT/
Cloud
ProviderPerspectiv
es
•Only B2C, Retail business for
limited user group from Current BE
IP network (W/O QoS guarantee)
•BE Internet No Killer Service
•B2B2C business possible(Two-side
market) with QoS guarantee Smart
network
•Comparing with Retail business, SN
can make Opex saving effect > 50%
Big Margin[Amazon case study]
Network Provider
Perspectives
•Dumb pipe environment: Traffic
increase, Revenue decrease
•No more investment from NSP??
•Revenue sharing from New & Big
business market, which is providing
Open, Collaboration business
environment
•CAPEX/OPEX saving architecture
with Distributed Computing
technologies$
Time
Traffic
Revenue
$
Time
Traffic
Revenue
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Low Cost & High Quality Content Delivery with SN PoC
CDNi Pilot Phase2(~April.2012), CDNi Pilot
Phase3(~November.2012)
KT Smart Network PoC and Global Telco interconnection status
CDNi(유럽1)
CDNi(아시아)
CDNi(호주)
CDNi(유럽2)
Smart Pipe: $$
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
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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 ?
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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
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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)
.
.
Vientiane, Lao People’s Democratic Republic, 30-31 July 2012
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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
Vientiane, Lao People’s Democratic Republic, 30-31 July 2012
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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
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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
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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
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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.
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Discussion