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Mobile Internet in Japan and Asia BBIX’s Vision and Mission Noriyuki Arai, BBIX, Inc. September 14 2015, HKNOG

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Mobile Internet in Japan and Asia

BBIX’s Vision and Mission

Noriyuki Arai, BBIX, Inc.

September 14 2015, HKNOG

Outline

2

BBIX in brief

Mobile Internet: Characteristics and Trends

Japan Internet vs. Mobile Internet: Statistics

Vision and Understanding

IX in Japan

BBIX Actions of Contributing to Mobile

Internet

BBIX: an Internet Exchange Provider

A Softbank Group company

• Board members

– President & CEO – Keiichi Makizono

– EVP & COO – Michikazu Fukuchi

• Web site

– http://www.bbix.net/en

• Peering DB

– Exchange Points• BBIX Tokyo

• BBIX Osaka

• BBIX Nagoya

• BBIX Fukuoka

• BBIX Hong Kong / Singapore (since last year)

Quick Facts (2015/09)

• 80+ member ASNs – 45+ of Japan

– 13 of Asia-Pacific area, except JP

– 20+ of other countries

• 150+ connected ports– Almost all 10Gb

– 4 x 100Gb will be soon deployed

MOBILE INTERNET OF JAPANThe Trend

4

• Subscription– 2 years contract is common

• mobile terminal locked for use with specific carrier’s SIM card

– Discount for the mobile terminal is common• but bound with the contract period

• making a trend of changing terminal every 2 years

– MNP is common• typically with special offers

• making a lot of people change operator every 2 years. :P

• Data– No limitation in monthly use but in speed

• Speed becomes limited (to 128Kbps) once the total volume exceeds the threshold (e.g. 2GB, 3GB or 7GB per month)

5

Something Different

• Application– Combined with public service facilities

• e.g. Felica, the e-money card

• not available for iPhone though

– Diverse use cases making different group of terminal holders

– Commodity cellphone

– Smart phone (mainly Android)

– iOS family (iPhone, iPad, etc.)

• not strange that one holds 2 and more cellphone

• MVNO, diverse alternatives– Low price

– Speed limitation

6

Something Different

Voice and data separated Voice and data together

Legacy 3G + LTE VoLTE

3G

network

LTE

network

New Trend: VoLTE (since late 2014)

• Enabling high quality voice service over high speed data transmission channel

High Speed

data comm.

LTE

network

VoiceHigh Speed

data comm.Voice

7

8

New Trend: VoLTE (since late 2014)

• VoLTE enables high-fidelity replay for high-pitched voice

Legacy 3G

voice

VoLTE replays

wide-band

voice

Frequency band of traditional voice phone

call

Frequency band of traditional voice phone

call

• Aiming at further acceleration of communication

• Enabling high-speed/high-capacity data transfer

Freq. Band A

Freq. Band B

Communication with

Multiple Spectrum

Allocations

The Concept of Carrier Aggregation

Base

Station

New Trend: Carrier Aggregation (since mid 2014)

9

Gap between mobile and fixed Internets is being reduced!

10※data source: “Statistics of Internet Traffic in Our Country”, MIC JAPAN, 7th Oct 2014

Total download traffic:~2.9Tbps, 27.1%↗

About 30% growth per year

Amount of Internet Traffic in Japan

154.6

181.3

234.8274.3

328.9

349.0 422.0

469.8546.4

586.2671.7

706.5

783.9

0

100

200

300

400

500

600

700

800

900

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.03

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20

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.09

(Gbps)Average in Month

1251

1430

17992063

24252528

2985

3276 3751

3965

4435

4598

4965

0

1000

2000

3000

4000

5000

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(bps)Per subscriber Average

227.9

270.0

350.2

417.9

487.7522.9

623.2

712.7

823.3

869.5

979.8

1057.7

1139.5

0

200

400

600

800

1000

1200

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(Gbps)Peak Hours

(Average in 23:00-24:00)

Mobile Traffic Trend in Recent 3 Years

※data source: “Status of Mobile Internet Traffic in Our Country”, MIC JAPAN, Nov 2014

More than 40% growth per year

Source: SoftBank BB presentation material at Interop 2014

Daily usage (Japan) 134mins

81mins33mins 70mins

44mins

Radio

Smartphone has become

most used device

Magazine

Newspaper

Computers Television Mobile

13Source: Cisco : VNI Mobile Forecast Highlists, 2013-2018Average data traffic in 2013

Global

No.1

Era of rapidly increasing mobile data traffic

Average Data Traffic per Smartphone User

(GB/month) 2.9Global No.1

North America

West Europe

East Europe

Middle East &

Africa

Latin America

1.2

0.50.50.3 0.3

(Source) Cisco: VNI Mobile Forecast Highlights, 2013 – 2018 Average data traffic in 2013

26

What happens

to our backbone?

14

Multiple peaks

&

Directional changes

Traffic shifts even within 24hs!

15

Graph for FNO

Peak once at night

Traffic shifts even within 24hs!

16

Graph for FNO

Graph for MNO

Multiple peaks

Peak once at night

North-South Traffic

17

Mobile Network Operators

The Internet

(Transit network)

Social Platform Providers

Cloud / Datacenter

Social Application/Game Provider

Cloud / Datacenter

East-West Traffic

18

Mobile Network Operators

The Internet

(Transit network)

East-West

Social Platform Providers

Cloud / Datacenter

Social Application/Game Provider

Cloud / Datacenter

North-South Traffic

19

Mobile Network Operators

The Internet

(Transit network)

DDoS

like

Traffic

Massive amount

of

short packets

Strict reliability

requirement

East-West

Social Platform Providers

Cloud / Datacenter

Social Application/Game Provider

Cloud / Datacenter

Mobile Network Operators

The Internet

(Transit network)

East-West

Delay

Congestion

Packet

Loss

Transit network became

“bottleneck”

20Social Platform Providers

Cloud / Datacenter

Social Application/Game Provider

Cloud / Datacenter

The Age of Internet Transition

21

Subscribers/Users

Tier1

Tier2 Tier2

Tier3 Tier3

Data

Center

Tier1 Tier1

Tier2 Tier2 Tier2

Tier3 Tier3 Tier3

1st Starting of the Internet 2nd Rising Data Centers

Tier1

Tier2 Tier2

Tier3 Tier3

Data

Center

3rd Hyper Giants era

CDN CDN

CDNHyper

GiantsService

Platform/

Cloud/

DCWe are here

4th Cloud Computing eraTier1

Tier2 Tier2

Hieratical Structure of the Internet will be replaced soon by

“Direct Connection” between Subscribers and Contents.

BBIX IN THE AGE OF TRANSITIONThe Mission

22

23※data source: “Statistics of Internet Traffic in Our Country”, MIC JAPAN, 7th Oct 2014

Total download traffic:~2.9Tbps

Download through IX: ~952Gbps, 33% of total

CONFIDENTIAL (c) BBIX, Inc. 24

What Happens in Japan

Per-Mbit cost for Transit access

Per-Mbit cost for IX access

Connecting to IX is less

attractive

IX per-Mb cost in Japan is 10 times

higher than in some European countries

Transit price is getting down dramatically

Per-port (with certain bandwidth) price for IXconnection is quite high in Japan!

EU: $1k-2k per 10Gbps Port

JP: ~$20k per 10Gbps Port

25

As we know the importance of connectivity

Network Contents

- Backbone

- FNO

- MNO

- Large portals

- Search engines

- CDN

- SNS

- Clouds

BBIX provides IX services with the global-standard pricing, while keeping the made-in-japan quality

Tokyo 1st

Tokyo 2nd

Tokyo 3rd

Tokyo 4th

We deployed 7 IX sites in Japan

Fukuoka

Osaka

Tokyo

Tokyo metropolitan

w/ cross-site connection

Nagoya

27

Peer Up

30% reduction of latency

Improvement after peering through BBIX

28

Getting rid of jitter

Peer Up

Improvement after peering through BBIX

29※data source: “Statistics of Internet Traffic in Our Country”, MIC JAPAN, 7th Oct 2014

Total download traffic:~2.9Tbps, 27.1%↗

Download through IX: ~952Gbps, 33% of total32.5%↗ in one year

BBIX is the fastest growing IX in Japan

~ 1

0 t

imes

Contribute our vision & effort to East Asia

30

Tokyo

Singapore

Hong Kong

Amount of traffic by cities

- Reduced latency and jitter- Improved stability and redundancy- Fitting traffic pattern, with or without

inter-site transport - Reasonable cost

cv

SmartIX Service Specification

• Basic

– IX: Distributed Internet Exchange

– RPX: Roaming Peering Exchange (for MNO)

• Optional

– Route server

– Inter-node connectivity

– VLAN

31

ISP

Smart IX serves for all the players equally

Connected directly, completely flat!!

MNO

CSP/

OTT

CSP/

OTT

CSP/

OTT

CSP/

OTT

ISPMNO

ISP MNO ISP MNO ISP MNOISP

MNO

ISP

DC/Cloud

Service

DC/Cloud

Service

CSP/

OTT

CSP/

OTT

MNO

CSP/

OTT

CSP/

OTT

33

Contribute for better Internet connectivity

in Asia and in the World

Thanks, 謝謝!

mailto:[email protected]

“No Peering, No Internet”