Meeting the requirements of the All-IP World. Cianfranco Ciccarella Telecom Italia Vice President Global Advisory Services
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1 Meeting the requirements of the All-IP World Cianfranco Ciccarella Telecom Italia Vice President Global Advisory Services
2 Meeting the requirements of the All-IP World Best UBB Network for what? Best UBB Network how to meet evolving service needs & improve QoE? Best UBB Network the overall view and design/implementation solutions 1
3 UBB Networks in the ALL IP Scenario All-IP = Any service is provided over a single IP Evolution Network towards the ALL IP Scenario Focus from transport to E2E Performance Services requirements and EndUsers QoE UBB networks: Drivers, Issues, Players Economic sustainability Role of Regulation Telcos and OTTs roles/competitio n/collaboration Network Architecture and Technologies Market dinamics & Business models 2
4 Services and Business Requirements Key performance Drivers: Downstream Application Throughput Download Time EdgeCast Feb RADWARE - July
5 Bit rate versus Application Throughput (1/2) Application Throughput is the most important KPI affecting end-user Quality of Experience (QoE) Application Throughput is lower than Bit Rate High Application Throughput requires low delay and low packet loss QoS functionalities are not effective to improve Throughput QoE Platforms (Application & Content Delivery, Caching, WEB Acceleration, Protocol Optimizations ) are needed to improve IP * Measures at my home, Italy, feb 2014 network performance and to reduce network TCO 4
6 Bit rate versus Application Throughput (2/2) Application Throughput is lower than Connection Bit Rate and it gets worse for higher Bit Rates ( # ) Akamai connection speed ( Throughput ) - (1Q14) EU: average over 21 European countries (*) Ookla SpeedTest data ( Bit Rate) - (1Q14) 5
7 New Business Models for Telcos QoE platforms also needed in the domestic network to meet Services requirements» Telcos are offering differentiated quality for IP delivery to End-User & OTT Incremental revenues from OTT/CP: Twosides business model Telco Premium services offered to end users Two sides Business Model 6
8 UBB Regulatory framework Main Regulatory issues for UBB nets: Access remedies on SMP operators Geographical characterization not adequately addressed Need for effective investment & innovation promotion (review cost orientation for NGAN and guarantee wholesale copper prices stability) however access remedies on SMP operators are very strong and differentiated Net Neutrality & Open Internet (no limitations on QoE platforms deployment, and Telco/OTT business models) (1) It can include a segment outside the building up to FT s feeder network (only in sparsely populated areas) (2) Only between MDF and Street Cabinet (3) Only if ducts are not available (4) Only for residential customers (5) Details on the form of LLU (also WDM) to be decided in separate proceedings (6) Annulled by the Dutch Trade and Industry Tribunal. Obligation only for FTTC (7) Only in urban areas (8) Only for bandwidth under 30 Mbit/s 7
9 Meeting the requirements of the All-IP World Best UBB Network for what? Best UBB Network how to meet evolving service needs & improve QoE? Best UBB Network the overall view and design/implementation solutions 8
10 UBB =? UBB = growing bit-rates in the fixed & mobile access + ability to provide the performance needed by any service Increase Application Throughput Reduce Web pages Download Time 9
11 Setting the Scene A Single IP Network gives the Same Packet Delivery Performance for any Service. Traffic management (QoS) is necessary to ensure the proper network functioning and service Specialized Platforms over L3 IP Transport are necessary to meet the Application requirements QoS functionalities (such as Packets Priorities etc ) are not effective to improve QoE management. 10
12 QoE Platforms location (1/2) QoE platforms near to end users improve throughput (lower latency, & packet loss + protocol optimization) and enable network cost saving QoE platforms are widely used by OTTs and are also needed in the Telco Networks to comply with services requirements UBB Access 11
13 QoE Platforms location (2/2) 12
14 Meeting the requirements of the All-IP World Best UBB Network for what? Best UBB Network how to meet evolving service needs & improve QoE? Best UBB Network the overall view and design/implementation solutions 13
15 Access Metro Backbone Service Mobile (2G) Mobile BB (3G) Mobile UBB (4G) Fixed PSTN Fixed Business Data Fixed Consumer Data ALL-IP target architecture Today «Silos» Network Structure To IP & Optical Platform Be 14
16 Fixed Access Telecom Italia Plan 15
17 PBT (years) PBT (years) NGAN Sustainability Case Study Wholesale PBT Wholesale pure NGAN Access business Wholesale Access business (NGAN+ADSL) Capex/HH Capex/HH Monthly Wholesale Access Price Monthly Wholesale Access Price Business model: monthly lease for passive NGAN connectivity ( /HH x month) Main data: network deployment in 4 years, 100% copper to fiber migration in 15 years 16
18 Mobile Access Telecom Italia Plan 17
19 Network Architecture issues and KPIs Number of Network levels & PoPs; Availability; IP-MPLS «coverage» : how near to end-users? IP EDGE distribution E2E Performance requirements (throughput & Right mix of E2E Layer 3 IP Transport (Low RTT High Cost) download time) NFV&SDN : where in the network? QoE platforms location Cost of Legacy Network Transformation Target Network Total Cost of Ownership - TCO 18
20 Key Choices for the IP Backbone IP Layer 3 Transport and IP edge distribution IP/MPLS coverage to allow IP EDGE, Application Servers & QoE platforms IP EDGE distribution to allow Quality improvement Network cost saving distribution The Choices depend on: Peak bandwidth & traffic mix Pro&Cons to meet E2E performance requirement, optimizing TCO by different mix of L3 Transport & QoE IP-DWDM integration platforms Scalability & flexibility to meet evolving service needs and Time To Market requirements 19
21 (*) Cost & Performance Architecture Key parameters Saving% THR % HR HR Cx Pv (*) EDGE= intermediate network layer (e.g. Metro/Regional or Metro/Regional+Aggregation) 20
22 Cost & Performance Case Study (1/2) End Users: 10mln Core Nodes : 20 Edge Nodes: 400 Cache Hit Ratio: 40% Cx Core : 1,5 Pv Core : 1,5 Cx Edge : 2,0 Pv Edge : 2,5 Network & Cache Costs: «discrete model» Traffic, Network Costs & RTTs: «stocastic distribution» 21
23 Cost & Performance Case Study (2/2) End Users: 10mln Core Nodes : 20 Edge Nodes: 400 Cache Hit Ratio: 40% Cx Core : 1,5 Pv Core : 1,5 Cx Edge : 2,0 Pv Edge : 2,5 Network & Cache Costs: «discrete model» Traffic, Network Costs & RTTs: «stocastic distribution» 22
24 Adoption of SDN & NFV paradigms Key Items Network KPI improvement TCO Reduction Deployment plan 23
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