Internet Ecosystem. Staffan Göjeryd Vice President Product Management, Head of Operators TeliaSonera Broadband Services
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1 Internet Ecosystem Staffan Göjeryd Vice President Product Management, Head of Operators TeliaSonera Broadband Services
2 Explaining the Internet Ecosystem How is the Internet wired? Is Content King? Hot topic in the Ecosystem 2
3 Explaining the Internet Ecosystem
4 The Internet is successful in large part due to it s unique model with shared global ownership, open standards accessible to anyone Internet model is open, transparent and collaborative and includes all aspects of what comprises the Internet including you 4
5 Internet Ecosystem, according to ISOC 5
6 Major actors in the value chain of Internet Content Owners Application/Content Providers/CDN s Global Carriers Access/Local/Regional Providers Users 6
7 Cisco Visual Networking Index (VNI) 7
8 Wireless transformation 8
9 Over the Top (OTT) drives growth 9
10 How does this effect TeliaSonera business? 10
11 Global Internet in a challenging phase Quantity of connected devices are increasing rapidly Shortage of IP address space for IPv4, last address are allocated Change to parallel structures of both IPv4 and IPv6, gradual transition Effects on all actors of the Internet Ecosystem 11
12 Disruption in IPv4 to IPv6? 12
13 How is the Internet wired?
14 Internet - a network of networks 14
15 Definitions Internet Transit is a business relationship whereby an ISP provides (usually sells) access to the Global Internet. Internet Peering is a business relationship whereby two entities reciprocally provide access to each others customers. Internet Exchange Point (IX) is an Internet service that facilitates peering between two or more entities. 15
16 Understanding transit 16
17 Understanding Peering logic 17
18 Basic Internet Peering Ecosystem Tier 1 ISPs have access to entire Internet region routing table solely via their free peering interconnects. Tier 1 ISP do not pay transit fees to reach any destination in their Internet Region. Revenue and traffic flows to T1s. Tier 2 (or lower) ISPs are everyone else Pay transit fees Interested in peering around transit providers. 18
19 History of Internet Peering Contexts ARPAnet NSFNET TRANSITION COMMERCIAL Fat Middle Access Powers
20 Fat Middle Peering New Players CDNs Large scale Content Open Peers : Selective Peers Cable Companies Transit P $ Tier 2 ISPs Tier 1 ISPs P $ $ Transit P $ P $ Transit P CDNs Large Scale Network Savvy Content Providers Peering decreases T1 s transit fees Growth increases at a faster rate Transit Transit Content Providers 20
21 Captive Access Power Peering Tier 1 ISPs PP $ Cable Companies $ Transit PP $ $ $ PP Tier 2 ISPs $ $ Transit P $ P $ Transit PP CDNs Large Scale Network Savvy Content Providers Transit Transit Content Providers 21
22 Key Trends: Transit Prices Decline & Video Emerges Video 2010: 30% Source: discussions with ISPs Video 2013: 75% Source: Cisco 22
23 Why does this matter to you? 23
24 Is Content King?
25 Key challenge for our Industry Transition from low data volume/ high revenue to high volume/lower revenue Volume Traffic Traffic is propelled by Video services Driven by flat fee business models Gap between traffic and revenue increases Revenues Moore s law, cheaper technologies for more capacity Voice Dominant Data Dominant Time 25
26 Video drives the growth 26
27 Anywhere, anyhow Bandwidth The History of Internet Peering Time 27
28 Movie industry fundament, release windows VOD window is now same as DVD for all but major studios 3 of the 6 majors still holdback days All majors grant exclusive rights to Pay TV which blocks VOD (#2) Theatrical 4 Months DVD & EST VOD: All movie providers EXCEPT majors VOD/PPV 0-90 days 1 st Window 3 Months Pay TV / SVOD 1 st & 2 nd Windows Months Free TV 1 st Window 3-5 Years Library VOD 6-12 Months Pay TV Library 12 Months 28
29 Walled Garden vs. Over The Top or Telco vs. Internet Business Model 29
30 What is TeliaSonera s role in the model? 30
31 Hot Topic in the Ecosystem
32 Evolving Business Models Net Neutrality Traffic Management 32
33 Traffic bottlenecks Access Periphe.Aggr. Aggr. Core Global/Peering 33
34 Traffic bottlenecks Access Periphe.Aggr. Aggr. Core Global/Peering 34
35 Traffic example 35
36 Mechanisms that are used Throw capacity and money (lots of it) at the problem Admission Control Caching solutions / Distributed content DPI and traffic shaping Use of QoS policies for handling traffic 36
37 QoS from Network view point From network viewpoint, QoS is mainly about traffic management, i.e. matching traffic quality demands with network resources by; defining and establishing resources technically and through policies controlling access to resources, and mitigating resource conflicts/mismatches according to defined policies using the QoS functionalities available In a multiservice network environment one has to look at the whole spectrum of requirements and find the best balance of cost and quality, which means that compromises has to be made. In this process one has to look at QoS and traffic management both from a service enabling viewpoint as well as business opportunity to increase revenue or decrease of cost 37
38 Application classifications for maintaining QoE Delay Voice Streaming P2P Loss 38
39 Concluding remarks Hot Topic Traffic is predictable because user behavior is (to some extent) predictable To understand the Ecosystem you need to Understand your customer behavior - Know your Network traffic There will always be bottlenecks, manage them to safeguard QoE Key challenge is to use the right strategy and tactics in the evolving business models 39
40 Explaining the Internet Ecosystem How is the Internet wired? Is Content King? Hot topic in the Ecosystem 40
41 Thank You!
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