Meeting the requirements of the

All-IP World

Cianfranco Ciccarella

Telecom Italia – Vice President Global Advisory Services

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

UBB Networks in the ALL IP Scenario

Services

requirements

and EndUsers

QoE

Network

Architecture and

Technologies

UBB networks:

Drivers, Issues, Players

Market dinamics

& Business

models

Economic

sustainability

Telcos and OTTs

roles/competitio

n/collaboration Role of

Regulation

Evolution

towards the ALL

IP Scenario

All-IP = Any service is

provided over a single IP

Network

Focus from

transport to E2E

Performance

2

Services and Business Requirements

Key performance Drivers:

Downstream Application Throughput

Download Time

RADWARE - July 2014 EdgeCast – Feb. 2013

3

Bit rate versus Application Throughput (1/2)

• 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

network performance and to reduce network TCO

Application Throughput is the most important KPI

affecting end-user Quality of Experience (QoE)

* Measures at my home, Italy, feb 2014

4

Bit rate versus Application Throughput (2/2)

(*) Ookla SpeedTest data ( Bit Rate) -

(1Q14)

(#) Akamai connection speed ( Throughput )

- (1Q14)

EU: average over 21 European countries

Application Throughput is lower

than Connection Bit Rate…

…and it gets worse for higher Bit

Rates

5

New Business Models for Telcos

Incremental revenues

from OTT/CP: “Two-

sides business model”

Telco Premium services

offered to end users

Two–sides Business Model

QoE platforms also needed in the domestic

network to meet Services requirements»

Telcos are offering differentiated quality for IP

delivery to End-User & OTT

6

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)

Net Neutrality & Open Internet (no limitations on QoE platforms

deployment, and Telco/OTT business models)

UBB Regulatory framework

(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

…however access remedies on SMP operators are very

strong and differentiated

7

(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

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

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

Setting the Scene…

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

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

management.

10

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

11

UBB Access

QoE Platforms location (2/2)

12

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

ALL-IP target architecture

Mo

bile

(2

G)

Mo

bile

BB

(3

G)

Mo

bile

UB

B (

4G

)

Fixe

d P

STN

Fixe

d B

usi

nes

s D

ata

Fixe

d C

on

sum

er D

ata

Today «Silos» Network Structure A

cces

s M

etro

B

ack

bo

ne

Serv

ice

To Be

IP & Optical Platform

14

Fixed Access – Telecom Italia Plan

15

NGAN Sustainability Case Study – Wholesale PBT

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

Wholesale Access business (NGAN+ADSL) Wholesale pure NGAN Access business

PB

T (

year

s)

PB

T (

year

s)

Monthly Wholesale Access Price Monthly Wholesale Access Price

Capex/HH Capex/HH

16

Mobile Access – Telecom Italia Plan

17

Network Architecture issues and KPIs

• E2E Performance requirements (throughput & download time)

• Number of Network levels & PoPs; Availability; …

• IP-MPLS «coverage» : how near to end-users ?

• IP EDGE distribution

• NFV&SDN : where in the network?

• Cost of Legacy Network Transformation

• Target Network Total Cost of Ownership - TCO

E2E Layer 3 IP Transport (Low RTT High Cost)

QoE platforms location

Right mix of

18

Key Choices for the IP “Backbone”

IP EDGE distribution to allow Quality improvement

Network cost saving

IP/MPLS coverage to

allow IP EDGE, Application

Servers & QoE platforms

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

platforms

• Scalability & flexibility to meet evolving service needs and

Time To Market requirements

IP Layer 3 Transport and IP edge distribution

IP-DWDM integration

19

Cost & Performance – Architecture Key parameters

Saving%

Cx

HR

∆𝐓𝐇𝐑 %

Pv

HR

2 3 4 5 6 7 8 9 1 10

20

(*) EDGE= intermediate network layer (e.g. Metro/Regional or Metro/Regional+Aggregation)

(*)

Cost & Performance – Case Study (1/2)

21

End Users: 10mln

Core Nodes : 20

Edge Nodes: 400

Cache Hit Ratio: 40%

CxCore : 1,5 PvCore : 1,5

CxEdge : 2,0 PvEdge : 2,5

Network & Cache Costs:

« discrete model »

Traffic, Network Costs & RTTs:

« stocastic distribution »

Cost & Performance – Case Study (2/2)

22

End Users: 10mln

Core Nodes : 20

Edge Nodes: 400

Cache Hit Ratio: 40%

CxCore : 1,5 PvCore : 1,5

CxEdge : 2,0 PvEdge : 2,5

Network & Cache Costs:

« discrete model »

Traffic, Network Costs & RTTs: «

stocastic distribution »

Adoption of SDN & NFV paradigms

TCO Reduction

Network KPI improvement

Deployment plan

Key Items

23