ITU Workshop on
“Bridging the Standardization Gap”
(Vientiane, Lao People’s Democratic Republic, 30-31 July 2012)
Telco CDN interconnection
for Global Content Exchange
Youngseok Lee
Director, KT Network R&D Laboratory
goleeys@kt.com
Vientiane, Lao People’s Democratic Republic, 30-31 July 2012
Table 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
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$
Vientiane, Lao People’s Democratic Republic, 30-31 July 2012
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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
3G/4G Radio area
IX/Overseas area
3G/4G MBH
Operator BB
Gold
$$$
Silver $$
Bronze $
Wired Access net
: Big point for Premium CD
: Small point for Premium CD
Vientiane, Lao People’s Democratic Republic, 30-31 July 2012
Free
Riding
5
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
Highway for Gold, Silver mobile data
Low Cost, High Quality, Premium Delivery
By automatic and dynamic caching of
premium mobile content
IX/Overseas area
Gold $$$
Operator BB
Silver $$
Wired Access net
Gold $$$
Silver $$
Bronze $
Free
Riding
 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 Pipe
Vientiane, Lao People’s Democratic Republic, 30-31 July 2012
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How to make successful B2B2C business, Killer Service?
Revenue-generating Contents delivery service
based on CP/OTT collaboration
Distributed/Dynamic storing
Open API
and transmission of
(Service
Layer)
Revenue- generating contents
based on Distributed Cloud infra
Smart Node
Cloud in the Net
Service Layer
+
Network Layer

Smart
Gateway
(IP Network Layer)
Smart Pipe
(Big Collaboration,
Big Profit)
Open collaboration HD/High quality Contents transmission Service
(Open IPTV, SNS, Smart TV, absolutely based on collaboration contract)
Vientiane, Lao People’s Democratic Republic, 30-31 July 2012
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Smart network benefits
AS-IS
TO-BE
B2C, One-side market
based on Dumb pipe
B2B2C, Two-side market
based on Smart pipe
CP
$
Small subscriber group
(limited market)
Dumb pipe
internet
$
$$$
OTTs
End User
Perspectives
Service
Oriented
Smart
Smart Network
node
QoS,
Big Profit
No QoS,
Small Profit
Big subscriber groups
(Economies of scale)
benefits
Smart
node
Smart
node
As-Is
OTTs
$$
$$
$$
-Online Ad
$$$ -Target Ad
CP
Apple
Amazon
$$$
To-Be
•Just BE internet access  No Killer App
•Enjoy Huge # & various Emerging Service
•Quality degradation of HD Emerging
•Prosumer, Open, Freemium Service
Service  QoS needs !
•Target Ad can save internet access fee.
Vientiane, Lao People’s Democratic Republic, 30-31 July 2012
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Smart network benefits
benefits
As-Is
To-Be
CP/OTT/
Cloud
Provider
Perspectives
•Only B2C, Retail business for limited user
group from Current BE IP network (W/O
QoS guarantee)
•BE Internet  No Killer Service
•Dumb pipe environment: Traffic increase,
Revenue decrease
•No more investment from NSP??
•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]
•Revenue sharing from New & Big business
market, which is providing Open,
Collaboration business environment
•CAPEX/OPEX saving architecture with
Distributed Computing technologies
Network
Provider
Perspectives
Traffic
Traffic
Revenue
$
$
Revenue
Time
Vientiane, Lao People’s Democratic Republic, 30-31 July 2012
Time
9
KT Smart Network PoC and Global Telco interconnection status
 Low Cost & High Quality Content Delivery with SN PoC
혜화지사
Seoul
#2
SG
SNCA
Seoul #1
양재지사
SN
SN
(N-Screen)
SmartTV/STB/Mobile
Platform
Smart Network
(PoC)
북대전지사
대전연구소
DJ. #4
Lab. #3
SN
SN
PoC CP
SN
SN
 CDNi Pilot Phase2(~April.2012), CDNi Pilot Phase3(~November.2012)
CDNi
CDNi
(유럽1)
(아시아)
Smart Pipe: $$
CDNi
(유럽2)
Vientiane, Lao People’s Democratic Republic, 30-31 July 2012
CDNi
(호주)
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Why Telco CDN interconnection ?
 For the QoS guarantee of inter ISP Content Delivery, we need Telco CDN
interconnection.
 Economy of scale for content exchange market
 No economy of scale in Walled Garden content delivery market, but Big economy of
scale in Open content exchange market
 Big economy of scale for ‘Not only CP/OTT, but also for micro CP’
 Revenue sharing between Telcos from content exchange
 Dumb Pipe Best Effort internet interconnection  Free of Charge status  ‘Traffic
Increase, Revenue Decrease’ This miserable status keeps going!
 With Telco CDN interconnection, we can make ‘Revenue Sharing and Traffic decrease of
dumb pipe interconnection’.
NTT
($)
Content exchange($$$)
CP
kt Telco CDN
IX
($)
IX
Telco CDN Interconnection
IX
CT
Vientiane, Lao People’s Democratic Republic, 30-31 July 2012
Low Cost/ QoS
guarantee
Economy of
Scale
Revenue
Sharing
11
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
60% 70%
Inter Telco traffic
Keeps increasing
IX(ISP)
Telco2
Telco3
Others
IX
IX
IX
IDC
32%24%
Telco Backbone
Congestion in
peak time
IX
Core
Telco 1
 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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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.
ISP1’s Backbone
CP2
.
.
(Origin)
Internet
(IX/Transit)
CP1
(Origin)
BT IP/MPLSBackbone
Cisco
CDS-IS
Caching
User2
Cisco
CDS-IS
Caching
User1
 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.
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
Coblitz
Cache
CP
Origin
Server
FT CDN
(CDS-IS)
PT CDN
(Coblitz)
CDS-IS
Cache
Vientiane, Lao People’s Democratic Republic, 30-31 July 2012
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Global Telco CDN interconnection issue (Network Neutrality issue]
 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 !
Transit
Transit Division
CDN Division
Free Peering
Huge traffic injection
with Free peering
25% in US total traffic Vol.
Paid Peering
Vientiane, Lao People’s Democratic Republic, 30-31 July 2012
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KT Global Telco CDN interconnection status
 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)
KT Pilot
Network
KORNET
INTERNET
10개
ISPs
oversea
WWW
CDSM
CA
OS
SR
SE
CDSM
CA
WWW
SR
SE
OS
 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)
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Global Telco CDN interconnection PoC test items
 Major test items for CDNi technology
 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
Vientiane, Lao People’s Democratic Republic, 30-31 July 2012
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Conclusions 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.
CDNi Europe 1
Smart
Network
CDNi Europe 2
CDNi Asia
CDNi America
* CDNi: CDN Interconnection
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Discussion
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