Emerging Models and EcosystemsAround The Internet Backbones:Navigating The Transition From BestEffort To Paid-For Internet...
Current Model “Best Effort” , Bill & Keep                                                                                 ...
Challenges of the Current Model                                                                   “BT accused of iPlayer t...
New services, like HD video, won’t work in current model, even with existing CDNs               Average speed for differen...
Proposed Model: QoS and Cascade  paymentMoney and Traffic flow                         Marketing                        Co...
New relationship models between ISPs             Wholesale “Virtual” CDN                          CDN Interconnection     ...
Advantages of the Proposed Model      Closer to the       Customer          Efficient   Network aware &    Content aware  ...
Proposed Model & Win-Win Relationships                                                                                    ...
How to make the Transition       HTTP sources by traffic volume    100%     80%     60%     40%     20%       0%          ...
Telefonica Value Proposition: wholesale CDN             Telefonica is evolving the Internet model and invites other ISPs t...
Conclusions      Current Internet model (best effort, bill and keep) is not sustainable in the long      run      New mode...
Thank You                                             !More questions?emilio.sepulveda@telefonica.comTelefonica Internatio...
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2011 Broadband Traffic Management Forum Presentation

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2011 Broadband Traffic Management Forum Presentation

  1. 1. Emerging Models and EcosystemsAround The Internet Backbones:Navigating The Transition From BestEffort To Paid-For InternetInterconnectLondon, November 2011Telefonica Internationa Wholesale Services
  2. 2. Current Model “Best Effort” , Bill & Keep Transit peering Free peering Paid peering Broadband Consumer Broadband ISP 2 Indirect connection Broadband $ /Mbps/month Consumer Broadband ISP 1 Internet Transit Provider Colocation Data Flow ISP L3 exchange requires local physical infrastructure. Peering requires balance 1Telefonica International Wholesale Services
  3. 3. Challenges of the Current Model “BT accused of iPlayer throttling” – Jun 2009 Not Efficient “Best effort” Long path from content to Source: Guardian,, BBC consumer Bottlenecks No E2E Responsibility Source: L’Express, Le Monde There are some signals that recommend a new Model 2Telefonica International Wholesale Services
  4. 4. New services, like HD video, won’t work in current model, even with existing CDNs Average speed for different 44 40 locations Throughput (Mbps) Maxumum 30 20 10 4 0,4 1 0 Multi-continent Cross-continent Regional 500- Local <100mi. 6,000 mi 3,000 mi. 1,000 mi. Source: Akamai +300 Mbps 10 Throughput (Mbps) 9 8 7 6 5 4 3 2 1 0 >6000mi <6000mi <4000mi <1000mi <500mi < 100mi. Distance (miles) Source: own measures Distance to broadband customers is critical to ensure throughput & QoSTelefonica International Wholesale Services
  5. 5. Proposed Model: QoS and Cascade paymentMoney and Traffic flow Marketing Content Ingestion Delivery Advertisers Enablers Agencies Providers Carriers Carriers Broadband Users Source: Chetan Sharma Without increasing costs for anyone, there are better models based on content exchange Telefonica International Wholesale Services
  6. 6. New relationship models between ISPs Wholesale “Virtual” CDN CDN Interconnection ISP2 ISP3 ISP1 ISP2 Delivery CDN CDN Delivery ISP3 RegionISP1 Region CDNDeliveryRegion  Just one interface with Customers  Multiple Interfaces with Customers &  Revenue shared among partners ISPs  Interconnection Fees Content interconnection (application level) enables new business models 5 Telefonica International Wholesale Services
  7. 7. Advantages of the Proposed Model Closer to the Customer Efficient Network aware & Content aware QoS Security No Incremental Cost for a Better Value E2E Responsibility Better experience will lead to new services and stickier customers 6Telefonica International Wholesale Services
  8. 8. Proposed Model & Win-Win Relationships E2E QoS QoS Content Higher Experienc availability e and content security Control New and Full Service Visibility Routing s HD, Control 3D New Busines Less s CAPEX Models ISP managed Content Delivery brings advantages for allTelefonica International Wholesale Services 7
  9. 9. How to make the Transition HTTP sources by traffic volume 100% 80% 60% 40% 20% 0% 0 Top 5 Top 10 Top 15 Top 20 Other Traffic Type 10% P2P 20% HTTP 70% Just need to engage in 10-20 direct relationships to change the Internet model 8Telefonica International Wholesale Services
  10. 10. Telefonica Value Proposition: wholesale CDN Telefonica is evolving the Internet model and invites other ISPs to join 9Telefonica International Wholesale Services
  11. 11. Conclusions Current Internet model (best effort, bill and keep) is not sustainable in the long run New models are available that enable QoS and e2e accountability and a fair share of the revenues without increasing content providers Content players are willing to collaborate if they are able to keep control of their customers and contents. Very few agreements are required to evolve to the new model Telefonica’s wholesale proposition is open to other ISPs, who would benefit from day one from traffic optimization and new revenue streams 10Telefonica International Wholesale Services
  12. 12. Thank You !More questions?emilio.sepulveda@telefonica.comTelefonica International Wholesale Services

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