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Andrew Haynes NextGen 09


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Andrew Haynes, Director of Product Management for Level 3 in Europe presenting at NextGen 09 in Leeds on 16 and 17 November 2009

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Andrew Haynes NextGen 09

  1. 1. Just Plain Bandwidth Complexity may be big, but it’s not clever Next Gen 2009 Leeds, November 2009 Andrew Haynes Director, European Product Delivery
  2. 2. Exceptional Global Connectivity Level 3 continues to be the world’s most connected ISP About Renesys and Backbone Customer Base: Renesys ( ) is an independent network intelligence company who’s tools provide service providers a real-time view of the global Internet. Renesys measures “Customer Base” as a means of ranking providers who are responsible for meeting the Internet transit needs of large customer networks within a given market. Renesys ® “Customer Base” Rankings (June 15, 2009)
  3. 3. European Presence Delivering Extensive Reach with Local Connectivity <ul><li>In 28 IP PoPs across Europe, connecting 92% of European eyeballs in 1 hop </li></ul><ul><li>More than 280 on-net buildings </li></ul><ul><li>2.6 Tbps of customer facing port capacity </li></ul><ul><li>640 Gbps of interfaces with our peers (EU) </li></ul><ul><li>480 Gbps of TA capacity dedicated to IP </li></ul><ul><li>65% of our traffic is on-net giving us an unmatched control of our SLAs </li></ul>
  4. 4. Level 3’s Content Delivery Network Broadcast enabling the Internet <ul><li>Built into Level 3’s IP network </li></ul><ul><ul><li>HTTP Caching; Move Networks and Microsoft Smooth streaming </li></ul></ul><ul><ul><li>WMS and FMS Streaming </li></ul></ul><ul><ul><li>Origin storage and extended library content </li></ul></ul><ul><li>4,000 servers deployed in 31 strategic locations designed to accommodate the most demanding flash crowd situations </li></ul><ul><li>Globally load-balanced and intelligently managed with no reliance on third parties </li></ul><ul><li>Benefits to ISPs </li></ul><ul><ul><li>Content cached and streamed directly to customers from local sites </li></ul></ul><ul><ul><li>Enhanced quality of experience for customers </li></ul></ul><ul><li>Benefits to content providers </li></ul><ul><ul><li>Ability to balance between HSIP and CDN as needs change </li></ul></ul><ul><ul><li>Resilience and redundancy </li></ul></ul>
  5. 5. From Creation to Consumption <ul><li>The Level 3® IP backbone has a global throughput of over 20 Petabytes of traffic per day, which is equivalent to transmitting over 1,000,000 x 20GB movies per day. </li></ul>
  6. 6. What are we delivering today? <ul><li>Video consumption moves online </li></ul><ul><ul><li>Almost all TV will be on-demand and consumed over IP networks </li></ul></ul><ul><ul><li>Majority of content to be HD Ready by 2018 </li></ul></ul><ul><ul><li>More pronounced shift to broadcasting linear content over IP </li></ul></ul><ul><ul><li>Wide range of specialist independent channels, at the expense of existing broadcasters </li></ul></ul><ul><ul><li>DVD content is downloadable (new DVD rental models) </li></ul></ul><ul><ul><li>P2P is declining </li></ul></ul>Source: Analysys Mason, Nov 2008 <ul><li>Bandwidth composition as a result </li></ul><ul><ul><li>one minute of medium-quality video equates to around 7-10MB of data </li></ul></ul><ul><ul><li>Expecting 2Mbps / broadband line by 2018 (average annual growth 55%) </li></ul></ul>
  7. 7. The Brick Wall
  8. 8. An ISP perspective - cost of delivery Access Network National Infrastructure and “Middle mile” Transit & Peering Infrastructure 50% 47.5% 2.5% ISP Costs $/sub /month
  9. 9. ISP Architectures When is an IP Network not an IP Network? <ul><li>Traditional “ULL” or Cable architecture </li></ul><ul><ul><li>Centralised interconnect points </li></ul></ul><ul><ul><li>Redundant IP equipment acting as an extension cord to content </li></ul></ul><ul><ul><li>Excessive router hops </li></ul></ul><ul><ul><li>Centralised BRASes (meaning the IP layer isn’t an IP layer) </li></ul></ul><ul><ul><li>Inefficient transport usage </li></ul></ul><ul><li>Why does growing usage/sub (video) damage this? </li></ul><ul><ul><li>Unidirectional flows (so in-out infrastructure is wasted) </li></ul></ul><ul><ul><li>Not from anywhere to anywhere (so why pay for the router hops) </li></ul></ul><ul><ul><li>Community based initiatives – by their very nature are less likely to get caught in this trap – how complex can an extension cord to the internet get? </li></ul></ul>
  10. 10. ISP Strategies Peer it all! <ul><li>Many ISPs place almost all of their effort on reducing the percentage of traffic that travels over their transit links – but at what cost? </li></ul><ul><ul><li>Building national and international networks </li></ul></ul><ul><ul><li>Constant political battles over peering </li></ul></ul><ul><ul><li>Reliance on single interconnect points </li></ul></ul><ul><ul><li>Hot potato receive (ie you have no control over where you receive the traffic) </li></ul></ul><ul><ul><ul><li>Hence expensive on infrastructure (router and DWDM hops) </li></ul></ul></ul><ul><li>Peering has it’s place – but as soon as it’s more difficult than simply plugging into a cheap wholesaler – the question of cost/benefit comes back – is it really worth it? </li></ul>
  11. 11. ISP Strategies Backtracking on the original promise – neutral internet connectivity for a fair price <ul><li>Billing consumers for what they use: </li></ul><ul><ul><li>Issue with mainstream ISPs is that consumers aren’t using an Nth of what they were sold – so why the surcharges? </li></ul></ul><ul><ul><li>Also, in a deeply competitive environment, first mover will lose subs </li></ul></ul><ul><ul><li>Community networks may have an opportunity to redress this (as fairness comes more into play when the initiative isn’t owned by a corporate behemoth) </li></ul></ul><ul><li>Meanwhile, the large ISPs have become increasingly public in their criticism of Content companies </li></ul><ul><ul><li>“ Why is content sending all of this traffic into our network?” </li></ul></ul><ul><li>QoS, Walled gardens, Self-CDNing </li></ul><ul><ul><li>If regular network is fine, why pay (or are your threatening untagged traffic) </li></ul></ul><ul><ul><li>All predicated on choking traffic from content sources that won’t pay the ISP </li></ul></ul><ul><ul><li>Adds cost to your network (and who will pay?) </li></ul></ul><ul><ul><li>How will your customers feel about this? </li></ul></ul><ul><ul><li>What exactly does an ISP know about servicing ultra-high quality conscious CDN customers? </li></ul></ul>
  12. 12. ISP Strategies Recipes for Success <ul><li>Get comfortable with what you can’t control </li></ul><ul><li>Traffic volumes typically double every 12-15 months – revenue doesn’t </li></ul><ul><li>Attempts to limit traffic growth will result in dissatisfied (or lost) customers </li></ul><ul><ul><li>“ Running to stand still” shouldn’t be avoided – it should be a core competency </li></ul></ul><ul><li>Control what you can </li></ul><ul><li>Network Costs in Architecture and Equipment (FTTx or WiMax/WiFi?) </li></ul><ul><li>Find the cheapest backhaul you can – this will be a rising cost of business </li></ul><ul><li>Peer when appropriate (typically want Gbps of traffic to make sense), not as a religion </li></ul><ul><li>Find the right balance between buying transit very locally (at a premium) or paying for backhaul to reach open market wholesale interconnect points </li></ul><ul><li>If the problem is cost, complexity isn’t likely to be the solution </li></ul><ul><ul><li>Don’t build what no-one wants and don’t overcomplicate your business model </li></ul></ul>
  13. 13. Breaking the video barrier
  14. 14. Thank You For more details please contact: