NFV Initiatives in Brazil

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NFV INITIATIVES IN BRAZIL
Júlio César Magro1
, Luiz Gustavo Turatti2
, Amândio Balcão Filho3
ABSTRACT
Operator networks have a wide range of proprietary hardware appliances. To launch a new
network service requires yet another variety and find space and energy to accommodate such
equipment. Network Functionality (NFV) Virtualization is designed to address these issues by
using IT standard virtualization technology to consolidate many types of industry-standard
networking equipment and a large number of servers, switches and storage, which can be
located in Data Centers, network nodes, and user premises. The objective of the article is to
present the NFV initiatives in Brazil, as well as the technological challenges involved and the
incentives and strategies in digital transformation. The method used was a bibliographic study.
The NFV aims at the implementation of network functions (NF) as software entities that run on
the NFV infrastructure (NFVI). A reference architecture was defined for the implementation of
NFV by ETSI. Standardization by technology providers is essential and they realize this
concern and work with operators to implement the NFV. NFV and SDN networks are key
elements for transforming traditional operators (CSPs) into a DSP (Digital Services Provider).
NFV is a key technology that enables DSPs to optimize the network architecture for Multi-
access Edge Computing (MEC). There is a need for training and training of professionals and
students for the new approach to solutions, network design and business models.
Key words: NFV, Virtualization, Network
INTRODUCTION
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1Master in Electrical Engineering/UNICAMP, UniMetrocamp University Center | Wyden, R. Dr. Sales de Oliveira,
1661 - Vila Industrial, 13035-500 - Campinas - SP, julio.magro@unimetrocamp.edu.br
2
PhD in Electrical Engineering/UNICAMP, UniMetrocamp University Center | Wyden, R. Dr. Sales de Oliveira,
1661 - Vila Industrial, 13035-500 - Campinas - SP, luiz.turatti@unimetrocamp.edu.br
3
MSc in Applied Computing/INPE, Researcher at CTI Renato Archer and Lecturer at UniMetrocamp University
Center | Wyden, R. Dr. Sales de Oliveira, 1661 - Vila Industrial, 13035-500 - Campinas - SP,
amandio.filho@unimetrocamp.edu.br

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Operator networks have a wide range of proprietary hardware appliances. To launch a new
network service often requires yet another variety and finding space and energy to
accommodate such equipment becomes increasingly difficult. Added to this is rising energy
costs, capital investment challenges, and the skills deficiency needed to design, integrate and
operate increasingly complex hardware-based devices.
In addition, hardware-based appliances quickly reach the end of their lifecycle, requiring much
of the procurement-design-integration-deployment cycle to be replicated with little or no
revenue benefit. It is aggravated by considering that hardware life cycles become shorter as
technology and service innovation accelerates and inhibits the deployment of new revenue-
generating network services and restricts innovation in an increasingly connected world
centered on the network.
Network Functions Virtualization (NFV) aims to address these issues by using IT's standard
virtualization technology to consolidate many types of network equipment into industry-
standard and large-scale servers, switches and storage), which may be located in Data Centers,
network nodes, and end-user installations. It is believed that Network Function Virtualization
is applicable to any packet processing in the data plane and control plane function in fixed and
mobile network infrastructures. Network Function Virtualization is complementary to Software
Defined Networking (SDN) (ETSI, 2012).
For telecommunications carriers (fixed, mobile, or cable / satellite), NFV and SDN networks
are very important because they are revolutionary technologies that take core network functions
from expensive dedicated hardware to software platforms, with costs reduction and acceleration
of time to market (OSATO, 2015).
The objective of the article is to present the NFV initiatives in Brazil, as well as the
technological challenges involved and the incentives and strategies of companies and
government in digital transformation.
METHOD
The method used was a bibliographic study in books, articles, magazines and specialized
websites. The material studied is in bibliographical references.

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RESULTS
Based on the bibliographical study, it was possible to understand the evolution, challenges and
initiatives in NFV in Brazil that follows the world's technological trends.
Network Functionality virtualization is designed to transform the way network operators
architect networks by gradually evolving from standard IT virtualization technology to
consolidating many types of network equipment into the industry standard and large number of
servers, switches, and storage that can be located in Data Centers, network nodes, and end-user
installations, as shown in Figure 1 below. It involves the implementation of network functions
in software that can be run on a variety of server hardware in the industry standard and that can
be moved or instantiated in various network locations as needed without the need for new
equipment installation.
Figure 1 - Vision for virtualization of network functions
Source: ETSI, 2012

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Figure 2 shows the relationship of Network Function Virtualization with SDN.
Figure 2 - Network Virtualization Relationship with SDN
Source: ETSI, 2012
The NFV aims at the implementation of network functions (NF) as software entities that run on
the NFV infrastructure (NFVI). Therefore, a reference architecture for NFV implementation
was defined by the ETSI (European Telecommunications Standards Institute), which aims to
allow the dynamic instantiation of virtual network functions (i.e. instances of VNFs) as well as
the relationship among these related to data, control, dependencies, connectivity, among other
attributes (ROSA et al, 2014).
Figure 3 below shows reference architecture for NFV.
Figure 3 - High level architecture for NFV
Source: ROSA et al, 2014

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The market for NFV systems moves as discussions and proposals move forward in the ETSI
NFV Industry Specification Group (ISG). At the end of 2015 América Móvil opened a RFI
(Request for Information) to establish the technological line of this segment for its operations
and then to carry out a competition. Telefónica had announced the choice of HP for its Unica
virtualized global virtualization project. Due to problems with the solution delivery schedule,
he decided to re-bid and opened a new RFP (Request for Proposal).
Embratel replicates the same information collection process. All documents delivered by
manufacturers in Mexico are also delivered in Brazil. In tune, the parent company and the
Brazilian subsidiary define the technological line that guides the bidding process for the
purchase of network virtualization equipment.
In making new competition, Telefónica delayed the completion of the Unica project. It would
make a complete implementation of HP OpenNFV platforms, including servers, software,
orchestration and network technologies, as well as HP Helion OpenStack services and
technology for operators. The initiative involves moving from proprietary "vertical" silos to a
unified "horizontal" open architecture that brings future centralized management and
orchestration (MANO) capabilities and shared hardware resources across services, which
reduces operating costs.
Telefónica's initial proposal involves a three-phase approach to implementing Unica:
virtualizing non-critical systems such as Authentication, Authorization and Accounting (AAA)
and IP Multimedia Subsystem (IMS), deploying them as virtual network functions (VNFs);
then to transform into NFV core networks such as the Virtual Evolved Packet Core (vEPC) for
LTE and, finally, to virtualize critical systems such as Home Subscriber Server (HSS) and
Home Location Register (HLR) (FERREIRA, 2015).
Of all telecommunication virtualization projects in progress, Telefónica's Unica initiative is the
most ambitious. The operator's business includes countries in Latin America and Europe that
have little in common. Developing the virtual tools that can be used in these networks and the
processes that support them never occurs directly.
The analysis is time consuming and partly because of the immaturity of technology. At the
moment, Telefónica is focused on virtualizing its core network functions, and it will take some
time for it to turn its attention to the Radio Access Network (RAN). But the goal remains the

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same: building a more automated, software-based global network that cuts costs, accelerates
service development, and drives innovation.
Telefónica has virtualized network functions when and how it can. With Ericsson as the main
virtualization partner of Unica, replacing HPE, Telefónica is currently using four different
virtual network function providers (VNFs) as a sign of its determination to pursue a genuinely
multivendor launch (MORRIS, 2017).
SDN and NFV technologies have been a trend in telecommunications for some time, but are
beginning to take shape in Brazilian operators. TIM claims to have just over a third of its
virtualized network functions and expects to grow even more in the next three years. Plans 35%
of the control layer part and, in three years, 80% of the virtualized functions. Among these
control layer features are the value-added, roaming, and OSS service part. It started in 2015 and
by the end of 2017 has reached 15 important fully virtualized network functions.
Oi has with an experiment plan to verify the use of NFV and SDN in reference architecture,
such as the location of Points of Presence (POPs), data centers, virtual edge and user access
transformation, with adoption multi-layer technology and access. Started the entire step of
defining the control part of SDN. It did some proof of concept that began with residential and
corporate Virtual Premise Equipment (CPE) in the optical and IP transport network control
structure. Following the Oi intends to perform the transformation of the mobile network, with
virtual EPC (Evolved Packet Core), especially with M2M (Machine-to-Machine), and then the
other elements. It also considers integration of unified control, which lacks industry standards.
An example of virtualization that already demonstrates greater adoption of operators in the
world is the voice over the LTE (VoLTE, Voice over Long Term Evolution). The main
difficulty for operators is how to integrate into legacy systems, but deployments occur gradually
(AMARAL, 2016).
In (DIAS, 2017) it is shown that the evolution of business and telecommunications networks is
no longer an option, but a necessity, since CSPs (Communication Service Providers, traditional
operators) must be transformed from Provider of Connectivity to Service Provider.
DISCUSSIONS

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The rapid changes in the economy and society provided by the digital environment pose new
challenges. The strategic actions defined by the Brazilian government make it an enabler and
facilitator of this digital transformation in the productive sector, in the capacity of society for
this new reality, and in the State's performance as a service provider and rights-holder.
Digital transformation is an opportunity to make a qualitative leap. Digital technologies provide
the government-facilitating tools for incentives in business competitiveness and productivity,
as well as in the empowerment and inclusion of society, so that they can develop and thrive:
people, organizations, businesses, government, educational and academic services (MCTIC ,
2017).
SDN and NFV network adoption strategies are the subject of carrier studies, planning and
deployments to take advantage of the technology. One of the challenges is how to take
advantage of the legacy infrastructure they have.
The Total Cost of Ownership (TCO) reduction is a necessity for operators to compete with
Over-the-Top (OTTs) such as NetFlix, Skype and WhatsApp.
Standardization by technology vendors is essential for planning, designing and deploying. The
suppliers realize this need and work together with operators to implement the NFV.
The challenge of integrating the infrastructure of the operators can be solved through the
orchestration of software that manages each part of the network and disengage them from
having a technician in each area to operate (MONTEIRO, 2016).
NFV is a key technology that enables communications service providers to optimize their
network architecture for Multi-access Edge Computing (MEC).
MEC applies the principles of cloud architecture to computing, storage, and network
infrastructure at the edge of the network, near the user. Provides near-real-time cloud computing
capabilities and an edge-to-edge IT service environment, enables applications to take advantage
of very low-latency and high-bandwidth services and real-time access to network information.
By providing the MEC in access networks from LTE / 5G networks to wired / wireless LANs,
Communications Service Providers (CSPs) are especially positioned to adopt next generation
applications at the edge of the network, including CDN (Content (Internet Domain), Domain
Name System (DNS) and service caching, 5G telemetry and Internet of Things, mobile traffic

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modeling, location services, video analysis, augmented reality, connected cars, security and
compliance (VMWARE, 2017) ).
Both mobile and fixed service providers begin to make significant investments in SDN and
NFV in a number of use cases, including, but not limited to, uCPE / vCPE (universal / virtual),
SD-WAN (Software-Defined networking in a Wide Area Network), vEPC (Virtual Evolved
Packet Core), vIMS (virtual IMS), Cloud RAN (Radio Access Network) and vCDN (virtual
CDN). It is estimated that the investments of SDN and NFV service providers will grow at a
CAGR (Compound Annual Growth Rate) of approximately 45% between 2017 and 2020,
which represents, at the end of 2020, nearly $ 22 billion in revenue (CISION, 2018).
Another important fact is the MEF (Metro Ethernet Forum) to create two new orchestration
specifications for MEF 3.0 to align with other groups of standards, the TeleManagement Forum
(TM Forum) and the Open Network Automation Platform (ONAP) to automate key processes
of back-office within and between network operators to facilitate service delivery (WILSON,
2018).
At the MPLS, SDN and NFV 2018 World Congress in Paris, the executives of the
telecommunications operators Orange and Telefonica, the Nokia, RAD and Google Internet
community of the Internet participated in a panel discussion on the situation of SDN and NFV
(MORRIS , 2018).
An important platform called Dojot that resulted from the project "Open Platform for IoT and
its Applications", which has the support of FUNTTEL (Fund for the Technological
Development of Telecommunications), MCTIC, through Finep (Financing Studies and
Projects) and is conducted by CPqD (Center for Research and Development in
Telecommunications) in partnership with other science and technology institutions: Instituto
Atlântico, Renato Archer Information Technology Center (CTI), Foundation for Supporting
Information Technology Training (FACTI) and Ceará University represents a promising
initiative. With open source, it is positioned to be empowering and to facilitate the development
of IoT solutions. In addition, the platform aims to make available to the entire community the
contributions of its evolution and improvement (DOJOT, 2017).
The BNDES (National Development Bank) in partnership with MCTIC, in the study "Internet
of Things: an action plan for Brazil" maps out the needs of fomenting new infrastructures and
modernizing existing infrastructures in order to meet this demand (BNDES, 2017).

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FINAL CONSIDERATIONS
Concepts like SDN and NFV networks change the way carriers design and manage their
networks and open up new service delivery opportunities. This requires planning and new
approaches in the way they do business.
SDN for telecommunications companies improves network management and flexibility,
includes traffic management automation, bandwidth engineering, and the ability to have an on-
demand network that fits customer needs (FALSARELLA, 2015).
The NFV is revolutionary and changes its way of conducting the processes and the operators
TIM and Oi, for example, act in that direction and prepared for new technologies with a focus
on 5G (MONTEIRO, 2017), (INFRAROI, 2017).
The forecast for the next five years is that about 60 percent of the world's hyperscale data centers
are with SDN and NFV solutions and the transition from digital to virtual is fast approaching.
This is because the volume of data traffic grows exponentially and pressures a new architecture
to facilitate the creation and evolution of new services. Reduced costs and the ability to offer
services quickly are the most attractive factors in SDN / NFV technologies. Companies need to
create new services to generate new revenues and remain competitive (RODRIGUES, 2018).
With the growing number of people, devices, machines and sensors entering the network
through the Internet of Things, operators require new capabilities to lead the delivery of value-
added cloud-based services and applications. Developers and solution providers design the
platforms in this vision. For example, Cisco follows the philosophy of being open, elastic and
extensible (SIQUEIRA, 2014).
With competition from over-the-top (OTT) service providers such as WhatsApp, customer
demand for data, and costly infrastructure investment to support this scenario, carriers face
complicated challenges regardless of their size. Ciena's proposal for this is to virtualize the edge
of the network by creating virtual services for users and bet on automation to reduce costs
(MONTEIRO, 2017).
Trópico develops the virtualization platform adhering to international standards that favors the
adoption of NFV technology and related businesses (TROPICO, 2014).

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Padtec optical equipment supplier and system integrator develops the reconfigurable optical
add / drop multiplexer (ROADM) in SDN (LIGHTWAVE, 2014). Developments are guided by
the ONF (Open Network Foundation) approach (HOOFT, 2018).
Another relevant aspect concerns the need for training, training and skills development of
professionals and students for the new approach to solutions, planning, network design and
business models.
For example, the MEF has announced collaboration between the standards and open source
groups to address specific virtualization issues. This is a new set of certifications and tests
developed in collaboration with MEF, ETSI and the Linux Foundation to help network
operators train (and retrain) operations personnel to understand and be ready for virtualization
of functions network and software-defined network (WILSON, 2018).
BIBLIOGRAPHIC REFERENCES
AMARAL, B. Operadoras brasileiras começam a tirar a virtualização do papel, 2016. Available
in < http://www.mobiletime.com.br/17/10/2016/operadoras-brasileiras-comecam-a-tirar-a-
virtualizacao-do-papel/458023/news.aspx>. Access in April 06, 2018.
BNDES, Banco Nacional do Desenvolvimento. Produto 8: Relatório do Plano de Ação
Iniciativas e Projetos Mobilizadores, 2017. Available in <https://www.bndes.gov.br/
wps/wcm/connect/site/269bc780-8cdb-4b9b-a297-53955103d4c5/relatorio-final-plano-de-
acao-produto-alterado.pdf?MOD=AJPERES&CVID=m0jDUok>. Access in April 08, 2018.
CISION PR Newswire. World SDN, NFV & Network Virtualization Ecosystem Research
Report 2017-2030 - $22 Billion Market Opportunities, Challenges, Strategies & Forecasts,
2018. Available in <https://www.prnewswire.com/news-releases/world-sdn-nfv--network-
virtualization-ecosystem-research-report-2017-2030---22-billion-market-opportunities-
challenges-strategies--forecasts-300579938.html>. Access in April 08, 2018.
DIAS, C. H. Virtualização: Transformando o negócio das redes, 2017. I Semana de Cursos de
TI DeVry | Metrocamp, Campinas-SP, 2017.
DOJOT. Dojot a brazilian IoT platform, 2017. Available in <http://www.dojot.com.br/sobre-a-
dojot-iot/>. Access in April 03, 2018.

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ETSI, European Telecommunications Standards Institute, Industry Specification Group for
NFV, Network Functions Virtualization, White Paper, 2012. Available in <
https://portal.etsi.org/NFV/NFV_White_Paper.pdf>. Access in March 03, 2018.
FALSARELLA, D. SDN e NFV abrem novas oportunidades a empresas de telecom, 2015.
Available in < computerworld.com.br/sdn-e-nfv-abrem-novas-oportunidades-empresas-de-
telecom-0>. Access in April 6, 2018.
FERREIRA, W. NFV: América Móvel abre RFI e Telefónica revê contrato com HP, 2015.
Available in <http://www.telesintese.com.br/nfv-america-movil-abre-rfi-e-telefonica-reve-
contrato-com-hp/>. Access in February 15, 2018.
HOOFT, F. SDN-Optical: Background, Basics & Tendencies, Padtec, 2018. II Encontro de
Redes e Segurança da Informação da Metrocamp, Campinas, SP.
INFRAROI. TIM e Oi avançam em NFV e SDN, 2017. Available in <
http://infraroi.com.br/tim-e-oi-avancam-em-nfv-e-sdn/>. Access in April 6, 2018.
LIGHTWAVE. Padtec demos SDN-controlled directionless ROADM at SC14, 2014. Available
in < http://www.lightwaveonline.com/articles/2014/11/padtec-demos-sdn-controlled-
directionless-roadm-at-sc14.html>. Access in April 8, 2018.
MCTIC, Ministério da Ciência, Tecnologia, Inovações e Comunicações, Estratégia Brasileira
para a Transformação Digital – E-Digital, 2018. Available in
<http://www.mctic.gov.br/mctic/export/sites/institucional/estrategiadigital.pdf>. Access in
March 30, 2018.
MONTEIRO, J. Operadoras querem implantar SDN e NFV, a dúvida é como, 2016. Available
in <https:// ipnews.com.br/operadoras-querem-implantar-sdn-e-nfv-a-duvida-e-como/>.
Access in April 6, 2018.
MONTEIRO, J. TIM acelera adoção de NFV e planeja virtualizar 49 funções de rede em 2017,
2017. Available in < https://ipnews.com.br/tim-acelera-adocao-de-nfv-e-planeja-virtualizar-
49-funcoes-de-rede-em-2017/>. Access in April 6, 2018.

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MONTEIRO, J. Ciena mostra que NFV também é para pequenas operadoras, 2017. Available
in <https://ipnews.com.br/ciena-mostra-que-nfv-tambem-e-para-pequenas-operadoras/>.
Access in April 6, 2018.
MORRIS, I. Telefónica Plots Unica Expansion, 2017. Available in
<http://www.lightreading.com/nfv/nfv-strategies/telefonica-plots-unica-expansion/d/d-
id/735134>. Access in February 20, 2018.
MORRIS, I. SDN Is Hype & NFV a Faux Pas – Telecom Panel, 2018. Available in
<http://www.lightreading.com/nfv/nfv-strategies/sdn-is-hype-and-nfv-a-faux-pas---telecom-
panel/d/d-id/742193?itc=lrnewsletter_lrdaily>. Access in April 13, 2018.
OSATO, R. Passo a passo para implantar NFV nas redes atuais, 2015. Available in <
http://www.convergenciadigital.com.br/cgi/cgilua.exe/sys/start.htm?UserActiveTemplate=site
&UserActiveTemplate=mobile&infoid=41198&sid=15>. Access in April 6, 2018.
RODRIGUES, S. SDN/NFV: A transição para o mundo virtual, 2018. Available in <
https://www.infranewstelecom.com.br/sdn-nfv/>. Access in April 6, 2018.
ROSA, R. V. et al. Network Function Virtualization: Perspectivas, Realidades e Desafios, 2014.
Available in < http://www.dca.fee.unicamp.br/~chesteve/pubs/MC-SBRC14-NFV.pdf>.
Access in February 26, 2018.
SIQUEIRA, E. Cisco expande oferta de virtualização, 2014. Available in
<http://www.mundodigital.net.br/index.php/component/content/article?id=1165>. Access in
April 6, 2018.
TRÓPICO. Vectura Virtual Edge, 2014. Available in <http://www.tropiconet.com.br/vectura-
virtual-edge/>. Access in April 6, 2018.
VMWARE, Enable Next-Gen Services With Multi-Access Edge Computing, 2017. Available
in<https://www.vmware.com/content/dam/digitalmarketing/vmware/en/pdf/solutions/vmware
-mec-solution-overview.pdf>. Access in April 7, 2018.
WILSON, C. MEF, ETSI & Linux Foundation Work Together on New NFV-Related
Specifications, 2018. Available in <http://www.lightreading.com/nfv/nfv-specs-open-

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source/mef-etsi-and-linux-foundation-work-together-on-new-nfv-related-specifications/d/d-
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