This presentation was made by TeliaSonera International Carrier's CTO Mattias Fridström at the DataCloud Nordics conference in Oslo, October 15 2015. It treats the challenges a carrier is facing as everything goes global but also the importance of a stable carrier as connectivity becomes more and more business critical.

1. The End of Online Life
Mattias Fridström
Vice President & Head of Technology – TeliaSonera International Carrier
2015-03-111

2. 2nd biggest IP provider in the world: Internet Intelligence Authority Renesys. Rankings retrieved 8 May 2015. Subscription required.
33.9% of the global interrnet routing table sits behind the TSIC AS1299 transit customer base: TSIC Analysis May 2014

3. TeliaSonera International Carrier?
HQ in Stockholm, part
of the TeliaSonera
group of 18 operators
Own fiber across
Europe and
north America
South America is one of
our fastest growing
markets
Eight of top ten global
content providers are
our customers
20 years of Middle East
business relationships,
in-region PoPs 2014
Nine of the top 10
global IP backbones
are our customers

4. There’s no such thing as online life. Just life
Connectivity is beyond
business critical –
it’s life critical
End users lead disruption
Fast-evolving behaviors,
attitudes and expectations
Innovation shifting towards
use of technology rather
than technology itself
The critical path increasingly
includes backbone services
A small film with
big consequences

5. What does ‘Just life’ mean for you?
CONTENT
PROVIDERS
Delivering toothpaste: services used
twice a day
From exceptional customer focus to
assured delivery
Choose your allies carefully
DATA & COLO
CENTERS
Increasing end-user recognition &
expectations
Ensure the biggest link is not the
weakest link
Choose your allies carefully
OPERATORS
& CARRIERS
Expanding and evolving
communications landscape
From assured delivery to real
customer focus
Moving brand values and using the
’trust’ opportunity

7. Yes – Volume Grows
DWDM CHANNELS 10G IP PORTS
CUSTOMER TRAFFIC
GROWNTO TWO THIRDS
CONSTANT RATIOS BETWEEN BACKBONE,
PEERING AND CUSTOMER TRAFFIC

8. With no GO SLOW…
CONTINUED
ORDER OF
MAGNITUDE
VOLUMEGROWTH
Dow Jones
Index*
Bandwidth
Growth**
2006 2015

9. …and the race towards ZERO continues

10. Price
Service packaging
New business models
Repair response time
Organizational flexibility
Product & service features
Quality and flexibility
Lead times
…unless we add value.

11. Expansion continues
AND
NORTH AMERICA

12. Beyond fixed bandwith
YESTERDAY TODAY TOMORROW
CAPACITY MEDIUM HIGH MEGA
DELIVERY MONTHS WEEKS HOURS
FLEXIBILITY LOW MEDIUM HIGH
FOCUS EVERYTHING SUPPLIER MANAGED
Old game plan. Flatter
curves enabled strict
planning rules
Peakier, slimmer events
demand new network
operations
Peaks converge, CoS
solves short terms
issues

13. My ”new” view on existing trends
– Shift to Mobile Devices
– Continued rise of video
– More ‘in-region’traffic
– One end user transaction
results in datacentre x4
– New ’mega’data centers
Trends

15. The COGS Challenge…

16. The COGS challenge…
– This calculation is based on a simulated network in Europe
– The amount of CAPEX and COGS spent after 5 years is almost identical
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
2015 2016 2017 2018 2019 Total
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
2015 2016 2017 2018 2019 Total
CAPEX COGS

17. …and where the COGS challenge really is
– Breaker cost is in reality power cost but the industry is struggling to find a “fair” way of handling this
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
SPMS FLM Floorspace Breaker cost

18. The “Breaker” Cost Dilemma
30%
5%
5%
4%
5%
3%
7%
7%
14%
10%
6%
10%
5%
9%
11%
30%
6%
7%
12%
0,9%
6%
14%
0,5%
9%
9%
7%

19. The many small cross connects
Little
x
Many
=
A lot

21. Digitalization

22. More challenges
Everything
Becomes
Software

23. Requirements
Good inventory
Clear processes
End-to-End
Automation

24. Requirements
Yesterday Today
Network skilled resources Network & IT skilled resources

26. The whole value chain needs to understand
B to B B to CV to B
Communication service
providers
International
Carriers
Equipment
vendors

27. Help Us on Our Mission
to fulfilling promises…
…through experiences
Characteristics:
• People centric
• Communication between individuals in any channel (read: loss of
control of the message)
• Deliver an experience worth talking about
• Transparency
• Walk the talk
From giving promises…
…through communication

28. and prevent the death of more heroes