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Presentation for Samsung

Content Networking Trends


OTT, Global CDN and Operator

2013.09.04
Jangwoo Son, CEO
Netmanias / NMC Consulting Group
www.netmanias.com/www.nmcgroups.com
son@netmanias.com
02-3444-5747 / 010 -3460-5747

Table of Contents
Introduction
Trend Analysis
1. The First Video Services by Operators: Walled-Garden IPTV Service

Concept

Case Study

Technology

Comment

2. The Emergence and Success of OTTs: OTT Internet Video Services

Concept

Case Study

Technology

Comment

3. Countermeasure by Operators: Wholesale On-Net CDN

Concept

Case Study

Technology

Comment

4. Countermeasure by Operators: Walled-Garden N-Screen Service

Concept

Case Study

Technology

Comment

5. Countermeasure by Operators: Transparent Internet Caching (TIC)

Concept

Case Study

Technology

Comment

6. Countermeasure by Operators: Mobile Video Optimization (MVO)

Concept

Case Study

Technology

Comment

7. Global CDN Providers: Akamai, Limelight

Concept

Case Study

Technology

Comment

8. Strategy by Global CDN Providers: Licensed/Managed CDN Service

Concept

Case Study

Technology

Comment

9. Strategy by Global CDN Providers: Mobile Cloud Accelerator

Concept

Case Study

Technology

Comment

10. Strategy by OTTs (YouTube): Google Global Cache (GGC)

Concept

Case Study

Technology

Comment

11. Strategy by OTTs (Netflix): Netflix Cache

Concept

Case Study

Technology

Comment

12. Strategy by TIC Vendors: Monetize

Concept

Case Study

Technology

Comment

Summary

Page 2

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Device

Operator Network

IP STB
provided by

TV Stations/
Filmmakers

Operator IPTV CDN

operator
TV

PP/CP

Service
Portal

Streaming (RTSP)

Operator Network

Global OTT
CDN Service
Portal

Any
Internet
Device

Device

Origin
Encoding
Publishing

CP CMS

HTTP Streaming (without IP QoS)

OTT

ON-Net Wholesale CDN


Request
Router

Device
Streaming (HTTP)

OTT
BOX

Service
Portal

Edge Cache
Reverse Proxy

OTT
BOX

Origin
Encoding
Publishing

Origin

TV

Encoding
Publishing

STB

IP Backbone

IP Backbone

IP Backbone

IP Edge

IP Backhaul

IP Backhaul

Access

BBC
HBO
Starz

IP Edge

IP Edge

IP Backhaul

Access

Access

IP QoS

Device

Operator Network

Any
Internet

Contents

Distribution

STB

Device

IP QoS

Operator Network

ON-Net
Wholesale CDN

Any
Internet

PP/CP

Service
Portal
Request
Router

Device
Streaming (HTTP)

Device

Operator Network

Global OTT
CDN

Any
Internet
Device

Streaming (HTTP)

Device
Any
Internet
Device

Transparent Caching

OTT
BOX

Origin
Encoding
Publishing

Global OTT
CDN

Mobile Video Optimization


TCP Proxy | Video Pacing
Transrating | Transcoding
Dynamic BW Shaping | Caching

TIC

MVO

ftp,...

Edge Cache

Operator Network

Streaming (HTTP)
CP CMS

TIC

OTT
BOX

MVO

Service
Portal

IP Backbone

Access

IP Edge

IP Edge
PGW

MVO

OTT
BOX

TIC

Peering Point

Service
Portal

Origin
Access

IP Edge
PGW

Peering Point

Encoding
Publishing

IP Backhaul

Origin
Encoding
Publishing

Access
IP QoS

Operator A

OTT

Operator On-Net CDN


Akamai Global CDN
OTT BOX

IP Backbone

Operator A

Akamai Global CDN

Akamai Edge Server


Caching

Akamai
customers

Smart Pipe
(Dedicated Bearer)

Service
Portal

Default Bearer

Application Acceleration

Service
Portal

OTT

Qwilt TIC Server


Limelight Global CDN

Limelight
customers

OTT BOX

IP Backbone

IP Edge

IP Edge

P-GW

Origin

Origin
Encoding
Publishing

Encoding
Publishing

Operator B

Operator A

Akamai
customers
(OTT/CSP)

Operator B

Operator A

Operator On-Net CDN

Qwilt TIC Server

Akamai Edge Server


Smart Pipe
(Dedicated Bearer)
OTT BOX

OTT BOX

Page 3

Default Bearer

P-GW

Apple iTunes
Louis Vuitton
E-Trading

IP Backbone

IP Edge

...

IP Edge

Apple iTunes

...

IP Backbone

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1. The First Video


Services by Operators
Walled-Garden IPTV
Service
Page 4

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Operator IPTV Service


Launching TPS (IPTV) Service to Increase ARPU (in the mid to late 2000s)
Device

Content service fee

IP STB

Operator Network

IP STB
provided
by
operator

PP/CP

Service
Portal

Operator IPTV CDN

TV

User
(Operator
subscriber)

Contents

Streaming (RTSP)

Operator
CDN

CP/PP

TVStations
/ /
TV

Filmmakers

STB

Encoding
Publishing

CP CMS

TV
STB

IP Backbone
IP Edge
IP Backhaul

Broadband
&
&IPIPQoS
QoS

Access

Content Delivery Architecture

Purpose (Operators)

Video service (Live TV, VoD, Time-Shift TV, nPVR, Relay TV) providers: Operators
Video contents purchaser (TV program, movie) and publisher (transcoding, DRM, etc.),
and service portal operator: Operator
Delivery network: Operators walled-garden IPTV CDN and operators IP network (IP QoS)
Delivery technology: RTSP/RTP/UDP/MPEG2-TS/MPEG2,H.264
Device: IP STB (provided by operators)
Video service users: Operator subscribers

To secure additional revenue streams (IPTV)


by utilizing the broadband access network
ARPU growth
To attract high-speed Internet subscribers
by using the IPTV service as bait
To compete with other operators

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Case Study: Video Delivery Architecture of KT IPTV


Key Technologies

Select a Movie (http://rp1.kyipmedia.co.kr:8080/vod/..)


Request Router IP Address (Filename=M34E3N6CSGL0800008.mpg,
Request Router IP = 125.154.33.5)

Request Router

RTSP Describe (Filename) to 125.154.33.5


RTSP 200 OK (Streaming Server IP Address = 125.154.33.49)

14.65.50.148

OLT

RTSP Streaming N-SW

125.159.2.11

125.154.33.5

Location-Based/Coverage
Zone Routing (Subscriber &
Network Aware)
Load-based Routing
Content-Aware Routing

RTSP Play (rtsp://125.154.33.49/filename)


STB

RTSP Streaming

VoD Portal

MS

VoD Servers
125.154.33.49

STB

Suwon

Zone 1

L3 SW

PE

Namsuwon

STB

Suwon
Hyehwa
Moran

CP
...

...

VoDOrigin Server
VoD
Yeouido ((Ingest/Packaging/
/
/
)

Busan

Distribution)

...

PP

Guro Static Pre-Positioning


(
(App.
Level Multicast)

VoD Servers

STB

Zone 31

. Receiving Terrestrial
Broadcasting and PP CHs
. Channel Encoding and
Transmission

Guro
Guro

STB

Billing, Authentication,
Customer/Device Management

Mokdong
L3 SW

IP QoS
Broadband Access
Request Routing
- Proximity
- Racing
Live Encoding
DRM/CAS
Edge Server Reliability
Cache Efficiency
Channel Zapping time
Ad Insertion

PE

STB

IPTV Subscriber
IPTV
(300 )
(300 million)
Page 6

CO
(400->200)
(400 200)

Premium Node
(31)
(31)

Main Relay Node


(2)
(14) Center Node
(14)
(2)

IPTV Headend(1)
IPTV
(1)

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2. The Emergence and


Success of OTTs
OTT Internet Video
Services
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The Emergence of Internet Video Service Operators (OTTs)


(in the late 2000s)
OTT Internet Video Services (YouTube, Netflix)
Operator
IP Network

Google
Global CDN

OTT

Device

Operator Network

Global OTT
CDN Service
Portal

Any
Internet

User
(Operator
subscriber)

Device

OTT
BOX

HTTP Streaming (without IP QoS)


Origin

Content service fee

Operator
IP Network
User
(Operator
subscriber)

Encoding
Publishing
IP Backbone

Global CDN

OTT

Akamai/
Limelight

IP Edge
IP Backhaul

Access

CDN fee

Content Delivery Architecture (YouTube)


Content: UCC, premium contents
Delivery network
- Googles Global CDN
- Operators IP network (free riding)
Delivery technology: HTTP progressive download (PDL)
Device: Any Internet device

Page 8

Content Delivery Architecture (Netflix)


Content: Purchased from CP by OTT
Delivery network
- Pure-play CDN service (Akamai, Level3)
- Operators IP network (free riding)
Delivery technology: HTTP adaptive streaming (HSS)
Device: Any Internet device

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Case Study: YouTube (over Google CDNs)


YouTube Portal

OTT (YouTube)

Origin Server

Google Data Center

Google Data Center

Google Global CDN

Googles own CDN backbone network


Google Data Center
High-volume duplicate
downloads of the same file:
Transit/Backbone/
Backhaul Network Cost

IX/Transit

Peering Router

Peering Router
Peering Router

IP Backbone

Operator IP Network

IP Edge
IP Backhaul

Access

STB
STB

Page 9

Poor QoE
No IP QoS
Long Distance
(RTT ~ 200msec)

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Case Study: Netflix over Akamai CDNs


Netflix
Portal

OTT (Netflix)

Origin Server

Akamai Parent Cache

Akamai Global CDN


IX/Transit

Akamai Edge Cache


HTTP Adaptive
Streaming

Operator IDC

Operator IP Network

STB

STB

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Netflix Eco-System
Contents

Content Encoding & Packaging = Amazon Cloud Service


Netflix = Content Aggregator

Transcoding (VC1)/Transrating
2.75Mbps
1.52Mbps
350Kbps

Platform

Fragmented MP4

Global CDN
Content Distribution: CDN Caching

(Akamai, Limelight, Level3)

Network
1. Global CDN
- Akamai
- Limelight
- Level 3
2. Netflix Cache

Netflix Cache

Content Delivery:
HTTP Adaptive
Streaming

Device
Bluray Player

200+ devices

Roku

Game
Console

Comcast (MSO, in US)


Verizon (IPTV, in US)
Netflix (OTT Streaming, in 51 nations)

Subscribers:
30 M (Oct. 2012)

Page 11

Netflix(OTT Streaming, in US)

Smart TV

PC

iPad

iPhone
Android

Windows
Phone 7

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Netflix Subscribers and Global Footprint (Nov. 2012)


Netflix streaming paid subscribers totaled over

30 million after four years of services

Paid Subscribers [K]


30,000

Comcast (MSO,
US)
Comcast
(MSO,in
)

25,000

Verizon (IPTV,
US)
Verizon
(IPTV,in
)

Netflixs Paid Subscribers Growth

Netflix (OTT
(OTT Streaming,
51 nations)
Netflix
Streaming,in51)

20,000

Nov. 2012

Netflix(OTT
US)
Netflix
(OTTStreaming,
Streaming,in
)

15,000

Oct. 25, 2012: Netflixs streaming paid subscribers


totaled over 30 million
Q3 2012 (Sep. 30): OTT Video Streaming Service
- Total paid subscribers:
29,892,000
- US paid subscribers :
26,203,000
- Non-US paid subscribers : 3,689,000

10,000
5,000

4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

IR materials
Source:
IR

Oct. 2012
(Sweden, Denmark
Norway, Finland)

2010
(Canada)
2008
(US)

2008
()

Q2 2011: Netflix overtakes Comcast (No. 1 MSO in


US) in paid US subscribers
- Comcast paid subscribers (Q2 2011): 22,525,000
- Netflix paid subscribers (Q2 2011):
23,263,000
2008: Launched paid video streaming service in US

Netflix OTT Service Expansion


Jan. 2012
(UK, Ireland)

Available in 51 nations as of Oct. 28, 2012

Year
Sep. 2011
(43 nations in Latin Am)

Source: www.netflix.com
Page 12
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Footprint

Oct. 2012

Denmark, Finland, Norway and


Sweden

Jan. 2012

UK, Ireland

Sep. 2011

43 Latin American nations

2010

Canada

2008

US

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Netmanias ONE-SHOT

Internet Video Trends


1. In US, Netflix and YouTube account for
48% (33% and 15% respectively) of the
total Internet traffic (downstream, fixed
access)!!! (reported by Sandvine, 2013)

2. A Korean operator, T said


YouTube accounts for 36% of its
total international line traffic.

3. Another Korean company, K said


video contents account for 53% of
its total 3G mobile traffic (2012).

Others,
20.4

Foreign portals, 3.5

Adult content, 5.8

Google

YouTube

Akamai/
Limelight

Netflix

User
(Operator
Subscriber)

Operator
IP Network
Page 13

Global CDN

OTT

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Challenges Faced by Network Operators


Increasing OTT subscribers and traffic
In US, Netflix and YouTube
account for 43% (32% and
11% respectively) of the
total Internet traffic
(downstream, fixed access)
(in 2011)

Video Subscribers 1Q09 - 2Q11 [K]

Operator Network
Walled-Garden IPTV CDN

25,000
23,000

Cord-Cutting/Shaving

TV stations
/Filmmakers

EPG

TV

Impact of OTTs' emergence and


success on network operators:
1) surge in non-profitable traffic
2) decline in their own video
service sales

Among the total global


mobile Internet traffic,
39% was video
streaming, and 22% was
YouTube (in 2011)

Comcast

21,000
19,000

TWC

17,000

CP CMS

STB

15,000

DISH

13,000

Netflix

11,000

Wi-Fi
DSL/FTTH

$
3G/4G

ER

Backhaul

ER

Page 14

Backbone

1Q09

3Q09

4Q09

1Q10

2Q10

3Q10

Access/Backhaul cost
Backbone/Transit cost

OTT
Portal/Origin

BR

2Q09

Mainly
OTT Traffic

Backhaul
cost
cost

Backbone
cost

4Q10

1Q11

2Q11

3Q11

4Q11

More incoming OTT (Pure-Play


CDN) traffic from outside of the
operators network
Issues with high-volume duplicate
downloads of the same file

Traffic of Free
OTT Providers

3G/4G
Access cost

9,000

Traffic of Fee-based
OTT Providers

Transit cost

No revenue stream

Operators desperate to find ways


to reduce costs and create new
revenue streams

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3. Countermeasure by
Operators
Wholesale On-Net CDN
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Wholesale On-Net CDN (for Fee-based OTT)


Win-Win-Lose Strategy (Operators and OTTs competing with global CDNs)
OTT Internet Video Service
Device

Content service fee

Operator
IP Network
User

Global
CDN

OTT

ON-Net Wholesale CDN


Request
Router

Device

OTT

Streaming (HTTP)

Akamai/
Limelight

(Operator
subscriber)

Operator Network

Any
Internet

CP/PP

Service
Portal

Edge Cache
Reverse Proxy

OTT
BOX

Origin
Encoding
Publishing

CDN fee
Why not do this!
(Operator Wholesale On-Net CDN)

IP Backbone

Content service fee

IP Edge

OTT
User
(Operator
subscriber)

Operator
CDN

IP Backhaul

BBC
HBO
Starz

Access

CP/PP

IP QoS
CDN fee

Content Delivery Architecture

Purpose (Operators)

Internet Video Service Provider: OTT [CA (Netflix/Hulu), filmmakers (HBOGO/Starz),


broadcasters (BBC/MBC)]
Video contents purchaser and publisher (transcoding, packaging, etc.), and service portal
operator: OTT
Delivery network: Operators On-Net Internet video CDN, operators IP network (IP QoS)
Delivery technology: HTTP PDL, HTTP Adaptive Streaming, RTMP/RDS
Device: Any Internet device
Page 16

To create new revenue streams (B2B) by


offering wholesale On-Net Internet video
CDNs to OTTs

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Case Study: BT and BBC (Before)


Akamai
Edge Server

STB
RG

..
.

STB
RG

ISP IDC

..
.

STB
RG

..
.

STB
RG

RG

Akamai
Edge Server

..
.

STB

..
..
.
.

STB

RG

..
.

STB
RG

ISPs
Other ISPs in
UK

..
.

STB
RG

IXP (LINX)
STB
RG

MSAN Node
(1,100) Metro Node
(106)
Outer Core Node
(12/20)

...

STB
RG

...

STB

Akamai
Edge Server
BT IDC

RG

...

STB
RG

...

STB

BBC
Origin
Server

When BBC used Akamais CDN service:


- BBC users suffered poor QoE (best-effort delivery in BT network,
No IP QoS)
- BT suffered higher backbone costs

RG

...

...

STB
RG

Inner Core
Node (8)

...

STB
RG

...

STB
RG

Page 17

BT
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Case Study: BT and BBC (After)


Akamai
Edge Server

STB
RG

..
.

STB
RG

ISP IDC

..
.

STB
RG

..
.

STB
RG

RG

Akamai
Edge Server

..
.

STB

..
..
.
.

STB

RG

..
.

STB
RG

Other ISPs inISPs


UK

..
.

STB
RG

IXP (LINX)
MSAN Node
(1,100)

Metro Node Outer Core Node


(106)
(12/20)

Edge Server
(CDN-IS)

STB
RG

...

STB
RG

...

STB

BRAS

Content Acquirer
(CDN-CA)
BT IDC

RG

...

STB

BBC
Origin
Server

BT built its wholesale CDN to prevent backbone


overload caused by Internet video traffic and create
new revenue streams (B2B)

RG

...

STB
RG

...

...

STB
RG

...

STB

Inner Core
Node (8)

RG

RG

Page 18

BT Wholesale CDN (WCC)

...

STB

BT
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Problems of Operators Wholesale CDNs


CSP/OTT Portal
CSP/OTT Origin
Server

CSP/OTT

Multiple contracts with


operators and time
consuming technical
Integration
>> Such a hassle!!

IX/Transit

Content
Acquirer
Operator IP Network

CDN Edge
Server
IP Edge
IP Edge

IP Edge

STB

Excellent QoE

BT
Page 20

STB

IP QoS (DiffServ)
Short Distance (RTT < 10msec)

Verizon

Comcast
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CDN Interconnection (CDNi)


Content Flow
Money Flow

Content service fee

Operator B
CDN (UK)

User

Operator A
CDN (US)

CDNi

CDN fee
Operator C
CDN (Asia)

OTT

Operator D
CDN (SAmerica)

Hey OTT !
1) See? Our footprint is almost as global as others!
2) Only one contract with our leader!

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4. Countermeasure by
Operators
Walled-Garden
N-Screen Service
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Walled-Garden N-Screen Service (TV Everywhere)


Operators vs. OTT
OTT Internet Video Service
Device

Content service fee

Operator
IP Network
User
(Operator
subscriber)

PP/CP

ON-Net Wholesale CDN

Any
Internet

OTT

Global
CDN

Operator Network
Service
Portal

Device

Request
Router
Streaming (HTTP)

Akamai/
Limelight

CP/PP

ftp,...

Edge Cache

OTT
BOX

Origin
Encoding
Publishing

CDN fee

CP CMS

Operator Internet Video Service (Walled-Garden N-Screen)


Content service fee
IP Backbone
IP Edge
IP Backhaul

User
(Operator
subscriber)

Access
Operator
CDN

CP/PP

IP QoS

Content Delivery Architecture

Purpose (Operators)

Internet video service provider: Operator


Video content purchaser and publisher (transcoding, packaging, etc.), service portal
operator: Operator
Delivery network: Operators On-Net Internet video CDN and operators IP network
(IP QoS)
Delivery technology: HTTP PDL, HTTP Adaptive Streaming, RTSP/RTMP
Device: Any Internet device (Operator subscriber)
Page 23

To prevent subscriber churn (Cord-Cutting


/Shaving)
To create additional revenue streams (B2C)

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Case Study: Comcast Streampix (launched on Feb. 21, 2012)


Content Delivery Architecture / Business Model
Internet video service provider: Comcast
Video content purchaser and publisher (transcoding, packaging, etc.), service
portal operator: Comcast
Delivery network: Comcasts On-Net Internet video CDN and Comcasts IP
network.
Delivery technology: HTTP Adaptive Streaming (HSS)
Device: PC, iPad, iPhone (2012/02/23)

Free to selective package plans ($$/m or above) subscribers


(e.g. Xfinity Triple Play, Xfinity Double Play)
Available at $4.99/m to other plans subscribers
Not available to other operators subscribers
Not available to Internet-only subscribers
Only available to Comcast TV subscribers

XfinityTV.com
Xfinity TV App
75,000
TV Shows & Movies
Microsoft IIS
Origin Server

Microsoft HSS
iPad

HTTP AS

Publishing
- Transcoding
- DRM
- Packaging

iPhone

Cisco CDS

Pre-fetch
(Upload)

NBC
ABC
Disney
Sony Pictures
Warner Bros.

PC

DSL/FTTH
Web Browser
(Silverlight)
To be available on
Xbox360 and Android
Page 24

ER
ER

WiFi
3G/4G

BR
ER

Operator Network

Transcoding/Packaging:
Elemental

CP
CMS

Public
Internet

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The Operators Strike Back to Prevent Cord-cutting/Shaving and to Beat Netflix


Internet video service provider:

Internet video service provider:

Netflix

Comcast
CP

CP

Netflix

Netflix

Cable TV

Comcast

Cable TV

Streampix Comcast

One Stop Shopping


Content quantity and quality
Screen quality (video quality)
Bundling
Streampix

Live/VoD

Page 25

Live/VoD

Streampix

Streampix

Xfinity Triple Play: $120/mo Netflix: $8/mo

Xfinity Triple Play: $120/mo

Xfinity Streampix: FREE

(HD Preferred XF Package)


TV 160 CHs
Internet 20 Mbps
Unlimited Nationwide Calling

(HD Preferred XF Package)


TV 160 CHs
Internet 20 Mbps
Unlimited Nationwide Calling

75,000
TV Shows & Movies

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5. Countermeasure by
Operators
Transparent Internet
Caching (TIC)
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Operator Transparent Internet Caching (TIC)


Less OTT Traffic in Operators Network (Save Money)
Global CDN

User
(Operator
subscriber)

OTT

Google

YouTube

Akamai/
Limelight

Netflix

Global CDN

OTT

Operator
IP Network

Why not do this!


(Transparent Cache Vendor)

User
(Operator
subscriber)

Google

YouTube

Akamai/
Limelight

Netflix

TIC Server

Operator
IP Network

Content Delivery Architecture

Purpose (Operators)

Internet video service provider: OTT (Unknown OTT, YouTube)


Video content acquirer and publisher (transcoding, packaging, etc.), service portal
operator: OTT
Delivery network: Operators On-Net TIC and Operator's IP network (No IP QoS)
Caching objects: HTTP PDL file, HTTP Adaptive Streaming file
Device: Any Internet device
No contract relationship between operators and OTTs (CDN or Content)
Page 27

To reduce transit costs by caching unknown


OTT traffic within operators network when the
traffic cannot be handled using wholesale CDNs
To reduce backbone/backhaul extension costs
To enhance user QoE (faster download)

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Why TIC (Transparent Internet Caching)?


Increasing network extension costs arising from non-profitable

Traffic
surging
OTT OTT
traffic

Operators suffering from high network costs due to duplicate downloads


of contents
Users experiencing poor QoE
Googles
own

data
center

OLT

BRAS

GGSN
/SAE

Access

NB/eNB

IP
Backhaul

YouTube
(UCC)
Transit/IX

IP Backbone

Google Global CDN

IP Edge

TIC
TIC
Operator
TIC
OLT

BRAS

GGSN
/SAE

Access

NB/eNB

IP
Backhaul

YouTube
(UCC)
IP Backbone

Transit/IX

Google Global CDN

IP Edge

TIC
OLT

BRAS

GGSN
/SAE

Access

Page 28

NB/eNB

IP
Backhaul

IP Edge

YouTube
(UCC)
IP Backbone

Transit/IX

Google Global CDN


NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Different Types of Transparent Caching


Global CDN

OTT

Operator
IP Network

User
(Operator
subscriber)
PC
SmartPhone
SmartPad
Game Console
STB
SmartTV

TIC Key Technologies


Content identification

Google

YouTube

TIC Server

Validity/Freshness check
Prevention of duplicate
caching

Akamai/
Limelight

Netflix

Support of partial caching


Support of resume
Support of jump

Different Types of Transparent Caching

ABR handling performance


ABR caching efficiency
Provisioning for new OTTs

1. Content identification

2.
Network
configura
tion

Page 29

In-Line
(PBR, DPI)
Out-of-Band
(Tapping)

Faster response to changes in

Object-based
(Content ID = the hash value of a
part of the HTTP response
header + the first part (10 KB)
of the content)

URI-based
(Parameters that can uniquely
identify contents are extracted
from URI and used as content
identifiers)

PeerApp
BTI

Juniper, Alcatel
Bluecoat

Network configuration (In-line

Qwilt (Optical Tap, Port Mirroring)


Alcatel (Optical Tap, Port
Mirroring, 80 Port Mirroring)

Resiliency

OTT streaming logic


Transparency
Small form factor

vs. out-of-band)

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Object-based
Cache_IN1, Cache_IN2

Cache Hit and Cache Out

Cache_OUT

Cache_IN1
The First User

The Third User

TIC

TIC
Video File

Video File
Hash: 7435d9f0b1be5dc9
Cached Content

TCP Session Setup


TCP Session Setup

GET
200 OK +
New content !
No caching, but
keep the ID (hash
value)

Cache_IN1
1. Hash Creation
2. Hash Miss
Hash Store

200 OK +
Hashing

Hash Value
= hash(HTTP Res. Header, first part of the content)
= 7435d9f0b1be5dc9

GET
Had it cached before!
Unchanged original
content !
Deliver the cached
content to users

Cache_OUT
1. Hash Creation
2. Hash Hit
3. Cache Hit
Cache Out

Cached Content

200 OK +

TCP Session Termination

Validity Check

200 OK +
Hashing
about 10 packets

TCP Session Termination


(Terminate transmission from YouTube
server)

TCP Session Termination

Cache_IN2
The Second User
TCP Session Setup

GET
200 OK +
Seen it before!!
Download all the
bytes set as the
content-length and
then cache!!

Cache_IN2
1. Hash Creation
2. Hash Hit
3. Cache Miss
Cache Fill

200 OK +
Hashing

Hash: 7435d9f0b1be5dc9
Cached Content

All requests are delivered to the origin server whether the


video file is locally cached or not
The hash value of the HTTP response header and the first
part of the content are used as a content identifier (for
prevention of duplicate caching)
URLs are not used as a hash factor (Unlike proxy
cache/caching, contents are identifiable regardless of the
URL encoding method of OTT/CSP)

TCP Session Termination


Page 30

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URI-based
1

Content ID (CID) Creation


Content DB Check: Cache Miss

2
Video File Caching

Video Request
(HTTP GET)

Video File Delivery


Optical
Tap

User A

Content ID (CID) Creation


Content DB Check: Cache Hit

User A

4
302 Redirect
TCP FIN (YouTube)

Video Request
(HTTP GET)
User B

User B

6
Video Request
(HTTP GET)

Video File Delivery

TCP FIN
User B

Page 31

User B

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Caching Logic of an Object-based TIC Server (Cache Hit & Cache Out)

OTT
7 TCP FIN

3
2. HTTP GET

200 OK

File 4

Router (PBR)
80 port
200 OK

File 4

5 Hash Hit

4 Hashing
{HTTP header,
Beginning of
video file}

3794c66660940c51

Hash Value

Delivery
(Cache Out)

8
200 OK

Hash Value List


5f1987696239d87f
17435b0c2f45f52d
2a0c38892909ccbd
3794c66660940c51
77d3d201c0f7391e

Cache Engine

File 1
File 2
File 3
File 4
File 5

6 Cache Hit

Storage

File 4

80 port

Router (PBR)

1. HTTP GET

Page 32

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Caching Logic of a URI-based TIC Server: Cache Hit and Redirect to TIC
Server
3

HTTP Request
http://r5---sn-i3b76n7e.c.youtube.com/
videoplayback?sver=3&expire=1362565161&itag=22&id=f5b664a7bab5f5fd&upn=8Rxi5Hp5SAY&cp=U0
hVR1VRU19LS0NONV9NS1dCOjZyNWVDVll6cG1o&sparams=cp,gcr,id,ip,ipbits,itag,ratebypass,source,upn,expir
e&mt=1362541753&ms=au&gcr=kr&fexp=901470,920704,912806,902000,922403,922405,929901,913605,92
5006,906938,931202,908529,920201,930101,930603,906834,913570,901451&source=youtube&newshard=ye
s&ratebypass=yes&ipbits=8&mv=m&key=yt1&ip=118.131.192.220&title=PSY++GANGNAM+STYLE+%28%EA%B0%95%EB%82%A8%EC%8A%A4%ED%83%80%EC%9D%BC%29+M%2FV&signat
ure=92287D03F5CB1B43FB9FCF94945816E6E1273F33.AF88318DBACEB5868E0479596F2EB8055ED0D6EC
TCP: ScrPort = 4550, DstPort = 80
IP: SrcIP = 210.1.1.2, DstIP = 173.194.51.10

173.194.51.10

Flow DB

ScrPort = 4550
DstPort = 80
SrcIP = 210.1.1.2
DstIP = 173.194.51.10

Optical Tap 2

Router

CID Creation

CID List

Hashing
{youtube.f5b664
a7bab5f5fd.22}

5f1987696239d87f
17435b0c2f45f52d
2a0c38892909ccbd
3794c66660940c51

3794c66660940c51

6 Any matching CID?


Yes? Redirect

File 1
File 2
File 3
File 4

Storage

220.1.1.1

Transparent Cache Server


1

HTTP Request

302 Redirect to 220.1.1.1/data/3794c66660940c51 + TCP FIN

210.1.1.2

Page 33

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6. Countermeasure by
Operators
Mobile Video Optimization
for Unknown OTTs
Page 34

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Mobile Video Optimization for Unknown OTTs


Less OTT Traffic in Operators Network (Save Money)
Google
Global CDN

Operator
IP Network
User
(Operator
subscriber)

OTT

Any
Internet

100MB

100MB

Device

Device

Operator Network

Global OTT
CDN

Mobile Video Optimization


TCP Proxy | Video Pacing
Transrating | Transcoding
Dynamic BW Shaping | Caching

MVO
Streaming (HTTP)
MVO

OTT
BOX

Why not do this!


(Mobile Video Optimization Vendor)

MVO
Service
Portal

Mobile Video Optimizer


(Pacing)
User
(Operator
subscriber)

Google
Global CDN

OTT
Access

100MB

IP Edge
PGW

Peering Point

100MB

Origin
Encoding
Publishing

Operator
IP Network

Content Delivery Architecture

Purpose (Operators)

Internet video service provider: OTT


Video content purchaser and publisher (transcoding, packaging, etc.), service portal
operator: OTT
Delivery network: Global CDN and Operator's IP network
Delivery technology: HTTP PDL, HTTP Adaptive Streaming
Device: Any Internet device (Operator subscriber)
Page 35

To reduce transit/backbone/backhaul
extension costs
To prevent bandwidth waste in radio links
(unwatched video)
To enhance user QoE (buffering eliminated)

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Video Delivery Method


1. Operator Walled-Garden IPTV/VOD Service

2. Internet Video (YouTube, Netflix, Hulu, etc.)

OTTs using PDL


PDL:
Simple but problematic
Designed for wireline PC
environments, and thus
network and device
conditions are not considered

Mobile Video Optimization


The bit rates and encoding
rates of video files delivered
using PDL in operators
network are modified so that
the files can be delivered as in
ABR

OTTs using ABR


ABR: A protocol optimized for video delivery in the Internet
Checks the network congestion (response time) and device
conditions (CPU/RAM overload, screen resolution, screen mode
(background or full-screen)) to determine the video quality level
of the next chunk to request.
Page 36

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Page 37

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HTTP Adaptive Streaming


HTTP Adaptive Streaming
a generic web server can be used as a CDN edge server

HTTP: not
RTSP
(
such
),
CDN
Edge
Server
(notRTMP,
required
streaming
engine
as RTMP
and
RTSP)
TCP Loss

The device
requests
chunks
with
automatically
bit rates
(encoding
rates) by
Adaptive:

adjusted
()

adapting to the network congestion and device conditions.

CDN
Server
CDN

/
Low quality
file/chunk

/
Intermediate
quality file/chunk

/
High quality
file/chunk

Intelligence:
Intelligence: Device

No more
request
made
for chunks
if a
user
leaves
without
watching
Streaming:
is

the entire

)
video
(i.e. only
the
watched
chunks
are downloaded)

CDN
Server
CDN

/
Low quality
file/chunk

/
Intermediate
quality file/chunk

/
High quality
file/chunk

Stop
watching

Page 38

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Netmanias ONE SHOT Gallery: Mobile Video Optimization for HTTP Progressive Download
HTTP Progressive Download
If the available bandwidth (i.e.
download speed) is greater than the
source encoding rate
Download
pattern
according to
the available
bandwidth

Client

If the available bandwidth (i.e.


download speed) is less than the
source encoding rate, or variable

HTTP PDL with video pacing

HTTP PDL with dynamic bit rate


adaptation

Source Encoding Rate: 2Mbps

Source Encoding Rate: 2Mbps

Source Encoding Rate: 2Mbps

Download Speed = Available BW

Download Speed = Available BW

Shaping Rate = Encoding Rate = 2Mbps

Playback Rate: 2Mbps

Playback Rate: 2Mbps

Playback Rate: 2Mbps

OTT Origin

HTTP GET (//avatar2Mbps.flv)


HTTP Response (OK)
Video Playback Duration: 10 Min.

HTTP Progressive Download with Mobile Video Optimization

Client

OTT Origin

HTTP GET (//avatar2Mbps.flv)


HTTP Response (OK)

Client

Web Server

HTTP GET (//avatar2Mbps.flv)


HTTP Response (OK)

Source Encoding Rate: 2Mbps


Available BW (btwn a user device and
MVO equipment)
Trans-x-ed & Delivered Video Bitrate

Client

OTT Origin

HTTP GET (//avatar2Mbps.flv)


HTTP Response (OK)
240p
360p
480p
360p

HTTP Payload (avatar2Mbps.flv)

HTTP Payload
(avatar2Mbps.flv)

240p

HTTP Payload
(avatar2Mbps.flv
,480p)

360p

HTTP Payload
(avatar2Mbps.flv)

MVO (DBRA) equipment

MVO (Pacing) equipment


HTTP Payload
(avatar2Mbps.flv, 480p)

QoE
(Loading)

Issues

Loading

Bandwidth wasted (unwatched video


downloaded)

Page 39
www.netmanias.com

QoE deterioration (Loading)

No BW wasted

QoE enhancement (no Loading)

NMCNetmanias
Consulting Group
Proprietary
Confidential
(www.netmanias.com/www.nmcgroups.com)
Source:
Report,
Mobile and
Video
Optimization
for Mobile Operators, Jan. 2010.

What is Video Optimization?


Problems with YouTubes Progressive Download handled by MVO (similar effect to HAS)
Operator
Network

OTT

10 10
minutes

HTTP Adaptive
Streaming

1
1m

HTTP Progressive
Download

TIC

100
MB, 10
min
100MB,
10
480p,
1
Mbps
480p, 1Mbps

Transparent Caching

MVO

MVO (
)
(real-time
optimization)
Only
chunks delivered
watched

Video Pacing

Download Rate (10 Mbps)


Charging
issues
solved
No
BW wasted

Packet Push Rate (1 Mbps)


Resolution transcoded to best
suit the
device
screen
size

Online Transrating/
Transcoding

Transcoding (1 Mbps)

600MB,
10
600
MB, 10
min
720p,13Mbps
480p,
Mbps

Less
buffering

Variable
Dynamic Bit Rate
Adaptation (DBRA)

No
buffering

Bit rates adjusted to adapt to


network

congestion

Page 40

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Changes in YouTubes Streaming (2013)


1. Now Chunk-based HTTP Streaming Delivery in a Selected Resolution
BEFORE: Gangnam Style, 720p , 2012.0x.0x Progressive Download

Red Dot: HTTP GET


Downloading a whole file by a single
request
The whole file downloaded in 40 seconds
No automatic resolution change
A single TCP session

A file (88.8MB)

40s

Video playback time: 4 minutes 12 seconds

AFTER: Gangnam Style, 720p , 2013.08.12

Streaming (Chunk-base)

Blue Dot: HTTP GET (Video)


Red Dot: HTTP GET (Audio)
Requesting next chunk constantly while
watching
Each video chunk size: Fixed 4.25MB
Each audio chunk size: Fixed 0.48MB
No automatic resolution change
aA single TCP Session
No additional request when the user
presses Pause or stops while watching

A video chunk (4.23MB)


An audio chunk (0.48MB)

220s

Video playback time: 4 minutes 12 seconds

Page 41

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Changes in YouTubes Streaming (2013)


1. Now Chunk-based HTTP Streaming Delivery in a Selected Resolution
Before
media file

1080p

720p

480p

360p

240p

144p

Page 42

Single File
(Video &
Audio)
Single File
(Video &
Audio)
Single File
(Video &
Audio)
Single File
(Video &
Audio)
Single File
(Video &
Audio)
Single File
(Video &
Audio)

id

f5b664a7bab5f5fd

f5b664a7bab5f5fd

f5b664a7bab5f5fd

f5b664a7bab5f5fd

f5b664a7bab5f5fd

f5b664a7bab5f5fd

After
itag

Delivery

media file
Video File

f5b664a7bab5f5fd 137

37

HTTP Progressive
Download
(the whole file request)

Audio File

f5b664a7bab5f5fd 141

Video File

f5b664a7bab5f5fd 136

22

35

34

17

HTTP Progressive
Download
(the whole file request)

id

itag

Audio File

f5b664a7bab5f5fd 141

Video File

f5b664a7bab5f5fd 135

Audio File

f5b664a7bab5f5fd 141

Chunk-based HTTP
Streaming

Video File

f5b664a7bab5f5fd 134

(Chunk size: 1.78MB)

Audio File

f5b664a7bab5f5fd 140

HTTP Progressive
Download
(the whole file request)

Video File

f5b664a7bab5f5fd 133

Audio File

f5b664a7bab5f5fd 140

Video File

f5b664a7bab5f5fd 160

Audio File

f5b664a7bab5f5fd 140

HTTP Progressive
Download
(the whole file request)

HTTP Progressive
Download
(the whole file request)

Delivery
Chunk-based HTTP Streaming

(Video Chunk size: 7.934MB)


Chunk-based HTTP Streaming

(Audio chunk Size: 0.479MB)


Chunk-based HTTP Streaming

(Video Chunk size: 4.23MB)


Chunk-based HTTP Streaming

(Audio chunk Size: 0.479MB)


Chunk-based HTTP Streaming

(Video Chunk size: 2.101MB)


Chunk-based HTTP Streaming

(Audio chunk Size: 0.479MB)


Chunk-based HTTP Streaming

(Video Chunk size: 0.897MB)


Chunk-based HTTP Streaming

(Audio chunk Size: 0.238MB)


Chunk-based HTTP Streaming

(Video Chunk size: 0.467MB)


Chunk-based HTTP Streaming

(Audio chunk Size: 0.238MB)


Chunk-based HTTP Streaming

(Video Chunk size: 0.217MB)


Chunk-based HTTP Streaming

(Audio chunk Size: 0.238MB)

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Changes in YouTubes Streaming (2013)


2. Default: Auto Mode (Adaptive Streaming)
By default, the quality setting is on Auto (360p). The initial bit rate (encoding rate) is 360p,
and then different rates are requested for the next chunk depending on network conditions. (bits/s)

720P
360P

Red Dot

Blue Dot

Green Dot

Page 43

720P & 1080P

itag

clen

range

Quality

140

3418524

237568

Low Quality Audio

134

14537504

1167360

360P

141

6861765

479232

High Quality Audio

136

53785636

4255744

720P

141

6861765

479232

High Quality Audio

136

53785636

4255744

720P

137

100773420

8171520

1080P

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Why did YouTube switch?


1. Chunk-based Streaming

2. Adaptive Streaming

Before (Progressive Download)

After (Chunk)

User QoE enhancement


- Buffering eliminated (by
adjusting resolutions)
- No more inconvenient manual

Watching
another
video after
40 sec

Watching
another
video after
40 sec

User PC

High network costs


(Too bad)
Page 44

(automatic adjustment)

Watching
another
video after
40 sec

YouTube Server

Internet or operators
network

adjustment of video quality

Watching
another
video after
40 sec

BIG ($$$)

User PC

YouTube Server

Internet or operators
network

Small ($)

Low network costs


(Not too bad)

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Why MVO?

, the world No. 1 fee-based OTT, adopted HTTP


Adaptive Streaming from day 1

, the world No. 1 free OTT, used HTTP


Progressive Download
Suffered various issues (e.g. radio bandwidth waste and
billing issues in a non-congested network, and buffering
and QoE deterioration in a congested network)

Introduced MVO technology/equipment


In 2013, YouTube switched to HTTP Adaptive Streaming

HTTP
Adaptive
Streaming
(intrinsically optimized)

Then why MVO? What is it for?


Page 45

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7. Global CDN Providers


Akamai
Limelight
Page 46

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Global CDN Service Provider: Akamai (Distributed Approach)


127,000 edge servers operated by 1,150 ISPs
in 81 nations

OTT/CSP
OTT/CSP

Operator
Data Center

Akamai Global CDN


(120,000 servers
all around the workd)

Akamai Edge Server


ISP

ISP

ISP
ISP

IP backbone
ISP
IP edge

ISP
ISP

ISP
Global Internet
CSP Portal

STB
RG
STB

KT

RG

Akamai DNS

STB
RG

KT IDC

Akamai CDN

CSP

STB
RG
STB
RG

Public
Internet

STB
RG

STB
RG
STB

LG U+

Origin Server
STB
RG
STB

RG
STB
RG

RG
STB

Akamai Edge Servers

LG U+ IDC

RG

BT IDC

STB

STB
RG

RG

RG

RG

RG

RG

STB

STB

STB

Page 47

STB

BT

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Akamai CDN Core Technology


Mapping System (centralized)
HL-DNS (centralized)
Monitoring Agent (distributed/located in Cluster)

High Level DNS Mapping Table


HL-DNS
Update High Level Map
3

Mapping System
(Map Maker)

Origin Server
User

LL-DNS (distributed/located in Cluster)


Edge Server (distributed, totally 119,000 servers)

2 1
1 Reporting
Periodically

Update Low Level Map 2


DNS

Low Level DNS


Mapping Table

LL-DNS

ents
Cont

Monitoring Agent

DNS

Deliv

ery

...

2 1

Cluster 1,000

a a a Check Server Load & Health


Measure Network
Performance (RTT, Loss) b

...

Cluster 1
Low Level DNS
Mapping Table

Local DNS
DNS

b
Measure Network
Performance (RTT, Loss)

User

1 Reporting Periodically

...

LL-DNS

...

HL-DNS servers selecting LL-DNS server: by


mapping client to a cluster based on clients local
DNS server IP address, network proximity and
cluster health

Cluster 5,000+

Monitoring Agent
a Check Server Load & Health

Updated every 15~20 min

...

Cluster geographically close to local


Local DNS Server DNS server (LL-DNS server)

Cluster 2
2 Low Level Map Update: Every 2~10s

(China)

3 High Level Map Update: Every 15~20m

(Monitoring Agent to Mapping System)

(Mapping System to Low-Level DNS)

(Mapping System to High-Level DNS)

1. Health & Load of Clusters and Edge Servers a


2. RTT & Packet Loss between Clusters and Local
DNS Servers b
3. RTT & Packet Loss between Akamai Clusters

1. Edge Server Status in a Cluster: Health


& Load of Edge Servers
2. RTT & Packet Loss between Clusters
and Local DNS Servers

1. Mapping between LL-DNS Servers and


Local DNS Servers
2. Cluster Status: Health & Load of Cluster
3. RTT & Packet Loss between Clusters
and Local DNS Servers

Cluster
Health

Japan IDC (210.252.57.244-246)


China
ChinaIDC
IDC (125.26.214.70-79)

LL-DNS servers selecting the optimized edge server :


by assigning client to specific server (through
selecting a non-overloaded edge server in the cluster
nearest to the users local DNS)

* TTL (30 min ~ 1 hour)

Updated every 2~10 sec


Latency between local DNS server and cluster

Edge servers

Edge server load

User
Cluster 3 (Japan IDC)

Cluster 4
(China Telecom
IDC)

Cluster 4 (China CT IDC)

Request Routing Procedure


Page 48

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Reference

Page 49

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Limelight CDN Architecture: Super PoP Approach

Equinix
Zurich

G
60

Telx
Atlanta

ISP

FranceIX

LINX

G
10

60
G

FT

30
G

10
G

AMS-IX

ISP

ISP

60 G

Equinix
Zurich

ISP

SuperPoP Approach
- Limelight
- Level3
- CloudFront

20 G

Equinix
Paris

LAIIX

KT

G
10

ISP
Equinix
LAX

10 G

SKT
Equinix
CHI(Chicago)

Limelights Fiber Backbone

50 G

LG U+

20 G

Level3
Comcast

TORIX
(Toronto)

G
10

(Seattle)

10
G

Qwest

Equinix
SGP

50 G

30
G

SIX

JPIX

PIX
(Vancouver)

Equinix SJO
(San Jose)

90+ Limelight Super PoPs

Page 50

589 Access Networks (ISP, IX)

OTT/CSP

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

8. Strategy by Global CDN


Providers
Licensed/Managed CDN
Service for Operator
Page 51

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Licensed/Managed CDN Service by Global CDN Service Providers


Expand Global CDNs through Penetrating the Operators Networks
Content service fee

Operator A

OTT

Operator On-Net CDN

CDN fee
User
(Operator
subscriber)

Operator
IP Network

Global CDN

Akamai Global CDN

OTT

(Akamai)

OTT BOX

IP Backbone

Akamai
customers
Service
Portal

IP Edge
Origin
Installing CDN edge servers
of global
providers at the IP network edges of telecom
operators

Why not do this!


Encoding
Publishing

Operator B
Operator On-Net CDN

Content service fee


CDN S/W
license fee
(Operator
subscriber)

Operator
IP Network

CDN fee
Global CDN

(Akamai)

IP Backbone

IP Edge

OTT

Content Delivery Architecture

Purpose (Akamai)

Internet video service provider: OTT


video content purchaser and publisher (transcoding, packaging, etc.), service portal
operator: OTT
Delivery network: Akamai global CDN + Operators On-Net Akamai CDN
Delivery technology: HTTP PDL, HTTP Adaptive Streaming, RTSP/RTMP
Device: Any Internet device (Operator subscriber)
Page 52

Apple iTunes

...

User

OTT BOX

To enhance the video QoE of its customer OTTs


- by delivering OTT traffic right to the IP edges of
operators network (Low RTT)

To significantly reduce IDC costs


- by delivering OTT traffic right to the IP edges of
operators network, drastically reducing Akamais
traffic in IDC

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Licensed/Managed CDN Service


Akamai Managed CDN
User

Operator IP Network

Global CDN

Akamai customers

Operator Data Center


Akamai edge servers

OTT

Akamai Global CDN

OTT

L Operator: Higher backbone costs


Heavy traffic from Akamai customers (e.g. Netflix) resulting in costly IP
backbone expansion
IP edge

L Akamai: OTT customers' video QoE degraded

IP backbone

Too long distance between Akamai's edge servers and users (High RTT)

L Akamai: Higher IDC costs


Netflix traffic is delivered from operators IDC. So, the more Netflix
users or the higher encoding rates, the higher IDC costs
Introducing Akamai edge servers at operators IP edges

Operator
On-Net CDN

Operator Data
Center

Akamai Global CDN

OTT

Akamai edge servers

J Operator: Lower backbone costs


IP backbone
IP edge

Less costly IP backbone expansion required to cover traffic from


Akamai customers (e.g. Netflix)

J Akamai: OTT customers' video QoE enhanced


Netflix traffic delivered directly from IP edges of the operator (Low RTT)

J Akamai: Drastically lower IDC costs


Netflix traffic is delivered from operators IP edges, drastically reducing
Akamais traffic within IDC
Page 53

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Licensed/Managed CDN Service


User

Operator IP Network

Global CDN

Global User

Operator Customers
Domestic CP/OTT
/Cloud

Operator
On-Net CDN

Operator
Headend

Operator Data
Center

Akamai Global CDN (127,000


edge servers across the world)

ISP

ISP

Off-Net Akamai
edge servers

ISP
ISP

IP backbone
ISP

IP edge

ISP

ISP

ISP

Global Internet

J Operator: Creating CDN profit streams


Rapid CDN network deployment
Winning domestic CP/OTT customers using its own branded CDN

J Operator Customers: Reaching out to customers locally and globally


Enabling fast contents delivery to global users through federation with Akamai global CDN
Page 54

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9. Strategy by Global CDN


Provider
Mobile Cloud Accelerator
Page 55

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Akamai Mobile Cloud Accelerator (MCA)


Expand Global CDNs through Penetrating the Operators Networks
Content service fee

Operator A

Akamai Global CDN

Akamai Edge Server


Operator
IP Network

Caching

Akamai Global CDN

Application Acceleration

Smart Pipe
(Dedicated Bearer)

User
OTT

(Operator
subscriber)

Akamai
customers
(OTT/CSP)
Service
Portal

Default Bearer

P-GW

CDN fee

Origin

Why not do this!

Encoding
Publishing

Operator A

Content service fee


Acceleration fee: $5
Operator
IP Network

Akamai Edge Server


Smart Pipe
(Dedicated Bearer)

Akamai Global CDN

User
OTT

Default Bearer

P-GW

Apple iTunes
Louis Vuitton
E-Trading

...

(Operator
subscriber)

Smart Pipe fee: $1

CDN fee
Smart Pipe fee: $3

Content Delivery Architecture

Purpose

Internet video service provider: OTT/CSP


Video content purchaser and publisher (transcoding, packaging, etc.), and service
portal operator: OTT/CSP
Delivery network: Operators dedicated bearer + On-Net Akamai server + Akamai
Global CDN
Delivery technology: HTTP
Device: Any Internet device (Operator subscriber)
Page 56

OTT/CSP: To create new revenue streams


(acceleration fee)
Operator: To create new revenues streams (B2B)
Akamai: To generate revenues from Smart Pipe
Broker
Ericsson: To boost the sales of LTE equipment

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

MCA Procedure
Mobile Operator Network

Mobile Cloud
Accelerator
(MCA)

RAN Acceleration

Internet Acceleration

Mobile Network

Rx

PCRF

SPC

Gx

HSS/
SPR

PCRF

SPC

Akamai
EC
MCA

Akamai CDN

Local
DNS

Akamai
DNSs

OTT
DNS

OTT
Origin

Cache IP
1.1.1.1

Default Bearer Establishment


Attach REQ/
PDP Connectivity REQ
UE ID

Authentication

OTT Origin

Location Update

1
2
1

Internet

PGW

MME

UE IP
192.168.1.100

Akamai Global CDN


Akamai
Edge
Server/
Cache

RAN

UE

Create Session REQ

Akamai DNS

IMSI, Cell ID,


Subscribed Profile

Allocate IP addr.

Local DNS

Ind. of Session Establ.

OTT DNS

IMSI, UE IP, Cell ID,


Subscribed Profile

Profile
Ack. of Session Establ.

Operator
BB

DPI

Public Internet

IMSI, PCC Rule

Attach Accept/
Activate Default
Bearer REQ
UE IP,
Authorized QoS

Dedicated Bearer
(NW-init. Secondary PDP Context)

Mobile Device

RAN

Sniffing Diameter Signaling


UE IP, IMEI, Cell ID, QoS Profile, ..
Identify device type

Internet

Overview of MCA Operation


Configuration: IP adresses of MCA edge servers
Distinguishment between MCA and RAN
acceleration flow
3 Transfer of information on the RAN
acceleration flows
4 Transfer of RAN acceleration rule
2

PGW/GGSN

UE IP,
Authorized QoS

Default Bearer Estab.

Default Bearer
(Primary PDP Context)

Create Session
RSP

Detection MBB Turbo Flow


DNS Query

DNS Query

UE IP,
OTT hostname (origin.example.com)

UE IP,
OTT hostname (origin.example.com)

DNS Query
Local DNS IP, OTT hostname

DNS Reply
CNAME = origin.example.edgesuit.net

DNS Query

Creation of a dedicated bearer

Local DNS IP, origin.example.edgesuit.net

Select
Best
Edge Cache
DNS Reply

UE IP, Cache IP

Local DNS IP, edge1.g.akamai.net

DNS Query
CNAME = edge1.g.akamai.net

DNS Reply

1
Sniffing DNS Reply

A = Cache IP

DNS Reply

A = IP of Akamai MCA edge cache

Detect MBB turbo flow


Detection method 1

Extract UE IP and Cache IP in DNS Reply destined to UE


If the Cache IP matches any IP in IP Range (MBB Turbo),
create a Dedicated Bearer to the UE
Content REQ
GET http://OTT URL

UE IP, Destination IP

Detect MBB turbo flow


Detection method 2

Extract Destination IP in the First Content REQ


If the Destination IP matches any IP in IP Range (MBB Turbo),
create a Dedicated Bearer to the UE
Default Bearer

Page 57

Internet

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

10. Strategy by OTTs


(YouTube)
Google Global Cache
(GGC)
Page 58

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Google Global Cache


Expand OTTs CDNs by Penetrating the Operators Networks with their own CDNs
Google
Global CDN

OTT

Google Global Cache (GGC)


o Google Global Cache Servers (H/W & S/W)
provided by Google: FREE
o Remotely managed by Google (remote
monitoring and technical support): FREE
o Rack spaces, power and GE ports provided by
operators: FREE

User
(Operator
subscriber)

Operator
IP Network

Why not do this!


(Google)

Google Global Cache


(GGC)
User
(Operator
subscriber)

Operator
IP Network

Google
Global CDN
Operators deployed GGC
North America: most operators
Europe: most operators
Korea: LG U+, SK, KINX (2012.02)
Japan: KDDI, SoftbankBB, So-Net

Content Delivery Architecture

Purpose

Internet video service provider: OTT (YouTube)


Video content purchaser and publisher (transcoding, packaging, etc.), and service portal
operator: YouTube
Delivery network: Google Global CDN + operators On-Net Google cache (GGC)
Delivery technology: HTTP PDL, HTTP Adaptive Streaming
Device: Any Internet device (Operator subscriber)
Page 59

To expand Googles CDNs in operators


network at no cost
To enhance QoE of YouTube users (Low
RTT)

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Benefits of GGC

Users

Operator IP Network

Transit/IX

Global CDN

OTT

L Operator: increased backbone cost

L Google: hard to deliver high resolution video without

Higher costs for transit and IP backbones due to YouTube traffic

buffering
Due to long RTT between its datacenter and users

L Operator: more complaints from its Internet subscribers


about buffering

Google
Datacenter

Google
Global CDN

Transit/IX
IP Edge

IP Backbone

Google
Datacenter
Operator
Datacenter

Google
Cache
Google
Global CDN

Transit/IX
IP Edge

IP Backbone

J Operator: reduced transit costs


J Operator: no costs for building or operating caching
solution (operator CDN or transparent cache)

J Google: improved YouTube video QoE for its user


YouTube traffic delivered from GGCs in the network of
operators, providing low RTT

J Google: expanded its CDN throughout the world,


J Operator: improved YouTube QoE for its Internet subscriber even into the networks of telecom operators at no IDC
Page 60

cost

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Google Global Cache

173.194.56.82
(USA)

Average download speed for


YouTube = 2Mbps, RTT = 200msec
GL-HUB

KT subscriber
OLT

L3 SW
BRAS Router

KT IP network
Page 61

Center node

KT IDC

211.181.65.15
Average download speed for
YouTube = 90 Mbps, RTT < 10msec

KT-IX
DIX
LG IDC

LG U+ IP network

LG U+
Subscriber

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Google Global Cache


Watching YouTube through LG U+
Internet line

173.194.56.82
(USA)

Video data pre-downloaded


in my PC

100 Mbps

100 Mbps

Current playback
position

Watching YouTube through KT


Internet line

Download Graph

YouTube video download speed

97.4 Mbps

YouTube video download speed

2.1 Mbps

Download Graph

Average download speed for


YouTube = 2Mbps, RTT = 200msec
GL-HUB

KT subscriber
OLT

L3 SW
BRAS Router

KT IP network
Page 62

Center node

KT IDC

211.181.65.15
Average download speed for
YouTube = 90 Mbps, RTT < 10msec

KT-IX
DIX
LG IDC

LG U+ IP network

LG U+
Subscriber

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Reference

Page 63

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11. Strategy by OTTs


(Netflix)
Netflix Cache
Page 64

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Netflix Cache
Expand OTTs CDNs by Penetrating the Operators Networks with their own CDNs (Bypassing Global CDNs)
Content service fee

Operator
IP Network
User

Netflix Cache

Global CDN

o Netflix Cache Servers (H/W & S/W) provided


by Netflix: FREE
o Remotely managed by Netflix (remote
monitoring and technical support): FREE

OTT

Akamai/
Limelight

(Operator
subscriber)

o Rack spaces, power and GE ports provided

CDN fee

by operators: FREE

Why not do this!


(2012.06)
Content service fee
OTT
User
(Operator
subscriber)

Operator
IP Network

Content Delivery Architecture


Internet video service provider: OTT (Netflix)
Video content purchaser and publisher (transcoding, packaging, etc.),
and service portal operator: Netflix (Amazon)
Delivery network: Operators On-Net Netflix Cache
Delivery technology: HTTP Adaptive Streaming
Device: Any Internet device (Operator subscriber)
Page 65

Operator deployed Netflix Cache (Jan. 2013)


North America:
Cablevision (US), Clearwire (US), Google Fiber (US), Telus (Canada)
Europe:
British Telecom (UK), Virgin Media (UK), TDC (Denmark)
Latin America:
Telmex, GVT

Purpose (Netflix)
To reduce global CDN fees (or no fee)
To expand its own CDNs within operators network at no IDC
cost
To provide higher quality video (HD 7Mbps, 3D 12Mbps) services
To enhance the video QoE of Netflix users by delivering its
traffic right to the IP edges of operators network (Low RTT)
NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Netflix Cache Cost


Netflix Cache

Netflix Cache Internal Architecture

Netflix Cache Cost (based on market prices as of


Dec. 2012)

Redundancy
Memory

Processor

8GB ECC 1333MHz

10GbE

10GbE

Supermicro AOC-STGN-i2S

Intel E3-1260L

Supermicro X9SCM-F

Crucial m4 512GB

LSI SAS 9201-16i 16Port

HTTP Streaming Capacity: 10Gbps

SSD
OS, Log, Popular Content

LSI SAS 9201-16i 16Port

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Hitachi 3TB Deskstar

Content Storage

Hard Disk: 3TB x 36 (100TB)


Unique Content Size: 48 TB
Network Interface: 10Gbps

Vendor & Model

Price[]

Total []

Chassis

TST custom

200,000

200,000

Motherboard

Supermicro X9SCMF

250,000

250,000

Processor

Intel E3-1260L

350,000

350,000

Memory

8GB ECC 1333MHz

80,000

320,000

Hard Drive

Hitachi Deskstar
7K3000 1TB

40

90,000

3,600,000

Solid State
Drive

Crucial m4 512GB

600,000

600,000

Controller

LSI SAS 9201-16i 16


port

500,000

1,000,000

Network card

Super micro AOCSTGN-i2S

550,000

550,000

Redundant
Power
Supply Unit

Zippy MRW5600V4V/DMRW5600V4V

1,000,000

1,000,000

Total

7,870,000

Mainboard

Raid Controller (Onboard)


Crucial m4 512GB

Description
10GbE NIC

Content Storage (Mirror) Content Storage

Content Storage (Mirror)

OS: FreeBSD v9.0


Web Server: nginx
Request Router: BIRD Internet Routing Daemon
Content Placement: Push (Pre-Fetch)

Page 66

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Without Netflix Cache


Users

Operator IP Network

Netflix, accounting for 33% of ISP


network traffic in US

Global CDN

Operator
Datacenter

Akamai
Edge

IP Edge

OTT

Akamai Global CDN

Limelight
Datacenter

IP Backbone
Transit/IX

Limelight Global CDN

L Operator: increased transit costs


Higher costs for transit and IP backbones
due to Netflix traffic

L Netflix: CDN cost


CDN services currently provided by Akamai, Limelight and Level3

L Netflix: hard to deliver high resolution video without buffering


Average resolution in US 2~3 Mbps

Page 67

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With Netflix Cache


Users

Operator IP Network

Operator
Datacenter

OTT

Public Internet

Netflix
Cache

IP Edge

IP Backbone

Public Internet
NB/eNB

Operator
Datacenter

Netflix
Cache

J Operator: reduced transit costs


J Operator: no costs for building or operating caching solution
(operator CDN or transparent cache)
J Operator: improved Netflix QoE for its Internet subscriber

Page 68

J Google: improved Netflix video QoE for its user


YouTube traffic delivered from IP edge of operator
IP network, providing low RTT

J Netflix: started high resolution video service (


7 Mbps HD, 12 Mbps 3D) in Jan 2013
J Netflix: expanded its CDN throughout the world,
even into the networks of telecom operators at no
IDC cost

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

12. Strategy by TIC


Vendors
Monetize
Page 69

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Limelight + Qwilt
Proposed a Solution for Operators to Monetize OTTs through Interlocked Global CDNs and TIC
Operator A

Content service fee


Operator
IP Network

LimeLight Global CDN

User

OTT

Qwilt TIC Server

OTT

Limelight Global CDN

Limelight
customers

OTT BOX

(Operator
subscriber)

IP Backbone

IP Edge

Streaming fee
Why not do this!

Operator B
Content service fee
Qwilt TIC

LimeLight Global CDN

Qwilt TIC Server

OTT
OTT BOX

User
(Operator
subscriber)

IP Backbone

IP Edge

Operator Caching fee


IP Network

Streaming fee

Content Delivery Architecture


Internet video service provider: OTT
Video content purchaser and publisher (transcoding, packaging, etc.),
service portal operator: OTT
Delivery network: Operators On-Net TIC & Limelight global CDN
Delivery technology: HTTP PDL, HTTP Adaptive Streaming,
RTSP/RTMP
Device: Any Internet device (Operator subscriber)
Page 70

Purpose
Limelight: To improve its profit structure by reducing streaming
costs
Limelight: To enhance the video QoE of its OTT customers (Low RTT)
Operator: To create a new revenue stream (caching fees)
Qwilt: To propose a solution for operators, TIC equipment
purchasers, to monetize OTTs and thus boost TIC sales (higher TIC
sales)
NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Summary: The Trends - Unlimited Competition


Carrier Cloud (2012-)

Pure-Play
CDN

ISP

ISP

ISP
ISP

ISP

ISP
ISP

ISP

ISP
ISP

ISP

Amazon CDN (CloudFront) for Amazon Cloud


Service (AWS, EC2, S3)

OTT (Netflix,
YouTube)

Amazon
Apple iTunes

ISP

ISP

AT&T, ALU CloudBand, Ericsson

Dumb Pipe

Amazon Cloud
(IaaS: EC2, S3)

Amazon Cloud CDN

Amazon
Virtual
Private
CLoud

CDN
OTT Shock (2010-)

Amazon
Cloud (IaaS)

Amazon
Instant Video

ISP
ISP

ISP

CDN Federation (CDNi) (201x-)


Wholesale CDN (2011-)

CSP Origin

Saleforce

Walled-Garden IPTV CDN (2005-)

Office365

Operator

Headend

CSP (OTT)
Origin

ISP
ISP

ISP

STB

ISP

ISP

BT, Comcast, Verizon, Orcon, PT, etc.

Google CDN (2007-)

Walled-Garden MS CDN (2011-)


Operator

Headend

Transparent Caching (2010-)

ISP

YouTube

ALTO

Google

Google Global CDN

SDN

CP

Global CSP

Telecom Operator

TV

ISP

ISP

CP

SDN
ISP

ISP

ISP
ISP

ISP

YouTube

TWC, Verizon, KT

ISP
ISP

ISP

Google Global Cache (2012-)


SKB, LG U+, KINX

Netflix

OTT Origin
(Netflix)

Netflixl Cache (2012-)

Sprint, Verizon, Level 3, Frontier (PeerApp)

Global Cloud Provider

Cloud

Operator

Global

Global Telco CDN

Operator On-Net

OTT CDN (2008-)

Global CDN (1999-)

Global CDN

ISP

ISP

WalledGarden

Mobile Video Optimization (2011-)

ISP

Federation
ISP

CDN
S/W
License

ISP

Cloud CDN (2011-)


Global CDN

ISP

ISP

ISP

ISP

ISP

ISP

ISP
ISP

ISP

Akamai MCA (2012-)

Page 71

Global CDN

ISP

Cloud (SaaS)

YouTube

Sprint, Verizon Wireless

ISP
ISP

CSP

ISP
ISP

ISP

Limelight LCDN: Bell Canada


Akamai LCDN (Aura)

ISP
ISP

ISP
ISP

Akamai, Limelight, Level 3

Akamai

Global CDN Provider

CSP Origin

Licensed CDN (2011-)

NMC Consulting Group Proprietary and Confidential (www.netmanias.com/www.nmcgroups.com)

Netmanias Research and Consulting Scope


99

00

01

02

03

04

05

06

07

08

09

10

11

12

13

eMBMS/Mobile IPTV
CDN/Mobile CDN
Transparent Caching
BSS/OSS

Services

Cable TPS
Voice/Video Quality
IMS
Policy Control/PCRF
IPTV/TPS
LTE

Mobile
Network

Mobile WiMAX
Carrier WiFi
LTE Backaul
Data Center Migration
Carrier Ethernet
FTTH

Wireline
Network

Data Center
Metro Ethernet
MPLS
IP Routing

Visit http://www.netmanias.com to view and download more technical documents.


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