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Evolving the Service Provider Business Model for OTT Service DeliveryJune 21, 2011
V2.0
Glenn ThurstonVice President Global MarketingBTI Systems Inc.
22Outline
What is OTT Content?
Its Impact On Networks and Users
Changing the Broadband Provider business model and relationship to OTT Content
33The OTT Content Explosion Driven by on-demand Video…Today
MP3 Youtube 3 minute video
iTunes feature-length movie
HD Movie (Netflix)0
1000
2000
3000
4000
5000
6000
7000
3MB 38MB
1500MB
6000MB
Content Transfer Requirements (MB)
Video will account for 90% of network traffic by 2012Cisco Visual Networking Index Forecast
What is it?• Internet Video• Software Updates• P2P File Sharing• HTTP Downloads
Bandwidth drivers Content duration Resolution Mobility Market Adoption
44OTT Traffic Composition
Source: BTI Systems Inc. Traffic Report - June 3, 2011 – US Broadband Operator – Suburban Site
55Content Delivery Environment
Content Owners
Content Aggregators
Broadband Network Content Delivery
Content Subscribers
Broadcasters Studios Others
66
Company Confidential. Distribution of this document is not permitted without written authorization.
OTT Impact: Broadband Network Operators
Internet request
AccessCore/AggregationTransitPeeringPoint
CO POP Subscriber
Rapidly growing peering $$
Frequent upgrades to bandwidth interfaces
Network Utilization Increased utilization network Expensive upgrades to
Routing and Transport Poor quality, poor resolution, extended download times “Slow connection” drives churn
Subscriber QoE
Over Utilization
Content Request
Content Served
77OTT Impact: Subscriber Experience
Users love “a la carte” content
• Access to Highly promoted services• Massive variety / Most popular• Multitude of screen options• Ease of Access - Simple to access &
play
Beware - experience may vary
• Pinwheel of pain !• Variable quality on 50” HDTV
• Blotchy – fuzzy – freezes- jumps• Still Best effort delivery
• Time to start-to-play can vary - can take several minutes
• QoE varies
Perception = declining Broadband Quality
88Problem Summary
Hi-Speed Broadband = delivery technology for Services• Consumers to a-la-carte consumption• Business Cloud services• Wireline and Mobile
Video leading the growth…gaming, music, app updates also increasing load
Networks - designed for shared use• Typical Access to Core ratio is 100+:1• Busy hour sizing – constant upgrades for no new Revenue $• Access providers are not making large profits on today’s BroadbandA New Approach is needed to Augment Broadband
services that improves service and reduces cost
99
High Speed Internet service • HSI Needs to be cost-competitive to offer
― HSI Needs to be as good as or better than the competition
• Can’t violate Neutrality or Filtering “Rules”― Don’t degrade base service if you offer new services.
― Blocking / Degradation of services not a long term answer
Provide a path for value add services― To Content Providers
― To Subscribers
― To advertisers / 3rd parties
― Charge for value― Direct or indirect methods
Foundation Service and Building Blocks Approach
1010Evolving the OTT Business Model:Content Aware Networking
What is it?
Identify repetitive content at network edge, cache it, serve it locally
Why?
Content requests are repetitive in a given served area
Significantly reduces the bandwidth impact to Broadband operator
Radically improve the user experience by avoiding network congestion
Leverage80:20 rule
BTI
1111What is an Integrated Transparent Cache ?
Policy Based Solution • looks at every packet for cacheable content• Caches only desired popular content for
local play-out
Addresses all cacheable content • All large objects• Internet video, music, games • Graphical Images, Software updates
Simple to operate• Automatically updates content & responds
to shifting usage• No active management of content or
negotiations with content owners
Simple insertion into the Network• No Router upgrades required – goes in with
Layer 2 Ports• IP Transparent
Transparent to source
Transparent to subscriber
Digital Millennium Copyright Act Neutral
BTI
1212
Company Confidential. Distribution of this document is not permitted without written authorization.
Improvements with Content Aware Networking
Internet request
AccessCore/AggregationTransitISP CO POP Subscriber
Bandwidth Savings
Improved Subscriber Quality of Experience
Subscriber QoE
Content Request
Content Served
Peering Savings Peering savings [MB/month] Peering connection savings
Network Utilization Savings Growth Rate Reduction Network savings
>30% peak utilization bandwidth savings7x improvement in content delivery speed
>30% peak bandwidth savingsSLOWER GROWTH GOING
FORWARD
1313Value Beyond Costs Savings:Quality of Experience & OTT Service Data
Web Site Visitors (K) Bytes played out
1) youtube.com 3972,533,534,3442) apple.com 15122,340,070,1643) mcafee.com 2692,094,633,0154) netflix.net 32501,715,060,6645) symantec.com 12581,663,329,0816) pandora.com 398541,532,5907) farmville.com 2772352,416,4308) hulu.com 609 310,521,0209) photobucket.com 859301,090,10310) xbox.com 582262,658,449
High value information:- Top URLs (sites visited)
Hour, day, month…- Top applications
Web, P2P …- Heaviest users
Before: Slow play out – waiting 10 X faster buffering and downloads
Quick buffer fills – no waiting 7x improved screen resolution
1414
Internet
Opens up possibility for Premium Services
Same Content Intelligence can be applied to identify Users who have signed up for a Tiered Service
Accelerates and locally delivers their content
Provides a Measureable SLA
Can be extended to many types of filter, block, whitelist services
Remote COs
OriginContentServers
Premium Content Delivery
Tiered Service Subscriber
BTITransit COs
1515Summary
Service demands are driving a transition in service delivery
Networks are evolving to address bandwidth pressures and QoE expectations with Content Aware Networking
BTI is on the Forefront working with Major Operators world wide to make OTTop a successful business model
Visit Us:
Booth # B-J-205
1616BTI Systems | Corporate Summary
300+ customers: Service Provider, Content Providers, Governments, Utility, Research & Education
Portfolio: Packet Optical Transport, Content Aware Networking, Service Management & Analytics
Delivering innovative metro networking, offering scalable, content and service delivery solutions for service providers to monetize broadband telecommunications
Ethernet Services Delivery
Content Aware
Networks
Packet Optical
Infrastructure
Mobile Backhaul
DatacenterInterconnect
Visit Us:
Booth # B-J-205