Virtualization FOR INTERCONNECT PROVIDERSWhat can IT Do FOR YOU?

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Agenda

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Interconnect Market 1

Use Cases 3

NFV For Interconnect2

Conclusions4

Interconnect Market

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Number of interconnect minutes per year:

450 Billion

Interconnect SBCsAccess SBCs Access SBCs

Retail Retail

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Voice interconnect traffic growth has slowedRetail and wholesale calling prices declining over the past 20 yearsInternational carrier traffic routed as VoIP grew to 38% in 2013On-net international traffic of Skype 248 billion minute

Carrier challenges

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Network transition

Decreasing margins

Need for new services due to decreasing retail prices for

voice services

High barrier to new markets (high POP costs)

The vision for NFV

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Source: White paper on Network Functions Virtualisation, Oct 2012

Faster time-to-market

Reduce Hardware Capex

Reduced Opex and TCO

Why Virtualize?

$0

$1

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CY13 CY14 CY15 CY16 CY17 CY18

Revenue (US$ Billions)

VNF NFV MANO Hardware

NFV and SDN Are Necessary To

The Survival of Telcos

Infonetics: Carrier SDN and NFV Hardware and Software

Annual Worldwide and Regional Market size and Forecasts: 2014

Drivers for virtualization

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Minimal vPOP is a single virtual SBC

SBC is the most complicated

component to virtualize

NFV for INTERCONNECT

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Virtual POPS

Low start up costs

Opens up new markets

Can deploy in minutes

Deploy closer to your customer’s customer

LOWER OPEX SITE REDUCTION NEW MARKETS

vPOP Architecture

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Core Interconnect Backbone

Other vPOPs

AWS

vPOP in VPC

Other Carriers

Other Carriers

Other Carriers

• Global reach: Customers would connect to a local “PoP”, where calls are

handled locally when required

• Elasticity: Growth could be supported smoothly and in real time, as traffic

ebbs and flows, using the elasticity capabilities of a cloud environment.

• De-risking: Risky and large upfront investments for big site build would

move to an on-demand, pay as you go, operating cost.

• Optimized margins: If the commercial licensing of the SBC software itself is

equally flexible and varies with usage and traffic growth, this will ensure

constant margins for carriers.

Key benefits of Virtual Pops

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