Faster, Cheaper, Safer: Public Policy for the Internet
Henning Schulzrinne
FCC (& Columbia University)
Any opinions are those of the author and do not necessarily reflect the views or policies of Columbia University or the FCC.
with slides by Julie Knapp, and others
Talk delivered Oct 3, 2012 to the Internet2 member meeting in Philadelphia.
Overview
• Spectrum
• Broadband: faster, cheaper, everywhere
• Transitioning the PSTN to the 21st century
2
Time of transition
Old New
IPv4 IPv6
circuit-switched voice VoIP + text
separate mobile voice & data LTE + LTE-VoIP
911, 112 NG911, NG112
digital cable (QAM) IPTV
analog & digital radio Pandora, Internet radio, satellite radio
credit cards, keys NFC
end system, peers client-server v2 aka cloud
all the energy into transition little new technology
Cisco’s traffic prediction
Ambient video = nannycams, petcams, home security cams,
and other persistent video streams
NID 2010 - Portsmouth, NH
http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11-481360_ns827_Networking_Solutions_White_Paper.html
Bandwidth costs
• Amazon EC2 – $50 - $120/TB out, $0/TB in
• CDN (Internet radio) – $600/TB (2007) – $10-30/TB (Q1 2012 – CDNpricing.com)
• NetFlix (7 GB DVD) – postage $0.70 round-trip $100/TB
• FedEx – 2 lb disk – 5 business days: $6.55 – Standard overnight: $43.68 – Barracuda disk: $91 - $116/TB
5
FedEx and EC2 prices as of 09/15/09 CDN: http://www.mindbranch.com/listing/product/R678-29.html http://www.cdnpricing.com
The value of bits
• Technologist: A bit is a bit is a bit
• Economist: Some bits are more valuable than other bits
– e.g., $(email) >> $(video)
6
Application Volume Cost per unit
Cost / MB Cost / TB
Voice (13 kb/s GSM) 97.5 kB/minute 10c $1.02 $1M
Mobile data 5 GB $40 $0.008 $8,000
MMS (pictures) < 300 KB, avg. 50 kB
25c $5.00 $5M
SMS 160 B 10c $625 $625M T-Mobile 2010 AT&T data http://www.nowsms.com/discus/messages/12/8500.html
Principles
Transparency. Fixed and mobile broadband providers must disclose the network management practices, performance characteristics, and terms and conditions of their broadband services;
No blocking. Fixed broadband providers may not block lawful content, applications, services, or non-harmful devices; mobile broadband providers may not block lawful websites, or block applications that compete with their voice or video telephony services
No unreasonable discrimination. Fixed broadband providers may not unreasonably discriminate in transmitting lawful network traffic.
7
Spectral efficiency
• b/s/Hz: modulation, FEC, MIMO, …
• but also total spectral efficiency – guard bands – restrictions on adjacent
channel usage – “high power, high tower”
small cells higher b/s/Hz
• data efficiency – e.g., H.264 is twice as good as
MPEG-2/ATSC – and maybe H.265 twice as
good as H.264
• distribution efficiency – unicast vs. multicast
• protocol efficiency – avoid polling need server
mode
• mode efficiency – caching – side loading – pre-loading
11
What can we do?
12
end system caching better audio & video codecs
efficient apps
spectral efficiency (LTE-A) directional antennas
general purpose spectrum dense cells
white spaces & sharing
IP multicast WiFi offload small cells =
better spectral efficiency + more
re-use
LTE: 1.5 b/s/Hz GSM: 0.1 b/s/Hz
13
ATC
U.S. Spectrum Allocation of Key Bands
1850
US
Go
vt
1800 - 2200 MHz
1710
AWS-1
US Govt
1755
1865
1870
1895
1890
1885
1910 1930
1945
1950
1975
1970
1965
1990
2320 2345 23602305
WCSWCS DARS
Ae
ron
au
tic
al
Te
lem
etr
y
2110
2 GHz MSS
2200
US Govt
2025
2020
1525 1559
Advanced Wireless
Services (AWS I)
1626.5 1660.5
Mobile Satellite
(MSS) L-Band
1500 - 1800 MHz
700 - 1000 MHz
2300 - 2700 MHz
Sp
rin
t
AW
S-2
H B
lock
Ae
ron
au
tic
al
Te
lem
etr
y
1610
Global
Positioning
Satellite (GPS)
MSS
Big LEO
Rad
io A
str
on
om
y/
Sp
ace
Rese
arc
h/
Mete
oro
log
ical
Aid
s
Na
tio
na
l F
ixe
d/M
ob
1675
1670
LightSquared,
Inmarsat
Cellular
900
SM
R/B
/ILT
ISM/
Unlicensed/
US Govt/
Amateur Radio/
Location &
Monitoring
Fix
ed
Mic
row
ave
Public
Safety/
B/ILT
806
824
782
776764
1 MHz Guard BandsA: 757-758/787-788 MHz
B: 775-776/805-806 MHz
PS: 763-775/793-805 MHz
752
746 794 849 851
Commercial AviationAir-Ground
Cellular
869
894 902
901896
929
928
Pag
ing
Fix
ed
Mic
row
ave
941
940
932 935
Fixed Microwave
NarrowbandPCS
740
734
728
722
716
710
704
698
TV
TerreStar, DBSD
(DISH)
2 GHz MSS
AW
S-2
J B
lock
TV Aux Broadcast (BAS)
Government Satellite
And Others
2155
AWS-3
1995
20001915
1920
2500
2506
2512
2518
2524
2530
2536
2542
2548
2554
2560
2566
ITF
S D
3
2572
2578
2584
2590
2596
2602
2608
2614
2620
2626
2632
2638
2644
2650
2656
2662
2668
2674
2680
2686
2690
ITF
S C
4
ITF
S D
4
ITF
S C
3
ITF
S D
1
ITF
S C
2
ITF
S D
2
ITF
S C
1
ITF
S B
3
ITF
S A
4
ITF
S B
4
ITF
S A
3
ITF
S B
1
ITF
S A
2
ITF
S B
2
ITF
S A
1
MM
DS
H3
ITF
S G
4
R C
ha
nn
el
ITF
S G
3
ITF
S G
2
ITF
S G
1
MM
DS
H2
MM
DS
H1
MM
DS
E1
MM
DS
F1
MM
DS
E2
MM
DS
F2
MM
DS
E3
MM
DS
F3
MM
DS
E4
MM
DS
F4
EB
S B
4
EB
S C
4
EB
S D
4
EB
S A
4
EB
S G
4
BR
S F
4
BR
S E
4
K G
uard
J G
ua
rd
BR
S 2
BR
S E
1
BR
S E
2
BR
S E
3
BR
S F
1
BR
S F
2
BR
S F
3
BR
S H
1
BR
S H
2
BR
S H
3
EB
S G
1
EB
S G
2
EB
S G
3
EB
S D
1
EB
S D
2
EB
S D
3
EB
S C
1
EB
S C
2
EB
S C
3
EB
S B
1
EB
S B
2
EB
S B
3
EB
S A
1
EB
S A
2
EB
S A
3
BR
S 1
2496
2502
2507.5
2513
2518.5
2524
2529.5
2535
2540.5
2546
2551.5
2557
2562.5
2568
2572
2578
2584
2590
2596
2602
2608
2614
2618
2624
2629.5
2635
2640.5
2646
2651.5
2657
2662.5
2668
2673.5
2679
2684.5
2690
Fixed - Satellite /
Radio Astronomy /
Space Research
Old
Allocation
New Allocation
52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69
TV Channels
Lower 700 MHz Band Upper 700 MHz Band
A AB BC CD E C C
758 770
788 800
D DPublicSafety
PublicSafety
Old
Allocation
New
Allocation
Mobile Satellite
(MSS) L-Band
LightSquared,
Inmarsat
Glo
bal
star
Irid
ium
OP
Co
rp
Meteorological Aids/
Meteorological-
Satellite
Uplink Band
Downlink Band
TDD Band
1720 1730 1745
A B BA A B BA
A B C D E F
ISM/MSS
Big LEO
Globalstar
2483.5 2495
2487.5
2008
AWS-1
A B C D E F TerreStar, DBSD
(DISH)
21752120 2130 2145
Broadband PCS
A B CD E F
ATCATC
Broadband PCS
B CE FDAAW
S-2
H B
lock
Un
licen
sed
PC
S
ISM/
Unlicensed
AW
S-2
J B
lock
AA B BDC
ATC
Sirius Radio
Legend
Am
ate
ur
Rad
io
ATC ATC
Public
Safety/
B/ILT 900
SM
R/B
/ILT
IEEE Standard Band Designators
HF 3-30 MHz
VHF 30-300 MHz
UHF 300-1000 MHz
L band 1-2 GHz
S band 2-4 GHz
C band 4-8 GHz
X band 8-12 GHz
Ku band 12-18 GHz
K band 18-27 GHZ
Ka band 27-40 GHz
V band 40-75 GHz
W band 75-110 GHz
mm wave 110-300 GHz
817
Sp
rin
t
862
Sp
rin
t
Source: FCC, Sprint and Stifel Nicolaus Research
1
Sp
rin
t
Stifel Nicolaus does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could
affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.
All relevant disclosures and certifications appear on pages 2-3 of this report.
July 14, 2011
cellular = about 500 MHz in total
Unlicensed & lightly-licensed bands
(US)
• UHF (476-700 MHz) – incentive auctions (licensed) + some unlicensed
• 2.4 GHz (73 MHz) – 802.11b/g
• 3.6 GHz (100 MHz) – for backhaul & WISPs
• 4.9 GHz (50 MHz) – public safety
• 5.8 GHz (400 MHz) – 802.11 a/n – much less crowded than 2.4 GHz
– supported by many laptops, few smartphones
14
Freeing spectrum: incentive auctions
• Incentive auctions will share auction proceeds with the current occupant to motivate voluntary relocation of incumbents
– Otherwise, no incentive for current occupant to give back spectrum
– Stations keep current channel numbers
• via DTV map
16
TV TV TV TV BB BB
Without Realignment: Reduced Broadband Bandwidth
TV TV BB
Adjacent Channel Interference
With Realignment: Accommodates Increased Broadband Bandwidth
TV TV
Adjacent Channel Interference
Small cell alternatives
• Femto cells – use existing spectrum
– need additional equipment
• WiFi off-load – use existing residential
equipment
– 5G networks = heterogeneous networks?
• Distributed antenna systems
17
Femto-cells
Cellular
Distributed Antenna Systems Signals are distributed throughout the
Building via amplifiers/antennas
2 4 5 7 9
3 6 8 10
Non- Broadcast spectrum
Non- Broadcast spectrum
New York City Full Power TV Stations
Philadelphia Full Power TV Stations
Low Power TV
White Space
White Space
White Space
White Space
Etc.
Etc.
• TV channels are “allotted” to cities to serve the local area
• Other licensed and unlicensed services are also in TV bands
• “White Spaces” are the channels that are “unused” at any
given location by licensed devices
Low Power TV
Only for illustrative purposes
Wireless Microphones
Wireless Microphones
TV white spaces
Spectrum Outlook
• No single solution:
– reduce spectrum usage
• caching & better modulation
– re-use spectrum
– re-cycle old spectrum
19
Broadband
• Deployment – USF: Connect America Fund
• Performance – Measuring Broadband America – mobile tba
• Significant progress: – wider availability of 100 Mb/s – fiber available to 46 million homes (FiOS, Uverse) – community/non-traditional broadband (Chattanooga,
KC) – LTE networks
What Was Measured
Sustained Download Burst Download
Sustained Upload Burst Upload
Web Browsing Download UDP Latency
UDP Packet Loss Video Streaming Measure
VoIP Measure DNS Resolution
DNS Failures ICMP Latency
ICMP Packet Loss Latency Under Load
Total Bytes Downloaded Total Bytes Uploaded
28
Access to broadband
Chart 1
Households With Access to the
Fixed Broadband Speed Benchmark by Technology
0% 20% 40% 60% 80% 100%
Fiber
Other Copper
Fixed Wireless
DSL
Cable
Any Fixed
Eighth Broadband Progress Report, August 2012
State of competition (US)
U.S. Federal Communications Commission Internet Access Services: Status as of December 31, 2009 8
In Figure 3(b), we estimate the percentages of households in census tracts where providers reported
residential fixed-location connections of different speeds or operated a mobile wireless network capable
of sending or receiving data at the indicated speeds.
Figure 3(b)
Percentages of Households Located in Census Tracts Where Providers Report
Residential Fixed-Location Connections of Various Speeds or Operate a Mobile Wireless Network
Capable of Delivering Service of Various Speeds as of December 31, 2009
0
10
20
30
40
50
60
70
80
90
100
3+ Providers 58 40 3 2
2 Providers 35 40 22 20
1 Provider 6 17 56 58
0 Providers 1 3 18 21
At least 3 mbps
downstream & over 200
kbps upstream
At least 3 mbps
downstream & 768
kbps upstream
At least 6 mbps
downstream & 1.5
mbps upstream
At least 10 mbps
downstream & 1.5
mbps upstream
Figures may not sum to 100% due to rounding.
http://www.fcc.gov/Daily_Releases/Daily_Business/2010/db1208/DOC-303405A1.pdf: Internet Access Services: Status as of December 31, 2009
31
International comparison: fixed
Federal Communications Commission DA 12-1334
8
Figure 2b shows average prices in the 5-15 Mbps speed tier (again excluding satellite services). The
United States is 21st out of 31 countries with an average price of $43.71 and an average download
speed of 10.72 Mbps. The two lowest price countries are Slovakia and Italy with an average net price
of approximately $21. These countries report average download speed of 10 Mbps. The two highest
price countries are Mexico and Switzerland with net prices of $95.60 and $185 respectively. Appendix
Table 2b shows the breakdown by technology in this speed tier. The United States is 9th amid 24
countries having DSL plans, with an average net price of $40.80 per month. The lowest average price
is in Sweden ($25.30) and the highest is in Switzerland ($185). The United States cable and fiber plans
average $44.75 and $54.99 respectively. See Appendix Table 2b for prices in other countries.
0
20
40
60
80
100
120
140
160
180
Mon
thly
Net
Pri
ce (
$ P
PP
)
Figure 2c
Average Monthly Net Price ($ PPP) of Residental (Fixed) Standalone
Broadband 2011
15-25 Mbps of Download Speed
Note: The monthly net price reflects the price per month, including rebates, installation charges, equipment
charges such as modem rentals and other fees. So this is different from the simple monthly advertised price. The
average price is obtained by a simple average over all technologies, excluding satellite, in the 15-25 Mbps peed
tier. Lithuania, Mexico, Portugal and Spain, do not have any standalone broadband plans in this speed tier in our
sample, and are thus excluded from the graph.
Figure 2c shows average prices in the 15-25 Mbps speed tier (again excluding satellite services). The
United States is 26th out of 32 countries with an average price of $56.50. The two lowest price
countries are Slovakia and Korea with an average net price of approximately $18-19 and average
download speeds of 20-25 Mbps. The two highest price countries are New Zealand and Switzerland
with net prices of $124.50 and $180 respectively. Appendix Table 2c shows the technology
breakdown. The United States is 15th among 25 countries having DSL plans, with and average net
price of $49 per month. The lowest average DSL price is in Italy ($22) and the highest is in
Switzerland ($242.90). The United States is among the more expensive in terms of cable and fiber.
3rd International Broadband Data Report (IBDR), August 2012
32
International comparison: mobile Federal Communications Commission DA 12-1334
17
Figures 7a-10a shows the net price per gigabyte of data for plans with usage limits, and Figures 7b-10b
reports the average monthly net price for unlimited data plans.
0
10
20
30
40
50
60
70
80
90
100
Pri
ce p
er G
B o
f D
ata
($P
PP
/GB
)Figure 7a
Average Monthly Net Price per GB of Data 2011
Smartphone Data Plans with Usage Limits
Note: Belgium does not have any limited data plans in the sample. Japan charges by the amount of
packets sent, so we assumed 1 packet = 128 bytes according to the advertised plan. These prices are for
the data plan only and do not include the price of the phone plan or device charge.
The n
e
t p
r
ice p
e
r GB for an “
a
verage” s
m
artphone plan with usage limits are presented in Figure and
Appendix Table 7a.39
We find that the United States is among the ten cheapest countries for
smartphone data plans with usage limits, with an average price of $10/GB. Iceland, Finland and
Germany are the three lowest price countries with an average price of $5/GB. Figure 7b and Appendix
Table 7b show the net price for unlimited data plans, Finland is the cheapest country ($5.08) and
Portugal is the most expensive ($148.99). The United States lies in the middle with $52.50.
39
Most Japanese plans in the data set charge by the amounts of packets sent and not by gigabyte of data use. We
use 1 packet = 128 bytes to convert the number of packets into gigabytes. The phone company website provides
this information. See: http://www.au.kddi.com/english/packetwin/service/waribiki.html.
3rd International Broadband Data Report (IBDR), August 2012
Need for speed
• Networks should be transparent – don’t interfere with application
– don’t limit performance
• Peak speed + upstream bandwidth important for productive rather than consumptive applications
• Local area networks: 100 Mb/s or 1 Gb/s
• Cost of hybrid fiber-X networks largely independent of peak speed – wide-area traffic: $2-5/month for 100 GB
Broadband challenges
• Engineering – simplify deployment: “fiberhoods”, self
installation, on-pole wireless, …
• Economical – cost is driven by homes passed, not homes
served – cost mostly independent of speed single price
point? – built-in broadband, not bolted on
• pay via mortgage lower ROI expectations
• Policy – FCC: “dig once”, pole attachments, Federal
buildings and lands – encourage municipal conduit deployment
Broadband virtuous cycle
fixed broadband investment
cellular broadband (backhaul)
broadband availability
applications
(incl. OTT)
adoption
(relevance, value)
OI principles
Broadband opportunities
• Middle-mile networks
• BTOP experiences
– conduit, fiber or IP?
• Connect America Fund (part of $8B/year USF)
• Adoption = availability + affordability + relevance
Budgeting the CAF
– The $4.5B annual budget will transition while CAF Phase II, Mobility Phase II and Remote Areas Fund are implemented
40
40 Ken Mason
42
PSTN: The good & the ugly
The good The ugly
Global Connectivity (across devices and providers)
Minimalist service
High reliability (engineering, power)
Limited quality (4 kHz)
Ease of use Hard to control reachability (ring at 2 am)
Emergency usage Operator trunks!
Universal access (HAC, TTY, VRS)
No universal text & video
Mostly private (protected content & CPNI)
Limited authentication Security more legal than technical (“trust us, we’re a carrier”)
Relatively cheap (c/minute)
Relatively expensive ($/MB)
• Universality – reachability global numbering & interconnection – media HD audio, video, text – availability universal service regardless of
• geography • income • disability
– affordability service competition + affordable standalone broadband
• Public safety – citizen-to-authority: emergency services (911) – authority-to-citizen: alerting – law enforcement – survivable (facilities redundancy, power outages)
• Quality – media (voice + …) quality – assured identity – assured privacy (CPNI) – accountable reliability
43
What are key attributes?
• Technology
– wired vs. wireless
• but: maintain quality if substitute rather than supplement
– packet vs. circuit
– “facilities-based” vs. “over-the-top”
• distinction may blur if QoS as a separable service
• Economic organization
– “telecommunication carrier”
44
What is less important?
Signaling Media
Analog circuit (A) circuit (A)
Digital circuit (D) circuit (D)
AIN packet (SS7) circuit (D)
VoIP packet (SIP) packet (RTP)
Going forward
• Interconnected VoIP: done – CALEA, USF, E911 – Part 4 outage reporting
• In progress – Intercarrier compensation: IP
interconnection expectation + transition to bill-and-keep
– NG911, better location – video relay services, CVAA
• To do – numbering & databases – security model (robocalls, text spam,
vishing) – VoIP interconnection model
… , we expect all carriers to negotiate in good faith in response to requests for IP-to-IP interconnection for the exchange of voice traffic. The duty to negotiate in good faith has been a longstanding element of interconnection requirements under the Communications Act and does not depend upon the network technology underlying the interconnection, whether TDM, IP, or otherwise. Moreover, we expect such good faith negotiations to result in interconnection arrangements between IP networks for the purpose of exchanging voice traffic.