Technology and Trends in Residential Broadband Networks Afternoon session TDC – Corporate Business Development Technology and Trends in Residential Broadband Networks Good Morning, Copenhagen, December 6, 2004 Halldór Matthías Sigurðsson (halldor@cti.dtu.dk) Service Differentiation in Residential Broadband Networks

Service Differentiation in Residential Broadband Networks Agenda Personal Profile Technology Trends Next Generation Networks Residential Broadband Networks Service Differentiation and Competition in Residential Broadband Networks Finding the Optimal Migration Strategy Service Differentiation in Residential Broadband Networks

Service Differentiation in Residential Broadband Networks Session 1 Personal Profile Service Differentiation in Residential Broadband Networks

Service Differentiation in Residential Broadband Networks Personal Profile Education B.Sc. University of Iceland M.Sc. Danish Technical University Ph.D. Center for Tele-Information Iceland Telecom R&D MPEG-2 over VDSL Pace DSL set-top boxes Implementing NGN in Iceland Cooperation TDC Microsoft Research Laboratories Beijing KTH, UiO, USC, Norfa Publications Projects Literature … www.cti.dtu.dk/~halldor/phd Service Differentiation in Residential Broadband Networks

Competence Framework Ph.D. Multimedia Services in Residential Broadband Networks Service Differentiation in Residential Broadband Networks

Implementing NGN in Iceland 17 % reduction in Total Cost of Ownership in deploying NGN Article in IEEE Communications Magazine Service Differentiation in Residential Broadband Networks

Residential Broadband Networks Session 2 Technology Trends in Residential Broadband Networks Service Differentiation in Residential Broadband Networks

Service Differentiation in Residential Broadband Networks Motivation CURRENT FUTURE INTERNET PSTN Modem CPE TV INTERNET PSTN Modem CPE TV Moving from several dedicated networks to one converged multipurpose networks Service Differentiation in Residential Broadband Networks

Moore’s Law for Communication 10000000 Photonic 1000000 [Mb/s] 100000 Telephone lines 10000 (including mobiles) [Millions] 1000 Processor 100 performances [MIPS] 10 Internet hosts [Millions] 1 0.1 Sources: ITU, Intel, ECOC, OFC 0.01 1970 1975 1980 1985 1990 1995 2000 2005 Moore’s law Technology development follows exponential curves Doubles every X months Service Differentiation in Residential Broadband Networks

Moore’s Law for Residential Networks Based on: Eldering, 1999 Exponential growth with a period of 23 months ADSL is currently surpassing this growth Other sources, e.g. BT Technology Journal foresee a demand of 100 Mbps in access networks in 2010 Service Differentiation in Residential Broadband Networks

Service Differentiation in Residential Broadband Networks Broadband Evolution [Alcatel, ref. 1, 2004] The path of broadband infrastructure evolution [Maxwell, 1999] Phase 1 High speed Internet Access Speed < 1,5 Mbps Phase 2 Broadband Services (Voice, Video and Data) Speed < 10 Mbps Phase 3 User-Centric Universal Broadband Services [Alcatel, 2004] Speed > 20 Mbps Service Differentiation in Residential Broadband Networks

Current Trend / Intermediate Scenario [Alcatel, ref. 2, 2004] Moving From Transmission Data centric Oversubscription Lack of Resource Management Towards Services High Speed Internet Video on Demand Voice over IP Broadband Television Service Differentiation in Residential Broadband Networks

Sustainable Broadband Services [Alcatel, ref. 2, 2004] Services High Speed Internet Video on Demand Voice over IP Broadband Television What is needed and How do we get there Service Differentiation in Residential Broadband Networks

Next Generation Networks Session 3 Next Generation Networks Service Differentiation in Residential Broadband Networks

Next Generation Networks Vendors Ericsson Alcatel Cisco … Standardisation Bodies ITU-T IETF ETSI 3GPP Vendors started selling NGN solutions Standardisation did not keep up Today NGN is an umbrella term for future network infrastructure Service Differentiation in Residential Broadband Networks

Next Generation Networks Formal separation between several planes through standardized protocols or APIs “All IP” QoS enabled core network Service Differentiation in Residential Broadband Networks

Residential Broadband Networks Session 4 Phase 2 Near future Residential Broadband Networks Service Differentiation in Residential Broadband Networks

Service Differentiation in Residential Broadband Networks Motivation Real-time communication (voice and video) pose timing constraints and end-to-end QoS Requirements Service Differentiation in Residential Broadband Networks

Service Differentiation in Residential Broadband Networks Resource Management Over provisioning Provide more than you need Loose Control Prioritise certain traffic Strict Admission Resource Reservation Near future solution will be based on a combination of over provisioning and loose control Service Differentiation in Residential Broadband Networks

Service Differentiation and Competition in Session 5 Service Differentiation and Competition in Residential Broadband Networks Service Differentiation in Residential Broadband Networks

Service Differentiation in Residential Broadband Networks Levels of Competition Internet Public Garden Model Lack of business models Example: Internet services Inter Domain Inter Domain Gated Garden Model Based on profit sharing / Service level Agreements Example: NTT DoCoMo’s I-mode ISP Intra Domain Walled Garden Model Based on offering all services internally Example: Telephony and Satelite Industry BRAS DSLAM ISP CPE INTERNET ISP Service Differentiation in Residential Broadband Networks

Competition among Service Providers Intra Domain Inter Domain Internet Intra Domain Voice Inter Domain Voice Internet Voice ISP BRAS DSLAM ISP CPE INTERNET ISP Intra Domain Video Inter Domain Video Internet Video Service Differentiation in Residential Broadband Networks

Service Differentiation in Residential Broadband Networks Scenario 1 Best Effort Best Effort Intra Domain Voice Inter Domain Voice Internet Voice ISP BRAS DSLAM ISP CPE INTERNET ISP Intra Domain Video Inter Domain Video Internet Voice Current Situation Internet / Public Garden Model Network Access Provider must rely on income from transmission No QoS - Voice, video and data compete for resources Transmission characterised by bottlenecks and TCP Service Differentiation in Residential Broadband Networks

Scenario 2 One Way Service Differentiation Priority Best Effort Intra Domain Voice Inter Domain Voice Internet Voice ISP VoIP BRAS DSLAM ISP HAN CPE INTERNET STB ISP Intra Domain Video Inter Domain Video Internet Voice Upgrade in BRAS (Same DSLAM and CPE) Downstream Prioritising – Upstream Competition Supports VoIP and VoD – Not television broadcasting Competing Service Providers are worse off Service Differentiation in Residential Broadband Networks

Scenario 3 Port Based Service Differentiation Priority Best Effort Intra Domain Voice Inter Domain Voice Internet Voice ISP VoIP BRAS CPE DSLAM ISP HAN INTERNET STB ISP Intra Domain Video Inter Domain Video Internet Voice New CPE, DSLAM upgrade Port based prioritisation Supports VoIP, VoD and broadcast television Intra Domain / Walled Garden Model Discriminates Inter and Internet Service Providers Service Differentiation in Residential Broadband Networks

Scenario 4 Content Based Service Differentiation Priority Best Effort Intra Domain Voice Inter Domain Voice Internet Voice ISP VoIP BRAS CPE DSLAM ISP HAN INTERNET STB ISP Intra Domain Video Inter Domain Video Internet Voice New CPE, DSLAM upgrade Two way content based service differentiation Supports VoIP, VoD and broadcast television Inter Domain / Gated Garden Model Operators can choose which third party operators to allow access Service Differentiation in Residential Broadband Networks

Finding the Optimal Path Session 6 Finding the Optimal Path Service Differentiation in Residential Broadband Networks

Service Differentiation in Residential Broadband Networks Case Study Techno-Economic Study of the implementation of triple-play services Infrastructure Functional alternatives Components Start with DSL based Services High Speed Internet Voice over IP Video on Demand Broadband television broadcasts Simulate Investment Cost Operational Cost Service Differentiation in Residential Broadband Networks

Service Differentiation in Residential Broadband Networks Simulation Model TOTAL COST OF OWNERSHIP Number of Exchanges: 4 Number of RSSs: 103 Number of users: 147.565 COMP. Cost Component Month Year DSL Network 11.562.978 138.755.742 15.220.644 182.647.728 132% Mobile Network 7.897.503 94.770.039 6.443.505 77.322.065 82% VoIP Services 1.730.000 20.760.000 100% Vod Services 375.000 4.500.000 166.667 2.000.000 44% Data Services 100.000 1.200.000 Internet Connectivity 649.000 7.788.000 Housing Other.................. 8.190.000 98.280.000 3.640.000 43.680.000 Internal Service................ 8.766.667 105.200.000 Internal Connections......... 525.000 6.300.000 233.333 2.800.000 GRAND TOTAL: 39.796.148 477.553.781 36.949.816 443.397.793 93% Operational Cost Investment Cost Excel based model Graphical User Interface Visual Basic for Application Service Differentiation in Residential Broadband Networks

Service Differentiation in Residential Broadband Networks Conclusion Residential Broadband Networks are moving towards converged voice, video and data transmission Successful shift will require service differentiation/resource management in some form Most likely path requires new equipment (both at customer and operator) Operators will choose a migration strategy that grants the market control Operators will have to open their networks to third-party service providers Service Differentiation in Residential Broadband Networks

Service Differentiation in Residential Broadband Networks Questions Service Differentiation in Residential Broadband Networks

Service Differentiation in Residential Broadband Networks References Sigurdsson H.M.,Thorsteinsson S.E., Stidsen T., 2004. Cost Optimization in the Design of Next Generation Networks. IEEE Communications Magazine, September (Available online at: http://www.cti.dtu.dk/~halldor/publications/sigurdsson_ieee.pdf) Maxwell, 1999. Residential Broadband: An Insider’s Guide to the Battle for the Last Mile. Wiley, New York. Alcatel ref. 1, 2004. The User-Centric Broadband World. Strategic White Paper (Available online at: http://www.alcatel.com/com/en/appcontent/apl/UserCentric_BB_swp_tcm172-74441635.pdf) Alcatel ref. 2, 2004. Broadband Network Architecture. Strategic White Paper (Available online at: http://www.alcatel.com/com/en/appcontent/apl/UserCentric_BB_swp_tcm172-74441635.pdf) Alcatel, 2003. Evolution of the First and Second Miles for Pervasive Service Delivery, Technical Paper Odlyzko, A., 2001. Content is Not King. First Monday, Vol. 6, No. 2 (Available online at: http://www.firstmonday.org/issues/issue6_2/odlyzko/index.html) Eldering, C., Eisenach J.A., 1999. Is There a Moores’s Law for Bandwidth? , IEEE Communications Magazine, October 1999 Service Differentiation in Residential Broadband Networks