1. 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
Service Differentiation in Residential Broadband Networks

2. 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

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

4. 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 …
Service Differentiation in Residential Broadband Networks

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

6. 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

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

8. 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

9. Moore’s Law for Communication
Photonic
[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

10. 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

11. 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

12. 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

13. 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

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

15. 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

16. 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

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

18. 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

19. 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

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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

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

28. 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

29. Service Differentiation in Residential Broadband Networks
Simulation Model
TOTAL COST OF OWNERSHIP
Number of Exchanges: 4
Number of RSSs:
103
Number of users:
COMP.
Cost Component
Month
Year
DSL Network
132%
Mobile Network
82%
VoIP Services
100%
Vod Services
44%
Data Services
Internet Connectivity
Housing Other
Internal Service
Internal Connections
GRAND TOTAL:
93%
Operational Cost
Investment Cost
Excel based model
Graphical User Interface
Visual Basic for Application
Service Differentiation in Residential Broadband Networks

30. 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

31. Service Differentiation in Residential Broadband Networks
Questions
Service Differentiation in Residential Broadband Networks

32. Service Differentiation in Residential Broadband Networks
References
Sigurdsson H.M.,Thorsteinsson S.E., Stidsen T., Cost Optimization in the Design of Next Generation Networks. IEEE Communications Magazine, September (Available online at:
Maxwell, Residential Broadband: An Insider’s Guide to the Battle for the Last Mile. Wiley, New York.
Alcatel ref. 1, The User-Centric Broadband World. Strategic White Paper (Available online at:
Alcatel ref. 2, Broadband Network Architecture. Strategic White Paper (Available online at:
Alcatel, Evolution of the First and Second Miles for Pervasive Service Delivery, Technical Paper
Odlyzko, A., Content is Not King. First Monday, Vol. 6, No. 2 (Available online at:
Eldering, C., Eisenach J.A., Is There a Moores’s Law for Bandwidth? , IEEE Communications Magazine, October 1999
Service Differentiation in Residential Broadband Networks