Next Generation Services Deployed Richard Pruss Principal Engineer

Next Generation Networks Already deployed “The future is already here - it is just

Agenda § New Access Media § OTT & SP reactions to OTT § Free

Policy Landscape a year ago (today we have more standard…) fbrockne, Br. T EBC,

But then out of the blue lots of new access networks got build on

Service. Mesh – More than Wireless AP’s Broadhop SME Off-net Apps ISG SCE CRS-1

ISG for Wireless Mesh User Authentication Wholesale VRFs Captive portal for PWLAN billing and

Wireless AP on Light Pole – Adelaide CBD Access Point fbrockne, Br. T EBC,

Extending Cisco Service. Mesh Architecture To Hybrid WIMesh and WIMAX Networks Customer Gov’t/Municipal Cisco

Over-The-Top Providers: Value-adding Partners, Disintermediators, or Both? Drivers of Collaboration Drivers of Competition §

OTT Linear TV, using P 2 P Technology Joost (from the creators of Skype/Kazaa)

OTT Channel Extensions BBC, Linear TV and Vo. D § BBC is now a

OTT Video on Demand Xbox Video Download Service (~5 GB per HD Movie. .

OTT’s moving to Connected Experiences Across Devices, Networks, Locations fbrockne, Br. T EBC, 21

OTT Video, User Generated You. Tube hits 100 M video’s per day (June 06)

OTT Vo. IP 100+ Million Users, 27, 5 B Minutes (2006), 77 M$/Quarter (04

Interconnection with OTT Providers § Most Content Providers Buy Internet Access/TRANSIT for All their

Google. Net A Portal. Net or a Parallel Internet Back. Bone Google. Net (Faster,

OTT Impact on Service Providers Three main Areas of Concern § Out-of-control Traffic Growth

OTT leads to Out-of-control Traffic growth European example 2005 fbrockne, Br. T EBC, 21

Traffic distribution among Res. BB Users 10, 000 -fold variation Avg = 10 GB/Mo

Traffic Growth outpaces Cost Declines… IP Transit Price Declines Versus Traffic Growth in Select

4 Possible Actions towards OTT Players Ignore/Monitor § Ignore thousands of irrelevant OTT services.

Agenda § New Access Media § OTT reactions § Free § One baby picture

ILIAD CY 2006 Figures § Financial performance Revenues up 31. 2% at € 950.

FREE: The Leading Alternative DSL Operator in a Consolidating Market fbrockne, Br. T EBC,

ILIAD 1 H 2007 Figures § Financial performance Revenues up 30. 7% at €

Iliad 1 H 2007 Operating Performance http: //www. lightreading. com/document. asp? doc_id=133564&print=true September 2007

FREE Triple Play Offer Up to 2005 fbrockne, Br. T EBC, 21 Aug 07

FREEBOX: #1 Home Multi-Media Gateway fbrockne, Br. T EBC, 21 Aug 07 © 2007

2005 Keys innovations fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems,

Creating a new TV Experience fbrockne, Br. T EBC, 21 Aug 07 © 2007

Compelling Traditional TV Experience fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco

Beyong Traditional TV for Viewers fbrockne, Br. T EBC, 21 Aug 07 © 2007

FREE Triple Play Offer 2006 fbrockne, Br. T EBC, 21 Aug 07 © 2007

Key Development in 2006 fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco

Freebox HD (High Definition) fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco

FREE Triple Play Offer 2007 fbrockne, Br. T EBC, 21 Aug 07 © 2007

Key Development in 2007 fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco

Key Development in 2007 § Main channels in MPEG-4 for increased coverage § DSLSafe

2006 Results fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc.

CY 06 : Record ADSL Net Adds fbrockne, Br. T EBC, 21 Aug 07

Efficient Marketing through Innovation fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco

CY 06 : Broadband Revenue and ARPU Growth fbrockne, Br. T EBC, 21 Aug

Driving the VOD Concept in France fbrockne, Br. T EBC, 21 Aug 07 ©

FREE ADSL Subscriber Base fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco

Cutting Edge Technology at € 29. 99 fbrockne, Br. T EBC, 21 Aug 07

What is coming in 2007 fbrockne, Br. T EBC, 21 Aug 07 © 2007

FTTH Roadmap fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc.

FTTH 2007 Objectif fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems,

FTTH Deployment as of Sept 07 fbrockne, Br. T EBC, 21 Aug 07 ©

Intelligent Services Gateway Dynamic Session Control and Management § Identifies sessions and service flows

NGN is about following the Consumers express identity – and require customization § Subscriber

ISG Subscriber Identity-Data Manage & Leverage Subscriber Data Application Layer Configured Identity; Derived Identity

ISG Subscriber Identity-Data Identity, Business Models & SDO Framework Coverage Application Identity: Configured &

This slide is a graphic representation of IPv 6 Residential Service Dialogs with Cisco

fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights

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Next Generation Networks Already deployed “The future is already here - it is just unevenly distributed. ” William Gibson, science-fiction author fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 2

Agenda § New Access Media § OTT & SP reactions to OTT § Free § One baby picture - ISG § The non-dialog fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 3

Service. Mesh – More than Wireless AP’s Broadhop SME Off-net Apps ISG SCE CRS-1 Internet Metro. Ethernet Wi. SM 7600 Open/Walled Garden On-net Apps Business Mobile/Fixed Residential Indoor/ Outdoor fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 6

ISG for Wireless Mesh User Authentication Wholesale VRFs Captive portal for PWLAN billing and targeted advertising Internet Municipal Applications WMM to DSCP Qo. S Mapping WPA 2&& WPA 2 AES encryption for greater security Public Agency User Directory Fire Dept VLAN AAA queries departmental user directories Police Dept VLAN Non-Broadcast SSID=Public. Safety Security = WPA 2 PWLAN VLAN Parking VLAN 802. 1 x and Dyn VLAN Assignment fbrockne, Br. T EBC, 21 Aug 07 User Directory © 2007 Cisco Systems, Inc. All rights reserved. Inspection VLAN Non-Broadcast SSID = City Applications Security = WEP Cisco Confidential Broadcast SSID = Public Security = Open 7

Extending Cisco Service. Mesh Architecture To Hybrid WIMesh and WIMAX Networks Customer Gov’t/Municipal Cisco 3200 Access • • Aggregation DSL Cable ETTx Wi. MAX Intelligent Edge Cisco WCS Multiservice Core Internet Off-Net Apps SME Indoor Business Cisco ISR ASN Cisco Aironet. BS Cisco Wi. SM Outdoor Cisco ISG Cisco SCE Cisco CRS-1 Internet Residential Metro Ethernet SA/Linksys Cisco 7600 Cisco Aironet 1500 fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. IPS/IDS Controller Cisco Confidential Walled Garden On-Net Apps Content Engine 9

Over-The-Top Providers: Value-adding Partners, Disintermediators, or Both? Drivers of Collaboration Drivers of Competition § Access to OTT Services and Applications drives penetration of Consumer Broadband § Guaranteed Delivery of time Sensitive Applications like Voice and Video. § Precision Advertising § OTT Communications Providers like Vonage, Skype, Google. Talk… represent Service Substitution and Pricing threats to Traditional Voice. § OTT Content Providers like Disney and Cinema. Now are looking for opportunities to use The Internet as a means to disintermediate video distribution businesses. Source: Cisco IBSG, December 2006 fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 11

OTT Linear TV, using P 2 P Technology Joost (from the creators of Skype/Kazaa) § § Free of charge to Users, Ad sponsored. Content from: Nat Geo, Viacom, Jump. TV, CBS, WCSN, . . . § Advertising partners include Coca. Cola, HP, Intel, Microsoft, Nike, Nokia, Vodafone, P&G, Nestle, Unilever, . . . Streaming at 700 Kbit/sec download, 0, 32 GB/hour & 220 Kbit/sec upload, 0, 105 GB/hour) 100. 000 Channels planned. Rich Search, Navigation. . . Chat, Rate P 2 P runs at deficit (download > upload), Joost will make up for the missing capacity with distributed data centres. § § fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 12

OTT Channel Extensions BBC, Linear TV and Vo. D § BBC is now a Global ISP They PEER rather than PAY for Internet Access (~500 Peers in UK, NL, DE, US. . . ) § BBC i. Player is based on P 2 P Seven day TV catch-up and BBC archive are distributed using P 2 P Technology. § BBC Simulcast requires Multicast Only ISP’s who provide Multicast Peering to BBC are eligible for Internet Simulcast. § Significant Traffic Surge fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential +3 GB/User/Month => 400+M£ cost for ISP’s (OFcom) 13

OTT Video on Demand Xbox Video Download Service (~5 GB per HD Movie. . . ) One HD Movie ~ Avg Monthly Internet Usage fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 14

Interconnection with OTT Providers § Most Content Providers Buy Internet Access/TRANSIT for All their Traffic. § May also Buy CDN capabilities (ex. from Akamai) to scale and get content closer to Eyeball Networks … or move to P 2 P Example : Apple Ex. Apple i. Tunes uses Akamai § Large scale, Network Savvy Content Providers PEER with Tier 2, Eyeball ISP’s (Public & Private) May also build their own IP Backbones (Back-end interconnect of distributed datacenters) Bypass Tier 1 ISP’s as much as they can. Example : Google, Yahoo § Mostly Outbound Traffic § Peering Policy : No Peering … Open fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 18

Google. Net A Portal. Net or a Parallel Internet Back. Bone Google. Net (Faster, Cheaper, More Reliable) § Google has been buying Fiber on a Worldwide basis Data. Centers can be colocated at Peering Points § Google builds it’s own worldwide IP Backbone. 10 G N*10 G 40 G 100 G N*100 G Some 300 Exchanges Worldwide IX IX IX § Tier 2 ISP’s invest in massive Local Loop upgrades to support IPTV. Upgrades fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. / Users Cisco Confidential § Google can send any amount of traffic into the Internet without paying anyone, they are Nobody’s Customer. § Google distributes it’s Data. Centers to be virtually ONnet to Eyeball networks. Google is now only a few Hops away from Any User on the Internet. IPTV Local Loop Google-WIFI § Google peers locally, often on a Settlement Free Basis, with Eyeball Carriers. § Google drives Net Neutrality so that whatever Traffic they send, can’t be impaired. § Google can now addresses Service Substitution (Google. TV, Google. Talk…) 19

OTT Impact on Service Providers Three main Areas of Concern § Out-of-control Traffic Growth – § § Average User’s Traffic is increasing at 50 -100+% per Year Usage Substitution – Time people spend on the Internet (e. g. , User Generated Video) reduces time spend watching TV – Advertising spend shifts with usage Service Substitution – Time shifting is one of the most important consumer behavioral trends related to entertainment and is “OTTfriendly” – Explosion of Online content sources (i. Tunes, Xbox, Amazon, Cinema. Now, Movie. Link, Vongo…) Source: Cisco IBSG, December 2006 fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 20

Traffic distribution among Res. BB Users 10, 000 -fold variation Avg = 10 GB/Mo 50% 90% Users are under the Avg 20% 5% 1% 1% => 225+ GB/Month 5% => 60+ GB/Month 20% => 7, 5+ GB/Month 50% => 1+ GB/Month Source : http: //www. iepg. org/march 2005/kjc-iepg 200503. pdf fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 1 TB/Mo 22

Traffic Growth outpaces Cost Declines… IP Transit Price Declines Versus Traffic Growth in Select Cities 2005 -2006 Source: Tele. Geography, 2006 fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 23

4 Possible Actions towards OTT Players Ignore/Monitor § Ignore thousands of irrelevant OTT services. § Deploy Traffic Analysis & Monitoring capabilities. Defend § Block OTT. § Quota, Traffic Management, Fair Use Policies… § Re-Assess Free Peering. § Reserve some network capacity for own use. (Private-IP) § Triple Play = Default Service. Collaborate § From Co-marketing to Integration of Services. § Optimised Delivery, Qos, CDN, Multicast, Traffic Mgt exemption… Become/Imitate § Deploy Services beyond your own footprint, ex. Vo. IP over any broadband. § Develop an On-line video strategy. § Improved Access to TV & Mobile. § Precision Advertising. fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 24

ILIAD CY 2006 Figures § Financial performance Revenues up 31. 2% at € 950. 3 million Group EBITDA up 47. 8% at € 331. 6 million EBITDA margin at 34. 9% Net Income up 79. 9% at € 123. 9 million § Operating performance Leading alternative ADSL operator with over 2. 8 million subscribers Unbundling ratio > 75% Gross Margin per ULL Subscriber > 20€ fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 26

ILIAD 1 H 2007 Figures § Financial performance Revenues up 30. 7% at € 574. 1 million Group EBITDA up 36. 6% at € 205. 6 million EBITDA margin at 35. 8% Net Income up 34. 6% at € 78. 9 million fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 28

Iliad 1 H 2007 Operating Performance http: //www. lightreading. com/document. asp? doc_id=133564&print=true September 2007 fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 29

Key Development in 2007 § Main channels in MPEG-4 for increased coverage § DSLSafe for increased Quality of Experience § Fax Service § Content Deal for S-VOD with Disney § FTTH Offer Launch 100 Mbit/s / 50 Mbit/s Unlimited Vo. IP in 49 countries 2 HD-TV Capable box (HAG and fully-fledged STB) fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 41

Intelligent Services Gateway Dynamic Session Control and Management § Identifies sessions and service flows RADIUS DHCP Portal Traffic classification for all access architectures Session and flow* provides per user granularity § Dynamically assigns the session to a configured QOS policy (MQC) via Radius § Provides Policing, Access Control, Accounting, via Radius Push/Pull RADIUS / AAA push/pull Per Sub/Service Accounting Self-provisioning / Selfcare Authentication Logon ISG Change of Authorization (Policy Push) PPPo. Eo. X L 4 R L 4 re-direction** IPo. E Accounting Internet § Flexible Transport Mapping E. g. mapping traffic to VRF, various routing tables, future L 2 TP fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential ISG Sessions 55

NGN is about following the Consumers express identity – and require customization § Subscriber Personalization Actively Manage the Subscribers Identity-Data and Adjust the Service Offering/Packaging (i. e. , different identity in different worlds) Blogs § Mass-Scalability Leverage Mass-Customization Principles: Service-Bundling; Subscriber-Grouping and Per-Group Processing Customized Content (ie. pod. Casting) Minimize support Calls: Self Management § Service Evolution From pure Transport Based Service Models (Time/Distance/Volume) to Cooperative & Content Based Service Models fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential Specific Knowledge Online Gaming and Communities 56

ISG Subscriber Identity-Data Manage & Leverage Subscriber Data Application Layer Configured Identity; Derived Identity & Profiling Frank (at my. Space) Frank (at Amazon) End 2 End Session Layer Configured Identity Bundling 08001873652@cisco. de frank@cisco. com Network Layer Configured Identity (Access AAA) Derived Identity & Profiling; (“gleaned off” the data-path) Identity Bundling NAS-Port: K 5 -344 IP-Address: 134. 168. 23 4354523 sfas@t-online. fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 57

ISG Subscriber Identity-Data Identity, Business Models & SDO Framework Coverage Application Identity: Configured & Derived Public & Private Identity: Configured Web 2. 0 Interfaces Access Identity: Configured & Derived (incl. behavior) IMS Public & Private Identity: Configured NASS bundled auth Access Identity: Configured fbrockne, Br. T EBC, 21 Aug 07 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential TISPAN Access Identity: Configured Closed…Collaborative 58