Case Study - Korea Opportunities for BB Connectivity in APAC Ki-young, Ko ｜

Case Study - Korea
Opportunities for BB Connectivity in APAC
Ki-young, Ko｜ 2013. 9. 24
0
Introduction
1
International Internet Traffic Trend
2
KT Plan to Cope with the Traffic
3
Highway Construction & Telecom
Infrastructure
4
Considerations
01
International Traffic Trend
Traffic is growing but growth rate is slowing down, so is the Asian Region
Global Traffic
Regional Traffic Growth Rate
Int’l Internet Bandwidth(Tbps)
120
140%
Africa
100
120%
US&Canada
80
100%
60
80%
40
60%
20
40%
0
20%
Europe
Latin America
2009
2010
2011
2012
2013
Asia
2006 2007 2008 2009 2010 2011 2012 2013
Telegeography
02
International Traffic Forecast
Growing but the growth rate is slowing down, without a “Star” application
Internet Traffic by Application
Estimated Global IP Traffic per Month
Unit(Exabyte)
IP-VPN
Email 3%
2%
Gaming
4%
VoIP/IM/Video
Calling
5%
120
109.5
100
Other
8%
77.4
80
Web Browsing
26%
20
Streamed & Buffered
Audio/Video
22%
Online File
Storage
11%
Telegeography
59.1
60
40
P2P
19%
93.8
43.5
30.7
6
14
9
33% 32
5 60%
24
15
2011
2012
28% 41
2013
2014
23
18
19%
49
2015
6%
52
2016
Video
File Sharing
Business Data
Web and Other Data
Video Communications
Voice Communications
Online Gaming
Cisco
03
Traffic Trend in Korea
By internet services
14%
13%
12%
10%
11%
12%
10%
11%
14%
31%
32%
31%
Video
76%
35%
33%
31%
2012Y 4Q
2013Y 1Q
2013Y 2Q
Web-hard
P2P
Multimedia
Web
E-mail etc.
01
KT Traffic Forecast by Country
Asia Traffic
US Traffic
(Unit : Gbps)
(Unit : Gbps)
350
300
275G
321G
300
250
274
250
200
226
200
190G
173
150
194
148
150
143
104
100
99
100
60
60
50
257G
235
46
50
40
28
0
0
2009
2010
2011
2012
2013
Inbound
2014
2015
Outbound
2016
2009
Current Capacity
2010
2011
2012
2013
2014
2015
2016
Required Capacity
Analysis by Estimated global IP traffic per month in Telegeografy and kt global traffic expectation graph
01
KT Total
Need 628 G bandwidth to cope with global IP traffic by 2016
Total Traffic
(Unit : Gbps)
700
31G
600
447G
500
275G
400
628G
300
200
321G
100
0
2009
2010
2011
2012
2013
2014
2015
2016
Forecast
US Inbound
EU Inbound
ASIA Inbound
Current Capacity
Required Capacity
03
Domestic Traffic Trend
66.5% of households in Korea have smart devices
Market share
Traffic
Destkop
81.4%
Smartphone
65.0%
Smart TV
5.2%
SmartPad
4.1%
Smart device
66.5%
Digitial TV
43.7%
Notebook
30
2
20
1
10
20.2%
MP3 Player
Other
2.5
1.5
54.8%
GPS Navigation
Digital camcoder
Mobile(Gbps)
56.6%
Digital Camera
Game console
Fixed(Tbps)
16.8%
0.5
11.9%
0
9.1%
2010 Jan
2.8%
KISA 2012
0
2010 Jun
2010 Dec
2011 Aug
NTMS/ARGOS
1
International internet traffic trend
2
KT Plan to Cope with the Traffic
3
Integrated construct highway and
network infrastructure
4
Consideration
01
Plan 1 - Submarine Cable Capacity
‘13
US 280Gbps
Asia 240Gbps
‘14
US 340Gbps
Asia 290Gbps
‘15
US 400Gbps
Asia 340Gbps
‘16
The existing submarine system will adapted a new technology : 40Gps or 100Gps
Asia Pacific Gateway launching (under construction)
New pacific cable launching (under discussion)
APG (Asia Pacific Gateway)
New trans pacific
- Landing (11): Korea, Japan (2),
China(2), Hong Kong, Singapore,
Malaysia, Taiwan, Vietnam, Thailand
- System Capacity : 38.4Tbps
- Ready For Service : Early 2015
- Landing (7): Korea, China (3),
Taiwan, Japan, USA
- System Capacity : at least 15Tbps
- Ready For Service
: 2017 (under discussion)
02
Plan 2 - Global POP
TORONTO
London
SEATTLE
KOREA
HongKong
INDIA
VIETNAM
THAI
SINGAPORE
JAPAN
PALO
Amsterdam
FrankFurt
NY
LA
(1Wilshire / Equinix)
PHILIPPINE
INDONESIA
Global POP : 12 Countries 14POPs
Internet POP : 7 Countries 10 POPs
USA(5), Canada, United Kingdom(2), Germany(2), Netherlands, Japan(2),
Hong Kong(4), Singapore(2), Vietnam, Philippine, India, Thailand, Indonesia
+
West Asia(4), Europe(2) countries (until 2016)
03
Plan 3 - IP Network Optimization
1
High Bandwidth Interconnections
2
Without a Blind Spot
- 2 center nodes and 20 main nodes
- 10 Gbps to 100 Gbps
- Around 100 nodes all over the nation
3
Domestic Backbone Bandwidth
4
Domestic FTTH rate
- 6,600 Gbps
- Plan to upgrade to higher bandwidth
- Copper based access network: 10%
- Fiber based access network: 90%
05
Plan 4 - All-IP Based Transformation
Fixed & Wireless Convergence Service on ALL-IP Network
Current (2011)
PSTN
Enterprise Home
Intelligent
SoIP
SoIP
Service
AS
AS
Show-talk
AS
Evolution (2013)
Wireless
Additional
Service
PSTN
Intelligent
Service
PSTN &
AGW
PSTN, Intelligent Service,
Messaging, Web AS
Integrated
DB
Enterprise
SSW
POTS
Home + Enterprise Wireless
Additional
SoIP AS
Service
Future (2015)
Fixed
IMS
Fixed
Back-Bone
network
Wireless
IMS
Wireless
Wireless
Back-Bone CS network
network
Fixed & Wireless
Separate Network
POTS
POTS
Integrated
IMS
Integrated
IMS
PSTN &
AGW
Integrated
Back-Bone
Network
Upgraded
Cloud DB
Wireless
CS network
Transform to 2 Networks:
Circuit Switched Network
& IP Multimedia Sub System
PSTN &
AGW
Integrated
Back-Bone
Network
All-IP
Wireless
CS network
Integrated Network
1
International internet traffic trend
2
kt’s plan for traffic increasing
3
Highway Construction & Telecom
Infrastructure
4
Consideration
01
Case Study – “Dreamline”
Dreamline leased telecom networks from Korea Expressway Corp. that constructed
highways with telecom infrastructures
Dreamline network structure (43,188km)
Core Network Structure
• Highways
• DWDM 400G
• Speed up to 1.6Tbps
Metro Network Structure
• Subway and main roads
• 14 MSPPs
Access Network Structure
• Ring configuration
01
Case Study – “Dreamline”
Dreamline Network Features
1 Stability
Cables are housed in cable ducts 1.5m under the surface
2 Expandability
Easy connection to other highway cables
3 Cost Savings
4 Easy Access for Maintenance
02
Synergy Effects
1
Construction Cost Reduction
2
Maintenance Efficiency
3
Restoration Option
4
Service Price Reduction
5
Applications for ITS
02
Synergy Effects - Construct Cost Reduction (per km)
Terrestrial fiber cable
Submarine cable
Form
Material
Construction
$ 13,800
Cable: $ 1,000
Manhole: $ 4,800
Pipe: $ 8,000
$ 58,000
$ 1,000
Cable: $ 1,000
$ 45,000
Submarine cable: $ 35,000
Steel pipe: $ 10,000
$ 5,370
Standard: 1km cable construction
- Landing fiber cable : from kt standard quantity for unit (pipe(4), manhole(4), 36C fiber cable)
- Submarine cable : from kt Submarine Company Information
$ 135,000
02
Synergy Effects - Maintenance Efficiency
Terrestrial fiber cable
Submarine cable
1 day (using vehicle)
20 days (using Cableship)
$ 5,000
$ 500,000
Feature
Repair
duration
Repair cost
(per 1 time)
02
Synergy Effects - Restoration Option
Current
Future
Taiwan earthquake example
- Multiple & Simultaneous submarine cable faults
- 8 cables(2006), 4 cables(2007), 8 cables(2009)
Landing Cable is a Restoration Option
02
Synergy Effects – Service Price Reduction
Asia IP transit & backhaul price is 3 times more expensive than that of
Europe/North America
Asian Information
Super Highway
Atlantic 23
Why Expensive?
• Only 8 submarine cables in Asia
• Asian population is 60%
of the world
Indian 8
Pacific 18
Asian Information Super Highway
• Can reduce service price by more IP transit
competition
Technology: Making the Asian Highway also an Information Highway By Rphan Samarajiva;
published on January 6, 2011
02
Synergy Effects - Applications for ITS
ITS (Intelligent Transport System), leveraged on integrated highway
and network infrastructure
ETCS
ATMS
Electronic Toll Collection Systems
Advanced Traffic Management Service
Information Processing
& Monitoring

Automatic Vehicle Charging Service

Traffic Flow Control Service
ATE
Automatic Traffic
Enforcement Service

Illegal parking enforcement services

Vehicle number recognition system
ATC
Information
Collection
Information
Provision
Advanced Vehicle and Highway
Service

Real time Signal Control Service

Traffic Flow Control Service
03
Applications for ITS - ETCS
Electronic Toll Collection Systems
Number of Passed Vehicles per day(/Lane)
108,000 → 432,000
Processing time per Vehicle
45sec → 9sec
03
Application – ATE
Automatic Traffic Enforcement
Number of Traffic Accidents
(for 6 months)
1,405 → 999
Number of Casuality
by Traffic Accidents (for 6 months)
87 → 52
03
Applications for ITS - ATC
Advanced Traffic Signal Control Systems
Travel speed
Travel hours per travel distance
1
International internet traffic trend
2
kt’s plan for traffic increasing
3
Integrated construct highway and
network infrastructure
4
Considerations
01
Consideration - North America Traffic
The highest traffic in Asia is to North America
Aisa
North America
Europe
01
Consideration – North America Traffic
Need to Construct a new Backbone Network connecting North America
ISP
Europe
Traffic
ISP
Mongolia
North America
Traffic
Korea
ISP
Asian Information
Super Highway
ISP
Japan
China
Pakistan
ISP
India
ISP
ISP
Thailand
ISP
ISP
ISP
Vietnam
Cambodia
Laos
ISP
ISP
ISP
ISP
Consideration – Traffic usage efficiency
Ring Topology to Unprotected Network
(reduce USD 650,000 and capacity efficiency increase 12.5%)
Before Optimization
Hehwa
Busan
&
Geoje
Seoul
ITMC
W+P (75%)
KORNET
W+P (75%)
Busan
ITMC
Backbone efficiency rate
Capacity : 2 X Protected 10G
Usage : 15G
• Ring topology
• transmission protected scheme
Guro
After Optimization
Hehwa
W (50%)
Busan
&
Geoje
Seoul
ITMC
W (50%)
W (50%)
W (50%)
KORNET
Busan
ITMC
Guro
Backbone efficiency rate
Capacity : 4 X Unprotected 10G
Usage : 20G
• Unprotected topology
• Routing protected scheme
`
02
02
Consideration - Cost Efficiency
The Latest Transmission Technology – PTN, ROADM
Previous
1980s
1990s
10/100BaseT
GbE
Pure IP
Packet
Transport
Router
Switch
PDH
Circuit
Transport
Pure
Ethernet
SDH
10GbE
DWDM
• PTN : Packet Transport Network
• ROADM : Reconfigurable Optical Add-drop Multiplexer
Metro
DWDM
Afterward
40/100GbE
MPLS
Metro
MSPP
Ethernet
PTN
Next
MSPP
& Hybrid
Voice
CWDM
Optical
Technology
2000s
MSTP
ROADM