Over	
  the	
  Top	
  
  Brough	
  Turner	
  
Why	
  Over	
  the	
  Top	
  is	
  	
  
the	
  Future	
  of	
  Communica7on	
  	
  
             Brough	
  Turner	
  
          Founder,	
  netBlazr.com	
  
•  "Internet	
  protocol	
  networks	
  are	
  like	
  Pac	
  Man.	
  
   Eventually	
  they	
  will	
  eat	
  everything.”	
  
    –  Hossein	
  Eslambolchi,	
  AT&T's	
  CTO,	
  2003	
  
•  "Anyone	
  who	
  relies	
  on	
  the	
  fact	
  that	
  they	
  own	
  a	
  
   scarce	
  distribu7on	
  resource	
  is	
  going	
  to	
  face	
  ten	
  
   years	
  of	
  turmoil.”	
  
    –  Paul	
  Sagan,	
  chief	
  execuHve	
  of	
  Akamai,	
  2007	
  
•  "If	
  a	
  customer	
  likes	
  it,	
  it	
  doesn't	
  maIer	
  what	
  it	
  
   does	
  to	
  your	
  economics	
  –	
  it's	
  going	
  to	
  happen.”	
  
    –  Jack	
  Cassidy,	
  CEO	
  of	
  CincinnaH	
  Bell,	
  2008	
  
PredicHons	
  vs.	
  Outcomes	
  
•  1-­‐3	
  year	
  predicHons	
  usually	
  over	
  enthusiasHc	
  
   –  Takes	
  longer	
  or	
  never	
  happens	
  …	
  
•  Actual	
  outcomes	
  more	
  sweeping	
  than	
  expected	
  
   –  But	
  decades	
  perspecHve	
  
PredicHons	
  vs.	
  Outcomes	
  
•  1-­‐3	
  year	
  predicHons	
  usually	
  over	
  enthusiasHc	
  
   –  Takes	
  longer	
  or	
  never	
  happens	
  …	
  
•  Actual	
  outcomes	
  more	
  sweeping	
  than	
  expected	
  
   –  But	
  decades	
  perspecHve	
  

       Hype	
  
PredicHons	
  vs.	
  Outcomes	
  
•  1-­‐3	
  year	
  predicHons	
  usually	
  over	
  enthusiasHc	
  
   –  Takes	
  longer	
  or	
  never	
  happens	
  …	
  
•  Actual	
  outcomes	
  more	
  sweeping	
  than	
  expected	
  
   –  But	
  decades	
  perspecHve	
  



     AdopHon	
  
 	
  	
  	
  NegaHve	
  Returns	
  (2000-­‐2009)	
  




        hWp://seekingalpha.com/arHcle/243441-­‐broadband-­‐networks-­‐returns-­‐on-­‐invested-­‐capital-­‐sHnk	
  
 	
  	
  	
  NegaHve	
  Returns	
  (2000-­‐2009)	
  




        hWp://seekingalpha.com/arHcle/243441-­‐broadband-­‐networks-­‐returns-­‐on-­‐invested-­‐capital-­‐sHnk	
  
Ne[lix	
  Performance	
  on	
  Top	
  US	
  Networks	
  
Data	
  Rates	
  
•    TwiWer:	
  	
  	
  Negligible	
  
•    Facebook:	
  	
  	
  Tiny	
  	
  	
  	
  	
  (except	
  video)	
  
•    Skype	
  audio:	
  	
  6-­‐40	
  Kbps	
  *	
  
•    Ne[lix	
  SD	
  Video:	
  	
  500,	
  1000	
  &	
  1500	
  Kbps	
  **	
  
•    Ne[lix	
  HD	
  Video:	
  	
  2600	
  &	
  3800	
  Kbps	
  **	
  


                                      *	
  	
  	
  	
  	
  SILK	
  wideband	
  audio	
  coder	
  
                                      **	
  	
  	
  VC1	
  Advanced	
  Profile	
  video	
  coder	
  
Latency	
  Not	
  Important	
  
Latency	
  is	
  Important	
  

                                          ConversaHon,	
  
                                          	
  even	
  with	
  a	
  	
  
                                          	
  voice	
  mail	
  system,	
  
                                          requires	
  
                                          low	
  latency	
  

hWp://www.flickr.com/photos/fadderuri/2715777726/	
  
Mouth-­‐to-­‐Ear	
  delay	
  
Voice	
  QoS	
  
1.  Dedicated	
  wires	
  =	
  20th	
  century	
  approach	
  
   –  Cable	
  &	
  FiOS	
  use	
  separate	
  logical	
  path	
  today	
  
2.  Simple	
  prioriHes	
  
   –  Mobile	
  telephony	
  (2G-­‐	
  &	
  3G-­‐specific	
  approaches)	
  
   –  Enterprise	
  IP-­‐PBXs	
  (via	
  DiffServ	
  or	
  802.1p)	
  
3.  Extra	
  bandwidth,	
  i.e.	
  “headroom”	
  
   –  Vonage,	
  etc.	
  
   –  Skype	
  
Mobile	
  download	
  bandwidth	
  




            Akamai	
  State	
  of	
  the	
  Internet	
  Report	
  3Q	
  2010	
  
Voice	
  on	
  4G	
  
•  LTE	
  is	
  all-­‐IP:	
  	
  Voice	
  services	
  a	
  work-­‐in-­‐progress	
  
    1.  Fallback	
  to	
  3G	
  voice	
  
    2.  Leverage	
  IMS	
  /	
  “One	
  voice”	
  /	
  VoLTE	
  (not	
  VoLGA)	
  

•  4-­‐6	
  years	
  for	
  widespread	
  4G	
  voice	
  services	
  
   based	
  on	
  carrier-­‐provided	
  QoS	
  
Over-­‐the-­‐Top	
  
•  Video	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Social	
  
            –  Happening	
  now	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  –	
  Game	
  over	
  
            –  Happening	
  fast	
  !	
  

•  Voice	
  
            –  Happening	
  now	
  
            –  TransiHoning	
  market-­‐by-­‐market,	
  as	
  bandwidth	
  
               headroom	
  becomes	
  available.	
  
            –  Over-­‐the-­‐top	
  voice	
  on	
  4G	
  is	
  a	
  certainty	
  
Over	
  the	
  Top	
  is	
  	
  
the	
  Future	
  of	
  Communica7on	
  	
  

        Thank	
  you	
  	
  
           Brough	
  Turner	
  
        brough@netBlazr.com	
  

Why Over-the-Top is the Future of Communications

  • 1.
    Over  the  Top   Brough  Turner  
  • 2.
    Why  Over  the  Top  is     the  Future  of  Communica7on     Brough  Turner   Founder,  netBlazr.com  
  • 3.
    •  "Internet  protocol  networks  are  like  Pac  Man.   Eventually  they  will  eat  everything.”   –  Hossein  Eslambolchi,  AT&T's  CTO,  2003   •  "Anyone  who  relies  on  the  fact  that  they  own  a   scarce  distribu7on  resource  is  going  to  face  ten   years  of  turmoil.”   –  Paul  Sagan,  chief  execuHve  of  Akamai,  2007   •  "If  a  customer  likes  it,  it  doesn't  maIer  what  it   does  to  your  economics  –  it's  going  to  happen.”   –  Jack  Cassidy,  CEO  of  CincinnaH  Bell,  2008  
  • 4.
    PredicHons  vs.  Outcomes   •  1-­‐3  year  predicHons  usually  over  enthusiasHc   –  Takes  longer  or  never  happens  …   •  Actual  outcomes  more  sweeping  than  expected   –  But  decades  perspecHve  
  • 5.
    PredicHons  vs.  Outcomes   •  1-­‐3  year  predicHons  usually  over  enthusiasHc   –  Takes  longer  or  never  happens  …   •  Actual  outcomes  more  sweeping  than  expected   –  But  decades  perspecHve   Hype  
  • 6.
    PredicHons  vs.  Outcomes   •  1-­‐3  year  predicHons  usually  over  enthusiasHc   –  Takes  longer  or  never  happens  …   •  Actual  outcomes  more  sweeping  than  expected   –  But  decades  perspecHve   AdopHon  
  • 7.
           NegaHve  Returns  (2000-­‐2009)   hWp://seekingalpha.com/arHcle/243441-­‐broadband-­‐networks-­‐returns-­‐on-­‐invested-­‐capital-­‐sHnk  
  • 8.
           NegaHve  Returns  (2000-­‐2009)   hWp://seekingalpha.com/arHcle/243441-­‐broadband-­‐networks-­‐returns-­‐on-­‐invested-­‐capital-­‐sHnk  
  • 9.
    Ne[lix  Performance  on  Top  US  Networks  
  • 10.
    Data  Rates   •  TwiWer:      Negligible   •  Facebook:      Tiny          (except  video)   •  Skype  audio:    6-­‐40  Kbps  *   •  Ne[lix  SD  Video:    500,  1000  &  1500  Kbps  **   •  Ne[lix  HD  Video:    2600  &  3800  Kbps  **   *          SILK  wideband  audio  coder   **      VC1  Advanced  Profile  video  coder  
  • 11.
  • 13.
    Latency  is  Important   ConversaHon,    even  with  a      voice  mail  system,   requires   low  latency   hWp://www.flickr.com/photos/fadderuri/2715777726/  
  • 14.
  • 15.
    Voice  QoS   1. Dedicated  wires  =  20th  century  approach   –  Cable  &  FiOS  use  separate  logical  path  today   2.  Simple  prioriHes   –  Mobile  telephony  (2G-­‐  &  3G-­‐specific  approaches)   –  Enterprise  IP-­‐PBXs  (via  DiffServ  or  802.1p)   3.  Extra  bandwidth,  i.e.  “headroom”   –  Vonage,  etc.   –  Skype  
  • 16.
    Mobile  download  bandwidth   Akamai  State  of  the  Internet  Report  3Q  2010  
  • 17.
    Voice  on  4G   •  LTE  is  all-­‐IP:    Voice  services  a  work-­‐in-­‐progress   1.  Fallback  to  3G  voice   2.  Leverage  IMS  /  “One  voice”  /  VoLTE  (not  VoLGA)   •  4-­‐6  years  for  widespread  4G  voice  services   based  on  carrier-­‐provided  QoS  
  • 18.
    Over-­‐the-­‐Top   •  Video                                                                        Social   –  Happening  now                                                    –  Game  over   –  Happening  fast  !   •  Voice   –  Happening  now   –  TransiHoning  market-­‐by-­‐market,  as  bandwidth   headroom  becomes  available.   –  Over-­‐the-­‐top  voice  on  4G  is  a  certainty  
  • 19.
    Over  the  Top  is     the  Future  of  Communica7on     Thank  you     Brough  Turner   [email protected]