World’s $1T Broadband Moment
Aseem Parikh
Vice President, Solutions and Partnerships | Open Networking Foundation
2020 Never let a crisis go to waste
2 From disaster and challenge
3 From disaster and challenge to opportunity
4 Higher broadband penetration Faster broadband speeds
Source: Statista Source: Speedtest.net
Requirements for the new normal
5 Tokyo, 1945
We have seen this before
6 Tokyo, 1945 Tokyo, 2020
We have seen this before
7 US Interstate Highway System
We have seen this before
8 Panama Canal
We have seen this before
9 Massive public + private investment in ultra-broadband proposed post-COVID
$100B >$100B >$30B $100B
Broadband infrastructure Private investment by EU funding mechanisms Public investment to investment in discussion tier-1 operators in for broadband investment, provide African continent by US federal government Australia, India, Japan, including the “Connecting with reliable access, Germany, Turkey, UK, US Europe Facility” according to World Bank and many more. Next 10 years: $1 trillion opportunity
10 State of telecom Strong headwinds mean “status quo” is not an option
1 Demand growth is 3 Increasing value outpacing revenue, extraction from telecom eroding profitability networks by OTT players
2 Datacenter technologies proving to be nimbler and more cost-affective than closed prop appliances 11 State of telecom Strong headwinds mean “status quo” is not an option
1 Price to Earnings Ratio Demand growthCompany is 3 Increasing value outpacing revenue, & (Market Cap) on Julextraction 6, 2020 from telecom eroding profitability networks by OTT players Zoom Video 1,540 – P/E Communications $ 74B – Market Cap Netflix 100 ($ 217B) Deutsche Telekom AG 18 ($ 80B) Comcast 16 ($ 184B) AT&T 15 ($ 217B) 2 Datacenter technologies Verizon proving to 12be ($nimbler 229B) and more cost-affective than closed prop appliances 12 State of telecom How do we enable universal ultra-broadband the correct way?
Think value-backward, not technology-forward What access technology? Opex-led or Flexible, scalable, Capex-led or upgradable balanced Operational Right archi- & business tecture? models?
Yesterday: Messaging, YouTube, … One-neck-to-choke or Today: Live Video, MP Gaming, … bespoke from “best- Tomorrow: AR/VR, 3D Video, ??? Required New of-breed” suppliers eco-system? services?
13 ONF’s mission ONF’s core mission is to pave the ideal path forward
by leveraging
Why? How? Open Source … to bring Disaggregation Transform Capex & Opex White Box operator efficiencies access & edge & innovative networks services SDN/NFV/ Cloudification
… with
curated open source model 14 ONF’s mission ONF’s early-adopter operators & pioneering suppliers are trailblazing a bold path forward
Operator-Led ONF’s Board
Operator Partners Andre Feutsch – CTO & ONF Chair Vendor Jochen Appel - VP Partners Amin Vahdat - Fellow Member Dai Kashiwa - VP Operators Rob Howald - VP
Tang Xiongyan - CS 50+ Member Vendors George Tchaparian - CEO
170+ Other Members Yusuf Kıraç - CTO Nick McKeown - Prof
Guru Parulkar, Exec Dir
15 ONF’s mission ONF directs $100M+ of shared R&D investment into near- production-ready open access & edge platforms
ONF delivers and/or enables: Operator Partners § Operator-specified reference designs and use cases Vendor Partners § Innovative exemplar platform implementations Member § Suppliers productizing solutions Operators around these open platforms § Hardened solutions deployed in 50+ Member Vendors tier-1 operator networks § New business models that offer 170+ Other Members commercial SLA guarantees
16 ONF’s projects ONF’s boasts major open source projects across broadband
Wireline Mobile & 5G Broadband Aether Service Platform
SEBA COMAC
VOLTHA SD-RAN Access Network
CORD Solutions SD-BNG OMEC Core Network
CORD XOS Edge Cloud Infrastructure
Trellis ODTN SDN Infrastructure
ONOS Stratum P4 SDN Control & Data Plane SDN & Edge Infra 17 White Box Hardware ONF’s projects Adoption proves open networking is paving optimal path to universal broadband Wireline Mobile & 5G Broadband Aether Pilot at ONF & partner Servicesites Platform In production Turk Telekom SEBA COMAC To trial in 2020 China In trial to production VOLTHA SD-RAN Unicom AT&T, DT, Telefonica Access Network
Active Interest CORD Solutions SD-BNG OMEC CoreIn-production Network BT, Liberty Global, T-Mobile Poland NBN, TIM CORD XOS Edge Cloud Infrastructure
In-production Comcast Trellis ODTN SDN Infrastructure
ONOS Stratum P4 SDN Control & Data Plane SDN & Edge Infra 18 White Box Hardware ONF’s Wireline Broadband Project Adoption proves open networking is paving optimal path to universal broadband Wireline Mobile & 5G Broadband Aether Service Platform
SEBA COMAC Hardened platform & commercial solutions Mobile/5G and ready for production VOLTHA Next-genSD-RAN SDN/P4 Access Network deployment in 2020! CORD Solutions SD-BNG ProjectsOMEC Core Network
will be covered In forthcoming CORD XOS Edge Cloud Infrastructure ONF Spotlight virtual events Trellis ODTN SDN Infrastructure
ONOS Stratum P4 SDN Control & Data Plane SDN & Edge Infra 19 White Box Hardware ONF’s Wireline Broadband Project Broadband Spotlight: reimagining PON infrastructure
ONF SEBA: SDN Enabled Broadband Access Operator OSS/BSS
Vendor EMS
OLT
Disaggregate & SDNize
ONU
SEBA Reference Design, March 2019 20 ONF’s Wireline Broadband Project ONAP Op X OSS/BSS
SEBA Exemplar Abstract OLT SEBA POD
Network Edge Mediator (NEM) Docker K8s AAA vlans dhcp mcast bridging routing ACLs Helm SDN Controller - ONOS
VOLTHA
ONU OLT SD-BNG SWITCH External BNG
SERVER
21 SEBA impact Open networking drives both operational and economic benefits
Disaggregated and Dynamic resource Operational Converged solutions SD programmable allocation with on shared platforms efficiency infrastructure automation
Service innovation & New revenue efficient market DevOps tooling Service agility streams (e.g., CDN) testing
Improved ~40% ~25% ~5-11% economics & TCO* Capex savings Opex savings incr. revenue
*As determined by study ”Who dares wins!”, Arthur D. Little, AT&T, DT & Telefonica (Sep. 2019) 22 SEBA impact SEBA-like Access Architectures result in ~30% TCO savings
Access Capex Access Opex
Proprietary hardware replaced by white-box Reduced as proportion of Capex
Additional compute hardware & networking
https://www.adlittle.com/en/who-dares-wins 23 SEBA impact 5-11% additional revenue with SEBA-like Access Architectures
Incremental revenue opportunities
https://www.adlittle.com/en/who-dares-wins 24 SEBA impact Operators can redirect access spend towards differentiated services Open Networking Legacy spend mix mix Operators willing to pay Operator premium for differentiated Opex software & new services sauce” “Secret “Secret Operator Opex Undifferentiated services new ”Secret sauce” & sauce” ”Secret proprietary software
Platform Platform replaced with open-source software
Operator ON Platform software Capex Proprietary hardware Vendor monetization Vendor Operator replaced by white-box Capex Hardware Hardware
25 In summary …
Open Networking holds the key to unlock a $1T opportunity to deploy and future- proof broadband infra, and making the most out of the crisis-induced urgency
Production-ready broadband platform SEBA offers a huge head-start to the industry to build and deploy commercial solutions with attractive economics
Tier-1 operators and dynamic new suppliers are leading from the front, helping to substantially reduce the market and technology risks of adopting this approach
Add your important voice & resources to accelerate this march towards a well-connected world!
26 “History has its eyes on us!” Thank You [email protected]
2020