Landscape in

Yali Z. Liu

Internet Landscape and Peering in China, GPF 12.0 Content

n China Internet Market Overview

n Regulatory Environment

n Data Center & Interconnect

n ICP Beian (Permit to go Online in China)

2 Internet Landscape in China, NPD 2017 Internet Market in China

TOP 10 INTERNET COUNTRIES -2017 ** Highest of Internet Users* With the Highest Number of Internet Users

n Internet User 751 million

n Mobile Internet User 724 million

n Mobile Payment User 502 million

* Source:CNNIC, Data as of June 2017

** Source:Internet World Stats, Data as of June 2017

3 Internet Landscape in China, NPD 2017 Broadband ISP in China

2012-2017Q2 ISP Broadband Users Distribution Current state 80.00%

60.00% n Top two ISP 40.00%

20.00%

n More medium & small ISPs 0.00% 2012 2013 2014 2015 2016 2017Q2

China Telecom Others

2012 2013 2014 2015 2016 2017Q2

China Telecom 58.81% 56% 53.16% 54.14% 41.43% 41.85%

China Unicom 26.36% 26.65% 29.19% 28.36% 25.31% 25.13%

Others 14.83% 17.35% 17.65% 17.50% 33.26% 33.02%

(Data sources: CNZZ)

4 Internet Landscape in China, NPD 2017 Internet Content

- plugins, sites apps and keywords

5 Internet Landscape in China, NPD 2017 Alternatives

6 Internet Landscape in China, NPD 2017 Governance

Content

Cyberspace Administration SAPPRFT MIIT State Administration of Ministry of Industry & Press, Publication, Radio, License Video Information Technology Film and Television

7 Internet Landscape in China, NPD 2017 Cybersecurity Law & License Requirement

n First comprehensive law regulating network security - Effective on June 1, 2017 - To combat online fraud & protect against security threats n Rules to highlight - Data localization - “Real identity” n Licenses – with updated rules - Effective January 1, 2018 - CDN, Data center, Value-add network services

8 Internet Landscape in China, NPD 2017 Data Center

n Majority are carrier owned - Single carrier - Need carrier-neutral n Connectivity - Basic cross connect challenge - Local access restrictions - Very high cost

9 Internet Landscape in China, NPD 2017 Network Connectivity & Peering

n International - Entry / exit Internet Gateway - Kong is not n Domestic - Top ISPs & NAP - Carrier-owned Data Center - High connectivity / transit cost - Large ICPs driving change - Internet Exchange / Peering (new)

10 Internet Landscape in China, NPD 2017 Very Few Mainland China IXP in PeeringDB Total # of # of IXP most Total # of Total # of Region / country unique peered ASN is IXP Members Members connected to Africa 38 565 272 20 Asia Pacific 86 1843 817 23 Australia 27 1041 344 18 CN 5 20 16 2 Europe 228 8117 3032 71 Middle East 8 81 71 3 North America 139 3745 1534 66 South America 62 1588 994 26 Data as of April 23, 2017 11 Internet Landscape in China, NPD 2017 IXP in PeeringDB Under Country CN

CHN-IX Traffic Stats n Five total: ⎼ China IX ⎼ CHN IX Beijing ⎼ CHN IX Shanghai ⎼ CHN IX Guangzhou ⎼ CNC NAP

12 Internet Landscape in China, NPD 2017 IXP and Peering Development Strategy

n Government awareness of the IX initiative - Regular briefings - Facilitate discussions and visits n Public awareness of the IX concept - Translated Euro-IX Video into Mandarin Chinese http://v.youku.com/v_show/id_XMTU0MTQxMzQ4OA==.html https://www.youtube.com/watch?v=706plsZ7eSI n Implementation - Acceptance to the concept - Access / connectivity

13 Internet Landscape in China, NPD 2017 Future蓝汛首 Vision鸣IX互联网交换中心

International Domestic

hosting hosting CHN-IX CHN-IX international domestic platform platform

Internet traffic Internet traffic

CNCert Firewall n Domestic ISP、ICP connect to domestic CHN-IX n Overseas ISP、ICP connect to International CHN-IX (physically in China) n Overseas contents go through the “Golden Gate”for domestic access

Internet Landscape in China, NPD 2017 ICP Beian License (recordation)

REQUIRES ICP COMPLIANCE yoursite.com

CDN

n Must register with MIIT n Prior to launching website in mainland China n Application takes 5 – 20 business days n Does not mean content can not be blocked 15 Internet Landscape in China, NPD 2017 ICP Beian vs. Commercial License

n ICP Beian License (recordation) - Required by your hosting provider - Precursor to the commercial ICP License

n Commercial ICP License - Open to local company or JVs where foreign equity < 50% - License is for the company, not the website

16 Internet Landscape in China, NPD 2017 Summary – Internet in China

n Huge market potential

n Data center – need carrier neutral

n IXP at early stage

n Content / Website hosting consideration

n Need support from the community

17 Internet Landscape in China, NPD 2017 Thank you !

[email protected] [email protected]

18 Internet Landscape in China, NPD 2017