July 2013

Why IP Peering? IP Based Voice Peering versus Traditional Calling Models The IP Evolution

Mobile Mobile

Fixed Enterprise

Carriers’ Carrier, providing IP Interconnect Services Voice, Messaging, Signaling, and Rich Content Proprietary & Confidential 2 Internet Structure

Traditional Assumption • The Internet is an interconnection of Transit Transit ~30,000 (semi-)autonomous service ISP ISP providers

National National National • There is no central coordination for ISP ISP ISP

the management of interconnections,

services, and tariffs Regional Regional Regional Regional

ISP ISP ISP ISP • Internet peering ecosystem includes Local Local Local Local Local . Many policies / many services / one ISP ISP ISP ISP ISP Internet • Unordered subset of interconnects Reality Transit Transit • Driven by business requirements ISP ISP underpinned by performance

National National National • Non-disclosure and bi-lateral ISP ISP ISP

agreements

• Peering is now considered a Regional Regional Regional Regional corporate asset and legal concern ISP ISP ISP ISP

Local Local Local Local Local ISP ISP ISP ISP ISP

Proprietary & Confidential 3 Traditional IP Transit Model

. Transit is the business relationship where one ISP provides reach- ability to all destinations in its routing table to its customers . Transit provides connectivity to a superset of all destinations

Client Net

Client Net ISP B Peers Client Net ISP A Transit Client Net ISP D Client Net Peers ISP C Client Net Client Net ISP A Can Reach All Destinations via Transit Provider ISP D Client Net

Proprietary & Confidential 4 IP Peering Model

. Peering is the business relationship where ISPs provide to each other reach-ability to each predefined portions of their routing table . Peering provides connectivity to a subset of a provider’s customer destinations

Client Net Access to ISP B Prefixes Only Client Net ISP B Peers Client Net ISP A Transit Client Net ISP D Client Net Peers ISP C Client Net Client Net

Client Net

Proprietary & Confidential 5 Traditional Peering Model

Tier 1 Tier 1

Tier 2 Tier 2

Enterprise Content Enterprise

. Tier 1 providers have access to the entire Internet (region) routing table solely through peering relationships . Tier 2 providers must buy some transit from tier 1 providers . Content providers buy transit (primarily from tier 1) to provide content Proprietary & Confidential 6 Internet Peering Evolution

Tier 1 Tier 1

Tier 2 Tier 2 CDN

content IOC / RLEC provider Enterprise

. Tier 1 providers have access to the entire Internet (region) routing table solely through peering relationships . Tier 2 providers must buy some transit from tier 1 providers . Content providers peer with access networks providing content directly onto the broadband networks

Proprietary & Confidential 7 Why IP Peering versus Transit

For the ISP: For Content Providers: . Commonly estimated, 10 - . Improve application 20% of traffic can be peered performance, reduction in away latency . Even under congestion, . Improvement in throughput capacity can be upgraded and . CDNs as content providers managed more effectively . Peering at NAPs or with ISPs improves burstability Common to Both: . Backup for on-net servers . Reduce transit ISP service . Marketing - CDNs tout the costs number of interconnections . Upgrades require less they have to their customers planning and costs . Greater control over routing and traffic load balancing

Proprietary & Confidential 8 Internet Peering Interconnection Public/Shared Peering . Peering between equivalent sizes of service ISP #1 ISP #4 providers (e.g. tier 2 to tier 2) ISP #2 ISP #5 . Shared cost private interconnection, equal traffic flows ISP #3 ISP #6 . “No cost peering” Switched Ethernet . Peering across exchange points Private Peering . If convenient, of mutual benefit, technically feasible ISP #1 ISP #2 . Fee based peering

Ethernet . unequal traffic flows, “market position”

Proprietary & Confidential 9 What about Voice?

. Real-time Services . Bearer . Voice . Transcoder Free Operation . Video (TrFO) for voice . Voice Signaling: . Transcoding for voice . Narrowband codecs, . Pre-IMS (2G/3G TDM broadband codecs, fixed Networks) codecs, mobile codecs . SIP-I (SIP with ISUP . Transcoding for video encapsulation) as well as SIP . H.264, H.263, MPEG . BICC (ISUP for packet bearer) . Transizing, transrating . Post-IMS and 4G/LTE Access & Core . Networking: . B2BUA model on passing . IPv6 through 3GPP SIP headers . IPv4 to IPv6 interworking . Services: . Security . ENUM lookup for routing of . IP address origin – use ACL TDM to SIP calls . Number Portability . Optimal Routing Proprietary & Confidential 10

‘Any-to-Any’ Signaling & Media Types

Video

Mobile Voice

Fixed Telephony

Multimedia Interworking: Video, Mobile Voice, and/or Telephony

Proprietary & Confidential 11 Applications Enabled

. SIP Trunking (SIP-SIP) . VoIP Enablement of Existing TDM Equipment (TDM-SIP) . Legacy Connectivity for the IP-PBX (SIP-TDM) . Connecting Legacy Equipment to an IP-PBX

Proprietary & Confidential 12 Disparate Technology Islands

Carrier IP Network THE REST OF THE WORLD’S TDM NETWORK Customer’s IP Carrier Network TDM Network THE REST OF THE WORLD’S IP NETWORK

Customer’s TDM Network

Proprietary & Confidential 13 Networking Federations Leveraging IP Peering

Proprietary & Confidential 14 Inter-Networking IP Peering to drive new Services

Proprietary & Confidential 15 Enterprise SIP Trunking Peering to Enable Connectionless Environment

Proprietary & Confidential 16 SIP Interop Challenges

. SIP (RFC3261) and Interoperability challenges . Largest RFC . Not a ‘super tight’ spec: . Should: 344 times . Can: 475 times . May 381 times . Option: 144 times . Lots of room for interpretation . SIP Endpoints end up with slight differences that make it hard to interconnect . End point could use different codecs

Proprietary & Confidential 17