Light Reading

Carriers Prepare for Unicast Pressures

Ray Le Maistre
3/20/2013
50%
50%

LONDON – Unicast traffic might account for a small percentage of current video streams on telecom networks but the volume is set to increase dramatically, affecting IPTV-related network investment decisions during the next five years. That's the view of two operator executives who addressed industry analysts and the media in London Wednesday morning on the fringes of the TV Connect event at London's Olympia exhibition halls. Ibrahim Gedeon, the CTO at Canadian operator Telus Corp., and Lukas Fluri, head of Product IT & Devices at Swisscom AG, agreed that unicast video traffic (driven by the uptake of catch-up TV services) would grow from current low levels to somewhere in the region of about 30 percent of total video traffic within the next five years. And that, of course, puts greater pressure on network capacity, planning and management. The shift from broadcast to unicast video streams has already forced Swisscom to invest in greater core network capacity alongside ongoing investment in mobile broadband, fiber-to-the-home and DSL vectoring in its wireless and fixed access networks, "all very capex-intensive projects," noted Fluri. (See Swisscom Picks Huawei for Fiber Expansion, More Swiss Get FTTH and Euronews: Ericsson Readies Swisscom for LTE.) Fluri confirmed that, in the meantime, Swisscom could manage its on-network video traffic by boosting its transport capacity and would likely not need to introduce specialist systems, such as video caching and video optimization platforms, for a few years yet. Telus, meanwhile, has built its own content delivery network (CDN), created a single metro network for all services (fixed residential, business, wireless) and invested significantly in its backhaul networks, building 10Gbit/s pipes, using Alcatel-Lucent gear, to its DSL exchanges and fiber access OLTs (optical line terminals), a topology it calls its "routed edge." For Gedeon, "the issue is not the metro, it's the last mile." And the Telus man is keen to point out that its CDN (built using AlcaLu's Velocix platform) is an operational play, not intended to create a wholesale business opportunity. "Our driving force for building our own CDN was that we needed to bring down our own costs -- we were never looking to compete with the likes of EdgeCast Networks Inc.," which is still a key Telus partner for OTT traffic management. Gedeon claims he has seen a 30-40 percent cost benefit from running his own CDN and "got payback in a year" instead of the expected 18 months. As a result of his network investments, Gedeon is currently only needing to consider video optimization deployments for Telus's mobile broadband services. The two operators have already deployed hosted/cloud video capabilities to enable consistent service offerings across multiple screens (TV, computer/tablet, smartphone) and have a key strategic focus on their video strategies for the same reason -- both face significant competition in their domestic markets from cable operator rivals. (See Swisscom Takes Video to the Cloud.) — Ray Le Maistre, International Managing Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Ray Le Maistre
50%
50%
Ray Le Maistre,
User Rank: Light Sabre
3/20/2013 | 7:35:30 PM
re: Carriers Prepare for Unicast Pressures
That's an impressive return on a CDN investment - unless, of course, Telus's costs were so high that an impressive cost cut was inevitable... Also interesting that an operator such as Swisscom is currently using network capacity as its #1 approach to managing video traffic growth and thinking of caching/optimization as future tools.
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
LRTV Huawei Video Resource Center
The Power of Five Convergences in OceanStor OS

3|4|15   |   6:24   |   (0) comments


OceanStor OS is Huawei's brand-new storage operating system. While inheriting the consistent high stability, reliability and performance from the company's previous storage products, OceanStor OS abounds in new converged storage features. Specifically, the new storage operating system achieves "five convergences" to lift storage convergence to a higher level.
LRTV Huawei Video Resource Center
4K Brings Extreme Video Experience

3|4|15   |   8:10   |   (0) comments


4K video is a hot topic in the video industry. It will certainly bring an extreme video experience to end users. At the same time, however, it will also pose a big challenge to operators. Check out this Huawei 4K experts' discussion about how operators can achieve success in 4K video service.
LRTV Interviews
DT's Virtualization Vision for Europe

3|4|15   |   10:23   |   (0) comments


Light Reading CEO Steve Saunders talks virtualization, cloudification and standards with Deutsche Telekom's Axel Clauberg at Mobile World Congress.
LRTV Custom TV
ZTE's Wireline at MWC 2015

3|4|15   |   6:35   |   (0) comments


Light Reading speaks with Jane Chen, ZTE's Senior VP of Wireline Business, about innovations in her product line at Mobile World Congress.
LRTV Custom TV
ZTE at MWC 2015

3|4|15   |   4:24   |   (0) comments


Dr. Dick Chen of ZTE USA gives Light Reading an overview of what's new at ZTE's pavilion at Mobile World Congress 2015.
LRTV Interviews
Ericsson CEO Talks Telco Data Center Tech

3|4|15   |   05:45   |   (0) comments


At Mobile World Congress, Ericsson CEO Hans Vestberg discusses telco data center technology, business models, small cells and more.
Between the CEOs
EXCLUSIVE: Cisco's Chambers on Reinvention

3|3|15   |   8:24   |   (1) comment


Light Reading CEO Steve Saunders talks transformation and virtualization – including Light Reading's independent testing of the vendor's virtualization solutions – with Cisco CEO John Chambers at Mobile World Congress in Barcelona.
LRTV Documentaries
The Three Cs of MWC15

3|2|15   |   2:33   |   (1) comment


My visit to this year's Mobile World Congress is going to dominated by three Cs – cloud, cells and coffee.
LRTV Huawei Video Resource Center
Huawei Shares Its Vision of the Future of Mobile Networks Innovations

2|26|15   |   2:30   |   (0) comments


Mobile broadband is changing our lives. It's reshaping the Internet, industry, and society. It allows us to freely connect with one another anytime, anywhere. At this year's Mobile World Congress, Huawei will share its latest insights and newest ideas and technologies that will shape the future of MBB. They will showcase their end-to-end MBB solutions that will ...
LRTV Huawei Video Resource Center
Accelerate Digitizing, Boost Digital Business

2|26|15   |   6:14   |   (0) comments


A new digital revolution is leading us to a better connected world. Together with millions of digital partners, Huawei will help CSPs to build their digital service ecosystem and aggregate a wide variety of digital services. In this video, we find out how Huawei is going to help CSPs implement digital operations.
LRTV Huawei Video Resource Center
The Secret Recipe to Enabling Hyper-Growth Industries

2|26|15   |   3:38   |   (0) comments


With a number of successful cases on network capability exposure, Huawei is going to share the secret recipe to enabling hyper-growth markets with a step-by-step approach.
LRTV Documentaries
BTE 2015 Is Bigger & Even Better

2|25|15   |   03:13   |   (4) comments


This year's Big Telecom Event (BTE) in Chicago is going to provide more opportunities than ever for networking, getting to grips with key industry challenges and opportunities and, equally as important, having some fun.
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
Internet Pioneers Decry Title II Rules
Carol Wilson, Editor-at-large, 3/2/2015
Wheeler: We'll Enforce Title II 'Case-By-Case'
Sarah Thomas, Editorial Operations Director, 3/3/2015
New CenturyLink CTO in Major Overhaul
Carol Wilson, Editor-at-large, 3/4/2015
Verizon Takes Radio Dot to Detroit, VoLTE Overseas
Sarah Thomas, Editorial Operations Director, 2/27/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.