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Gianfranco Ciccarella Seminario ISCTI 16 Aprile 2018 5G Impacts and Opportunities on Network Architecture and TCO

5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

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Page 1: 5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

Gianfranco Ciccarella

Seminario ISCTI

16 Aprile 2018

5G Impacts and Opportunities

on Network Architecture and TCO

Page 2: 5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

TECHNOLOGY

SUSTAINABILITY

TELCOs

Why Telcos IP Ecosystem and 5G require a disruptive transformation

OTT’s role on services and devices Strong Telco competition Regulatory policy push ‘Disruptive’ Telco transformation culture and vision services and network architecture business models

Page 3: 5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

Impact of IP traffic rate growth on performance, revenues and TCO

Peak traffic rate Average traffic rate 2016 3,6 2021 6,14

Network cost depends on (1): Peak traffic rate [Gbps] Peak traffic rate Average traffic rate Traffic Volumes [Pbyte/month]

Ratio:

Netw. performance and service quality depend on Peak traffic rate Average traffic rate the ratio:

(1) Network Total Cost of Ownership depends on: • topology, technologies and architecture, that define network segments unitary costs [KE/(Gbps*year)] • Peak traffic rate that depends on traffic volumes [Pbyte/month] and on end user applications that define the ratio

Peak traffic rate / Average traffic rate

Page 4: 5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

Key points on traffic rate: peak and access versus IP network difference

Issues related to traffic rate difference in UBB access versus IP network (aggregation, metro and core). To day the bit rate [Mbps/active user] ‘reference’ values are: • from 20-30 [Mbps/active user] up to 150-200 [Mbps/active user] for fixed and mobile UBB access networks • from 2 [Mbps/active user] up to 8-10 [Mbps/active user] for aggregation, metro and core networks(1) This huge traffic rate difference is critical for network TCO, application performance and UBB monetization.

(1) 2 [Mbps/active user] is related to nets with 1 [Mbps/user] and peak hour Contemporaneity Coefficient=0,5 (note that 0,5 is ‘low’ for to day utilization): 1 [Mbps/user]/0,5 [active user/user] = 2 [Mbps/active user] 10 [Mbps/active user] is related to nets with 1 [Mbps/user] and non peak hours Contemporaneity Coefficient=0,1

The cost to deliver 1 Pbyte/month depends on the ratio:

Peak traffic rate Average traffic rate

Page 5: 5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

Latency

From 4G to 5G: 5G Use Cases and Application requirements(*)

5G Innovative Applications have challenging requirements in terms of: Latency Throughput (1)

to ensure the Quality of Experience (QoE) levels expected by End Users and by Internet of Thinks (IoT)

(*) European Parliament: 5G Network Technology Briefing , January 2016 Source: GSMA Intelligence, 2015

(1) Note that: TH << Bit Rate Apps TH = ‘speed’ of the application Bit Rate = ‘speed’ of the communication channel

Page 6: 5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

Mobile Networks Throughput

Roughly half of mobile users report speeds of less than 4 Mbps Average Radio Bit Rate utilization in “large” (i.e. > 1 Mbyte) TCP flows is: 34.6%(*)

Average (1, *) :

TH Radio Bit Rate

= 34.6%

Source: Akamai, Delivering the best mobile experience, April 2016 (*) “An In-depth Study of LTE: Effect of Network Protocol and Application Behavior on Performance,” SIGCOM 2013

Data on radio link bit rate utilization are reported in: Binh Nguyen, Arijit Banerjee, Vijay Gopalakrishnan, Sneha Kasera, Seungjoon Lee, Aman Shaikh, and Jacobus Van der Merwe Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago, IL, USA, http://dx.doi.org/10.1145/2627585.2627594.

(1) Apps TH = ‘speed’ of the application

Bit Rate = ‘speed’ of the communication

channel

TH/Bit Rate increase requires:

• Lower Roud Trip Time

• Lower Packet Loss

Page 7: 5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

Contents and Apps closer to End Users… impact on network architecture (1/2)

4G Mobile Network Architecture ‘As Is’

Page 8: 5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

Contents and Apps closer to End Users… impact on network architecture (2/2)

Mobile Architecture ‘To-Be’: Cloud RAN, Virtual EPC and CD Platforms

Cloud RAN

V-EPC

V-EPC

Page 9: 5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

Network and POP target architecture

Fixed / Mobile Access Net

OLT

Router

OLT Cloud/QoE Platforms

QoE Platforms

Cloud Platform

Apps/ v QoE

Edge POP

Cloud/QoE Platform

Core POP

Metro/Regional POP

Cloud/QoE Platform

Cloud/QoE Platform

v IP Edge

Traffic managed by Content Delivery Platforms 2016 2021 58% 41% 20% 23% 22% 35%

• IP Edge and Content Delivery Platforms distribution • Increasing role of Content Delivery Platforms

(Cloud e QoE) that • by 2021 will carry 71% of the total internet

traffic • up from 52% in 2016 (Cisco VNI 2017)

• Content delivery platforms will carry traffic

closer to the end user

• Technologies: NFV, SDN

Page 10: 5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

Edge Computing: Apps performance improvement

Page 11: 5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

Edge Computing: Apps performance improvement

OTT Remote Server

Telco GTW

Mob Core Node

Base Station

CRAN Node

Mobile Terminal

LatencyCore-OTT Server LatencyCRAN-Core LatencyTerm-CRAN

Accelerator

Cache

Accelerator

Case Studies

Case Study

Latency distribution Cache & Accelerators deployment Speed

UP

A 2,1

B 2,4

C 2,4

D 1,8

E 2,4

F 4,5

55% 30% 15%

Cache Efficiency: 60%

Accelerator Efficiency: 95%

Term-CRAN CRAN-Core

15% 20% 65% Term-CRAN CRAN-Core Core-OTT Server

Core-OTT Server

25% 35% 40% Term-CRAN CRAN-Core Core-OTT Server

Same Packet Loss with and without QoE Platf.

Page 12: 5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

Saving by Edge Computing

Network Cost (no QoE; TH=TH q) – Network Cost (QoE; TH q) Saving = (TH = TH q) Network Cost (no QoE; TH=TH q)

Saving evaluation • Traditional IP Network architecture (centralized IP Edge and no QoE platforms) vs Edge

Computing Architecture (distributed IP Edge and distributed QoE platforms) • Same Network segments costs (Access, Aggregation, Metro and Core), i.e. same Network

topology and technology • TH = TH q, i.e. same total average throughput for the traditional IP Network (TH) and the Edge Computing (TH q) • Edge computing Architecture cost includes the costs for distributed Platforms

• Cloud (Hw and Sw), v IP Edge (v BRAS and v EPC), v QoE or physical QoE

Edge Computing in Mobile Networks:

• Cloud RAN

• Distribution, based on Telco Cloud and NFV, of

• Mobile IP Edge (EPC) and

• Platforms to improve the application performance and to reduce TCO

Page 13: 5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

UBB Network Costs • UBB Network cost simple models (a)

– C fixed access = f(TkR: user take rate) (1) – C mobile access = f(TR: peak hour traffic rate/act.user; CC) (2) – C aggr.+metro+core = f(TR: peak hour traffic rate/a.user; CC) CC: Contemporaneity Coefficient [Active user/user]

Netw. Cost [E/(user*year)]=Netw. Cost[KE/(Gbps*year)]*CC[active user/user]*TR[Mbps/active user]

C fixed access[E/(user*year)] = c1 + c2/TkR C mobile access[E/(user*year)] = Cma[KE/(Gbps*year)]*CC*TR[Mbps/active user] (b),(c) C aggr.+metro+core[E/(user*year)]= Ca+m+c[KE/(Gbps*year)]*CC*TR[Mbps/active user] (c) Ca+m+c: Cost of aggregation + metro + core network [KE/(Gbps*year)]

Normalized Cost [Mbps/user]= C[E/(user*year)]/Norm. Coeff.[KE/(Gbps*year)] (d)

From [KE/Gbps] to [KE/(Gbps*year)] rough evaluation: xy[KE/(Gbps*year)]=zw[KE/Gbps]*1,85/5[1/years] The coefficient 0,85 = 0,15[installation 15%]+5*0,1[year*(O&M 10%/year)]+0,04*5[(WACC 4%/year)*year] WACC: Weighted Average Cost of Capital

(a) Fixed access: LL+GPON OLT; Mobile access: radio link + eNodeB or C RAN (b) Mobile access saving=f(THoRBR: Throughput/radio link bit rate) (c) CC: contemporaneity coefficient [active user/user] TR act. user [Mbps/(active user)]*CC= TR user[Mbps/user] (d) Norm. Coeff. = Reference cost

(1) The cost does not depend on the user traffic rate, because fixed UBB access bit rate depends on technology and bit rate is much higher than the user bit rate in the aggr.+metro+core network. (2) The cost depends on the user traffic rate.

Page 14: 5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

UBB Network Costs (2)

• C fixed network[E/(user*year)]= f(TkR, TR, CC)=

C fixed access[E/(user*year)]+C aggr.+metro+core[E/(user*year)]

• C mobile network[E/(user*year)]= f(TR, CC)=

C mobile access[E/(user*year)]+C aggr.+metro+core[E/(user*year)]

• Fixed or Mobile netw. normalized cost [Mbps/user]=

C fixed or mobile network[E/(user*year)]

Ref. Cost[KE/(Gbps*year)] Saving :

• QoE platf. such as Transparent caching (for fixed/mobile aggr.+metro+core) • Increase of Throughput/radio link traffic rate (for mobile access)

Page 15: 5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

Edge Computing: Network Cost Saving

More details are presented in the following slide.

Page 16: 5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

Mobile Network saving for Transparent Cache and 2 Accelerators function of SU

Saving% 10

TH RAN ECC [Mbps] cost % cost % (a) 30 40 10 10 20 10 30 40 50 10 20 50

100 %

50 %

Transp. Cache in C-RAN

- 50 %

SU

2 Accelerators 30 40 10 10 20 10 30 40 50 10 20 50

5 1

ECC TC% = F(SU, HR) ECC AC% = F(SU) 1 < SU TC =<5 HR = 0,5

ECC TC%(SU) 100

ECCTC% (SU) 100

250%

50%

Saving % with TC in SU = 1 TH RAN ECC% Sav% 30 40 10 -10% 10 20 10 -10% 30 40 50 -50% 10 20 50 -50%

SU = 1 Sav% TC = = - 100*ECC TC%/MNC%

(a) With SU = 1

Page 17: 5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

Infrastructure sharing impact on 5G capex

Page 18: 5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

5G can drive the transformation of Telco services/network architecture and business

Telcos’

performance OTTs’ performance Key telco issue

How to address the

issues?

Time to market

(TTM)

Total cost of

ownership (TCO)

Application serv.

performance

UBB monetization

Application and

network services

‘separation’

2

1,5-2 years 1 month

Very high/high Low

To be improved (1) Performance

- focused on bit rate - based on IP transport (L1 to L3)

Performance limited by Telco networks

- Focused on throughput and download time - based on Content Deliv. Platforms (L4)

Ability to monetize is linked to application performance improvement, i.e. to throughput/bit rate ratio

Not relevant – no network to monetize

Edge

Computing Distribution

of: • IP Edge • Content

Delivery and Services Platforms

1

2

(1) Apps TH = ‘speed’ of the application

Bit Rate = ‘speed’ of the communication channel

Page 19: 5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

Conclusions: take away and open issues

Key take away

Fiber to any RAN site

RAN technologies and cell densification

Edge Computing Architecture (Enhanced Content Delivery = performance improvement + cost saving)

From shared infrastructure to shared active network components

Key open issues

Which network functionalities should be distributed?

Is NFV technology affordable?

Is the ‘deep’ Edge Computing distribution affordable?

Will 5G drive the integration of fixed and wireless networks?

Are key target Telco business models defined?

Are 5G standards/committees driving the disruptive tranformation?

Page 20: 5G Impacts and Opportunities on Network Architecture and TCO · Towards Understanding TCP Performance on LTE/EPC Mobile Networks AllThingsCellular’14, August 22 2014, Chicago,

Thanks !

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