Transcript Redback Corporate Presentation

Broadband Issues Perspective
Mike Furby
Systems Engineering Manager
Redback Networks
Redback Networks, An Ericsson Company
• Founded 1996
• Headquarters: San Jose, CA
• Wholly owned subsidiary
of Ericsson
• Tier 1 Customer Base
– 500+ service providers
– 16 of Top 25 globally
• Fastest growing SP router company
• Support over 50MM DSL Lines
• $400MM+ Investment in NextGeneration Multi-Service
Routing Portfolio
© Copyright Redback Networks Inc. 2007. All rights reserved.
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SmartEdge Highlights
Multiple
Applications
In Top 20
Residential
Triple Play
Internet
& VOD
© Copyright Redback Networks Inc. 2007. All rights reserved.
IPTV
Business
Networks
VoIP
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VPN
(L2/3)
MetroE
(Agg/VPLS)
Mobile
Broadband
Wi-Fi/
WiMax
3G Data/
MPBN
Broadband Issues
• Waves of change across the industry
• Market dynamics & changing traffic patterns
–
–
–
–
–
–
–
Per subscriber traffic growth
Market saturation, growth is slowing
Service evolution
Increasing competition
Subscriber loyalty & the need to differentiate
Pressure on service margins & the need to reduce OPEX/CAPEX
P2P, DPI & QoS
• 21CN Wholesale Broadband Connect
– Single step WBC strategy
© Copyright Redback Networks Inc. 2007. All rights reserved.
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Technology Evolution
Broadband Capacity
Last mile
Bandwidth
Capacity
BRAS/BNG
2000x
1Gbps
FTTH
GPON
100Mbps
VDSL2
VDSL
10Mbps
50x
ADSL2+
Next-gen Eth MSER
ADSL
500kbps
480Gbps
SDSL
2Mbps
Eth BNG
240Gbps
1st gen BRAS
10Gbps
1990
© Copyright Redback Networks Inc. 2007. All rights reserved.
2000
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2010
Year
Network Traffic Increasing
Broadband and Video Driving Upgrades
Subscriber traffic in
mobile networks
Subscriber traffic in
fixed networks
5,000
350 000
300 000
4,000
Petabyte
Petabyte
250 000
3,000
2,000
200 000
150 000
100 000
1,000
50 000
0
2004 2005 2006 2007 2008 2009 2010 2011 2012
Voice
Internet
2005 2006
2007
Classic Voice
TV/Video
2008
VoIP
2009
2010
Internet
2011
2012
IPTV/Video
Source: Ericsson and market estimate
Traffic Patterns creating Pressure points for Fixed and Mobile
© Copyright Redback Networks Inc. 2007. All rights reserved.
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Broadband Growth by Technology
Worldwide
Americas
15%
30%
10%
20%
5%
10%
0%
0%
DSL
Cable
DSL
FTTX
EMEA
15%
Cable
FTTX
APAC
15%
10%
10%
5%
5%
0%
0%
-5%
DSL
Cable
FTTX
DSL
Source: Point-Topic as of Q1 2007
© Copyright Redback Networks Inc. 2007. All rights reserved.
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Cable
FTTX
Service Evolutions
P2P Technology & Internet Video
Source: Ellacoya
Source: Cachelogic
2002 – 2006
P2P dominates Internet traffic
(Video accounts for 60%)
2007
HTTP overtakes P2P again
(YouTube accounts for 20%)
Driving the world towards adopting P2P as a commercial video distribution technology
iPlayer
© Copyright Redback Networks Inc. 2007. All rights reserved.
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BT Transformation
20CN
MSiP
21CN
20CN
20CN21CN
Colossus
Colossus
(ATM network)
(Ethernet
MPLS)
Subscriber
(Ethernet
MPLS)
(IP
(IPnetwork)
network)
BRAS
BRAS
BRAS
Cisco 10k
SE800
SE800
or JNPR ERX
20C
21C
WBC
21C
IP-stream
© Copyright Redback Networks Inc. 2007. All rights reserved.
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CP
CP
Summary
• The way Broadband is being delivered is changing
• Internet traffic is both increasing and changing shape
• Growth is slowing
– Driving the need to differentiate
– Driving the need to reduce costs
• Redback is a key supplier to the industry
– 16 of the top 25 DSL suppliers are Redback customers
© Copyright Redback Networks Inc. 2007. All rights reserved.
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Spare Slides
23 of the top 25 largest telecommunication
companies by capex are Redback or Ericsson
customers
Top 20 Telecommunication Companies by CAPEX (billions)
22.9
20.
17.9
17.7
15.
12.9
10.
9.
8.
© Copyright Redback Networks Inc. 2007. All rights reserved.
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3.6
3.4
3.3
3.2
3.1
2.9
2.7
BT
PT Telkom
KT
China Netcom
3.7
América Móvil
3.8
China Unicom
4.5
KDDI
Telefónica (de
España)
China Telecom
France Telecom
Sprint Nextel
Deutsche
Telekom
China Mobile
Verizon
AT&T
.
4.8
Telefónica Latin
America
5.1
5.
Vodafone
6.1
Telstra
6.7
NTT Group
CAPEX
Redback or Ericsson customer
Not customer
Telecom Italia
25.
16 of the top 25 DSL operators by subscribers are
Redback customers
Top 25 DSL Operators by Subscribers (millions)
Redback or Ericsson customer
Not customer
23
13.2
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3.2
3
2.6
2.4
2.4
2.4
2.2
2.2
2
1.9
eAccess
3.3
Bell Canada
3.7
Telecom Italia Germany
3.9
Arcor
4.3
Telmex
4.7
Qwest
NTT
Orange - France
Verizon
Telecom Italia
Deutsche Telekom
BT
AT&T (SBC)
China Netcom
0
5.1
KPN Telecom
5.2
5
Free
6.6
NeufCegetel
6.6
China Tietong
7.3
Telstra
8
Chunghwa Telecom
8.8
Korea Telecom
10
Telefonica de Espana
13.4
Yahoo Japan
15
China Telecom
Subscribers
20
Turk Telekom
25