Download Taking the correct “route” TextStart By Chole Jian Ma Multiple

Taking the correct “route”
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By Chole Jian Ma
Multiple system operators (MSOs) dominate U.S. pay-TV subscriptions, but their
business model has been disrupted by high-speed data and VoIP technologies, as well
as competition from telcos and over-the-top (OTT) providers. Scalable, robust routing
solutions are needed if MSOs are to compete.
Recent MSO market trends
Broadband & VoIP subscriber gains
According to SNL Kagan, U.S. MSO basic video subscriptions are eroding but are
being offset by gains in high-speed data (HSD) and VoIP subscribers. Comcast,
America’s largest MSO, lost 238,000 video subscribers in the second quarter of 2011,
but it more than made up for it by adding 144,000 high-speed Internet subscribers,
bringing its Internet total to 17.55 million. It also gained 193,000 voice subscribers,
bringing that total to 9.06 million. Thus, net profits were boosted by 15.6 percent.
Challenges from OTT video
There is a growing availability of commercial video alternatives on the Internet.
Providers such as Netflix, Hulu and iTunes have sprung up. This explosion of online
video has not only dramatically altered the volume of bits being consumed by HSD
subscribers but also the length of use associated with streamed content.
Thus far, online video options have not led to a mass exodus from cable, DBS and
telco video services, but as more and more Internet-connected devices emerge such as
game consoles and TVs, there may be a movement toward online-only services.
HD, 3D & multi-screen VoD
The demand for HDTV, 3D TV, and VoD services, coupled with the increasing
number of Internet video downloads, is pressuring bandwidth. With the widespread
adoption of smartphones and tablets, users are demanding content on the go, on
multiple screens; most MSOs have introduced iPad apps to give subscribers content
access, but the problem does not end there. Said content, along with OTT video, is
delivered through HSD channels, which squeeze the bandwidths of both upstream and
downstream data channels, in the core and the periphery.
Accelerating commercial services
MSOs have long been eager to seize market share from telcos in the commercial
services sector, as annual business and enterprise spending on telecom services
amounts to some USD100 billion in the U.S. alone. According to SNL Kagan, the
MSO industry is positioned to sustain 8.3% growth per year through the next ten
years, meaning an annual commercial revenue of almost USD15 billion by 2021.
Current MSO commercial subscribers are mostly small businesses (fewer than 10
employees) that need HSD services. Revenue increases are expected to be fueled by
upmarket migration to the medium and large business segments, which will require
the offering of more sophisticated data and phone packages.
MSO routing solution requirements
MSOs are facing stiff competition not only from telecoms and satellite providers, but
also from OTT video providers such as Netflix and Hulu. Their video subscribers are
cutting the cord but increasing traffic, which is putting tremendous pressure on
networks. This will influence various network elements, including customer premise
equipment (CPE), access, metro area networking (MAN), and the core network. The
latter two will require the following features to remain viable.
Scalability & throughput – HSD, VoIP traffic, and video (especially OTT) traffic will
continue to boom. The most effective way to deliver multi-screen video is end-to-end
All-IP architecture, which dictates that said traffic must be carried over HSD
channels.
Low TCO – To compete more effectively with telcos, satellite, and OTT providers,
MSOs must lower their TCO for networking equipment and operations.
Feature diversity & extensibility – Not all MSOs use a single network to carry all
services, but it would be more cost effective if they did. This unification would
require flexible routers that support a variety of features. Specifically, commercial
services call for service flexibility to meet evolving customer needs for connectivity,
bandwidth, reliability, security, and QoS.
Reliability – This is critical for commercial services, especially large enterprises
where downtime is directly linked to financial loss. Reliability can be achieved
through the use of carrier-class network elements, including IPv6 and VPN, along
with various security features.
Superior IPTV – IPTV is a must for MSOs to counter the OTT threat; the routing
solution employed must be smooth to ensure superior image quality. Huawei’s core
and metro Ethernet solutions provide vast, scalable, reliable, and diversely featured
solutions that can help MSOs gain a competitive edge at much lower cost.
Core routing solution
Huawei’s core routers can handle traffic growth and reduce CAPEX/OPEX; MSOs
can use them to build their backbone networks. Designed with large, extensible
capacities, these routers can be deployed as super-core nodes in backbone networks,
core nodes in MANs, egresses in large-scale Internet data centers (IDCs), and core
nodes in large enterprise networks.
Carrier-class reliability
Based on the unified VRP software platform, Huawei’s core routers provide
multi-level protection to ensure equipment and network availability. For device-level
protection, it has a passive backplane, with all key components hot-pluggable and
capable of hot backup. For network-level protection, Huawei’s core routers
effectively ensure network reliability, at a level of 99.999%.
Efficient clustering
Multiple chasses are clustered to improve core node data forwarding capability.
Clusters can be used for network expansion, while ensuring the needs for flat
architecture and maximized ROI.
MSOs can deploy Huawei’s back-to-back (B2B) cluster system, which has no need
for central cluster chasses (CCC) and supports a bidirectional capacity of 6.4Tbps.
The core router is also designed to be ecofriendly. Its core chipset, which incorporates
65nm technology, can reduce power consumption by 30 percent. The CCC’s
cycling-air heat dissipation system greatly improves dissipation efficiency; the power
consumption of which is reduced by 50 percent. In addition, the compact chassis is
light and unobtrusive, requiring no modification to the equipment room.
Scalable 400G/slot platform
Hardware scalability is achieved through smooth upgrade of the linecard/chassis,
which increases the throughput of a single chassis, as well as the connecting of
multiple routers to form a cluster.
Huawei was the first to launch a 2+8 cluster system with a 40G line process unit
(LPU) in April 2008, which marked the commencement of the 10T Internet era. This
capacity can be upgraded to 25T through the use of 100G LPUs, while the backplane
can support 400Gbps/slot capacity. This capacity and scalability can accommodate
the bandwidth growth that MSOs are seeing on their backbone networks.
Universal service routing
With video and mobile data traffic being the key drivers of traffic growth, and MSOs
being pressured to offer multiplay services to customers and expand their commercial
segment, they need a flexible and feature-rich edge network that handles multiple
categories of traffic and can expand easily to accommodate new service offerings.
Huawei’s universal service routers (USRs) are designed to specifically satisfy this
need.
Based on mature versatile routing platform (VRP) technology, Huawei USRs excel in
reliability, expansibility, and maintainability. They are ideal for carrier-class MAN
buildup for residential multi-play service support, as well as commercial service
expansion. MSOs can also deploy these USRs as metro Ethernet routers, on the edge
of their IP core networks, or even at the core for smaller MSOs.
IPv4 address depletion has been a hot topic among MSOs; some have already
encountered the limits of RFC1918 addressing. MSOs such as Comcast have
deployed VoIP services using public IPv4 addresses and are now feeling the pressure
of reclaiming them for HSD services; they are now moving to IPv6 for VoIP. In
addition, video set-top boxes (STBs) are now being provisioned with Docsis, which is
creating a surge in IP address demand.
Although NAT has alleviated this problem in the short term, it creates a new one by
complicating the network. It makes it difficult to maintain and introduce more delay
to certain applications, especially video and online services.
IPv6 will alleviate these issues, but the transition will be slow; there are a lot of
legacy CPE devices out there, such as cable modems (CMs) and STBs. From the E2E
network perspective, the most feasible evolution is pipe-first architecture, with
subsequent introduction of a new gateway for new IPv6 users. Huawei encourages
MSOs not to deploy 6RD during the wait for IPv6-ready services and terminals.
Instead, dual-stack (DS) + NAT444 is preferred for IPv6 transition. Owing to the
variety of technologies and situations each provider finds itself in, each will select a
conservative, reposeful, or aggressive transition technology that is most suitable for
its own network.
Huawei USRs support a variety of IPv6 features and transition schemes, including
IPv6 leased line, NAT, DS, tunneling, and translation. They also support next hop
separation to optimize IPv6 convergence time and accommodate the larger IPv6 FIB,
which will improve scalability.
Huawei USRs minimize IPv6 migration costs by providing good interoperability with
CPE, UPE, BRAS, SR, CGN, Firewall, and video cache, all integrated in a single
platform. IPv6 readiness can be achieved very rapidly. Huawei USR supports 100%
carrier-grade NAT, which offers larger capacity, higher performance, better reliability,
and 1+1 hot standby, as well as NAT log storage. Finally, as user-oriented, managed
CGNs, Huawei USRs are tunnel aware and support user-oriented profiles.
Huawei USRs have a built-in video caching function, which provides users with a
smooth IPTV experience. Based on fast channel changing (FCC), retransmission
requesting (RET) and inline real-time stream monitoring, these USRs can improve the
user experience, optimize the OAM, save bandwidth resources and reduce TCO
throughout the entire network.
Huawei USRs also provide multiservice edge (MSE) features that manage
DHCP/IP-over-Ethernet (IPoE)/leased line access users. They provide dynamic user
access; user management; and user-based authentication, accounting, and QoS
scheduling. In addition, the MSE implements bandwidth on demand (BoD) for
different services for enterprise users and DHCP for individual users, while changing
the unified charging mode to charging modes based on value-added services; this adds
up to refined, user-centered service operation.
In addition, Huawei USRs support comprehensive Ethernet clock synchronization,
which satisfies the requirements for carrier-class FMC service development of the
MAN.
To grow and compete more effectively with telcos, satellite and OTT providers,
MSOs need to establish new revenue sources and lower their CAPEX and OPEX.
Huawei’s core and metro Ethernet solutions can do just that. They provide capacity,
scalability, reliability, and feature diversity, which will help MSOs enhance their
performance and gain a competitive edge.
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