The End of Online Life

Mattias Fridström

Vice President & Head of Technology – TeliaSonera International Carrier

2015-03-111

2nd biggest IP provider in the world: Internet Intelligence Authority Renesys. Rankings retrieved 8 May 2015. Subscription required.

33.9% of the global interrnet routing table sits behind the TSIC AS1299 transit customer base: TSIC Analysis May 2014

TeliaSonera International Carrier?

HQ in Stockholm, part

of the TeliaSonera

group of 18 operators

Own fiber across

Europe and

north America

South America is one of

our fastest growing

markets

Eight of top ten global

content providers are

our customers

20 years of Middle East

business relationships,

in-region PoPs 2014

Nine of the top 10

global IP backbones

are our customers

There’s no such thing as online life. Just life

Connectivity is beyond

business critical –

it’s life critical

End users lead disruption

Fast-evolving behaviors,

attitudes and expectations

Innovation shifting towards

use of technology rather

than technology itself

The critical path increasingly

includes backbone services

A small film with

big consequences

What does ‘Just life’ mean for you?

CONTENT PROVIDERS

Delivering toothpaste: services used twice a day

From exceptional customer focus to assured delivery

Choose your allies carefully

DATA & COLO CENTERS

Increasing end-user recognition & expectations

Ensure the biggest link is not the weakest link

Choose your allies carefully

OPERATORS & CARRIERS

Expanding and evolving communications landscape

From assured delivery to real customer focus

Moving brand values and using the ’trust’ opportunity

Yes – Volume Grows

DWDM CHANNELS 10G IP PORTS

CUSTOMER TRAFFIC

GROWNTO TWO THIRDS

CONSTANT RATIOS BETWEEN BACKBONE,

PEERING AND CUSTOMER TRAFFIC

With no GO SLOW…

CONTINUED

ORDER OF MAGNITUDE VOLUME GROWTH

Dow Jones

Index*

Bandwidth

Growth**

2006 2015

…and the race towards ZERO continues

Price

Service packaging

New business models

Repair response time

Organizational flexibility

Product & service features

Quality and flexibility

Lead times

…unless we add value.

Expansion continues

AND NORTH AMERICA

Beyond fixed bandwith

YESTERDAY TODAY TOMORROW

CAPACITY MEDIUM HIGH MEGA

DELIVERY MONTHS WEEKS HOURS

FLEXIBILITY LOW MEDIUM HIGH

FOCUS EVERYTHING SUPPLIER MANAGED

Old game plan. Flatter

curves enabled strict

planning rules

Peakier, slimmer events

demand new network

operations

Peaks converge, CoS

solves short terms

issues

My ”new” view on existing trends

– Shift to Mobile Devices

– Continued rise of video

– More ‘in-region’ traffic

– One end user transaction

results in datacentre x4

– New ’mega’ data centers

Trends

The COGS Challenge…

The COGS challenge…

– This calculation is based on a simulated network in Europe

– The amount of CAPEX and COGS spent after 5 years is almost identical

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

2015 2016 2017 2018 2019 Total $-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

2015 2016 2017 2018 2019 Total

CAPEX COGS

…and where the COGS challenge really is

– Breaker cost is in reality power cost but the industry is struggling to find a “fair” way of handling this

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

SPMS FLM Floorspace Breaker cost

The “Breaker” Cost Dilemma

30%

5%

5%

4%

5%

3%

7%

7%

14%

10%

6%

10%

5%

9%11%

30%

6%

7%

12%

0,9%6%

14%

0,5%

9%

9%

7%

The many small cross connects

Little

x

Many

=

A lot

Digitalization

More challenges

Everything

Becomes

Software

Requirements

Good inventory

Clear processes

End-to-End

Automation

Requirements

Yesterday Today

Network skilled resources Network & IT skilled resources

The whole value chain needs to understand

B to B B to CV to BCommunication service

providers

International

Carriers

Equipment

vendors

Help Us on Our Mission

to fulfilling promises……through experiences

Characteristics:

• People centric

• Communication between individuals in any channel (read: loss of

control of the message)

• Deliver an experience worth talking about

• Transparency

• Walk the talk

From giving promises…

…through communication

and prevent the death of more heroes