Peter Dutton, Director Data Marketing / Global IP Carriers ... · 10/30/2001 · Peter Dutton, Director Data Marketing / Global IP Carriers 30 October 2001 The Importance Of The

Peter Dutton, Director Data Marketing / Global IP Carriers 30 October 2001

The Emergence of Tier 1’sin the

Global IP Space

Peter DuttonDirector, Data Marketing


Current Landscape

Other Networks

46%

Internet25%

Voice29%

Internet95%

Projected Capacity Deployment by Network Type

Source: © Telegeography Inc 2001


Current Landscape


Current Landscape


The IP Backbone Network Operator Space

IP backbone network operators provide packet data connectivity between and amongst Access ISPs and Content and Applications Providers.


The key challenges in this space centre around providing better support for time sensitive and real time applications, eg. www access, audio/video streaming, voice:

• this is the “not-so-easy” end of the business;

• this is where the growth potential is, for the operators and the internet generally; and

• this is where the operators can differentiate themselves from their competitors.




To provide this support, IP backbone operators need to focus on offering:

• the lowest-practicable latency paths between the users they are supporting;

• absolutely predictable performance, eg. under network failure scenarios; and

• a tighter range of network performance SLGs, eg. across local, regional and global connectivity


The IP Backbone Space Is Going Global

• The internet has always been about seamless global communications.

• IP backbone operators are looking for horizontal growth opportunities.

• Leveraging off the capabilities that they have built up on a regional basis.


The IP Backbone Space Is Going Global

Operating on a global basis is a key form of differentiation, and some may even say a necessity to ensure survival in the IP backbone business:

• this doesn’t mean having a network presence and offering services in all markets worldwide, but it does require a presence in the three major world regions;

• global operators can provide better service performance to their customers by carrying and having control over their traffic for a greater proportion of its carriage.


• They say so on their web-site !!

• They don’t buy transit or upstream connectivity in the USA ?

• They provide Tier-1 service to their customers ?

What Makes A Tier-1 Player ?


Some Criteria for Tier-1 Players

Whilst there would not appear to be an objective test of whether an operator provides Tier-1 service, these factors would seem important in making such a judgment:

• Does the operator span the three major regions of the internet world, ie USA, Europe and Asia ?

• Does the operator have resilient low-latency connectivity between the three regions ?

• How much intra-regional traffic leaves the region, eg. still bounces off the USA ?

• How direct are the paths for intra-regional traffic ?

• How much local traffic in major markets stays within the country ?


The Importance Of The USA Is Diminishing

• Customers outside of the US, eg. in Asia and in Europe, are no longer happy to have their intra-regional traffic bouncing off the US.

• From the suppliers’ perspective, continuing to do this will not facilitate growth in use of time sensitive applications – key to overall volume growth.

• Corporate Data Networks using IP VPNs are much less USA-centric.


Asia Is Unique In The IP Backbone World

• It is not a continuous land-mass like the US and most of Europe, eg. international submarine cable systems required to provide connectivity between markets.

• It does not have a homogenous regulatory and business environment.

• The major Asian IP backbone operators have been forced to build out and operate their backbone networks to the US West Coast and beyond.


The Springboard for Asian IP Operators

Home-grown Asian IP backbone operators are very well placed to transition to global Tier-1 players in this space.

• They have done the hard things already:

- established intra-Asian connectivity within their IP backbone networks;

- established private peering within the region based upon international bilateral capacity; and

- built out their backbone networks to the US and Europe.


Intra Regional Importance

Asia-Pacific Top IP Backbone OperatorsConnectivity by Region

0

500

1000

1500

2000

2500

3000

Reach

(Aus

tralia)

Reach

(Hon

g Kon

g)

Uunet

(Austra

lia)

Uune

t (Hon

g Kon

g)

Uunet

(Sing

apore

)Optu

s

Conne

ct.com

China T

eleco

mVS

NL KDDI

NTT IIJ

C&W

IDC

Japa

n Tele

com

Asia G

lobal C

rossin

gDa

com

Korea

Telec

om

Singa

pore

Telec

om

Chung

hwa T

eleco

m

Mbit/

s USEurope

Asia-Pacific

Source:Gartner 2001


Asia-Pacific Top IP Backbone OperatorsConnectivity in Asia

0

200

400

600

800

1000

1200

1400

Reach

(Aus

tralia)

Reach (Ho

ng Ko

ng)

Uunet (Au

stralia)

Uune

t (Hon

g Kon

g)

Uune

t (Sing

apore

)Optu

s

Conne

ct.com

China

Telec

om VSNL KD

DI NTT IIJ

C&W ID

C

Japa

n Tele

com

Asia G

lobal C

rossin

gDa

com

Korea

Telec

om

Singa

pore

Telec

om

Chun

ghwa

Telec

om

Mbit/

s

OthersThailandTaiwanSouth KoreaSingaporePhilippinesNew ZealandMalaysiaJapanIndonesiaIndiaHong KongChinaAustralia

Source:Gartner 2001

Intra Regional Importance


The Springboard For Asian IP Operators

• The things that they have to do now are relatively easier:

- establish a basic IP backbone network in North America;

- establish trans-Atlantic IP backbone connectivity; and

- establish a basic intra-European IP backbone network capability.

• On the other hand, US and European IP backbone operators going global are faced with a more significant challenge in establishing resilient trans-oceanic capacity out of Asia and the level of intra-Asian connectivity required to be a Tier-1 player.


TAT 12

TAT 13

COLUMBUS 2

DIVERSE O/F TERRESTRIAL LINKS

SATELLITE

TASMAN 2

PAC RIM WEST

PAC

RIM

EAS

T

TPC-4

HAW -5

TPC-5

TPC-5

TPC-5

TPC-5

APCN

CHINA - US

SEA-M

E-W

E 3

SEA -ME-WE 3

GUAM -PHIL. FLAG

CHINA - US

TPC-5

SAFE

TAT-13

TAT-12

PTAT

COLUMBUS -2 AMERICAS-1

SAT 3/WASC

PAN AMERICAN

EXISTING OPTIC FIBRE CABLES

O/F CABLES IN CONSTRUCTION OR ADVANCED PLANNING

LEGEND

CANTAT 3

CANUS 1

CANT

AT 3

PTAT

APCN

A-PNG

TASMAN 1

SOUT

HERN

CROSS

CHINA - US

ANZC

AN

ANALOGUE CABLES

JAPAN - US

PC - 1

KL

HKSeoul

Tokyo

Bangkok

Manila

AustraliaAuckland

Sing.

NYSan Fran LA Chicago Wash.

London Frank.

Jakarta

ACCESS TO POINT OF INTERCONNECT AND / OR SALES OFFICE

Reach’s Global Network


Hong Kong

Reach’s Global IP Backbone

Reach Network Router Location

Tokyo

Perth

SydneyAuckland

Palo Alto

LosAngeles

Chicago

Washington DC

London

International Private Peering/Interconnection

Legend:

NewYork

JakartaSingapore

Kuala

SeoulToLondon

ToHongKong

Bangkok

Manila

Lumpur


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Peter Dutton, Director Data Marketing / Global IP Carriers ... · 10/30/2001 · Peter Dutton, Director Data Marketing / Global IP Carriers 30 October 2001 The Importance Of The