The Operators’ Dilemma Resolved Relieving Network Load While Improving QoE

Presentation to the P2P & Video Conference / October 27, 2008

Energize Your Network

About Oversi

Pioneer of rich-media caching and content delivery solutions

For Internet Video, P2P & other media applications

Established in 2004

50 employees

Strong Investors

Including: Carmel Ventures and Cisco®

Worldwide deployments and channels

Customers: Tier 1 & 2 broadband service providers

Offices and representatives: EMEA, Americas and Asia Pacific

Leading Global Partners

Internet’s Changing – New Solutions Required

%of traffic

Time

Commercial P2P, P2P CDNs

Non-commercial P2P

Internet video

Controlled using DPI

Can it be controlled?

QoE is paramount

How to monetize?

Phenomenal success of Internet video sites (e.g. YouTube, hi5 etc.)

Users’ demand for better QoE (faster downloads etc.)

Regulation prohibits traffic manipulation (e.g. FCC Comcast ruling, Chile)

Legitimization and commercialization of P2P (e.g. BBC, NBC, Vuze, Akamai, P4P

, IETF ALTO, etc.)

Oversi proprietary & confidential

P2P goes mainstream

QoE Becomes a Major Target for ISPs.

Oversi proprietary & confidential

Recent QoE campaign by Telefonica Chile winning substantial market share from competition

P2P with no limits

QoE Becomes a Major Target for ISPs ..

Oversi proprietary & confidential

“Get more from the internet” campaign by B’Intl, Israel

http://hk.youtube.com/watch?v=18F1bj46hn4&feature=related

The Next OTT Challenge for ISPs

OTT (Over The Top) Video delivered from the Open Internet

QoE is Critical!

Hulu - “Watch your favorites anytime, for free” ABC - full seasons online, selected shows in HD

The OTT Video Explosion

(source: Cisco visual networking market report 12/07)

US internet consumption 1/01 25,000TBYouTube US consumption 5/08 30,000TB

By 2012 most video traffic we consume will arrive from the internet,

for free and in HD

By 2012 most video traffic we consume will arrive from the internet,

for free and in HD

Oversi proprietary & confidential

The Bandwidth Challenge

The network needs to grow by x1000The network needs to grow by x1000

The Network Limitation

Core

Metro

Access

NETWORK

Interconnect

Clients

Over The TopHD Content Providers

Missing bandwidth

Available network bandwidth

Missing bandwidth

The Solution – Using Internal Network Resources

Core

Metro

Access

NETWORK

Interconnect

Clients

Cache assisted delivery Peer assisted delivery

Over The TopHD Content Providers

The Solution – Cache & Peer Assisted Delivery Operated by the Network Provider

Metro

Access

NETWORK

Interconnect

Clients

Over The TopHD Content Providers

Cache

Cache

Cache

Network Cache

Controller

NetworkStatus

QoEstatus Home

Peer Assisted

P2P Network

Controller

NetworkStatus

Peer Assisted

Peer Assisted

QoEstatus

Core

• Optimize OTT to the operators’ network• Generation from internal sources, close to customer• QoE guaranty• OTT monetization

NEW NetEnhancer ™ Enhances the Network for P2P

Automatically routes P2P traffic to local peers in line with

the available network resources of the operatorShifts P2P load from international / interconnect peers* to local peers

Shifts P2P load from overstretched areas in the access network to areas with higher capacity

Optimizes service providers’ network resources to:Accelerate content delivery

Provide Best Internet experience for end-users

Relive network load

Bandwidth savings

* 85%-90% coming form external sources in “global content” countries

Internet transit

Regional

Edge

Traditional Client -server

Regular P2P

P2P with NET-Enhancer

More viewers=

Higher delivery costs

Higher network costs

Worse performance

NEW NetEnhancer ™ : Inline with P4P Goals

More viewers=

Lower delivery costs

Higher network costs

Better performance(sometimes)

More viewers=

Lower delivery costs

Higher network costs

Better performance

Net Enhancer™ P2P Network ToolIN

TE

RN

ET

Reg

ion

al /

Co

reE

DG

E

Cache (optional)

DOCSIS3ADSL2

Tracker

Net Enhancer

Oversi proprietary & confidential

• Maintains integrity of P2P network

DOCSIS3 DOCSIS3ADSL2ADSL1 ADSL1DOCSIS1

• Automatically routes P2P traffic to local peers

• Network Operators define priorities according to network resources

The NetEnhancer™ Benefits

Commercially available, field proven

Supports commercial and non-commercial P2P traffic

Provides full P2P control for the network operatorA solution today

Does not expose ISP internal limitations to outside players

Simple to operate (automatic, out of band)

Cache complimentarySolution for the long tail / smaller ISPs (no critical mass for localization)

Initial results:Maintains up to 80% of P2P traffic within the ISP network (popular content)

50% reduction in Uplink traffic (with cache)

10x improvement of user QoE (up to user line speed, with cache)

Net Enhancer™ Extends P4P Achievements

Applicable to today's P2P majority of trafficNon commercial services

Unmanaged traffic

BitTorrent, Emule protocols

Last mile congestion relief

Oversi proprietary & confidential

OverCache MSP Multi-Service Platform for Caching & Delivery

Relief ofRelief of network load/ network load/ Improvement in QoE Improvement in QoE

Increase in ARPU Increase in ARPU

Monetization Monetization of OTT video of OTT video services services

Relieves Network Load / Improves QoE Cache delivers more

bandwidth to end-users over existing network resources

Guarantees faster downloads

Frees up uplinks/ complements DPIs

Benefits:• Saves on

international/interconnect bandwidth

• Clears network congestion• Increases user satisfaction• Reduces churn, increases

user base

OTT/P2P

OtherOTT/P2POther

VoIP

Cache

OTTredirection

Cache delivers

requested files

Increase in demand for OTT/P2P is

met

Users demand better QoE

Oversi proprietary & confidential

Standard OTT video viewing experience

http://www.youtube.com/watch?v=RCPAHT85zZg

OTT video viewing with cache acceleration

http://www.youtube.com/watch?v=8zzr0X7hw0w

Experience the Difference

A whole new Internet viewing Experience A whole new Internet viewing Experience

Oversi proprietary & confidential

Line speed vs. 300Kbps

1-2 MINUTES download time

5-8 SECONDS download time

OTT HD enabler

Relate Users’ experience to their broadband package

Migration of packages enabled by cache acceleration

Can match cache service to special premium services (FiOS, DOCSIS3)

Supports OTT HD (not possible without cache)

Benefits:

Small % of migration to higher BB packages= $$$

Service provider can offer different bundles e.g. assured QoE for HD

Better QoE = Increases ARPU

Service Level ARPU

$$$

$$

$

OTT

Other

OverCache

Oversi proprietary & confidential

The ARPU Business Case

Oversi proprietary & confidential

BB Package Price %of users

BB Package Price %of users

2Mbps $

25 45% 2Mbps $

25 20%

5Mbps $

45 50% 5Mbps $

45 60%

15Mbps $

65 5% 15Mbps $

65 20%

ARPU=   $

37 ARPU=   $

45

Customer Value:

Operator Value : $

8 per user per month

Value for 1 million users $

96,000,000 per year

No cache With cache

OverCache MSP Customer Case Study 1M subs

OverCache MSP (Video & P2P) delivered:

8 Gbps international BW saving (worth multi $ per year)

Improved user satisfaction (10x service level improvement) Customer reported that Call center complaints dropped dramatically

Customer attracted 5% new subscribers from competition in just few months

50,000 x $25 = $1.25 million per month !!

Competitors ISPs turn to Oversi

Introduce Over The Top video Monetization over Oversi Caching devices

Monetization Via Portal/Mobile/Statistics

CacheMost popular

videos

CacheWeb MNG

Oversi proprietary & confidential

Promoted ISPContent

Content Filter

ISP Portal

Advertisement

Video cache provides list of most watched videos from all video sites (e.g. YouTube, hi5, Yahoo! Video, Google Video)

Enables ISP to promote its own video property focused on popular videos - real estate for ad insertion

Ads

Send-to mobile

See similarvideos

$$$ per MMS transfer (air time)

Statistics

External applications

Summary

1. Relieves OTT load while improving end-users’ QoE

2. Facilitates intelligent OTT services to increase ARPU

3. Opens up new monetization opportunities

Oversi proprietary & confidential

Oversi Solutions Turns OTT Challenge into an Opportunity

eitane@oversi.com

www.oversi.com

Thank you for listening.

Energize Your Network

Oversi proprietary & confidential