Faster, Cheaper, Safer: Public Policy for the Internet

Henning Schulzrinne

FCC (& Columbia University)

Any opinions are those of the author and do not necessarily reflect the views or policies of Columbia University or the FCC.

with slides by Julie Knapp, and others

Talk delivered Oct 3, 2012 to the Internet2 member meeting in Philadelphia.

Overview

• Spectrum

• Broadband: faster, cheaper, everywhere

• Transitioning the PSTN to the 21st century

2

Time of transition

Old New

IPv4 IPv6

circuit-switched voice VoIP + text

separate mobile voice & data LTE + LTE-VoIP

911, 112 NG911, NG112

digital cable (QAM) IPTV

analog & digital radio Pandora, Internet radio, satellite radio

credit cards, keys NFC

end system, peers client-server v2 aka cloud

all the energy into transition little new technology

Cisco’s traffic prediction

Ambient video = nannycams, petcams, home security cams,

and other persistent video streams

NID 2010 - Portsmouth, NH

http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11-481360_ns827_Networking_Solutions_White_Paper.html

Bandwidth costs

• Amazon EC2 – $50 - $120/TB out, $0/TB in

• CDN (Internet radio) – $600/TB (2007) – $10-30/TB (Q1 2012 – CDNpricing.com)

• NetFlix (7 GB DVD) – postage $0.70 round-trip $100/TB

• FedEx – 2 lb disk – 5 business days: $6.55 – Standard overnight: $43.68 – Barracuda disk: $91 - $116/TB

5

FedEx and EC2 prices as of 09/15/09 CDN: http://www.mindbranch.com/listing/product/R678-29.html http://www.cdnpricing.com

The value of bits

• Technologist: A bit is a bit is a bit

• Economist: Some bits are more valuable than other bits

– e.g., $(email) >> $(video)

6

Application Volume Cost per unit

Cost / MB Cost / TB

Voice (13 kb/s GSM) 97.5 kB/minute 10c $1.02 $1M

Mobile data 5 GB $40 $0.008 $8,000

MMS (pictures) < 300 KB, avg. 50 kB

25c $5.00 $5M

SMS 160 B 10c $625 $625M T-Mobile 2010 AT&T data http://www.nowsms.com/discus/messages/12/8500.html

Principles

Transparency. Fixed and mobile broadband providers must disclose the network management practices, performance characteristics, and terms and conditions of their broadband services;

No blocking. Fixed broadband providers may not block lawful content, applications, services, or non-harmful devices; mobile broadband providers may not block lawful websites, or block applications that compete with their voice or video telephony services

No unreasonable discrimination. Fixed broadband providers may not unreasonably discriminate in transmitting lawful network traffic.

7

SPECTRUM

From beachfront spectrum to

brownfield spectrum

9

From empty back yard to time share

condo

10

Spectral efficiency

• b/s/Hz: modulation, FEC, MIMO, …

• but also total spectral efficiency – guard bands – restrictions on adjacent

channel usage – “high power, high tower”

small cells higher b/s/Hz

• data efficiency – e.g., H.264 is twice as good as

MPEG-2/ATSC – and maybe H.265 twice as

good as H.264

• distribution efficiency – unicast vs. multicast

• protocol efficiency – avoid polling need server

mode

• mode efficiency – caching – side loading – pre-loading

11

What can we do?

12

end system caching better audio & video codecs

efficient apps

spectral efficiency (LTE-A) directional antennas

general purpose spectrum dense cells

white spaces & sharing

IP multicast WiFi offload small cells =

better spectral efficiency + more

re-use

LTE: 1.5 b/s/Hz GSM: 0.1 b/s/Hz

13

ATC

U.S. Spectrum Allocation of Key Bands

1850

US

Go

vt

1800 - 2200 MHz

1710

AWS-1

US Govt

1755

1865

1870

1895

1890

1885

1910 1930

1945

1950

1975

1970

1965

1990

2320 2345 23602305

WCSWCS DARS

Ae

ron

au

tic

al

Te

lem

etr

y

2110

2 GHz MSS

2200

US Govt

2025

2020

1525 1559

Advanced Wireless

Services (AWS I)

1626.5 1660.5

Mobile Satellite

(MSS) L-Band

1500 - 1800 MHz

700 - 1000 MHz

2300 - 2700 MHz

Sp

rin

t

AW

S-2

H B

lock

Ae

ron

au

tic

al

Te

lem

etr

y

1610

Global

Positioning

Satellite (GPS)

MSS

Big LEO

Rad

io A

str

on

om

y/

Sp

ace

Rese

arc

h/

Mete

oro

log

ical

Aid

s

Na

tio

na

l F

ixe

d/M

ob

1675

1670

LightSquared,

Inmarsat

Cellular

900

SM

R/B

/ILT

ISM/

Unlicensed/

US Govt/

Amateur Radio/

Location &

Monitoring

Fix

ed

Mic

row

ave

Public

Safety/

B/ILT

806

824

782

776764

1 MHz Guard BandsA: 757-758/787-788 MHz

B: 775-776/805-806 MHz

PS: 763-775/793-805 MHz

752

746 794 849 851

Commercial AviationAir-Ground

Cellular

869

894 902

901896

929

928

Pag

ing

Fix

ed

Mic

row

ave

941

940

932 935

Fixed Microwave

NarrowbandPCS

740

734

728

722

716

710

704

698

TV

TerreStar, DBSD

(DISH)

2 GHz MSS

AW

S-2

J B

lock

TV Aux Broadcast (BAS)

Government Satellite

And Others

2155

AWS-3

1995

20001915

1920

2500

2506

2512

2518

2524

2530

2536

2542

2548

2554

2560

2566

ITF

S D

3

2572

2578

2584

2590

2596

2602

2608

2614

2620

2626

2632

2638

2644

2650

2656

2662

2668

2674

2680

2686

2690

ITF

S C

4

ITF

S D

4

ITF

S C

3

ITF

S D

1

ITF

S C

2

ITF

S D

2

ITF

S C

1

ITF

S B

3

ITF

S A

4

ITF

S B

4

ITF

S A

3

ITF

S B

1

ITF

S A

2

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S B

2

ITF

S A

1

MM

DS

H3

ITF

S G

4

R C

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ITF

S G

3

ITF

S G

2

ITF

S G

1

MM

DS

H2

MM

DS

H1

MM

DS

E1

MM

DS

F1

MM

DS

E2

MM

DS

F2

MM

DS

E3

MM

DS

F3

MM

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E4

MM

DS

F4

EB

S B

4

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S C

4

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S D

4

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S A

4

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S G

4

BR

S F

4

BR

S E

4

K G

uard

J G

ua

rd

BR

S 2

BR

S E

1

BR

S E

2

BR

S E

3

BR

S F

1

BR

S F

2

BR

S F

3

BR

S H

1

BR

S H

2

BR

S H

3

EB

S G

1

EB

S G

2

EB

S G

3

EB

S D

1

EB

S D

2

EB

S D

3

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S C

1

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2

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S C

3

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1

EB

S B

2

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3

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1

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2

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3

BR

S 1

2496

2502

2507.5

2513

2518.5

2524

2529.5

2535

2540.5

2546

2551.5

2557

2562.5

2568

2572

2578

2584

2590

2596

2602

2608

2614

2618

2624

2629.5

2635

2640.5

2646

2651.5

2657

2662.5

2668

2673.5

2679

2684.5

2690

Fixed - Satellite /

Radio Astronomy /

Space Research

Old

Allocation

New Allocation

52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69

TV Channels

Lower 700 MHz Band Upper 700 MHz Band

A AB BC CD E C C

758 770

788 800

D DPublicSafety

PublicSafety

Old

Allocation

New

Allocation

Mobile Satellite

(MSS) L-Band

LightSquared,

Inmarsat

Glo

bal

star

Irid

ium

OP

Co

rp

Meteorological Aids/

Meteorological-

Satellite

Uplink Band

Downlink Band

TDD Band

1720 1730 1745

A B BA A B BA

A B C D E F

ISM/MSS

Big LEO

Globalstar

2483.5 2495

2487.5

2008

AWS-1

A B C D E F TerreStar, DBSD

(DISH)

21752120 2130 2145

Broadband PCS

A B CD E F

ATCATC

Broadband PCS

B CE FDAAW

S-2

H B

lock

Un

licen

sed

PC

S

ISM/

Unlicensed

AW

S-2

J B

lock

AA B BDC

ATC

Sirius Radio

Legend

Am

ate

ur

Rad

io

ATC ATC

Public

Safety/

B/ILT 900

SM

R/B

/ILT

IEEE Standard Band Designators

HF 3-30 MHz

VHF 30-300 MHz

UHF 300-1000 MHz

L band 1-2 GHz

S band 2-4 GHz

C band 4-8 GHz

X band 8-12 GHz

Ku band 12-18 GHz

K band 18-27 GHZ

Ka band 27-40 GHz

V band 40-75 GHz

W band 75-110 GHz

mm wave 110-300 GHz

817

Sp

rin

t

862

Sp

rin

t

Source: FCC, Sprint and Stifel Nicolaus Research

1

Sp

rin

t

Stifel Nicolaus does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could

affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

All relevant disclosures and certifications appear on pages 2-3 of this report.

July 14, 2011

cellular = about 500 MHz in total

Unlicensed & lightly-licensed bands

(US)

• UHF (476-700 MHz) – incentive auctions (licensed) + some unlicensed

• 2.4 GHz (73 MHz) – 802.11b/g

• 3.6 GHz (100 MHz) – for backhaul & WISPs

• 4.9 GHz (50 MHz) – public safety

• 5.8 GHz (400 MHz) – 802.11 a/n – much less crowded than 2.4 GHz

– supported by many laptops, few smartphones

14

2.4 vs. 5.8 GHz

Freeing spectrum: incentive auctions

• Incentive auctions will share auction proceeds with the current occupant to motivate voluntary relocation of incumbents

– Otherwise, no incentive for current occupant to give back spectrum

– Stations keep current channel numbers

• via DTV map

16

TV TV TV TV BB BB

Without Realignment: Reduced Broadband Bandwidth

TV TV BB

Adjacent Channel Interference

With Realignment: Accommodates Increased Broadband Bandwidth

TV TV

Adjacent Channel Interference

Small cell alternatives

• Femto cells – use existing spectrum

– need additional equipment

• WiFi off-load – use existing residential

equipment

– 5G networks = heterogeneous networks?

• Distributed antenna systems

17

Femto-cells

Cellular

Distributed Antenna Systems Signals are distributed throughout the

Building via amplifiers/antennas

2 4 5 7 9

3 6 8 10

Non- Broadcast spectrum

Non- Broadcast spectrum

New York City Full Power TV Stations

Philadelphia Full Power TV Stations

Low Power TV

White Space

White Space

White Space

White Space

Etc.

Etc.

• TV channels are “allotted” to cities to serve the local area

• Other licensed and unlicensed services are also in TV bands

• “White Spaces” are the channels that are “unused” at any

given location by licensed devices

Low Power TV

Only for illustrative purposes

Wireless Microphones

Wireless Microphones

TV white spaces

Spectrum Outlook

• No single solution:

– reduce spectrum usage

• caching & better modulation

– re-use spectrum

– re-cycle old spectrum

19

BROADBAND

Broadband

• Deployment – USF: Connect America Fund

• Performance – Measuring Broadband America – mobile tba

• Significant progress: – wider availability of 100 Mb/s – fiber available to 46 million homes (FiOS, Uverse) – community/non-traditional broadband (Chattanooga,

KC) – LTE networks

What Was Measured

Sustained Download Burst Download

Sustained Upload Burst Upload

Web Browsing Download UDP Latency

UDP Packet Loss Video Streaming Measure

VoIP Measure DNS Resolution

DNS Failures ICMP Latency

ICMP Packet Loss Latency Under Load

Total Bytes Downloaded Total Bytes Uploaded

23

Advertised vs. actual 2012

Significantly better than 2011

25

Latency by technology

26

Data usage

27

Broadband adoption

Eighth Broadband Progress Report, August 2012

28

Access to broadband

Chart 1

Households With Access to the

Fixed Broadband Speed Benchmark by Technology

0% 20% 40% 60% 80% 100%

Fiber

Other Copper

Fixed Wireless

DSL

Cable

Any Fixed

Eighth Broadband Progress Report, August 2012

FTTH

State of competition (US)

U.S. Federal Communications Commission Internet Access Services: Status as of December 31, 2009 8

In Figure 3(b), we estimate the percentages of households in census tracts where providers reported

residential fixed-location connections of different speeds or operated a mobile wireless network capable

of sending or receiving data at the indicated speeds.

Figure 3(b)

Percentages of Households Located in Census Tracts Where Providers Report

Residential Fixed-Location Connections of Various Speeds or Operate a Mobile Wireless Network

Capable of Delivering Service of Various Speeds as of December 31, 2009

0

10

20

30

40

50

60

70

80

90

100

3+ Providers 58 40 3 2

2 Providers 35 40 22 20

1 Provider 6 17 56 58

0 Providers 1 3 18 21

At least 3 mbps

downstream & over 200

kbps upstream

At least 3 mbps

downstream & 768

kbps upstream

At least 6 mbps

downstream & 1.5

mbps upstream

At least 10 mbps

downstream & 1.5

mbps upstream

Figures may not sum to 100% due to rounding.

http://www.fcc.gov/Daily_Releases/Daily_Business/2010/db1208/DOC-303405A1.pdf: Internet Access Services: Status as of December 31, 2009

31

International comparison: fixed

Federal Communications Commission DA 12-1334

8

Figure 2b shows average prices in the 5-15 Mbps speed tier (again excluding satellite services). The

United States is 21st out of 31 countries with an average price of $43.71 and an average download

speed of 10.72 Mbps. The two lowest price countries are Slovakia and Italy with an average net price

of approximately $21. These countries report average download speed of 10 Mbps. The two highest

price countries are Mexico and Switzerland with net prices of $95.60 and $185 respectively. Appendix

Table 2b shows the breakdown by technology in this speed tier. The United States is 9th amid 24

countries having DSL plans, with an average net price of $40.80 per month. The lowest average price

is in Sweden ($25.30) and the highest is in Switzerland ($185). The United States cable and fiber plans

average $44.75 and $54.99 respectively. See Appendix Table 2b for prices in other countries.

0

20

40

60

80

100

120

140

160

180

Mon

thly

Net

Pri

ce (

$ P

PP

)

Figure 2c

Average Monthly Net Price ($ PPP) of Residental (Fixed) Standalone

Broadband 2011

15-25 Mbps of Download Speed

Note: The monthly net price reflects the price per month, including rebates, installation charges, equipment

charges such as modem rentals and other fees. So this is different from the simple monthly advertised price. The

average price is obtained by a simple average over all technologies, excluding satellite, in the 15-25 Mbps peed

tier. Lithuania, Mexico, Portugal and Spain, do not have any standalone broadband plans in this speed tier in our

sample, and are thus excluded from the graph.

Figure 2c shows average prices in the 15-25 Mbps speed tier (again excluding satellite services). The

United States is 26th out of 32 countries with an average price of $56.50. The two lowest price

countries are Slovakia and Korea with an average net price of approximately $18-19 and average

download speeds of 20-25 Mbps. The two highest price countries are New Zealand and Switzerland

with net prices of $124.50 and $180 respectively. Appendix Table 2c shows the technology

breakdown. The United States is 15th among 25 countries having DSL plans, with and average net

price of $49 per month. The lowest average DSL price is in Italy ($22) and the highest is in

Switzerland ($242.90). The United States is among the more expensive in terms of cable and fiber.

3rd International Broadband Data Report (IBDR), August 2012

32

International comparison: mobile Federal Communications Commission DA 12-1334

17

Figures 7a-10a shows the net price per gigabyte of data for plans with usage limits, and Figures 7b-10b

reports the average monthly net price for unlimited data plans.

0

10

20

30

40

50

60

70

80

90

100

Pri

ce p

er G

B o

f D

ata

($P

PP

/GB

)Figure 7a

Average Monthly Net Price per GB of Data 2011

Smartphone Data Plans with Usage Limits

Note: Belgium does not have any limited data plans in the sample. Japan charges by the amount of

packets sent, so we assumed 1 packet = 128 bytes according to the advertised plan. These prices are for

the data plan only and do not include the price of the phone plan or device charge.

The  n

e

t  p

r

ice  p

e

r  GB  for  an  “

a

verage”  s

m

artphone  plan  with  usage  limits  are  presented  in  Figure  and  

Appendix Table 7a.39

We find that the United States is among the ten cheapest countries for

smartphone data plans with usage limits, with an average price of $10/GB. Iceland, Finland and

Germany are the three lowest price countries with an average price of $5/GB. Figure 7b and Appendix

Table 7b show the net price for unlimited data plans, Finland is the cheapest country ($5.08) and

Portugal is the most expensive ($148.99). The United States lies in the middle with $52.50.

39

Most Japanese plans in the data set charge by the amounts of packets sent and not by gigabyte of data use. We

use 1 packet = 128 bytes to convert the number of packets into gigabytes. The phone company website provides

this information. See: http://www.au.kddi.com/english/packetwin/service/waribiki.html.

3rd International Broadband Data Report (IBDR), August 2012

Need for speed

• Networks should be transparent – don’t interfere with application

– don’t limit performance

• Peak speed + upstream bandwidth important for productive rather than consumptive applications

• Local area networks: 100 Mb/s or 1 Gb/s

• Cost of hybrid fiber-X networks largely independent of peak speed – wide-area traffic: $2-5/month for 100 GB

Broadband challenges

• Engineering – simplify deployment: “fiberhoods”, self

installation, on-pole wireless, …

• Economical – cost is driven by homes passed, not homes

served – cost mostly independent of speed single price

point? – built-in broadband, not bolted on

• pay via mortgage lower ROI expectations

• Policy – FCC: “dig once”, pole attachments, Federal

buildings and lands – encourage municipal conduit deployment

Broadband virtuous cycle

fixed broadband investment

cellular broadband (backhaul)

broadband availability

applications

(incl. OTT)

adoption

(relevance, value)

OI principles

Broadband cost

70% 30%

Maybe revisit?

Google April 1, 2007

Water + broadband

Broadband opportunities

• Middle-mile networks

• BTOP experiences

– conduit, fiber or IP?

• Connect America Fund (part of $8B/year USF)

• Adoption = availability + affordability + relevance

Budgeting the CAF

– The $4.5B annual budget will transition while CAF Phase II, Mobility Phase II and Remote Areas Fund are implemented

40

40 Ken Mason

Easing the PSTN into the 21st century

Henning Schulzrinne

41

42

PSTN: The good & the ugly

The good The ugly

Global Connectivity (across devices and providers)

Minimalist service

High reliability (engineering, power)

Limited quality (4 kHz)

Ease of use Hard to control reachability (ring at 2 am)

Emergency usage Operator trunks!

Universal access (HAC, TTY, VRS)

No universal text & video

Mostly private (protected content & CPNI)

Limited authentication Security more legal than technical (“trust us, we’re a carrier”)

Relatively cheap (c/minute)

Relatively expensive ($/MB)

• Universality – reachability global numbering & interconnection – media HD audio, video, text – availability universal service regardless of

• geography • income • disability

– affordability service competition + affordable standalone broadband

• Public safety – citizen-to-authority: emergency services (911) – authority-to-citizen: alerting – law enforcement – survivable (facilities redundancy, power outages)

• Quality – media (voice + …) quality – assured identity – assured privacy (CPNI) – accountable reliability

43

What are key attributes?

• Technology

– wired vs. wireless

• but: maintain quality if substitute rather than supplement

– packet vs. circuit

– “facilities-based” vs. “over-the-top”

• distinction may blur if QoS as a separable service

• Economic organization

– “telecommunication carrier”

44

What is less important?

Signaling Media

Analog circuit (A) circuit (A)

Digital circuit (D) circuit (D)

AIN packet (SS7) circuit (D)

VoIP packet (SIP) packet (RTP)

Going forward

• Interconnected VoIP: done – CALEA, USF, E911 – Part 4 outage reporting

• In progress – Intercarrier compensation: IP

interconnection expectation + transition to bill-and-keep

– NG911, better location – video relay services, CVAA

• To do – numbering & databases – security model (robocalls, text spam,

vishing) – VoIP interconnection model

… , we expect all carriers to negotiate in good faith in response to requests for IP-to-IP interconnection for the exchange of voice traffic. The duty to negotiate in good faith has been a longstanding element of interconnection requirements under the Communications Act and does not depend upon the network technology underlying the interconnection, whether TDM, IP, or otherwise. Moreover, we expect such good faith negotiations to result in interconnection arrangements between IP networks for the purpose of exchanging voice traffic.

Conclusion

• Dramatic transition of technology

– special purpose general purpose

– stove pipes IP

– narrowband broadband

– digital PSTN IP PSTN

• Wireline + wireless deployment

46