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Bredbånd i et historisk perspektiv Fagseminar Telekom, 7. mars 2017 Harald Wium Lie Partner, Nexia Management Consulting

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Page 1: Bredbånd i et historisk perspektivAudio & video Video streaming 3 47 1 1 240 Video conference 1 5 5 50 Gaming 1 20 5 190 Voice 2 0.6 0.6 3 Smarthouse M2M 50 0.5 0.5 20 Video Surveillance

Bredbånd i et historisk perspektivFagseminar Telekom, 7. mars 2017

Harald Wium Lie

Partner, Nexia Management Consulting

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Bredbånd i 2016Internett-bruk

0

10

20

30

40

50

60

70

80

90

100

Percentage who use Internet every week

Source: Eurostat Community Survey on ICT usage in Households and by Individuals (2016)

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Bredbånd i 2016Average achieved connetion speed

Source: Akamai state of the Internet (2016)

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4

The Norwegian Broadband Model

Based on International Best Practice

Technology neutral

Market driven

Enough capacity to "meet needs"

Targeted subsidies

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5

Vi vet ikke hvor mye vi trenger

Vi kjenner ikke “de beste” teknologiene

Bør vi bruke offentlige midler på dette?

Folk sier alt mulig rart

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6

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7

Respons fra Bredbånds-Norge

~140

> 10

All sorts of business models

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8

Akkurat som da vi bygde kobbernettet

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9

And it’s probably a good ideaAnd it’s probably a good idea

Cultural fit

The nine most terrifying words in the English language:“ I'm from the government and I'm here to help”

The ten most terrifying words in the Norwegian language:

(and it eats strategy for breakfast)

“ I'm from the CENTRAL government and I'm here to help”

Page 10: Bredbånd i et historisk perspektivAudio & video Video streaming 3 47 1 1 240 Video conference 1 5 5 50 Gaming 1 20 5 190 Voice 2 0.6 0.6 3 Smarthouse M2M 50 0.5 0.5 20 Video Surveillance

Bredbånd i 201678% dekning 100 Mbit/s nedstrøm

Source: tjekditnet.dk, statistik.pts.se, nkom.no

Country ≥100 Mbit/s download

≥30 Mbit/s upload

Denmark (2015) 85% 85%

Sweden (2015) 69%

Norway (2015) 73% 63%

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Bredbånd i 2016Nasjonalt nivå: Stor fremgang

94

47

2831

63

29

93

49

31 32

68

51

91

49

37 35

71

78

70

90

100

89

51

41

47

74

82

88

99 100

91

53

4650

79

85

93

100 100 100

-

10

20

30

40

50

60

70

80

90

100

xDSLVDSL+ADSL

HFC FTTH VDSL FTTH+HFC FTTH+HFC+VDSL

LTE(innendørs)

LTE(utendørshåndholdt)

LTE(utendørsmed

antenne)

Radio(utendørsmedantenne)

2012 2013 2014 2015 2016

Page 12: Bredbånd i et historisk perspektivAudio & video Video streaming 3 47 1 1 240 Video conference 1 5 5 50 Gaming 1 20 5 190 Voice 2 0.6 0.6 3 Smarthouse M2M 50 0.5 0.5 20 Video Surveillance

Bredbånd i 2016Men fortsatt store forskjeller på by og land

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13

Valgmuligheter - aksessmetoder

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Bredbånd i 2016Endringer i TV-titting

Source: DR Medieforskning (2016)

Page 15: Bredbånd i et historisk perspektivAudio & video Video streaming 3 47 1 1 240 Video conference 1 5 5 50 Gaming 1 20 5 190 Voice 2 0.6 0.6 3 Smarthouse M2M 50 0.5 0.5 20 Video Surveillance

Fixed data volumes

Average residential broadband use in UK:

112 GB/month (2015)

Higher use for high-capacityconnections

Norwegian use likely to be at least as high as in UK

Mobile data volumes

Bredbånd i 2016Forbruk av data

Rank Country 2014 2015 Growth

1 Finland 2 644 5 012 90 %

2 Latvia 1 344 3 657 172 %

3 Sweden 2 104 2 678 27 %

4 Korea 1 711 2 463 44 %

5 USA 979 2 193 124 %

7 Denmark 1 117 2 015 80 %

13 Singapore 1 017 1 265 24 %

14 Norway 731 1 170 60 %

16 UK 534 863 62 %

20 France 325 572 76 %

21 Germany 289 435 51 %

Mbyte/sim/month

Source: Tefficient (2016)Source: Ofcom (2016)

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Mot 2025

IOT

SMARTE BYER

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The digital family

The digital family (4 persons) Max Capacity need Data usage

concurrent Mbit/s GB/month

Activity Service Night Down Up

Web, cloud, social media Cloud services

1st user 1 50 15 60

Extra users 3 3 1 20

Audio & video Video streaming 3 47 1 1 240

Video conference 1 5 5 50

Gaming 1 20 5 190

Voice 2 0.6 0.6 3

Smarthouse M2M 50 0.5 0.5 20

Video Surveillance 2 10 10 140

Capacity need Mbit/s (rounded up to nearest 5 Mbit/s) Normal 140 40 1 710

High 160 50

Low 120 35

Main bandwidth drivers• Cloud services• Video streaming (work/education/entertainment)• Gaming/VR• Social media • Home appliances / smart house

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The digital family

150

1710

0

200

400

600

800

1000

1200

1400

1600

1800

est. 2015 est. 2025

Data volume fixed (GB/month)

Low

Normal

High

0

20

40

60

80

100

120

140

160

180

HomeDownstream

HomeUpstream

Mobileper member

Capacity needed (Mbit/s) Data volume mobile (GB/month)

2

75

-

10

20

30

40

50

60

70

80

est. 2015 est. 2025

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19

Hva kan vi gjøre?- Hvilke verktøy finnes i kassa?

Bygge eget nett?

- Ref. Sverige

Dugnad

Avvent – la markedet styre

Samfinansiering- operatør, kommune,

sluttbruker

Kjøp av tjenester mot utbygging

Trekkrør, føringsveier og graveregler

Annen offentlig støtte- Regionalt og statlig

Hvordan skal disse

kombineres?

Husk ulikheter mellom

kommuner!

Hvordan samarbeide med

operatører?

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20

På tide med lokale bredbåndsplaner

Bredbånd blir litt viktigere for hver dag– Husstander

– Bedrifter

– Offentlig sektor

All business is local– 80% av investeringer skjer lokalt

– Lokale regler & praksis svært viktig for etablering av nett

Finansiering vil bli vanskeligere over tid

En lokal plan vil gi retning og forutsigbarhet– Signaler til utbyggere og brukere

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21

Ikke kødd med Internett

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22

Harald Wium Lie

Analyst & Partner

Nexia Management Consulting

+47 922 90 420

[email protected]

Page 23: Bredbånd i et historisk perspektivAudio & video Video streaming 3 47 1 1 240 Video conference 1 5 5 50 Gaming 1 20 5 190 Voice 2 0.6 0.6 3 Smarthouse M2M 50 0.5 0.5 20 Video Surveillance

Det som er viktig (voiceover til «mot 2025» plansjen)

Bandwidth needs continue to increase– Video is main bandwidth driver

– Danish networks well positioned keep up with demand

Data volume consumption increases faster than bandwidth needs

Bandwidth needs change– Wireless becomes the dominant access medium in the home

– Strong increase in need for mobile bandwidth

Increasing quality requirements– Short delays, support for diverse application classes

Robustness/stability becomes as important as capacity– Network connectivity required in almost all critical processes and infrastructures

– Individual and collective health and safety dependent on networks

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Backup

Page 25: Bredbånd i et historisk perspektivAudio & video Video streaming 3 47 1 1 240 Video conference 1 5 5 50 Gaming 1 20 5 190 Voice 2 0.6 0.6 3 Smarthouse M2M 50 0.5 0.5 20 Video Surveillance

Entertainment and communication:Video is the number one bandwidth driver

Video content is increasingly carried over the Internet– Linear TV in decline

– ”Over the Top” providers dominating

Over 70 % of downstream Internet traffic in North America is streaming video– Netflix alone is 37 %, Youtube is 18 %

Video resolution will increase, driven by larger screens– 4K video likely to be commonplace over the next few years

– 4K video requires 15 - 20 Mbit/s capacity for decent quality

– We might see 8K before 2025

Source: Sandvine Global Internet Phenomena, streamingmedia.com

Page 26: Bredbånd i et historisk perspektivAudio & video Video streaming 3 47 1 1 240 Video conference 1 5 5 50 Gaming 1 20 5 190 Voice 2 0.6 0.6 3 Smarthouse M2M 50 0.5 0.5 20 Video Surveillance

Future video is likely to be- 4K resolution (4096 × 2160 pixels)- High Dynamic Range (HDR) for better image

quality- 50 frames per second (FPS) update rate

0

2

4

6

8

10

12

14

16

SD HD UHD/4K

Bandwidth consumption (Mbit/s)

0

1

2

3

4

5

6

7

8

SD HD UHD/4K

Data volume (GB/hour)

Source: netflix.com, youtube.com, carltonbale.com

Entertainment and communication:Video is the number one bandwidth driver

Page 27: Bredbånd i et historisk perspektivAudio & video Video streaming 3 47 1 1 240 Video conference 1 5 5 50 Gaming 1 20 5 190 Voice 2 0.6 0.6 3 Smarthouse M2M 50 0.5 0.5 20 Video Surveillance

Entertainment and communication:From multicast to unicast

Much (some say all) video expected to be unicast by 2025, driven by change from linear TV to streaming

Large consequences for networkarchitecture (technology, capacity, distribution strategy)

Peak hour traffic grows faster than averagetraffic

Less important for access link dimensioning

Page 28: Bredbånd i et historisk perspektivAudio & video Video streaming 3 47 1 1 240 Video conference 1 5 5 50 Gaming 1 20 5 190 Voice 2 0.6 0.6 3 Smarthouse M2M 50 0.5 0.5 20 Video Surveillance

Entertainment and communication:Diversity in devices

The number of connected devices is increasing– Average household in North America has

over 7 connected devices

Stationary and laptop PCs account for less than 25 % of fixed network traffic– Tablets and mobile over 30 %

Virtual Reality/Augmented Reality/cloudgaming is a potentially large newbandwidth driver– Take-up uncertain– Bandwidth use uncertain

Source: Sandvine Global Internet Phenomena

Page 29: Bredbånd i et historisk perspektivAudio & video Video streaming 3 47 1 1 240 Video conference 1 5 5 50 Gaming 1 20 5 190 Voice 2 0.6 0.6 3 Smarthouse M2M 50 0.5 0.5 20 Video Surveillance

Work and leisure:Everything in the cloud

Applications

Data

Processing

Driven by– Diversity in devices (access everything from

anywhere)

– Decrease in cost for storage

– Availability of sufficient (and cheap) bandwidthcapacity

– Requirements for reliability/robustness

– Cost savings

Page 30: Bredbånd i et historisk perspektivAudio & video Video streaming 3 47 1 1 240 Video conference 1 5 5 50 Gaming 1 20 5 190 Voice 2 0.6 0.6 3 Smarthouse M2M 50 0.5 0.5 20 Video Surveillance

Internet of Things:Millions of connected devices

Klaus Schwab (Executive Chairman World Economic Forum) predictions for 2025:

10% wear clothes connected to the Internet 10% of all glasses are connected to the Internet More than 50 % of Internet traffic for «appliances and devices»

– Self driving cars– Smart houses– Welfare technology– 1000 apps that we have not yet heard of

Source: Klaus Schwab: The fourth Industrial Revolution

Connected devices will have large impact on network architectures Number of connected devices – scalability Low power consumption Delay requirements

The bandwidth usage of most IoT devices will probably be low IoT will not be the main bandwidth driver

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Smart cities and transport:Realtime communication for vehicles and infrastructure

Autonomous cars will be packed with cameras, sensors and other data-producing devices- Latest Tesla model X has 8 cameras, 12 ultrasonars plus

radar- At present, cars used for mapping can generate 100 GB

data in one day

Vehicles will have increasing communicationsrequirements- Software updates- Entertainment and information systems- Vehicle-to-vehicle and vehicle-to-curb communications

Most processing likely to be done locally- Other requirements more important than bandwidth

Page 32: Bredbånd i et historisk perspektivAudio & video Video streaming 3 47 1 1 240 Video conference 1 5 5 50 Gaming 1 20 5 190 Voice 2 0.6 0.6 3 Smarthouse M2M 50 0.5 0.5 20 Video Surveillance

Welfare technology:Communication lifeline

Technology will allow people to safely live at home longer (+ economic push)

Safety requires a dependable broadbandconnection

Capacity requirements will be modest compared to entertainment: video is maincapacity driver

Robustness essential – redundant lines probably needed

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All services go mobile:Individualization of needs

Mobile devices are central in work and leisure

Mobile traffic grows at a much faster pace than fixed

Consumer expectations change– Connected everywhere with sufficient capacity

0

20000

40000

60000

80000

100000

120000

2015 2016 2017 2018 2019 2020

PB

per

mo

nth

Consumer Internet traffic

Fixed Mobile

Source: Vala Ashfar, Cisco Visual Network Index, DR Medieforskning (2016)

CAGR: 22 %

CAGR: 54 %

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Approach

Estimate peak bandwidth need for selected user groups– The busiest 5 min average during a day

Fixed bandwidth need and data volume is sum of connected users

Mobile bandwidth need and data volume is individual use

Page 35: Bredbånd i et historisk perspektivAudio & video Video streaming 3 47 1 1 240 Video conference 1 5 5 50 Gaming 1 20 5 190 Voice 2 0.6 0.6 3 Smarthouse M2M 50 0.5 0.5 20 Video Surveillance

Broadband needs towards 2025Reference groups

The digital family

• 4 household members• Heavy use for work, school and

entertainment• Early adaptors of new technology• Mobility important

The engineer@home

• Home office for construction engineer• Heavy use of video conferencing• Heavy use of specialized applications• Frequent transfer of large datasets

The digital plumber

• Plumbing firm with 10 employees• Cloud applications and video conferencing at

headquarters• Digital work platform at customer sites• Video-based support on site

The single household

• 1 household member (Laura, 79 years)• Entertainment is bandwidth driver• Enjoys visits from grandchildren• Dependent on online welfare services

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Summary of capacity needs

Low

Low

Normal

Normal

High

High

020406080

100120140160180

The digitalfamily

SingleHousehold

The digitalplumber

Theengineer @

home

Downstream Capacity

LowLow

Normal

Normal

High

High

0

10

20

30

40

50

60

The digitalfamily

SingleHousehold

The digitalplumber

Theengineer @

home

Upstream Capacity

0

5

10

15

20

25

30

35

The digitalfamily

SingleHousehold

The digitalplumber

Theengineer @

home

Mobile Capacity per user

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Summary of data volumes

0

200

400

600

800

1000

1200

1400

1600

1800

The digitalfamily

SingleHousehold

The digitalplumber

The engineer@ home

Gig

abyt

e/m

on

th

Fixed data usage (total)

-

10

20

30

40

50

60

70

80

90

100

The digitalfamily

SingleHousehold

The digitalplumber

The engineer@ home

Gig

abyt

e/m

on

th

Mobile data usage per member