This document discusses the modern telco network and the telco cloud. It begins by explaining why telcos need to move to a cloud model due to factors like IP transport commoditization and the customer experience. It then defines what a telco cloud is, highlighting its key properties like physical distribution, low latency, and seamless integration of data centers and networks. Requirements for the telco cloud are outlined, including the need to support various use cases and unique requirements of telco VNFs. Finally, a mobile use case is presented to demonstrate how a telco cloud could support functions like the EPC and provide orchestration across distributed infrastructure.