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Mobile network operators are experiencing a tremendous increase in data traffic due to the growing popularity of bandwidth-intensive video services. This challenge can be faced either by boosting the capacity of the network infrastructure, or by means of offloading traffic from the backhaul and core network and serving contents from distributed cache servers close to the users. Network operators can extend the coverage of traditional CDNs by making usage of caching locations much closer to the users than traditional CDNs. Additionally, network operators can optimize the caching and delivery of contents by exploiting the complete knowledge of their network for designing a cost-effective infrastructure able to achieve both improved user satisfaction and cost savings. This article provides thoroughly justified design principles for a highly distributed operator-owned CDN while focusing on four key aspects: the optimal location of cache servers, mechanisms for request routing, content replica placement, and content outsourcing and retrieval.