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Open Connect give streaming video services greater control
over the performance and cost of content delivery.
And, with the largest content companies building their
own networks, where does that leave traditional network
operators? There are plenty of roles to play on the wholesale
front. For instance, just like third-party CDNs, content pro-
vider-run CDNs must also establish relationships with other
network operators. Netflix, for instance, would not have had
to establish its individual paid interconnect agreement with
Comcast, if it had continued to use a third-party CDN ser-
vice instead of Open Connect.
However, not all wholesale customers can achieve as
large of a scale as content companies, leaving additional, and
substantial, demand for purchases of more granular incre-
ments of capacity, Telegeography noted.
“Traditional wholesale carrier consortia are continuing
to build global cable systems, even though content provid-
ers now play a major role in network development on core
routes,” said TeleGeography research director Alan Mauldin.
“While content providers and other large capacity users in-
vest in new submarine cable systems to acquire large blocks
of capacity, such as a fiber pair, at low cost, service providers
build cables to improve route diversity, reach new or under-
served markets, or secure competitive advantage.”
Mobile networks are continuing to drive plenty of traffic,
as well. According to the latest annual update of the Cisco
Visual Networking Index (VNI) Global Mobile Data Traffic
Forecast for 2014 to 2019
, the ongoing adoption of more pow-
erful mobile devices and M2M connections, combined with
broader access to faster cellular networks, are key contribu-
tors to significant mobile traffic growth.
The worldwide shift from basic-feature phones to smart-
phones – combined with the continued growth in tablets, a
resurgence in laptops with tablet-like capabilities as well as
expanding machine-to-machine (M2M) applications – are
key factors supporting the increasing smart traffic trend.
From a global mobile network perspective, 3G is expected
to surpass 2G as the top cellular technology, based on con-
nection share, by 2017. By 2019, 3G networks will support
44 percent of global mobile devices and connections; 4G
networks will support 26 percent of connections, though will
generate 68 percent of traffic.
Last year, 88 percent of global mobile data traffic was
“smart” traffic, with advanced computing/multi-media capa-
bilities and a minimum of 3G connectivity, but that figure is
expected to rise to 97 percent by 2019.
In terms of topline traffic growth, the Cisco VNI projects
that global mobile data traffic will reach an annual run rate
of 292 exabytes by 2019, up from 30 exabytes in 2014. That
represents 292 times more than all the IP traffic, fixed and
mobile, generated in 2000; or 65 trillion images (e.g., 23
daily images per person on earth for a year; or a trillion video
clips, which is more than two daily video clips per person on
earth for a year.)
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