Global network construction resurgence

23 Apr 2015

New data from TeleGeography’s Global Bandwidth Research Service reveal that international bandwidth grew 44% in 2014, to reach 211Tbps. The 65Tbps of new capacity deployed in 2014 is comparable to nearly the entire amount of bandwidth in service globally in 2011.

This rapid capacity growth is driven by a changing mix of global network operators. Private networks, particularly those of large content providers, account for a growing share of international bandwidth, even surpassing Internet bandwidth on the trans-Atlantic route last year. Consequently, network operation has become a core part of the business for some of the largest content providers.

With the largest content companies building their own networks, it might appear that little opportunity exists for traditional network operators. However, not all wholesale customers can achieve as large of a scale as content companies, leaving substantial demand for purchases of more granular increments of capacity.

Network operators are meeting bandwidth demand by both upgrading the capacity of existing cables and investing billions of dollars in new systems. New cables set to enter service in 2015 include Asia Pacific Gateway, Hibernia Express, the Pacific Caribbean Cable System, and Bay of Bengal Gateway. While Africa and Asia have accounted for the bulk of new submarine cable investments over the past three years, the focus of new investment is shifting, with more than USD1 billion worth of new cables expected in Latin America and also on the Europe-Asia route by the end of 2016.

‘Traditional wholesale carrier consortia are continuing to build global cable systems, even though content providers 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 invest 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 underserved markets, or secure competitive advantage.’

Join TeleGeography on Tuesday, 5 May at 11:30am EDT/4:30pm BST for our Global Submarine Cable Market Trends webinar. Topics to be addressed include:

• What are the key drivers of international bandwidth demand?

• How fast are content providers and other private network operators adding capacity, compared to Internet backbone operators? On which routes is most capacity being added?

• How fast are content providers and other private network operators adding capacity, compared to Internet backbone operators? On which routes is most capacity being added?

• How much unlit capacity remains on major routes?

• Where are transport prices falling fastest?

Register for the 30-minute webinar and Q&A at this URL:

https://attendee.gotowebinar.com/register/6435742090036951041

TeleGeography’s Global Bandwidth Research Service provides detailed data for the long-haul networks and submarine cable industry, including supply, demand, cost, and pricing analysis, and profiles for 384 network operators and 333 submarine cables.

To speak with an analyst, please call +1-202-741-0042 or email press@telegeography.com.

http://www.telegeography.com/research-services/global-bandwidth-research-service/index.html