Monday, 14 January 2013 00:00 | Dr. Yair Shapira, VP of Marketing and Business Development, DiViNetworks
Capacity will continue to be a notable expense for ISPs in 2013
1.Total data capacity expenditure continues to grow – ISPs used to believe that bandwidth demand will be offset by declining capacity prices. Nevertheless, current figures demonstrate growing total expenditure on Internet connectivity. The gradual price decline does not compensate for the booming hunger for bandwidth.
2.CDNs stop at region rather than country-level – Major CDNs are long awaited for by ISPs in developing countries. The locally stored content was supposed to reduce international capacity cost and improve QoE. Alas, CDNs make different calculations when it comes to developing countries and choose to deploy regional PoPs rather than local nodes.
3.ISPs de-centralise – The simplicity of deploying wireless networks fed the proliferation of local small ISPs. On the access-network level it became easier to be an ISP. On the upstream front, though, small ISPs suffer margin stacking and pay the highest rates for Internet connectivity.
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