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Home > Computers and Information Technology > Networking > Networks
Network Saturation?: Video’s impact on operators’ strategy
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| Published Date:
February 2008
Published By:
IDATE
Page Count:
44
Order Code:
R221-201
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The Internet was built over the years by “assembling” networks run by various operators. Interconnection nodes, also
called GIX (Global Internet eXchanges), perform traffic exchanges between these various networks. These exchanges
are most often done through peering agreements, which are symmetrical and free.
Usage has changed greatly and, just like other communication technologies, no one ever imagined the Internet’s
success, with P2P exchanges, blogs, video content sites like YouTube, etc.
The emergence of new uses, the increase in content, the success of some applications progressively puts into
question the role played by a handful of players and agreements governing traffic exchanges, which have become
asymmetrical. In particular, operators feel that other types of players are now taking advantage of a network in which
they never invested. In addition, the changes required to provide increasingly better performance are costly, and the
potential for changes in usage portend even greater investment in infrastructure. In the eyes of operators, the question
of sharing the costs has become essential.
The objective of this study is to identify the actual risk of Internet network saturation. What is the outlook for Internet
traffic changes and what are the consequences on infrastructure? What players will be the most involved? This report
presents the strategic options that could be implemented by operators.
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