IP Traffic Growth Is Recession Proof - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business/E-Business
Commentary
12/8/2010
08:25 AM
50%
50%

IP Traffic Growth Is Recession Proof

While it does not grab the headlines that it did at the turn of the millennium, demand for IP bandwidth and services continues to rise at lofty rates. Market research firm TeleGeography determined that carriers added 13.2T bps of new capacity to their networks in 2010, a 55% increase from the previous year's level.

While it does not grab the headlines that it did at the turn of the millennium, demand for IP bandwidth and services continues to rise at lofty rates. Market research firm TeleGeography determined that carriers added 13.2T bps of new capacity to their networks in 2010, a 55% increase from the previous year's level.A couple of factors are driving the bandwidth growth. In developing markets, broadband penetration is still in an early stage of development and carriers are trying to bring Internet service to customers. In more mature markets, wider use of bandwidth-intensive applications, such as video services, has sparked the need for additional capacity.

Carriers have been adding the extra capacity to ensure that there is sufficient bandwidth to support user transmissions. In 2010, average network utilization rose slightly to 32 percent while peak utilization remained unchanged from 2009, at 46 percent. In addition, IP transit prices continue to decline, even in mature markets like the US. Median prices for high-capacity Wide Area Network (WAN) ports have declined approximately 25 percent compounded annually over the past three years.

Moving into 2011, it seems like carriers will continue to add more bandwidth to their networks, so small and medium businesses will find needed bandwidth available and at their disposal. If they were concerned that their service provider would not be able to support higher bandwidth applications, such concerns seem unfounded. The more significant challenge may be their internal networks, which may need to be upgraded.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
News
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Commentary
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
Slideshows
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll