Tuesday, February 1, 2011

Will Big Carriers Take Over CDN Business?

There's a general rule in the communications business that a specialist wants to find a niche that is unattractive to the tier-one telcos, but big enough to be very interesting for the specialist. Lots of services start out small, but then get big enough to draw the interest of the tier one providers, typically with unpleasant results for the niche providers.

Mobile phones, digital subscriber line (broadband access) and SIP trunking are just a couple recent examples of services the big tier one providers avoided until it was clear they were going to be significant.

One wonders whether the content delivery networks business, which has been such a niche, now is becoming big enough to matter to tier one telcos.

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