Showing posts from April, 2016

U.S. Accounts for 46% of Global Data Center Sites

The United States now accounts for 46 percent of major cloud and internet data center sites globally, say researchers at Synergy Research.

China has seven percent of the sites, while Japan has six percent.

Australia, Singapore, Germany, the United Kingdom and Brazil each represent three percent to five percent of the global market.

On average, each of the largest 17 firms had 14 data center sites.

The companies with the broadest data center footprint are the leading hyperscale cloud providers such as Amazon Web Services,, IBM and Microsoft.

Each of those four firms has 40 or more data center locations with at least two in each of the four regions including North America, Asia, EMEA and Latin America.

Google, Oracle and Rackspace also have a notably broad data center presence.

The remaining firms tend to have their data centers focused primarily in either the United States (Apple, Twitter, Salesforce, Facebook, eBay, Yahoo) or China (Tencent, Baidu).

Alibaba has now opened data centers in the…

Half the World Colocation Market Exists in Just 15 Cities

Just five metro areas account for 27 percent of worldwide retail and wholesale colocation revenues, according to researchers at Synergy Research.
The top five metros include New York, London, Washington, Tokyo and Silicon Valley.
The next 10 largest metro markets account for another 25 percent of the worldwide market. So half the world market exists in just 15 cities.
Those top 15 metros include six in the United States, four in the EMEA region and five in Asia. .
Across the 15 largest metros, retail colocation accounted for 76 percent of fourth quarter  revenues, while wholesale sales accounted for 24 percent.
Equinix was the market leader by revenue in eight of the top 15 metros and Digital Realty was the leader in two markets.
Other colocation operators that featured heavily in the top 15 metros include NTT, DuPont Fabros, Interxion, China Telecom, 21Vianet, KDDI, @Tokyo, SingTel, Global Switch, CoreSite, CyrusOne and TelecityGroup (since acquired by Equinix).
In 2015 colocation reven…

Amazon Dominates Cloud Computing Market, But Microsoft and Google are Growing Share 100%

In the public cloud business, scale matters.
Amazon Web Services (AWS) continues to dominate the cloud infrastructure services market with a 31 percent worldwide market share.
The big three followers--Microsoft, IBM and Google--collectively account for 22 percent market share.
The next 20 top-ranked cloud providers accounted for 27 percent.  
Microsoft and Google both achieved growth rates of well over 100 percent.
Outside of the big four, the next 20 cloud providers are growing at an average 41 percent per year, but in a market that is growing at over 50 percent that means that most of them are losing market share, according to researchers at Synergy Research.

Spectrum Auctions Could Mean Big Trouble for India Mobile Firms

Posting a huge operating loss of 3,100 million Norwegian Krone (around Rs 2,530 crore) for its India mobile business, Telenor executives warned that they would exit the Indian market if it was unable to secure new spectrum at reasonable rates.
At the same time, the Indian arm of Telenor looks to expand 4G footprint and said it would offer the lowest tariff for these services as part of its affordable pricing strategy.
“We are not able to compete with the current spectrum portfolio we have in the growing data market,” Telenor global CEO Sigve Brekke said. But Brekke also emphasized that the additional spectrum would have to be available at “a price that we can justify.”
Some fear widespread damage to mobile company business models if most of the spectrum India plans to auction later in 2016 is sold at or above present minimum prices.
That spectrum auction involves a huge amount of spectrum, and might prove problematic, for traditional and new reasons.
On one hand, the auction will release u…

FCC to Re-Regulate Special Access, Include Cable TV for the First Time

The U.S. Federal Communications Commission is considering a major change in regulation of special access services, extending wholesale obligations for the first time to cable TV and fiber to premises connections, using a principle of “technological neutrality.”
The rules have not yet been made public, but in addition to bringing cable TV facilities under the mandatory wholesale regime for the first time, the order is expected to reintroduce price regulation of special access services. Many believe wireless backhaul is the main reason the new approach is being taken, essentially to “protect” prices for backhaul circuits for mobile carriers who do not own fixed network assets.
The problem, some argue, is that such wholesale rules always have some clear consequences.
By forcing carriers to provide competitors wholesale access to special access facilities, one provider takes the risk of investing in the facilities, while other competitors then are able to lease use of those same facilities…

Will Others Take Proposed Telco Platform Role?

At the risk of sounding unduly skeptical, when something doesn’t make sense, maybe that is because it simply “doesn’t make sense.” More positively, perhaps an ecosystem has simply not had enough time to develop.
Analysys Mason, for example, calls for telcos to shift to a platform-based model.
“Platforms are the key to success in the digital economy,” Analysys Mason analysts argue.To be clear, that means creating a role something like that possessed by Apple, AirBnB, Alibaba, Amazon, Facebook, Google, LinkedIn, Rakuten,, Uber, Xbox and others.
Platform providers build ecosystems around their core business. Apple and Google have thousands of developers and hundreds of accessory manufacturers continually creating complementary products for each ecosystem.
So the task to envision how any access provider similarly can create a platform--presumably for managed services of some type-since it seems unlikely an access provider actually can become a platform for Internet OTT apps.…

The Next 4 Billion Internet Users Will be Connected Using Wireless

There’s a very simple reason some of us spend so much time thinking about and working on ways to use wireless platforms to expand Internet access: it is the way the next four billion Internet users are going to get access.
“The next four billion (Internet users) will come online through some form of a wireless connection,” said Chris Weasler, Facebook global head, spectrum policy and connectivity planning.
“We have a number of different projects underway to address connectivity,” Weasler said. New access technologies and architectures have to be more affordable, Weasler said.
One example is Aquila, the solar-powered unmanned aircraft that Facebook expects and hopes will provide a new way to do backhaul. It “could be used by mobile operators, Wi-Fi operators” or others, Weasler said.
Facebook also has Identified bands of spectrum where Aquila  would not interfere with existing spectrum users, also would work for UAV platforms that are expected to provide quite a lot of bandwidth.
To that …

More Evidence that a Fixed Wireless Renaissance is Underway

Here’s one more sign that fixed wireless is undergoing a renaissance in the U.S. market: Verizon will first introduce 5G as a fixed wireless service.
With Google, Facebook and AT&T exploring, testing or intending to deploy fixed wireless  for Internet access networks, the fixed wireless industry is on the brink of major redefinition. AT&T alone has said it would use fixed wireless to serve 13 million locations.
Others such as Starry, also are hoping fixed wireless emerges as a major platform for providing Internet access.
In 2012, there were perhaps 2,000 to 2,500 fixed wireless Internet service providers supplying Internet access to two million to three million subscribers in the United States, according to the Wireless Internet Service Providers Association.
So just about any serious deployment of Google, Facebook or AT&T fixed wireless would immediately reshape the U.S. fixed wireless business.
At 13 million connections, AT&T alone would represent 87 percent of all U.S.…

Comcast Boosting Usage Caps to 1 Terabyte, from 300 Gb

Comcast says it is boosting data usage limits in test markets from 300 Gbytes to one terabyte.

“Our typical customer uses only about 60 gigabytes of data in a month (by June 1, 2016),”
Comcast says.
“For the very tiny portion of our customer super users (less than one percent of our customer base) who want more than a terabyte, they can sign up for an unlimited plan for an additional $50 a month, or they have the option to purchase additional buckets of 50 gigabytes of data for $10 each,” Comcast says.

source: Economist

To Build a Big New Business Selling Internet Access at $2 a Month, You Need Lower Spectrum Costs

There is a good reason why spectrum policy has emerged as a key underpinning of efforts to eliminate the digital divide. Simply, connecting the unconnected will require infrastructure that costs far less.
For many, that means greater reliance on use of shared spectrum and license-exempt spectrum. The former promises lower license fees, the latter zero license fees. Both will allow business models that can work on lower retail costs.
“Singapore says they really only use 6.5 percent of allocated spectrum,” says  H Nwana, Dynamic Spectrum Alliance executive director. Spectrum sharing can allow much more intensive use of that fallow capacity, without relocating existing licensed users, and almost certainly at lower spectrum costs than a traditional licensed approach would require.
There is very little shared spectrum at the moment, says Richard Thanki, University of Southampton, even though Wi-Fi carries 57 percent of all mobile data traffic. But “a new spectrum consensus is developing,”…

Google Fiber Launching in Nashville

Google Fiber is launching symmetrical 1 Gbps in Nashville. By itself, the launch might not “move the needle” on the number of U.S. consumers buying, or able to buy, gigabit or other high-speed access in the hundreds of megabits per second range.
But it is hard to argue that Google Fiber has failed to change the market, even if competitors sometimes say, with an apparently straight face, that Google Fiber has not affected their thinking at all.
It is hard to argue that Comcast and other firms would be rapidly upgrading their high speed access services to gigabit levels had Google Fiber not entered the market.
On the other hand, it often goes unnoticed that Comcast also has increased Internet speeds for residential customers 16 times in the last 14 years, atrates equivalent to Moore’s Law, Comcast has said.
Comcast, for example, now plans to upgrade 100 percent of its access connections to 1 Gbps, with some 85 percent of locations able to order a 2-Gbps service as well.
There also is a p…

Virgin Media Access Upgrades Illustrates Principle That Apps Matter More than Access Method

In the broader Internet ecosystem or the “telecommunications” business, it ultimately is the apps that matter, and less the details of infrastructure. Consider the way Virgin Media plans to upgrade access to 17 million U.K. households by 2019.
At least a quarter of the four million locations to be upgraded as part of Project Lightning will be connected using fiber to the home platforms, rather than the traditional hybrid fiber coax platform.
Customers will not see a difference, as the same set of services and Internet access speeds will be available to all potential customers, no matter what the access method.
Likewise, all consumers will use exactly the same modems and TV set-top boxes, no matter what the access method. The way Virgin Media is deploying its FTTH network uses a protocol known as Radio Frequency Over Glass (RFOG).
RFOG allows the cable operator to use the same headend and customer premises gear, no matter what the access platform, as well as standard HFC transmission tec…

Verizon, EE, Telstra, KT Found LTE-B Alliance

Verizon Communications, Australia’s Telstra, South Korea’s KT and United Kingdom-based EE have formed the LTE-Broadcast Alliance, seeking to influence development of standards and equipment support for LTE Broadcast services, also known as “evolved multimedia broadcast multicast service.”
The goal: LTE-B support in “every top- and mid-tier device launched in 2017.
The business advantage is extreme bandwidth efficiency when sending many copies of a single media message or stream to many users. LTE-B is multicast--akin to TV or radio broadcasting--rather than unicast, the way people grab Internet content.
Though the obvious current set of applications includes local multicasting of sports content, inside stadiums, for example, supporters also believe there are other  applications including push notifications, digital signage and “Internet of Things” updates (Think of software updates for sensors and controllers).

It is Getting Harder to Compare T-Mobile US and AT&T; Business Models are Highly Different

Different business models now showing up in AT&T and T-Mobile US operational results. T-Mobile US touts its success gaining phone accounts. AT&T is growing in other lines of business, including video and Internet of Things.
One can compare the mobile net adds, certainly. Still, for T-Mobile US, mobile is the whole business, and ability to take phone accounts is what matters.
AT&T has shifted its growth efforts to Mexico and entertainment video, quickly. The two firms always had competed in different market segments. But that difference now has widened.
T-Mobile US appears once again to be capturing most of the net account growth in the U.S. mobile business in its first quarter of 2016, much as cable TV firms are gaining nearly 100 percent of the net growth in the fixed line Internet access business.
We will know for certain, soon enough, but some believe the first quarter will show that all the leading four firms gained net phone accounts.
Indeed, AT&T reported it added…