The functional purpose of any industry deregulation is to cause incumbents to lose market share. The functional purpose of new regulation often is to restrict market share held by market leaders, eventually causing share loss for the leaders. As regulators examine markets led by hyperscale app providers, that is going to be a relevant issue.
That is precisely what has happened in the connectivity business. That will be the case for possible regulatory restrictions placed on hyperscale app providers, as was true for connectivity providers.
Consider services purchased by enterprises.
Though Verizon, AT&T and Comcast stand atop the market share ranking for sales of connectivity services to U.S. enterprises, about 40 percent is shared by a number of other providers.
Among them are:
Lumen Technologies
Cogent Communications
Windstream
Zayo Group
Equinix
Digital Realty
Telehouse
NTT Communications
GTT Communications
Tata Communications
To be sure, U.S. enterprise spending on information technology services and products has grown steadily since 2000, according to IDC estimates. The issue is market share, as many new competitors have entered the market.
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