ai_header AI Homepage Deutsch English

15 May 2010

Fresh wind in the Wide Area Network (WAN) - Global Backbones

After an exciting 2009, 2010 is developing into an even more interesting year is for global backbones. And today we know that 2011 will bring even more changes!

In mid 2010 we see the logical consequences of the division of Africa among Asian carriers. After the takeover activities of Bharti Telecom, the expansion of East African routes by Indian carriers and their consortium and now the purchase of Dimension Data by the Japanese NTT that has gained them access to Africa, to name just a few highlights.

Western civilization largely missed the trend. Only France Telecom / Orange BS with their traditional links to West Africa and Telenor indirectly through their Indian involvement play significant roles. In contrast, the German Telekom announces that their strategy is not to buy anything. Meanwhile, Telefonica buys the Brazilian Vivo and continues its strategy in Latin America.

2011 brings the backbone technological revolution to Europe. For the first time we will build switched backbones in Europe with an enormous cost saving potential per unit and the opportunity to offer up to 100 Gbit/s lines.
Advanced Information network designers have already implemented numerous backbones of the previous technology and in 2011 will also be working on this exciting topic!

Carriers that do not update their backbone switches to the new technology are in danger of no longer being able to cover costs because of the expected dramatic falling unit prices.
Quite a few of the 512 carriers listed in the AI database that operate at 182 peering points will fall by the wayside. A dramatic market consolidation is imminent! In 10 years 80% of these carriers will have disappeared, or have significantly changed their business models.

Therefore, for some time investments have been planned. BT, for example, has bundled its Voice Termination Services with Tata Communications via a five-year contract.
Others specialize their business models and seek partnerships, Sita has long since ceased to own its own hardware.

Advanced Information advises carriers in their strategic planning.
You can trust our expertise in global markets, technology and economic efficiency!