11 Comments

Summary:

Carriers are building out long-haul network capacity like it was 2001, but they’re not going to break the bank this time around, according to a report out today from TeleGeography Research. The firm’s Global Bandwidth Research Service says the growth in submarine cable and long-haul transport […]

Carriers are building out long-haul network capacity like it was 2001, but they’re not going to break the bank this time around, according to a report out today from TeleGeography Research. The firm’s Global Bandwidth Research Service says the growth in submarine cable and long-haul transport capacity is in response to a 64 percent surge in international bandwidth usage last year.

More than 60 percent of U.S. network operators surveyed will light new fiber on their network in 2009, and there are 16 planned undersea cable projects for 2009. That’s more than the number of cables laid in 2001, during the peak of the submarine cable investment bubble. This time around it will be cheaper, too, with the firm estimating the planned cable construction will cost $2.6 billion compared to $13.5 billion spent on systems back in 2001. The buildout in undersea optical cables should be viewed as a good thing, especially if Om is correct when he points out that network growth often presages an economic boom.

networks

You’re subscribed! If you like, you can update your settings

  1. An up and coming “boom” in network capacity in fiber, on initial analysis, is seemingly a good thing for one and all. Unfortunately, there’s no indication of the infrastructure build-up necessary for to support the potential speeds of fiber. A quick lookup on Google for all the service providers (Verizon, AT&T, Time Warner, etc) results in many current articles about capping of speeds, an overall unwillingness to provide ubiquity of access, a multitude of inbred internal politics, and reactionary governmental agendas. In short, cable broadband and its adoption in the U.S. basically stinks like big moose poopies. Especially in comparison to Japan, South Korea, and parts of Europe. And while it’s easy to accept that we a very broad geography (and an extremely dated telecom network that needs updating), the fact that fiber has been around for so long (25+ years) and we’re just now talking about advanced fiber implementations…it’s just a frakkin’ travesty.

    1. Good one!
      While other countries get “up-to-dates”, we wait for the “wholesales” available.

  2. Alan Cheslow: Demand for Bandwidth Leads to Fiber Boom – http://gigaom.com/2009/05/05/demand-for-bandwidth-leads-to-fiber-boom/ | Consumer Electronics, Social Media, and the Digital Home Tuesday, May 5, 2009

    [...] Alan Cheslow: Demand for Bandwidth Leads to Fiber Boom – http://gigaom.com/2009/05/05/demand-for-ban… May 5th, 2009 [...]

  3. Internet Marketing, Strategy & Technology Links – May 7, 2009 « Sazbean Thursday, May 7, 2009

    [...] Demand for Bandwidth Leads to Fiber Boom (GigaOM) [...]

  4. Fiber Boom in a Financial Bust « Media Experiences 2 Go Thursday, May 7, 2009

    [...] to be renewed activity on the fiber network front. According to research firm TeleGeography (via GigaOM), more than 60% of US operators plan to light up more fiber in 2009, and telcos have 16 new [...]

  5. Japan’s NTT Snaps Up Undersea Cable Co. Tuesday, May 26, 2009

    [...] vital infrastructure connecting the web around the world. Earlier this month, we reported on the boom in undersea cable construction in response to a 64 percent surge in international bandwidth use last year. Asia is a huge and [...]

  6. The Coming Trans-Atlantic Bandwidth Crunch Monday, June 22, 2009

    [...] paying for expensive optical infrastructure. It’s a good thing that this undersea cable buildout is expected to be cheaper than the last one. From the report: Consequently, current wholesale rates of approximately $14,000 per month for [...]

  7. The Coming Trans-Atlantic Bandwidth Crunch | Design Website Monday, June 22, 2009

    [...] paying for expensive optical infrastructure. It’s a good thing that this undersea cable buildout is expected to be cheaper than the last one. From the report: Consequently, current wholesale rates of approximately $14,000 per month for [...]

  8. Alcatel Lucent Boosts Fiber Speeds by 10x in Lab Monday, September 28, 2009

    [...] and geographic regions will get there, and that capacity increase is reflected in the growth of long-haul networking demand. That’s why research such as this and new companies such as Cyan Optics are so important to [...]

  9. Internet Keeps Growing! Traffic up 62% in 2010: Tech News « Wednesday, October 6, 2010

    [...] said, the networks are not evenly divided. The capacity is still in abundance in larger, more mature markets but less so in newer markets such as Africa. This will be changing [...]

Comments have been disabled for this post