ACG Research

ACG Research
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Friday, September 30, 2011

The Demand Drivers and Economics of 100G Ports

A broad spectrum of routing, switching and transport vendors is now adding 100 Gbps ports to their product lines. These high speed ports are arriving just in time to meet the capacity requirements of large service providers’ core networks. In addition, 100G technology will help to drive down both CapEx and OpEx which will help service providers to control their costs in an environment where revenue growth is not keeping up with traffic growth.

IP network traffic is growing in a range of 35% to 85% per year across the world. It is growing in all market segments—residence, mobile and enterprise. Residential service usage will be the biggest contributor to overall IP traffic growth. Residential traffic growth is driven by the widespread acceptance of broadband service and the rapid adoption of Over-The-Top (OTT) video content. OTT video has a major impact on network traffic for three reasons. First video content requires much more bandwidth than other media. For example, traditional voice telephony requires 64 Kbps while Verizon FiOS HDTV service requires 18 Mbps. Secondly OTT video as well as Video on Demand are unicast services—each viewer receives a unique flow of video content. In contrast, broadcast TV is multicast—all viewers are connected to the same flow of video content. This has an overwhelming impact on network traffic. Video is expected to comprise over 90% of total traffic within the next three years.

Read the entire article in FierceTelecom's e-book.

Michael Kennedy

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