A forked road for ISPs
Internet service providers need to rethink their business models if they are to survive the next wave of connectivity.
03 January 2008
With a billion users already online and an estimated two billion by 2015, network operators are warning of a flood of data transmission. To meet this ever-increasing demand, internet service providers (ISPs) are pressing network infrastructure providers to supply gear that can transmit more data at a faster rate.
Paul Gainham, director of service provider marketing for Juniper Networks EMEA region, says that although this demand puts network suppliers in a strong position in the short term, in the long term, this is not sustainable.
He warned that the continual heavy investment in infrastructure will not only bring less profit, but is the route to commoditisation. This is unless the ISPs decide not only to be carriers of data, but to also add value to the content creators.
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