FTTH and Online Business Models

The internet is not a cloud, it’s a collection of privately owned and managed routers, fiber optics equipment and servers.The internet is really a network of networks, and is changing a lot of business models. like changing how we watch TV and movies.

Business Models being changed

Let’s take the TV, Video and Streaming business as examples, you can consider these developments:

  • In January of 2005 youtube didn’t even exist, now uses are downloading a hundred million youtube videos a day.
  • Netflix currently mails 1.4 million DVDs everyday they’re going to start sending their movies over the internet.
  • WAL-MART counts for 40% of all DVD sold in America, they’re going to start delivering movies over the internet too.
  • Xbox360 users can download high-definition movies directly to the console.
  • And amazon has a new service called unbox, let your reach and watch movies over the internet.
  • Apple’s itunes store now sells TV shows and movies over the internet, and they have a new device to been land to your TV.
  • SONY just released a “TV” that connects directly to the Internet.
  • Don’t forget Sling box they let you watch programs from your TV and DVR(DigitalVideoRecorder) remotely, you get it over the Internet.

And there’s a lot of other application streaming video.

The “X Flood”
There’s some not so desired inventions to!Spam doubled last year and spammers have started using JavaScript to get around mail/text severs so messages have gotten a lot bigger.and rubbish and the only unwelcome traffic on the networks.On February(2009) sixth hackers try to bring down the internet by attacking DNS servers.The attack lasted twelve hours briefly crippled seal of the thirteen root servers, but due to the resiliency of the network the attack was beaten back.

Movies, Video, Spam and other uses are clearly travel more traffic on the net, but how much traffic?Let’s put things into perspective:
Downloading a high-definition movie takes more bandwidth and doing 35000 webpages.It’s like downloading 2300 songs from the itunes music store.

FTTH: Terminator
Internet pioneers are wondering if the internet can handle it;Research analysts have concerns;Even google was worried.
They don’t think the internet is ready. Soon the Internet will need to handle exabytes(1 EXABYTES= 1000 Petabytes) of traffic that’s a thousand petabytes or one billion gigabytes technology leaders are calling it “X Flood”.Is this a bad thing?Should we be worried?No, it means the internet is growing up.To filling its potential.The “X Flood” is only a problem for not prepared for it.

So how do we get ready?

We need to upgrade the infrastructure of the internet.Backbone providers are spending billions upgrading from OC48(means OpticalCarrier48, speed is about 2488.32Mbit/s) to OC192(OpticalCarrier192, 9953.28Mbit/s) and they’re working on OC768(OpticalCarrier768, 40Gbps) which will be even bigger faster and more expensive.And we need to upgrade the critical local access infrastructure from homes to the internet.Local providers right now we’re spending tens of billions of dollars to deploy fiber to the home(FTTH), another deep fiber networks.

Soon they’ll be able to offer 100 Megabyte per second Internet access services fifty times faster than today.And one Gigabit services are on the drawing board, but it won’t be enough to keep up, the internet is growing exponentially.

We need new innovations in network technology.
i).Smart networks can help manage traffic congestion and make sure time-sensitive data packets don’t get delayed or lost and researchers need to keep working on
compression technology to make the content smaller and the quality better.
ii).Research and innovation must continue both of the edge and in the core of the network.To get the internet ready for the “X Flood”, we need to make sure there are no
artificial barriers to investment and innovation on the network.
iii).Smarter networks also mean more customized services for content providers accompanied delivery moving to a customer or an online gaming network can choose special
services that enhance their customers experience those companies and customers the most directly benefit.

Pay for that benefit that’s a better solution than raising everyone’s monthly rates and making people paper services they don’t use.It’s important to make sure consumers don’t get stuck with the whole bill for upgrading the internet.
Because lower monthly broadband rates means more families can afford high-speed internet connections;More people can be part of the high-speed internet revolution.And
that’s a good thing need to find ways to continue network improvements without leaving any one behind.There’s a lot of work to be done and a lot of decisions to be
made will the internet be ready for the X flood?

We will see…
(–Great thanks to FTTH Council)

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