NTT America, a wholly owned U.S. subsidiary of NTT Communications Corporation(NTT Com) and a Tier-1 global IP network services provider, today issued its biannual state of the industry assessment of key trends shaping the broadband and IP transit industry.
Michael Wheeler, executive vice president, NTT Communications Global IP Network, NTT America, said preparing Latin America for increased broadband data consumption is a priority, especially as Brazil readies for the 2014 World Cup and 2016 Summer Olympics. Additionally, demand for real-time mobile content and the rise of sophisticated DDoS attacks are other key factors changing the Internet industry.
Focus Increases on Developing Brazil’s Telecom Infrastructure as World Cup and Olympics Approach
As Brazil prepares for the 2014 FIFA World Cup and 2016 Summer Olympic Games, the biggest hurdle facing the country is developing its telecommunications infrastructure to improve Internet access and bandwidth capacity, according to Wheeler. Telebrás, Brazil’s state-owned service provider, is investing upwards of $400 million dollars (BRL) in the next few years to steer growth and development. As a result, domestic and international carriers are crucial in supporting the Brazilian government to meet the cellular and Internet data needs. These World Cup and Olympic events will represent the first time video content will originate from Brazil and be streamed out in such large numbers globally.
NTT Communications was recently awarded a contract by Telebrás as one of two international carriers that will enable São Paulo residents to connect to international markets through a high quality network. NTT Communications was selected due to its direct access to major markets around the world and Point of Presence (POP) location in São Paulo.
“Consumption of mobile video and other forms of over-the-top content will continue to grow exponentially through 2016. While most users don’t realize how demanding these service requirements are on providers, new technologies will be the driving force for developing the next-generation Internet services in both wireless and wireline,” said Wheeler. “Successful service providers will have an established infrastructure of high bandwidth, next-generation equipment and industry expertise to manage dynamic content demands.”
Video Streaming and Chatting on Mobile Devices Soars; Demands Greater Expectations of Carriers
The number of devices connected to IP networks will be nearly three times as high as the global population in 2016, according to a recent report from Cisco. Driven in part by the increase in devices and the capabilities of those devices, the same report concludes that IP traffic per capita will be the equivalent of all movies ever made crossing global IP networks every three minutes in 2016. In terms of consumer Internet traffic categories, Cisco estimated mobile video consumption to grow 83 percent through 2016, and online gaming is estimated to grow by 46 percent by 2016.
“This generational consumption shift in Internet-based activities is changing how carriers design networks to provide the best possible user experience,” said Wheeler. “While most don’t realize how demanding these services are on providers, new technologies will be the driving force for developing the next-generation Internet services. Successful service providers will have an established infrastructure of high bandwidth, next-generation equipment and industry expertise to manage dynamic content demands.”
Given the increase in over-the-top (OTT) content, the optimal network architecture that is flexible in shaping bandwidth for content distribution and delivery worldwide are fundamental to containing costs. The services Tier-1 providers offer are key to providing high-quality bandwidth and capacity to support the demand for OTT content. NTT Communications’ high level of redundancy, industry leading uptime and extensive network of peering partners can help customers prepare for this growth.
DDoS Attacks Grow, Posing a Constant Financial Threat to Online Businesses
With more than 7,000 attacks reported daily worldwide, distributed denial of service (DDoS) threats continue to rise in number, size, frequency and complexity. The business costs associated with DDoS attacks are substantial for any online entity. As research from industry reports indicate, monetary losses from a DDoS attack can range from $90,000 to $6.5 million per hour.
Despite the growing threats, protection and mitigation efforts of many global companies, government entities and advocacy groups remain inadequate and antiquated.
As DDoS attacks become more sophisticated, proper mitigation is critical. Wheeler urges businesses to prioritize a contingency plan for DDoS attacks. When companies select their mitigation service provider, it is important to understand the level and type of security support provided.
“While many DDoS mitigation services are entirely automated, and as attacks become more sophisticated, the need for expert human judgment and monitoring are a necessity in determining the legitimacy of traffic,” said Wheeler. “At NTT America, our US based Security and Abuse Team is working 24 hours a day, 7 days a week, assuring that online assets and network availability are aggressively protected.”
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