Tuesday, February 18, 2014

Delving Into The Series Of Tubes: How Internet Backhaul Works And Why We Need More

These transit providers long-haul and middle-mile networks, as well as the submarine cables, are all examples of backhaul how last-mile traffic gets back to the internet itself. The report concerns itself mainly with submarine cables, though. Many developing areas need more pipes connecting them to other parts of the world. This is both an economic issue (more competition between pipe owners lowers prices) as well as a resiliency issue (more pipes ensure that cable cuts will not shut down the communications network ). Not only do these areas need more submarine cables, but the ownership structure is changing, with big internet companies like Google and Facebook investing in backhaul at the submarine cable level as well as long haul fiber across countries. The OECD report lays out a detailed history of how liberalization and increased competition on the submarine cable side can lower prices and boost demand for internet-based services. In fact, the biggest takeaway from the OECD report which should resonate with all internet stakeholders, from the ISPs to the content guys is that the more open the system is in terms of access and peering, the more demand there is for these networks. That means ISPs that are trying to block content from entering their networks or force transit providers to pay for peering are doing their part to take more of the overall internet pie, but doing nothing to enlarge it. Meanwhile, efforts to put more IXPs in place, as Google has done in Kenya, help promote cheaper broadband and demand for more broadband. Thats also the rationale behind the open internet exchange effort in the U.S.
For the original version visit http://money.cnn.com/news/newsfeeds/gigaom/articles/2014_02_18_delving_into_the_series_of_tubes_how_internet_backhaul_works_and_why_we_need_more.html

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