Page 76 - SAMENA Trends - July-August 2022

ARTICLE SAMENA TRENDS

New premises and approaches for a new
world
The way we bring access to connectivity
can no longer ignore the changes that
our world has and is undergoing: the
investment, funding and financing
models that enabled earlier infrastructure
development and its utilization, that
developed today’s digital ecosystems, and
which allowed for possibilities that citizens
would have access to relevant content and
digital services no longer suffice. They
were created for the market realities and
economic perspectives of the 20th century.
Today, however, many companies and
industry-related stakeholders benefit from
delivering services through broadband
infrastructure. For some companies, such
service delivery constitutes a simple yet
powerful business model that leverages
broadband infrastructure traditionally
built solely by telecom operators. Recent
reports by AXON Partners and GSMA [4]
[3]
show that most new value from the digital
revolution is captured by over-the-top
services and content providers: the largest
share of global internet traffic, namely
57%, is generated by only six companies,
shareholder returns have stagnated for
Internet access connectivity, growth in
market capitalization and revenues of
telecommunications operators are lagging
significantly behind that of the big global
digital platforms, and global traffic share of
different OTT services / platforms take the
lion’s share, as shown in Fig.2.
Figure 1(A): Digital value capture
As digitalization of our society is ongoing, drastic improvements in today’s telecoms Therefore, to meet these objectives and
demands on network development and networks . This position is emphasised provide better quality of service to consum-
[8]
optimization will keep growing. A recent in the European Commission’s 2030 ers, telecom operators must invest heavily
study by the GSMA finds that monthly global Digital Compass: the European way for in upgrading their network infrastructure
consumer internet traffic volumes have the Digital Decade: “By the end of this and develop 5G and FTTH networks. This,
been growing at 34% per year, representing decade, new digital communications however, can only be achieved if the con-
per user growth of around 27% every year features and capabilities such as high- tributing base to broadband infrastructure
between 2015 and 2020 . This trend will precision, holographic media, and digital- is broadened. According to the Chairman
[5]
continue in the wake of the Metaverse and senses over the networks, are expected and CEO of Telefonica José María Álva-
web 3.0. The average mobile user in Europe to provide a whole new perspective to a rez-Pallete López, demands on networks
is expected to use 16.2 GB/month in 2023, digitally enabled society underpinning the will only be able to be met when all stake-
compared to 8.5 GB/month in 2021, while need for gigabit connectivity. Well before holders that benefit from networks start to
a fixed broadband line is expected to use the end of the decade, businesses will contribute to the costs of its provision. “To-
454 GB/month in 2023 compared to 293 need dedicated Gigabit connections and day roughly 56 percent of the capacity of
GB/month in 2021 . New value-added data infrastructures for cloud computing the network—of the European networks in
[6]
services, including those offered by OTT and data processing, in the same way this case—is being used by only five over-
players, will continue to develop, calling as schools and hospitals will need the-top [OTT] players that pay nothing for
for improved connectivity to be provided this for eEducation and eHealth. High the use of the network. The huge growth in
by network operators . In this regard, OTT performance computing (HPC) will require traffic during the pandemic has highlight-
[7]
service providers have noted that emerging terabit connections to allow real-time data ed that there is an asymmetric effort here,
services will not be possible if there are no processing.” [9] and I think the time has come for more

76 JULY-AUGUST 2022