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March 26, 2013

Competition among Internet giants to reshape market: report

Move would lead to to major modifications in the Internet content delivery market over the next decade,

By CBR Staff Writer

As major telcos and Internet giants including Google, Amazon, Netflix and Microsoft battle it out for content-market dominance, the Internet content delivery market is expected to undergo huge change over the next decade, according to a new report.

Informa Telecoms & Media’s Internet Innovation report reveals that Google, Amazon, Netflix and Microsoft are trying to deliver enhanced digital content to their customers through edge caching on operator networks and deploying Internet Exchange Points (IXPs).

Internet giants, who are planning to build out their personal extensive Internet distribution networks, are also expecting to lessen the telcos’ pain over traffic volumes, while pushing aside increasing calls from operators for OTT players to pay volume-based wholesale charges for traffic being sent by them.

European operators such as Orange, Vodafone and Telefonica have been mainly demanding the introduction of wholesale charges as per the volume of data traffic passing through their networks.

The report reveals that lack of universal support and the rising usage of new technologies for OTT-traffic management are the reasons for unsuccessful calls for a more formal model for charging large content providers.

During the next decade, several commercial and technological arrangements for managing the relationship between telcos and content providers will come out including bandwidth-management strategies, content caching and delivery technologies.

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