I had a pleasure attending just recently Pacific Telecommunications Conference connecting several thousand top decision makers regarding networks, connectivity and data center industry. The delegates had gathered in Honolulu to discuss new development, technologies and building business for the future.
Telegeography, one of the leading telecom analysts gave a good overview to the communications market and their message was quite clear. It is rather hard to predict the future as the growth is so rapid that even the most advanced cloud services providers cannot give estimates to the traffic in 3-5 year span.
We see a rather clear convergence with the pricing ranges regarding connectivity in various areas which is a clear signal of converging world and also world more connected than previously. As technology evolves, declining prices is also a factor which is balanced with a rapid growth of traffic.
What does this means to companies and corporate customers?
Certainly it means that the development provides new opportunities to companies experimenting with their Internet of Things platforms. From Telegeography perspectives, there is still a huge variance carrying data to different hubs. London, New York, Singapore and Tokyo are most cost effective places to carry traffic and Sydney, Sao Paolo,and Johannesburg are 5-7 times more expensive hubs for data.
New cable routes are providing new possibilities of being game changers
Seaborn Networks has implemented and planned new routes from South America to North America and also regional network systems within South America from Argentina to Brazil.
Also, transatlantic routes are facing new development and competition with Aqua Comms and content providers teaming together and building a Havsfrue cable system from New Jersey US to Blåberg Denmark.
It is quite evident the big game has changed. Big junks of traffic are now created by content providers and telecom carriers are becoming bysiders in this game. However, they may make a comeback in the future as IoT starts to play a bigger role in the business if Data Center providers are not taking a lead.
How about Cinia then?
With C-Lion1 Cinia is connecting the natural data center havens in Finland and in the Nordics with the business and people in continental Europe.
It looks like Arctic can be a big game changer in the future and the aspiration for connecting three continents attracts lot of interest from various players. This aspiration may build a data highway between Europe and Asia and create a hub in the Nordics equal to Singapore, Los Angeles, London or New York. Therefore, being in Honolulu and sitting inside instead of surfing may pay back in the coming years…
- Jukka-Pekka Joensuu, Executive Advisor for Cinia