It is also important to contemplate what is more needed in modern communication infrastructure to address SMAC-based information technology need. (SMAC stands for Social, Mobile, Analytic, and Cloud). Today’s need of modern infrastructure is to deliver key business and technology services via the cloud so companies can quickly scale computing power achieving accelerating return on investment and freeing up capital for innovation. But the progress to address this challenge is significantly low and heavily relied on Telecoms across the globe. As major investors in infrastructure, they keep their bargaining chip, control and monopoly on tariffs with superior controlling on bandwidth allocations. But some companies whom they call “clients” are trying to become their “rivals” now.
Internet companies like Google and Facebook are now investing in Internet infrastructure and expanding their efforts to control more of internet backbone. In the recent years, they have invested in new Asian Submarine cables. There plans have already raised the tension with the telecom companies over the possible end of web monopoly. This time these companies’ investment moves including owning networking hardware, bringing online new submarine and underground cables striking long term leases for so called “Dark Fiber”. (It is unused Optical fiber that can be leased to companies who want to establish optical connections among their own locations.)
Internet companies are responding by investing in pipes themselves to make sure that traffic can be supported and reach new and more remote users. That is partly because telecom companies are not spending as much on new construction to avoid squeezing their profits.
Telecom companies are not eager to turn over control as they still prefers a traditional relationship with websites charging them based on the volume of use rather than sign long term leases for entire fiber lines. It is also a possibility, some Telecom companies will relinquish their control of those lines for clients like Google, Facebook, Amazaon.com or Microsoft.
Today we enjoy an extraordinarily rich communications environment over Internet. Our family & friends who could only communicate with us 10 years ago with carefully budgeted long-distance calls can stay connected 24/7 via Skype, text, email, tweet, use Facebook, or connect via myriad other ways that combine voice, data and video seamlessly, generally over the Internet.
If the goal is to have a world-leading, competitive communications market that is responsive to consumers’ needs and desires, the solution is not to restrict new players that have been free to innovate, but to liberate Telecom companies who have been constrained.