global submarine cable market trends: what wan … · global submarine cable market trends: what...
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Global Submarine Cable Market Trends: What WAN Managers Need to Know
Brianna Boudreau, Senior Analyst, TeleGeography
Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | [email protected]
Global Cables!
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Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | [email protected]
Connecting Content & Apps to Users
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Major Content Provider Data Center Locations, 2017
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Connecting Users to Apps & Content
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Aggregate Global Bandwidth
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Global Bandwidth Demand is GrowingUsed International Bandwidth Growth, 2011-15
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Who is Using It & How Much are They Using?International Internet, Private Network, & Switched Voice Capacity, 2002-15
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Private Networks’ Share of Used Bandwidth by Route, 2015
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Capacity Utilization
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Trans-Atlantic, 2015
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Capacity exhaustion?Lit and Potential Trans-Pacific Capacity 2015-2025
Exhaustion in
mid-2020Potential of existing cables
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Capacity exhaustion?Lit and Potential Trans-Pacific Capacity 2015-2025
Exhaustion in
2022
Potential of existing cables plus
SEA-US, NCP, & PLCN
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Capacity exhaustion?Lit and Potential Trans-Pacific Capacity 2015-2025
Exhaustion in
2024
Potential if all older cables could theoretically
accommodate 100 x 100G
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Capacity exhaustion?Lit and Potential Trans-Pacific Capacity 2015-2025
Exhaustion in
mid-2024Potential with adding 1 new 72 Tbps cable
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Proposed Cables 2016-18
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Cable Bandwidth Distribution
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Prices Vary in the Sales ChannelMedian & Price Range for 10 Gbps Wavelength MRC on Los Angeles-Tokyo, 2013–16
CAGR: -23%CAGR -23%
CAGR -23%
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Prices Vary by Geography
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Backhaul Can Significantly Impact CostMedian PoP-to-PoP 10 Gbps Price Components, 2016
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Circuit Prices Are FallingMedian 10 Gbps Wavelength Monthly Lease Prices, 2013-16
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And Transit Prices Are FollowingMedian 10 GigE IP Transit Port Prices, 2013-16
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Enterprise vs. Wholesale PricesMedian 10 GigE IP Transit & 10 Mbps IP VPN Port Prices, 2016
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But Enterprise WAN Trends Do Follow Suit
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Conclusion• Plentiful, affordable connectivity in few global hubs
– Large swaths of the world connect to these hubs
– “Tromboning” on submarine cables
• Demand growth is as reliable as price erosion
– More content consuming more bandwidth
– Growing penetration and bandwidth per user
• Transport & transit prices are falling
– Impacts WAN pricing as well
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Thank You!
Questions?