The rise of broadband in Eastern Europe…
See for yourself… download speeds tested by Speedtest.net
2010-04-23 00:00:00 | Business
New CDN deployments
Besides telcos, hosting providers jump into the CDN market space as well. Hosting providers have different needs, different architectures, different problems to solve.
Where telcos need to offload their backbones and want to monetize their infrastructure by offering advanced CDN services, hosting providers need to upgrade from regular web hosting to offer video streaming services, and they need to offload traffic to save on transit costs.
Hosting providers don’t have the financial, infrastructural and human resources that telcos have.
CDN vs transparent caching
Telcos sell flat-fee broadband with unlimited traffic for a fixed price. Competition is strong, prices are going down. To compete, telcos have to offer even faster connections at the same, or lower prices.
With over 85% broadband penetration, the markets are saturated. At the same time, traffic usage is growing strong. To cope with the growing demand of traffic, telcos face deep infrastructural investments. But margins are shrinking.