Is Video a Telco Killer, or the Telco Killer App?
The growing end user demand for video is currently driving telco networks, and in several cases, amounts to more than 80% of total fixed and mobile broadband traffic. In fact, one could say that telcos are running video delivery networks today, with YouTube, Netflix, and telco IPTV being the most popular traffic-generating services. In the past, telcos tried to optimize streaming video running through their network with content optimization engines positioned at the core network edge, but content owners and the Internet community eventually switched to encrypted video, which rendered these obsolete. In fact, telcos witnessed over-the-top (OTT) encrypted video going from a single-digit percentage to a high double-digit percentage (of their total data traffic) within a year, and encrypted traffic now contributes more than 50% of total traffic for many telco networks. At the same time, there are contradicting telco and vendor strategies for video, an unusual occurrence in the telco industry, highlighting that video is a still contested business.
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