March 2015 - Focalized Networks

After a landmark vote on February 26, The Federal Communications Commission officially classified Internet providers as public utilities. The new net neutrality rules were approved 3 to 2 among party lines. The rules ban high-speed Internet providers, such as Verizon, AT&T, and Time Warner Cable, from blocking websites, slowing down content from particular sites, or selling-off faster traffic speeds to the highest bidders. The possible threat to small to medium businesses is the potential restricted access to broadband. If Telcos and carriers are able to charge extra for faster Internet service, smaller businesses could be at risk for paying more for faster speeds. Businesses using broadband for teleconferencing, streaming, collaboration, SaaS applications, and even backup and disaster recovery, could be looking at higher price tags for everyday business needs.

The Argument for Net Neutrality

Proponents of net neutrality argue that a fast, fair, and open Internet is a basic right. Net Neutrality has always been a big platform for President Obama, and in November, he called for the strongest possible regulations over cable and telecom companies. FCC Chairman Tom Wheeler explained: “The Internet is simply too important to allow broadband providers to be the ones making the rules.”

Net Neutrality’s Opposition

On the other hand, some cable companies, telecommunications companies, and lawmakers contend that the move is an overreach of government intervention. They also feel that online companies, such as Netflix and YouTube, who monopolize a lot of web traffic, should have to share in the cost of expanding and maintaining the channels that deliver Internet content to consumers.

The Future of the Internet

Although the vote has taken place, this is not the end to the Net Neutrality debate. As regulations and the precise language of the FCC’s rules become published in the Federal Register and become made to the public, Internet providers will have several weeks to take legal action. Many major companies have already threatened to sue the FCC. In the mean time, consumers should not see any immediate changes to what they see on the Internet, and no added federal taxes or fees will be placed on Internet service providers.

It is predicted that by 2017, there will be around 268 billion app downloads. The average person already uses 26 different apps per month. This growth is clearly driven by the younger work force, who use their mobile devices and tablets for both work and play. All of these apps use a lot of data, and so there is a problem on the horizon: all of this data use will lead to pervasive network strain, which will in turn result in performance problems in both apps and network-based services. This data overload creates frustration in both users and providers. App users will simply delete apps that do not perform well. This means fewer customers for Telcos and app providers.

The Data Challenge for Telcos

Therefore, Telcos have a challenge in front of them: invent new ways to improve user experience by making them more data efficient and scalable. The question on a lot of IT experts’ minds is: is it finally time for Telcos and app providers to work together to unclog the bandwidth bottleneck? The answer is still unclear, but intelligent data distribution is one solution everyone can agree on at the moment, i.e. Telcos can optimize their current network assets while app developers work to design more apps that use less data.

The Importance of Wide Area Networks Within Telcos

In order to stay sustainable, Telcos need to offer more in connectivity. A solid Wide Area Network (WAN) is essential in accelerating applications and keeping traffic separate. It is also critical for day to day business operations; it both reduces operating costs and provides a level of predictability for system performance. Wide Area Networks consolidate costly tools, such as printers, phone lines, file storage, bandwidth, and security, because these items do not have to be purchased for each individual computer. Telcos are also learning that not taking advantage of Multi Protocol Label Switching (MPLS) is putting their business at a competitive disadvantage. Telcos need to be able to interconnect multiple locations and ensure the highest level of data connectivity performance between multiple locations. Equally important for Telcos is the advent of Ethernet over Copper (EoC). For small to medium businesses, EoC can gain greater bandwidth and flexibility in order to support various IP-based applications, including disaster recovery, Cloud, and IP voice services.

Users Drive Telco and App Developer Success

Consumers will ultimately drive Telco and app developers’ transformations. If Telcos and app developers do not address the bandwidth bottleneck, app users will quickly become frustrated. The initial shock will fall to the app providers – users will not go to Telco providers when an app does not work to their liking; they will simply delete the problem application(s). But, ultimately, everybody loses if the bottleneck remains. Eventually consumers will be able to see a data rating for each app in the app store. And, if users stop downloading certain apps, both Telcos and app providers will lose revenue. Consequently, users can expect more streamlined apps from providers and more efficient networks from Telcos in the future. For more information on the future of applications, contact your trusted Telco service provider today.