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Published On: Mon, Oct 6th, 2014

Internet operators Invest $30Bn per annum-Report

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Internet CafeBy Chris Alu

Internet players are  investing  over $30 billion per annum in physical networks, facilities and equipment, per annum culminating to  nearly $100 billion between 2011 and 2013, says   telecom specialist film, analysis mason.

The report indicated that $30 billion goes to the European countries, while Africa is left with nothing.

This is the first time an investment report has been captured in a comprehensive way, and highlights how Internet players are becoming major contributors to the fabric of the Internet, such as

 data centers, submarine cables and the multitude of servers that store, process and serve content to end users.

This is necessary to deliver the content that end users want, and comes in addition to the money these companies spend on content and software.

It benefits the Internet as a whole, end users, and the other players who invest in the physical fabric of the Internet.

Companies highlighted in the study include ‘pure’ online companies such as Spotify, Google or Facebook, as well as online businesses of multi-platform players such as  BBC and  the New York Times.

Europe is the largest destination for this investment, it is said that over $10 billion  goes into European networks and facilities annually.

This made Europeans   a hub for Internet traffic. Many international cables in Europe, hosts the world’s largest IXPs, and has a large population of Internet users,said the report.

And as a result, it is attracting investment by US companies, especially in data centre facilities, as well as investment by local Internet players such as Spotify and the BBC.

“Internet players are already putting big money on the table  and into the ground and under the sea. They are getting into increasingly large partnerships with investors and telecom operators. That comes in addition to investment in their core business of content and software.” said David Abecassis and Andrew Kloeden, co-authors of the report.

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