GIGANetworks investment and returns to telecom operators

Giganetwork market estimatesEvery euro invested in GIGANetworks is expected to generate €2 to €4 in market value, and around €4 to €8 in economic value, according to consultancy Arthur D Little.

Investment in GigaNetworks is estimated to reach between €500 billion and €900 billion to ensure QoS, according to the report on GIGANetworks.

Telecom operators will be investing more on SDN and NFV technologies, as part of their network virtualization strategies, to enhance speed in network roll outs.
Giganetwork monetizationGovernments and telecom regulators need to ensure incentivized network investment, as well as predictability and clarity of public policy to encourage all players to invest in the GigaWorld and experiment with new business models.

GigaWorld has the potential to unlock a market of €250-660 billion per year by 2025 in Europe and around €1.3-3.5 trillion per year globally.
Gigaworld estimatesThe inability to efficiently launch the GigaWorld innovation cycle will represent a major opportunity cost in terms of market development of €150 billion – €560 billion per year by 2025 in Europe and € 0.7 billion – €3.1 trillion per year at global level.

GigaWorld markets are expected to grow at CAGR of 22-27 percent in Europe, at 18-24 percent at global level and 15-24 percent in Asia Pacific.

Globally, the Asia Pacific region is expected to become the largest GigaWorld market, reaching a size of €1.1 trillion – €1.2 trillion in 2025. The GigaWorld market in Asia Pacific is driven by investment in new infrastructures, modernization of local businesses adopting IoT in China, India, and Philippines.

Americas (mainly the United States and Canada) should reach a market of €0.9 trillion – €1trillion, driven by rapid growth of IoT, mainly in industrial and healthcare sectors.

Quality networks

Cisco foresees substantial growth of global IP traffic over 2015-2020, with the peak-hour traffic increasing by 32 percent annually, while global IP video traffic is expected to grow by 31 percent. Connected things are expected to reach €50 billion by 2020 with their traffic growing by 44 percent per year.

Several network technologies — fiber-to-the-home or fiber-to-thebuilding or fiber-DOCSIS networks deployed by cable operators or 5G with fiber-to-the-site backhaul – will be sufficient to ensure QoS for customers.