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Telecom Business Review | Wednesday, November 16, 2022
Telecom is rapidly moving into the digital era with more money, more technology, more speed, and more data storage.
FREMONT, CA: Rural telecommunications is one of the most active sectors in the United States, driven by strong and long-lasting tailwinds that will propel enterprises far beyond 2023. For instance, new levels of investment are being made to improve broadband availability. The market for data centers is anticipating exponential expansion. In addition, large technology companies are putting billions of dollars into virtual reality applications, which will become widespread sooner than anticipated. In the meantime, private communications companies outperform their publicly traded counterparts in market capitalization.
Here are some noteworthy market-moving events to monitor:
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Private wireless networks can link the farm: Rural organizations and businesses in America have access to these carrier-grade networks at an affordable price. Farmers, who require high-speed broadband to utilize precision agriculture tools, have a compelling business argument. The Ohio State University reports that farmers are prepared to spend $10 to $30 per acre for broadband. This indicates that a farmer with 8,000 acres is willing to pay up to $240,000 for protection. However, according to CoBank's modeling, a 50-member cooperative may construct a private wireless network for approximately $55,000 per farmer in the same area, up to 77 percent less than they had anticipated.
The meteoric rise in the datasphere is coming: The metaverse, autonomous vehicles, cloud migration: The data processing and storage demand will continue to increase exponentially. In 2020, the global datasphere, or the volume of data created in a single year, was approximately 64 zettabytes. The infrastructure required to support 64 zettabytes of data in 2020 cost $2 trillion. By 2035, autonomous vehicles will increase the datasphere by an estimated 10,000–15,000 zetabytes. The additional money necessary for infrastructure, cable, and data centers to serve 10,000 zettabytes will be enormous.
Fully immersive AR/VR requires swiftness: Recent announcements by major technology companies regarding their spending on augmented and virtual reality apps indicate increased development and time to market. Meta spends at least $10 billion every year on AR/VR. Apple and Microsoft have not been as forthcoming regarding their contributions, but rest confident that they are in the billions of dollars. Fully immersive AR/VR applications require residential broadband speeds between 200 and 5,000 Mbps. Augmented reality and virtual reality will require data centers near the apps.
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