Digital transformation is reaching cable operators that primarily serve the residential market. While their business focus was previously voice and data delivery, they now also offer streaming services and public cloud connectivity. To adapt to this new environment, Interxion believes that operators face, among others, the following challenges:
1. Network transformation: Fiber optics is the primary medium for delivering services, thanks to its capacity and data transfer speed. Ten years ago, Interxion installed three times more copper cabling than fiber optic cabling; currently, the ratio has been reversed, with three times as many fiber optic cables installed for every copper cable.
2. Investments to migrate to FTTH networks: Cable operators are making the largest investments to ensure that fiber access is not limited to large cities, thus reducing the digital divide. According to the CNMC, only 20% of municipalities with fewer than 50,000 inhabitants have fiber optic deployment.
3. Sharing traffic at a Neutral Point. The volume of traffic generated by the sector is now so large that accessing a Neutral Point is advantageous. Participating in these exchange communities will allow operators to access a greater number of networks, improving their negotiating power.
4. User mobility. Users demand simultaneous access to services, not only at home but across multiple devices and platforms. Operators must adapt their offerings to become multichannel and multiplatform.
5. Streaming platforms present both a challenge and an opportunity. A challenge because this content competes with cable operators' own platforms. And at the same time, it's an opportunity to distribute additional content that is also in demand by the end user.
In the words of Max Fiore, Head of Implementation and Service Delivery at Interxion, these challenges can be summarized as follows: “Today, content is king and fiber optics is queen. Cable operators are making an invaluable contribution to the digitization of smaller towns and cities. They are adapting their technology so that their offering reaches every urban center with the highest quality.”
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