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Press release from Business Wire

NTT America Predicts Increased Broadband Consolidation among Trends for 2012

<p class='bwalignc'> <i>Tier-1 global IP network provider also identifies demand for video content as driving factor for overall network growth</i> </p>

Wednesday, January 11, 2012

NTT America Predicts Increased Broadband Consolidation among Trends for 201208:00 EST Wednesday, January 11, 2012 NEW YORK (Business Wire) -- NTT America, a wholly owned U.S. subsidiary of NTT Communications Corporation (NTT Com) and a Tier-1 global IP network services provider, today reflected on key trends in the broadband and IP transit industry in 2011, as well as predicted major themes for 2012. Michael Wheeler, vice president, NTT Communications Global IP Network, NTT America, outlined the following developments that shaped the industry landscape in 2011 and will continue to affect the industry throughout the coming year: Increased Industry Consolidation 2011 brought a flurry of mergers and acquisitions (M&A) in the market, with Verizon's acquisition of Terremark, CenturyLink's acquisition of Qwest and Savvis, Level 3's acquisition of Global Crossing and, most recently, Windstream's acquisition of PAETEC. Wheeler predicts that 2012 will bring increased consolidation in the industry, particularly as service providers look to grow their businesses into the cloud. He cited Verizon's acquisition of Terremark as an example of this trend that has already materialized. “The motivators for the majority of the M&A activity in 2011 can be traced back to two driving factors: scale and scope. The acquisitions by Qwest, Level 3 and Windstream were largely driven by scale – expanding their services into new markets they didn't previously have a presence in or access to,” Wheeler said. “Verizon, on the other hand, is an example of a scope play. Terremark added services to the Verizon portfolio that it didn't have before, specifically in the cloud services space.” Wheeler notes that NTT America has continued to make investments in its NTT Communications Global IP Network, adding new markets such as Latin America in 2011 and preparing to add new technologies such as 100 Gigabit Ethernet (100GigE) in 2012. Internet Growth Driving Need for New Technologies The Internet continues to grow at an exponential rate, with video content being the largest contributor. As a result, new technologies are emerging to alleviate the pressure that this growth places on networks. One such technology is 100GigE ports, which Wheeler predicts will see their first deployments in early 2012 and reach mass deployment in 2016 and 2017. Wheeler said Internet service providers (ISPs) will lead the way in the deployment of 100GigE, driven by the need to better accommodate the transit of video content from a cost and service perspective. “Companies that are expecting significant growth in the next 3-5 years should look toward 100GigE as a method of reducing the complexity of their networks as well as streamlining costs,” Wheeler said. “For companies like Comcast, Hulu and Netflix that rely on video to generate revenue, the ability to reduce the complexity of running multiple ports and splitting content will not only be a cost-effective upgrade, but it will ensure that they maintain the quality of service that customers demand.” In addition, Wheeler noted that another result of the exponential growth of the Internet and Internet-connected devices is the increased sophistication of Distributed Denial of Service (DDoS) attacks. As more and more devices emerge that can be connected to the Internet – such as smart phones, gaming consoles and tablets – the risk of DDoS attacks becomes greater and greater. This increased sophistication of attacks, which are focused no longer on volume but instead on precision, underscore the need for DDoS protection services. Continued Growth of Latin American Market On the heels of the opening of its Sao Paulo, Brazil-based global IP network Point of Presence (PoP) in September 2011, NTT America will continue to invest in the LATAM region in 2012. Wheeler said the largest challenge that the Latin American broadband market will face in 2012 is the ability to grow the number of users on the network. Without the multitude of Internet-connected devices that contribute to network growth in other established regions, Latin American service providers will struggle to grow and invest in their networks without a continually growing subscriber base. NTT America leverages the strength of the NTT Communications Global IP Network to provide the high-quality and flexible service its customers need to remain competitive and profitable. As a Tier-1 provider, the company provides seamless service from a single global ASN (ASN2914) over NTT Communications' Global IP Network, directly connecting CDNs, content providers, enterprises and ISPs at the highest performance levels available. About NTT America NTT America is North America's natural gateway to the Asia-Pacific region, with strong capabilities in the U.S. market. NTT America is the U.S. subsidiary of NTT Communications Corporation, the global data and IP services arm of a Fortune Global 500 telecom leader: Nippon Telegraph & Telephone Corporation (NTT). NTT America provides world-class Enterprise Hosting, managed network, and IP networking services for enterprise customers and service providers worldwide. For additional information on NTT America, visit us on the Web at www.us.ntt.net. U.S. product information regarding the NTT Communications Global IP Network and its award-winning IPv6 transit services may be found at http://www.us.ntt.net/, by calling 877-8NTT-NET (868-8638), or by emailing sales@us.ntt.net. Join us on Facebook at http://www.facebook.com/NTTAmerica, follow NTT America on Twitter at @NTT_America or LinkedIn at http://www.linkedin.com/companies/ntt-america for up-to-date news and announcements. About NTT Communications Corporation NTT Communications provides a broad range of global networks, management solutions and IT services to customers worldwide. The company is renowned for reliable, high-quality security, hosting, voice, data and IP services, as well as expertise in managed networks and leadership in IPv6 transit technology. NTT Communications' extensive infrastructure includes Arcstar Global IP-VPN and Global e-VLAN, as well as a Tier-1 IP backbone reaching more than 150 countries in partnership with major Internet service providers, and secure data centers in Asia, North America and Europe. NTT Communications is the wholly owned subsidiary of Nippon Telegraph and Telephone Corporation, one of the world's largest telecoms with listings on the Tokyo, London and New York stock exchanges. Please visit www.ntt.com/index-e.html. NTT, NTT Communications, and the NTT Communications logo are registered trademarks or trademarks of NIPPON TELEGRAPH AND TELEPHONE CORPORATION and/or its affiliates. All other referenced product names are trademarks of their respective owners. © 2012 NTT Communications NTT AmericaScott Heller, 425-250-2495sheller@us.ntt.netorNyhus Communications for NTT AmericaKatie James, 206-323-3733ntt@nyhus.com