Contribution to the 'fair share' debate

Analysys Mason is pleased to be able to bring a contribution to the emerging debate on the role of online Content and Application Providers in funding the secure, resilient, global digital infrastructure required for the internet and digital transformation to continue apace.

In the context of renewed advocacy by primarily large vertically-integrated operators, we have been asked by clients to update our 2018 study on investment in infrastructure by online Content and Application Providers. We also modelled a conservative estimate of the cost reduction that ISPs enjoy as a result of these infrastructure investments, which are brought about by caching of content inside ISPs' networks, and the ability for ISPs to peer freely with Content and Application Providers and CDNs in hundreds of cities around the world.

This study is available here, and proposes an initial view of what the impact of implementing regulated network usage fees, effectively data termination rates on ISPs networks. These findings complement our recent report on IP interconnection on the Internet: a European perspective for 2022 and builds upon modelling we talked about in a July 2022 paper on the savings Netflix's traffic optimisation and caching efforts are enabling for ISPs globally. 

For any further information and discussion, please contact David Abecassis (Partner).