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International Bandwidth Demand to Grow 42% in 2006

This year will mark the first time that intra-Asian bandwidth usage has significantly outpaced trans-Pacific capacity. Consumer behavior and the growth of Asian data centers are at the core of this shift. Throughout Asia today, more content HTML, streaming video/audio, downloadable files is stored regionally creating less of a need to traverse the Pacific to access content.

TeleGeography’s latest bandwidth forecast updates predict strong demand growth on subsea routes throughout Asia and the Pacific Ocean. Driven by rapidly expanding Internet backbones, overall bandwidth demand should grow fast enough to offset the effect of price declines on revenues until 2009. From 2009-2012, however, revenues could flatten and possibly decline as demand slows and providers migrate to higher capacity circuits and wavelengths, which have lower unit costs.
The following graphs highlight these overall supply and demand trends:

According to TeleGeography’s new Global Bandwidth Forecast Service, which covers routes and regions around the world, international bandwidth demand is projected to grow 42 percent in 2006. Between 2005 and 2012, international bandwidth demand is expected to slow to a compounded annual rate of 27 percent.


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