We're looking back at all things telecom in 2022. And we're doing it the best way we know how: rounding up our analysts and inviting them to discuss major findings in their areas of research on TeleGeography Explains the Internet.
If you want to dive in from the very beginning, you can listen to part one over here. And if you're ready for more, keep scrolling.
Part two takes us on a journey through the last 12 months of submarine cable news, SD-WAN, security, and major world events that intersected with telecom infrastructure.
We were thrilled to have TeleGeography's own Alan Mauldin, Brianna Boudreau, and Tim Stronge in the hot seat.
Not only did they bring data on the year that was, but they brought a wealth of insight on what we might expect to see across the industry in 2023. The perfect way to toast the New Year, if we do say so.
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Key Takeaways
Submarine Cable Boom Continues, Driven by Content Providers
There is a significant boom in new submarine cable construction globally, with approximately $10 billion worth of cables expected to enter service in 2022 and the next two years.
This investment is heavily influenced by content providers like Google, Meta, Amazon, and Microsoft, who are investing directly in cables on major routes and expanding into new areas. While interest and investment remain high, the industry is experiencing delays in cables becoming ready for service (RFS dates) due to factors like the long build process, supply chain issues, difficulties securing cable-laying ships, weather, and permitting delays.
SD-WAN Adoption is Advancing, Albeit Slowly
Interest in SD-WAN remains high among enterprises, vendors, and carriers.
However, the actual deployment of SD-WAN across most enterprise sites is progressing slower than some expected, with only about 50% having installed it extensively.
Deployment timelines are a factor, with around 70% of respondents in a survey stating it took over a year to deploy SD-WAN across their network. Supply chain issues, particularly for SD-WAN appliances, and challenges getting installation crews on-site during COVID have contributed to these delays, although many vendors say these issues are now mostly resolved.
A significant trend is the integration of security features into SD-WAN offerings, leading to the Secure Access Service Edge (SASE) architecture. While some vendors offer a "one-stop shop" for security, others partner with specialized providers. Despite potential slight increases in SD-WAN pricing for some providers, adopting SD-WAN alongside direct internet access and broadband still offers significant network cost savings compared to traditional MPLS.
Critical Infrastructure Intertwined with Global Events
Recent world events, both natural and human-made, highlight the vital importance and sometimes surprising resilience of telecommunications infrastructure.
The Tonga volcano eruption destroyed a 50-mile section of the country's single submarine cable, leaving the island nation without fiber optic internet for over a month and demonstrating the critical reliance on this infrastructure. While satellites provided some temporary capacity, latency was significantly higher compared to fiber once the cable was repaired.
The conflict in Ukraine has shown how telecom tools like Zoom, Google Meet, Google Maps, and even YouTube are being used for crucial government, military, and awareness-raising purposes. The resilience of Ukraine's terrestrial internet network has been notable, with major disruptions primarily occurring due to physical damage from attacks or, more recently, attacks on shared infrastructure like the electrical grid.
