Global network operators added 65 Tbps of new international capacity in 2014, the equivalent to the entire amount of bandwidth in service globally during 2011, according to TeleGeography.
Total international bandwidth grew 44% last year to reach 211 Tbps, the research firm said. This represents a resurgence in global network construction.
The rapid capacity growth was driven by the rise of high-capacity international private networks, particularly by large content providers. Private bandwidth even surpassed internet bandwidth on the trans-Atlantic route last year.
While this suggests that little opportunity exists for traditional network operators, TeleGeography said not all wholesale customers can achieve the scale of large content companies, leaving substantial demand for more granular capacity increments.
“Traditional wholesale carrier consortia are continuing to build global cable systems, even though content providers now play a major role in network development on core routes,” TeleGeorgraphy research director Alan Mauldin said.
“While content providers and other large capacity users invest in new submarine cable systems to acquire large blocks of capacity, such as a fiber pair, at low cost, service providers build cables to improve route diversity, reach new or underserved markets, or secure competitive advantage.”
New cables due to enter service this year include Asia Pacific Gateway, Bay of Bengal Gateway and Hibernia Express.