& cplSiteName &

AT&T's CDN Dreams

Carol Wilson
6/30/2011
50%
50%

AT&T Inc. (NYSE: T)'s jump into the CDN pool on Tuesday was hardly unexpected, but did AT&T really make a big splash or just send some quiet ripples through one of the industry's hottest service segments? (See AT&T Launches CDN.)

Other large telecom and cable operators have recognized that fast-growing video traffic demands more locally cached content, and rather than continually feed the CDN beasts such as Akamai Technologies Inc. (Nasdaq: AKAM) and Limelight Networks Inc. (Nasdaq: LLNW), they are looking to capture part of this market themselves. (See Level 3 Sweetens Wholesale Video Offer, Tata Comms Buys Its CDN Partner, Charter's VoD Network Tastes of CDN , TalkTalk to Build CDN With AlcaLu, BT Builds CDN With CDS and Time Warner Cable Hints at Video CDN Plan .)

Verizon Communications Inc. (NYSE: VZ) charted its own path in looking for new revenues in the video delivery world with its Digital Media Services, something it claims is not a CDN -- but industry analysts nonetheless see Verizon challenging Akamai and others who are well-entrenched in the video delivery business. (See Tektronix Unleashes Video Monitors)

And helpful vendors such as Alcatel-Lucent (NYSE: ALU) and Verivue Inc. are designing products aimed at getting telecom operators into the CDN business more quickly. (See AlcaLu, thePlatform Team On TV Everywhere , AlcaLu Gets Down With OTT and Verivue Courts Carrier CDNs.)

They say
Telecom Ramblings notes this isn't the first time AT&T has promised to compete in the CDN market.

"This time around AT&T is no longer doing this in-house, but instead is using licensed technology from EdgeCast and Cotendo to assemble its new CDN platform. But do they really mean it this time?" writes blogger Rob Powell.

Connected Planet observes that AT&T is leveraging not just caching but also content acceleration, targeting mobile users who want to see content instantly.

On its own blog, AT&T is touting the value of operator-based CDN services, and the ability of exercising end-to-end control of video to reduce the number of variables that interfere with video quality.

One thing creating a CDN won't do, according to Forbes' Great Speculations column, is make AT&T a more attractive investment. Apparently, while CDNs are hot in the telecom space, they aren't ringing Wall Street's chimes.

What we say
This is a logical step for AT&T, especially since its first targets are its own business customers, says Joe Lueckenhoff, AT&T's senior vice president of business product management. What AT&T is promising those customers is faster delivery of their Web services content, in a secure setting that AT&T manages for them. Since AT&T is already managing their transport, it becomes another item on the same bill.

This approach has its greatest power in the wireless space, since much of this content now will be delivered to wireless devices. For instance, AccuWeather is already an AT&T customer and uses its CDN to reach the 650 million consumers who have downloaded its wireless app, which delivers weather based on GPS locations. Where AccuWeather used to do this one device at a time, AT&T enables the weather forecaster to deliver the weather once to reach all users in a given geography.

Is AT&T challenging Akamai? No, because it's trying to solve a different problem. Whether it succeeds or not will depend on its execution.

— Carol Wilson, Chief Editor, Events, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
ycurrent
50%
50%
ycurrent,
User Rank: Light Beer
12/5/2012 | 5:00:31 PM
re: AT&T's CDN Dreams


I think this is the key point: "Since AT&T is already managing their transport, it becomes another item on the same bill."


Which is why much of the CDN middleman business eventually goes away as the technology (which is all it really is) becomes a line item on the service provider's bill (at best) or bundled for free.

menahemk
50%
50%
menahemk,
User Rank: Light Beer
12/5/2012 | 5:00:05 PM
re: AT&T's CDN Dreams


How is the problem AT&T attempts to solve different?

From The Founder
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
Flash Poll
Live Streaming Video
Charting the CSP’s Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it’s going from two industry veterans.
LRTV Documentaries
Leading Lights 2016 Highlights

5|25|16   |   02:26   |   (1) comment


Some of the high points from this year's Leading Lights awards dinner at the Hotel Ella in Austin, Texas.
LRTV Documentaries
Light Reading Hall of Fame 2016

5|23|16   |   05:43   |   (0) comments


Find out who has been welcomed into Light Reading's Hall of Fame this year.
LRTV Custom TV
ZTE TM Forum Highlights

5|23|16   |     |   (0) comments


ZTE showcased its new ICT solutions at TM Forum in Nice.
LRTV Interviews
Gamma's MD on the Emergence of UC2

5|20|16   |     |   (0) comments


Gamma Communications Managing Director David Macfarlane believes the unified communications (UC) market has reached a tipping point.
LRTV Custom TV
The Ultimate 5-Minute Guide to Digital Customer Engagement

5|20|16   |     |   (0) comments


In this short video, you will hear all about how Digital Customer Engagement is the key to meeting customer expectations, keeping them happy, and maximizing revenue. VP Product & Marketing at Pontis, Ofer Razon, breaks down for us the five essential capabilities for successful Digital Customer Engagement. Don’t miss!
LRTV Custom TV
NFV in 2016: Part 1 – NFV Use Cases Get Real

5|19|16   |   05:57   |   (0) comments


Consensus is building around the key use cases for NFV, including managed IP services at the network edge and on customer premises, which can generate new revenues from enterprises/SMBs and consumers; Evolved Packet Core to support LTE migration; and adjacent technologies, such as TAS and IMS, to support VoLTE and next-generation charging and policy control ...
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 3

5|19|16   |     |   (0) comments


Steve Vogelsang discusses the challenges of operational transformation and how Nokia helps its customers. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Level 3: Why UC Is In Demand

5|17|16   |   04:12   |   (1) comment


Andrew Edison, Level 3's senior VP of sales, EMEA region, talks about the drivers of growth in the unified communications services market.
LRTV Custom TV
ARM's OPNFV Action

5|17|16   |     |   (0) comments


At the ARM booth at MWC 2016, Joe Kidder and Bob Monkman speak to Light Reading about OPNFV and their upcoming action.
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 2

5|16|16   |     |   (0) comments


Steve Vogelsang gives advice to service providers on how to move to NFV. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Interoute CTO on NFV's Maturity

5|13|16   |   06:46   |   (1) comment


Matt Finnie, CTO at international operator Interoute, explains how NFV has made life easier in terms of logistics and how Interoute can now enable a 'software-defined moment' for its customers.
LRTV Huawei Video Resource Center
UBBS 2016 Highlights

5|12|16   |     |   (0) comments


Highlights of Huawei's UBBS event in Hong Kong.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
December 6-8, 2016,
June 16-18, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
DT: Telcos Must Escape Vendor Prison
Iain Morris, News Editor, 5/24/2016
AT&T to Start 5G 'Friendly' Trial by 2016 End
Dan Jones, Mobile Editor, 5/24/2016
WiCipedia: Short Skirts & Back-Up Plans
Eryn Leavens, Special Features & Copy Editor, 5/20/2016
Google Doubles Down on Machine Learning, AI
Mitch Wagner, West Coast Bureau Chief, Light Reading, 5/19/2016
Eurobites: Be More European, EU Tells Streaming Services
Paul Rainford, Assistant Editor, Europe, 5/20/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.