& 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?

Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
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 Custom TV
CommScope – Meeting the Demands of Tomorrow's Networks

3|24|17   |     |   (0) comments


Phil Sorksy, Vice President International at CommScope, discusses addressing the challenges faced by service providers today, and as future trends emerge.
LRTV Huawei Video Resource Center
AMS-IX & Huawei's OSN 902

3|24|17   |     |   (0) comments


Huawei shows how its OSN 902 platform helps the Amsterdam Internet exchange to connect the world using multiplexing.
LRTV Huawei Video Resource Center
Huawei's Smart Energy Innovation Center

3|24|17   |     |   (0) comments


In Nuremberg, Huawei showcases its latest capabilities in the digitalization of Internet resources, network infrastructure and intelligence at its Smart Energy Innovation Center.
Valley Wonk
OFC & Hyperscale: A Good Mix?

3|24|17   |   01:50   |   (0) comments


Cloud and telecom players want different types of equipment for their networks, as the chatter at OFC reveals.
LRTV Custom TV
Etisalat on NFV Journey

3|24|17   |   10:37   |   (0) comments


Etisalat is a service provider that prides itself on bringing innovative technologies to the markets it serves. It was one of the first operators to implement 3G and leads the pack in fiber penetration. Now, Esmaeel Al Hammadi, Etisalat's SVP of Network Development, explains the operator's journey to virtualization, beginning with the network core, as well as the ...
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 3

3|22|17   |     |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting on the application of technologies and key business verticals such as transportation, smart city, manufacturing, media and finance.
LRTV Documentaries
No Regrets: Cox's Finkelstein on Fiber & More

3|22|17   |     |   (0) comments


At the Cable Next-Gen Technologies & Strategies event in Denver, Cox's Jeff Finkelstein examines the cable capex conundrum.
LRTV Documentaries
Cable Next-Gen: The 'Mile High' View From Denver

3|22|17   |   11:56   |   (0) comments


Alan Breznick kicks off the Cable Next-Gen Technologies & Strategies event in Denver, casting his thousand-yard stare over cable's current competitive landscape.
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 2

3|21|17   |   2:27   |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting digital transformation solutions around IoT, smart data centers, OpenCloud ecosystem and its newly announced storage-as-a-service solution.
LRTV Custom TV
Driving Better Mobile Customer Experience While Transforming the Mobile Network

3|21|17   |   7:47   |   (0) comments


The Citrix NetScaler mobile gateway is an intelligent traffic management solution which can markedly improve the customer experience provided by mobile operators, even when traffic is encrypted. Critical network services can be consolidated and virtualized using NetScaler. Because of the unique architecture, NetScaler can be deployed on any hypervisor, on a ...
LRTV Custom TV
Mastercard: What's Next for Mobile Payments?

3|21|17   |   7:49   |   (0) comments


2017 marks the fifth consecutive year for Mastercard at Mobile World Congress and it was a great time to reflect on the amazing advances the payments industry has made as well as discuss "What's Next' in the digital commerce future. We spoke to James Anderson, executive vice president of digital payments at MasterCard, about digital wallets to tokenization to ...
LRTV Custom TV
Mastercard: 2 Billion Adults 'Trapped' in Cash Economy

3|21|17   |   03:51   |   (1) comment


Despite advances made in the last several years, two billion adults around the world are trapped in a cash economy and lack what we take for granted -- a safe way to receive, save and use money. Shamina Singh, executive vice president of sustainability and president of the Mastercard Center for Inclusive Growth, chats about how Mastercard is developing new ways to ...
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
High-Band 5G: Let's Address the Range Question, Shall We?
Dan Jones, Mobile Editor, 3/21/2017
Eurobites: A1, Nokia Turn It Up to 11
Paul Rainford, Assistant Editor, Europe, 3/22/2017
FTTH No Slam Dunk for Cable
Carol Wilson, Editor-at-large, 3/23/2017
Welcome to the Wild West of Privacy
Carol Wilson, Editor-at-large, 3/24/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
At MWC 2017, Qualcomm's CTO Matt Grob talks to Light Reading's CEO and Founder Steve Saunders about the progress being made in the development of the technologies and standards that will underpin 5G.
Animals with Phones
Neither Do We Click Here
Is that a prerequisite?
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.