BT CDN Update

9:00 AM -- Earlier this year, Light Reading reported that BT Group plc (NYSE: BT; London: BTA) was building CDN (content delivery network) capabilities to help ISPs deliver high-quality video services over their broadband networks. (See BT Unveils Its CDN Plans.)

Now, according to reports such as this one in the Guardian, BT has been in discussions with content owners, including Google (Nasdaq: GOOG), about how content will be stored and delivered over the carrier's Content Connect infrastructure.

Dealing with over-the-top (OTT) video content is a major challenge for ISPs in two respects: The pressure it puts on their network capacity and quality-of-service capabilities; and the pressure it puts on their traditional business models, as they need to figure out how they can make money from services running over their networks. (See Will Telcos Embrace OTT Video in 2010? )

— Ray Le Maistre, International News Editor, Light Reading

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