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Netflix to drive Australian ISP spending: Juniper Networks

Adam Bender | Dec. 9, 2014
Juniper Networks eager to help telcos face threat of over-the-top providers.

Juniper Networks stands to gain from the entrance of Netflix into Australia, according to executives at the networking equipment supplier.

The networking company is helping telcos around the world face Netflix and other challenges created by over-the-top (OTT) providers, executives said this week at a Juniper APAC event in Singapore.

Telco customers of Juniper in Australia include Telstra and Optus.

Netflix announced last month that it would bring its video streaming service to Australia and New Zealand in March 2015.

The expected increase in traffic resulting from the popular streaming service could require major investment by ISPs in their networks. That could drive business to Juniper and other companies that sell services to increase network capacity and manage high levels of traffic.

"What we've seen consistently from a global perspective is once Netflix joins the network, it takes up something like 30 per cent of the available bandwidth on average," said Russell Skingsley, vice president APAC for Juniper's Centre of Excellence. "In peak viewing times, it's even greater."

The Netflix impact could become even greater as the ISP provides more 4K, super high-definition video, said Steve Shaw, director of service provider marketing at Juniper Networks. Netflix has promised 4K content for the Australian market.

Juniper Networks senior vice president of strategy, Mike Marcellin, said Netflix has ratcheted up traffic on networks in every market it's entered due to a combination of strong content and a low monthly price. The service costs $7.99 per month in the US.

"I talk to lots of customers around the world, and basically, the amount of traffic growth on the network is directly proportional to whether Netflix is in their country or not," he said.

Preparing for this traffic growth requires ISPs to make a major investment in network technologies, he said.

"You have to solve that with technology innovation ... If your network's been growing 20 per cent and suddenly it's growing 40 to 60 per cent," the required response will be more than "little tweaks," he said.

Telcos must look for ways to both provide more bandwidth and simultaneously alleviate bandwidth issues on the edge, said Skingsley. This includes content delivery systems and bandwidth management techniques, he said.

That's where Juniper seeks to come in, he said. "Juniper has built its business on the idea of bandwidth growth."

The OTT threat
Service providers want to be more like cloud providers, says Juniper Networks senior vice president APAC, Wendy Koh. Credit: Juniper

Netflix is just one example of the challenge telcos are facing from the rise of OTT providers, and a major way telcos are meeting this threat is by providing services beyond connectivity and bandwidth, said Juniper executives.


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