) solutions, Russia's leading telecom operator Rostelecom
recently deployed the world's largest operator content delivery
network (CDN). The financial terms of the deal were not
Rostelecom deployed the CDN to primarily cater to the growing
video network traffic and also target the growing popularity of
over-the-top (OTT) services. Therefore, the installation of this
new content delivery network will not only allow Russian
consumers to enjoy higher video quality, but will also provide
them with a better user experience with reduced load time and
buffering. Hence, this capability gives Rostelecom a significant
competitive edge in the Russian telecom market.
This deployment of CDN comes at an opportune time for
Rostelecom. According to a report by Research & Markets, the
global computer and peripheral connector industry is expected to
carry forward the growth it experienced over the last five years
and grow at a CAGR of 6.2% over next five years (2012-2017). It
is expected to reach approximately $16.7 billion in 2017.
According to Ericsson, the number of global mobile
subscriptions is estimated to grow from 6.3 billion at the end of
2012 to approximately 9 billion by the end of 2017. Of these,
around 5-6 billion will be mobile broadband subscriptions.
Further, around three-quarters of a billion of these mobile
broadband subscriptions will use mobile PC/tablets/mobile
routers, and a vast majority will still use mobile phones to
access the Internet. Therefore, mobile data traffic volume is
estimated to increase by about 9 times from 2012-2017.
Rostelecom is the largest universal communications operator in
Russia, serving more than 100 million subscribers across 80
regions. Rostelecom offers state of the art fixed and mobile
telephony, broadband access, pay television and cloud solutions
to consumers and businesses.
The content delivery network centers are located across 30
major cities in the federal districts of Russia and have a speed
of more than 1 terabit per second. With increased competition
among content providers, quality and speed of delivery to
consumers has become a key differentiating factor.
With the help of CDN, Rostelecom can swiftly reach consumers
with the best quality formats including HD and 3D, without delays
or interruptions. Further, this type of guaranteed quality of
experience is vital to content providers to ensure customer
satisfaction, thereby leading to brand loyalty.
Ericsson currently has a Zacks Rank #3 (Hold). Other companies
in the industry worth considering at the moment are
Ubiquiti Networks Inc
Zhone Technologies Inc.
Hawaiian Telcom Holdco, Inc
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HAWAIIAN TELCOM (HCOM): Free Stock Analysis
UBIQUITI NETWRK (UBNT): Free Stock Analysis
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