Rural telecoms' investment in cloud platform provider Appcore is being viewed as a strategic win for the companies and illustrates how cloud computing is becoming the next utility. Appcore will use the new funding to expand in North America and Asia, and the platform will allow the telecoms to diversify products to replace the dwindling phone business.
Sales of core routers declined for the sixth straight quarter as telecoms continued to pull back on backbone spending and divert more resources to mobile and residential broadband networks, a Dell'Oro Group report finds. According to the firm, Cisco Systems continues to lead the core router market, but the company saw a 20% drop in year-over-year sales in the fourth quarter. Third-place Huawei was the only vendor to realize gains during the quarter -- with core router revenue up 23% over Q4 of 2011.
Compared with Germany, France, Italy and Spain, the U.K. shapes up well in terms of its fixed and mobile broadband access, according to Ofcom, the U.K.'s telecom regulator. "On all measures of coverage, take-up, usage, price and choice, the country ranks between third and first in the EU5," it stated. Ofcom found that 81% of individuals in the U.K. access the Internet at least once a week, higher than levels seen in the four other leading EU nations.
Liberty Global's proposed $16 billion acquisition of Virgin Media is expected to lead to Virgin's partnering with Netflix and other companies that it previously viewed as competitors. "Our approach is to get every content asset you possibly can on the platform," Virgin Media CEO Neil Berkett said Tuesday, adding, "We've got a far greater chance as an industry by embracing over-the-top services."