NTT America Highlights Key Industry Trends, Predictions for Remainder of 2011

NTT America, a wholly owned U.S. subsidiary of NTT Communications Corporation (NTT Com) and a Tier-1 global IP network services provider, today highlighted several key trends and upcoming industry developments in the broadband and IP transit industry.

"New technology innovations, global developments and the changing nature of how both businesses and consumers are using the Internet are all impacting our industry greatly,” said Michael Wheeler, vice president of NTT America’s Global IP Network business unit. "Now is the time for businesses to make the adjustments needed for success in the future.”

Wheeler outlined the following industry developments that will continue to affect the industry throughout the remainder of 2011:

Industry consolidation:

As IP transit providers continue to struggle with constraints on capital following the global financial crisis, industry consolidation will continue. Already this year, the industry has seen this consolidation several times over, with CenturyLink/Qwest/Savvis, Terremark/Verizon and Level 3/Global Crossing most notably.

Emerging technology:

IPv6 will remain at the forefront of industry discussions, as the transition will be extremely gradual. While NTT America’s IPv6 traffic on its NTT Communications network nearly doubled on World IPv6 Day, many content networks and service providers will still be slow to adopt the new protocol permanently.

However, the seemingly infinite amount of addresses provided by the new protocol have the potential to pave the way for new opportunities for existing technologies such as digital rights management (DRM) and radio-frequency identification (RFID) devices. It is these opportunities – instead of an IPv6 "killer app” – that could incentivize a faster transition.

Customer landscape:

Demands on the Internet will continue to grow as the application of video evolves and people continue to increasingly live their lives on the Internet via sites like Facebook, Flickr and YouTube. In fact, according to Forrester Research, 2010 marked the first year that consumers are spending just as much time online as they are in front of their televisions. Further, a late-2010 study cited in Multichannel News revealed that North American households are using a median of 4 Gigabytes per month of Internet bandwidth, rising steadily from 3 Gigabytes per month in 2009. Overall, Internet usage is transitioning from cache and storage to real-time and over-the-top (OTT) content.

Global developments:

Latin America continues to rise in prominence as the next big emerging market, and with Netflix’s recent announcement that it will begin offering service in the region, many industry researchers are suggesting that streaming content from the company could overtake cable in terms of adoption.

Additionally, in spite of the March 2011 Japanese earthquake, NTT America’s network remains strong. Its sophisticated infrastructure and high level of redundancy ensured that while its transpacific route was affected by the earthquake, actual service interruptions for its customers were negligible.

NTT America leverages the strength of the NTT Communications Global IP Network to provide the high-quality and flexible service its customers need to remain competitive and profitable regardless of current industry conditions. As a Tier-1 provider, the company provides seamless service from a single global ASN (ASN2914) over NTT Communications Global IP Network, directly connecting content providers, ISPs, CDNs and enterprises at the highest performance levels available.

NTT America provides flexible and fast dedicated access to the global Internet and the most aggressive Service Level Agreements (SLAs) in the industry. The company supports its customers by shaping IP transit bandwidth delivered over both Internet protocol version 4 (IPv4) and the next generation Internet protocol version 6 (IPv6).

About NTT America

NTT America is North America’s natural gateway to the Asia-Pacific region, with strong capabilities in the U.S. market. NTT America is the U.S. subsidiary of NTT Communications Corporation, the global data and IP services arm of a Fortune Global 500 telecom leader: Nippon Telegraph & Telephone Corporation (NTT). NTT America provides world-class Enterprise Hosting, managed network, and IP networking services for enterprise customers and service providers worldwide. For additional information on NTT America, visit us on the Web at www.us.ntt.com.

U.S. product information regarding the NTT Communications Global IP Network and its award winning IPv6 transit services may be found at http://www.us.ntt.net/, by calling 877-8NTT-NET (868-8638), or by emailing sales@us.ntt.net. Join us on Facebook at http://www.facebook.com/NTTAmerica, follow NTT America on Twitter at @NTT_America or LinkedIn at http://www.linkedin.com/companies/ntt-america for up-to-date news and announcements.

About NTT Communications Corporation

NTT Communications provides a broad range of global networks, management solutions and IT services to customers worldwide. The company is renowned for reliable, high-quality security, hosting, voice, data and IP services, as well as expertise in managed networks and leadership in IPv6 transit technology. NTT Communications’ extensive infrastructure includes Arcstar Global IP-VPN and Global e-VLAN, as well as a Tier 1 IP backbone reaching more than 150 countries in partnership with major Internet service providers, and secure data centers in Asia, North America and Europe. NTT Communications is the wholly-owned subsidiary of Nippon Telegraph and Telephone Corporation, one of the world’s largest telecoms with listings on the Tokyo, London and New York stock exchanges. Please visit www.ntt.com/index-e.html.

NTT, NTT Communications, and the NTT Communications logo are registered trademarks or trademarks of NIPPON TELEGRAPH AND TELEPHONE CORPORATION and/or its affiliates. All other referenced product names are trademarks of their respective owners. © 2011 NTT Communications