We are Broadband. Perspectives on a Flexible Framework for Global Internet Growth Walter B. McCormick, Jr. President & CEO United States Telecom Association Presentation to ETNO-ITU Workshop 19 April 2012 Brussels, Belgium USTelecom Represents Broadband Providers • Members include more than 100 companies, spanning small rural to multinational competitors: AT&T and Verizon • Offer voice, video, Internet service • Invest tens of billions annually, supporting 11 million ICT jobs • Transitioning from switched-voice service to IP-based broadband 1 ‘88 Framework Fostered Exponential Growth of Global Internet Estimated Global Internet Protocol (IP) Traffic, 1988-2010 (Petabytes per Year) 300,000 1988 2010 250,000 • ITR revisions adopted, Melbourne, Australia • Global traffic is equivalent to 55 billion DVDs • 1.2 million times traffic since U.S. privatization began in 1994 200,000 • International connectivity for data services and flexible framework pave way for Internet growth 244,754 • Approximately 3% of total Internet traffic voice 176,227 150,000 119,137 100,000 77,171 47,902 50,000 0.003 0.006 0.012 0.02 0.05 0.11 0.21 2.2 23 64 146 9,407 336 1,002 2,359 4,858 29,107 17,722 0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Cisco Visual Networking Index (VNI) and USTelecom Analysis. 2 Under ’88 Framework Internet No Longer Primarily U.S. Phenomenon Estimated Global Internet Protocol (IP) Traffic and U.S. Share, 1988-2010 (Petabytes per Year) 1990 99% 244,754 1995 87% United States Share of Global IP Traffic 176,227 2000 119,137 43% 2010 2005 25% 77,171 31% 47,902 Global IP Traffic (Petabytes per Year) 0.003 0.006 0.012 0.02 0.05 0.11 0.21 2.2 23 64 146 9,407 336 1,002 2,359 4,858 29,107 17,722 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Cisco Visual Networking Index (VNI) and USTelecom Analysis. 2005 and later U.S. data were revised. Pre 2005 data were not revised and are estimated by applying pre 2005 growth rates to revised 2005 data. 3 Internet Backbone Is Becoming More International RenesysTM Global Internet Provider Rankings, 2008 - 2011 January 2008 Ranking – Top 13 1. 2. 3. 4. 5. 6. 7. Sprint Level 3 Verizon NTT Global Crossing Savvis AT&T 8. 9. 10. 11. 12. 13. TeliaSonera Tata Cogent Qwest Tiscali China Telecom Year End 2011 Ranking – Top 13 1. Level 3 8. Cogent 2. Global Crossing 9. Verizon 3. NTT 10. Sparkle (T. Italia) 4. Sprint 11. China Telecom 5. TeliaSonera 12. AT&T 6. Tinet 13. Savvis 7. Tata Source: RenesysTM. http://www.renesys.com/blog/2012/02/a-bakers-dozen-2011-edition.shtml#more. Absolute scores are not meaningful; relative shifts are. 4