2022 predictions: Big Tech’s next act will be to evolve into networks

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Big tech companies are expanding beyond websites, apps, devices, and platforms running on the internet to own parts of the infrastructure itself.

Whether it’s partnering with network operators or mobile operators for last mile or edge connectivity, or co-opting fiber installations in emerging countries, companies like Google, Amazon, Microsoft and Meta are looking to build broadband and wireless networks. .

By 2019, content providers reportedly owned or leased more than half of the world’s undersea bandwidth.

Emerging countries looking to upgrade their network infrastructure have become good starting points for expanding the aspirations of Big Tech’s network providers.

Facebook and Google announced they were funding two transpacific cables linking the west coast of the United States to Singapore and Indonesia. The contractor for Amazon and Meta Edge Cable Holdings USA has asked to operate an undersea cable connecting the Philippines to California after China Mobile (CMI) withdrew from the project.

This is an ideal scenario for players like Amazon and Facebook, allowing them to commandeer infrastructure projects in developing countries whose local telecom companies may not be able to afford to invest in expensive infrastructure.

Not only does it enable Big Tech’s continued dominance in emerging markets, but it expands their control over the physical infrastructure of the Internet and helps them ensure the presence of their content and services in new markets for years to come.

The expansion of the Google network to reach new heights

Of all the Big Tech companies, Google will continue to aggressively expand its networks. The search and advertising giant already owns 10,000 miles of undersea cable and is investing $ 1 billion over five years in Africa to support “digital transformation” in the region, including undersea cable to enable faster Internet speeds.

The submarine cable will connect South Africa, Namibia and Nigeria and Saint Helena will serve as a conduit between Europe and Africa when completed in five years. Google recently made the final stop on “Grace Hopper,” an Internet cable that spans 3,900 miles of transatlantic territory linking the United States, United Kingdom and Spain. In South America, Google’s “Firmina” is a plan to build huge fiber optic cables between the east coast of the United States and Argentina.

Google is innovating beyond fiber as it expands. One of his projects uses laser-based internet to connect cities across the Congo River in Africa. Project Taara is the 20Gbps laser beam experimental Internet conduit, which Google says has already sent 700TB of data over 3 miles with 99.9% uptime.

Big Tech will further expand connectivity

We expect Big Tech to take an accelerated role in expanding the network in 2022 in addition to laying the intercontinental cable and facilitating last mile connectivity in remote areas. Several technology companies are partnering with telecom companies and operators to expand network connectivity.

Carriers are still building their 5G networks, which are not yet generating substantial revenue to offset the investments, mainly because 5G rollout and adoption has been slowed by the pandemic and subsequent fiber shortage, as well as FAA-imposed delays in expansion of 5G in the United States.

AT&T has hired Microsoft to manage its next-generation mobile network. This is a major move in the cloud companies’ race to shut down large carriers and develop their 5G infrastructure. Microsoft will continue to leverage its relationships with the carrier and the government in 2022 to secure its share of the 5G space.

Amazon Web Services (AWS), the leading cloud service provider, has entered the 5G private network market by offering new managed services aimed at simplifying deployments for businesses.

By leveraging the ease of use and scalability of AWS, Amazon has positioned itself as a viable provider for small and medium-sized businesses with no in-house expertise or those who prefer to deal with an entity rather than an operator, supplier and an integrator system.

Expect more collaboration between Big Tech, carriers

Collaboration between operators and cloud service providers is an emerging trend and is expected to continue in 2021 with the development of 5G networks. Enterprise 5G networks are a huge opportunity that could reach $ 5.7 billion by 2024, according to IDC estimates cited by Insider.

Partnering with cloud service providers helps cover development costs. According to GSMA forecasts, operators are expected to spend $ 900 billion worldwide between 2021 and 2025 on mobile device investments, nearly 80% of which will be in 5G, and much of that spending could be run on cloud infrastructures.

Prepare for serious scrutiny by governments

Big Tech’s accelerated evolution into network carriers and service providers is likely to attract the attention of government and antitrust regulators in 2022. We expect deeper scrutiny and regulatory demands as Big Tech continues to grow its global network infrastructure and the potential for anti-competitive behavior.

Investigations could result in fines or stop or delay the expansion of network business in North America, the EU, the UK and other regions. We expect Big Tech to thrive in Asia Pacific and South America, where various network expansion projects for broadband and 5G will help accelerate network aspirations in 2022.

Wrap

Large technology companies will continue to invest heavily in network connectivity and partner with carriers and operators for cloud or last mile connectivity. Expect Amazon, Google, Microsoft and Meta to diversify their strategies in 2022 to own not only Internet content and data, but physical infrastructure and services as well.

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