• The global unique IP address count increased by more than 71 million, compared to the fourth quarter of 2011 (which equals a 10% growth rate).
• The global average connection speed rose 5 percent to 2.9 Mbps (quarter over quarter)
• Double-digit growth rates in Brazil (33 percent), Italy (21%), China (19%), and Russia (13%).
• Côte d’Ivoire’s connection speed increased by 23%
• 

To read the full Akamai report, click here

Let me expand upon it further. The following graph shows three models:

• 95/5 – Every 5-minute sample equals the total volume in Bytes passed during the 5 minutes divided by 300 seconds and multiplied by 8 to obtain bps. The 95th percentile of 5-minute readings over the month is calculated (e.g. sample 8,208 of the sorter 8,640 samples in a 30-day month).
• Average of daily peak-5-minutes – Every day the highest 5-minute reading is recorded. At the end of the month, the average of these peaks is calculated.
• Average of daily peak-1-hour – Every 1-hour sample equals the total volume passed during the hour divided by 3,600 and converted to bps. Every day the peak hour reading is recorded. At the end of the month, the average of these peaks is calculated.

Different ways to measure bandwidth utilization
The RED line reflects Avg Peak 5-minute
The GREEN line reflects Avg Peak-1-hour
The ORANGE line reflect 95/5

Other networks will obtain different results. It’s quite difficult to predict which model is better for whom, without actually calculating it. At DiViNetworks we usually use 95/5 to provide our capacity at half price (see here our pricing models).

What is your preferred method to calculate your bandwidth utilization?

Wholesale data capacity is quasi-commoditized (see Capacity Magazine), so market prices are known by the parties. Therefore it seems simple to calculate the value in replacing physical capacity with virtual capacity. Let’s consider an ISP with 3Gbps, paying $50/Mbps/month. By using DiViCloud, the ISP can now add 1Gbps of virtual capacity over the existing 3Gbps link. Seems simple – we provide a value of 50 x 1,000 = $50,000/month or $600,000/year.

It doesn’t end there. To add 1Gbps of traffic the ISP would typically take additional 1.2Gbps capacity, to avoid congestion. DiViCloud, on the other hand, generates virtual capacity, so there is no need to take spares; the traffic simply does not load the network. The alternative cost of 1.2Gbps physical capacity is $60,000/month or $720,000/year.

Moreover, DiViCloud’s capacity is charged by consumption, based on 95/5 model (see Dr. Peering). Physical capacity’s fees are usually for committed bandwidth, whether used or not. To compare apples to apples the ISP should consider the alternative price of burst-capacity rather than committed. Naturally this figure is higher. For example $65/Mbps/month, rendering DiViCloud’s value as $78,000/month or $936,000/year.

95/5 pricing model; Dr. Peering (http://drpeering.net/core/ch2-Transit.html)

The typical question at this stage is – “Yes, but all you are doing is deferring costs and not replacing them. As demand increases we will eventually have to purchase additional physical capacity”. Well, if this were the case, then once the physical capacity is in place the ISP could turn off DiViCloud.

Physical capacity & virtual capacity mix

Virtual capacity is equivalent to adding an upstream pipe; it provides perpetual benefit regardless of the basic physical capacity. Actually, the ISP should always plan to take about 70% of its capacity from physical upstream providers, while 30% will be provided as virtual capacity at Half Price.

Relevant Posts:

How can the IP price gap be bridged? Hint: Beam me up Scotty

Is IP Transit a commodity?

Demand for International data capacity grows 50% and more annually

Can Broadband Access Heal The World Economy? (To be discussed at G20)

According to the infographic:

• Aggregated Internet throughput is 85Tbps (639,800 GB per minute)
• Pandora pumps 704Gbps (61,141 hours of music per minute, assuming 192Kbps)
• Flickr pushes 530Gbps (20 million photos, assuming 200KB average photo)
• YouTube generates 1.3Tbps (1.3 million video views, assuming 1Mbps average bit-rate)

I have some question marks regarding the figures. Traffic reports from various sources – Sandvine, DiViNetworks and others – show that in terms of throughput, YouTube comprises 5-15% of the overall traffic, whereas Pandora and Flickr do not make it to the major traffic contributors list at all.

Internet behavior during special events is always of interest. Last week we had our eyes on the Sistine Chapel chimney and its manifestation across the Internet. When would the black smoke turn white?

The graph shows the percentage of overall HTTP objects flowing downstream in our network. Reminder – our network delivers international data capacity from 15 major Internet exchange points to over 100 ISPs in regions where capacity is expensive.

International connectivity vulnerability

How do you think this map will change two years from now?

The median bandwidth allocation per residential subscriber is quite similar in Australia and New-Zealand (161Kbps and 128Kbps respectively). The network cost per subscriber per month, however, is 50% more expensive in Australia than in New-Zealand ($41 and $27 respectively); see image below.

Monthly network cost per subscriber in Australia and New-Zealand

Even when normalizing the cost per Mbps allocated, rather than per subscriber, Australia has higher costs; see below.

Monthly network cost per Mbps allocated in Australia and New-Zealand

Transit and transport costs account for 27% and 23% in the network cost in Australia and New-Zealand respectively. These costs can be significantly eased by taking modern approaches to wholesale capacity.

Visit DiViNetworks to learn more.

We used SpeedTest‘s household download speed, Wiki‘s Internet penetration and the World Bank‘s GDP per capita.

Correlating the connected-household speed with the GDP (top graph below) you find that every 1Mbps correlates to $1,000 GDP per capita. When taking the Internet penetration into consideration, i.e. the average speed (bottom graph below), every 1Mbps correlates to $7,000 GDP per capita.

The demand on the international links is linear to the average household download speed. The higher the penetration and the wider the access network are, the larger the load is on the international links feeding the country’s demand for capacity.

Assuming bandwidth and GDP are not only correlated, but also causal – economies can grow by finding affordable means to expand their international capacity.

We are happy to offer international capacity at half the market price and take part in accelerating economies growth.