30/11/2020

Watching TV via the internet: growth has its limits

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Dialogic, on behalf of NPO, investigated the boundaries of the Dutch internet ecosystem. An increasing number of Dutch people are watching TV via the internet, also known as over-the-top (OTT) viewing. The question is to what extent the current internet ecosystem in the Netherlands can handle this growth. What would happen if everyone suddenly started watching OTT? In order to answer this question, a simulation of the Dutch internet ecosystem was created. Based on numerous sources and our extensive experience in the telecom sector, a comprehensive calculation model was developed. The conclusion of this research is that the current internet ecosystem in the Netherlands is not suitable for widespread use of OTT. At HD quality (3.5 Mbps), a viewing density of approximately 10% can be achieved at most. The exact boundaries depend on factors such as time, viewer locations, and content providers. In order to facilitate a significantly higher viewing density, almost all parts of the ecosystem need to be improved. Upgrades to the ecosystem are technically feasible, but there are significant differences in the business case. The costs for improving access networks are often very high, and implementation requires a lot of time. For core networks, both costs and lead times are smaller. Peering primarily involves a strategic question where content providers and ISPs must come to good agreements.