To: MikeM54321 who wrote (5307 ) 10/10/1999 11:46:00 AM From: elmatador Respond to of 12823
Fiber Glut Is Relative Multiple European fiber nets aren't necessarily overkill says carrier services chief Kate Gerwig, tele.com As numerous service providers either race to create pan-European networks to handle increasing amounts of data and Internet traffic, an issue that permeates Telecom 99 is whether Europe will face its first bandwidth glut soon. If the number of announced build-outs proceeds as planned, Europe could have a dozen cross-country networks within a few years. Industry analysts generally believe that a bandwidth glut that would render service providers unable to capitalize on their network investments would be relatively short-lived, if it happened at all. According to Gerard Caccappolo, president of GTS Carrier Services, however, who cares even if there is a glut? The network game is about providing customers with what they need at a reasonable price, he said, plus making sure your network keeps them in business. Caccappolo, believes there is enough pent-up demand in Europe to handle the capacity that will come online from pan-European providers like GTS, MCI WorldCom, Global Crossing, Colt and Viatel. Beyond that, he believes the amount of available capacity is beside the point. The trick is in being flexible with customers. That's easy to say when you're ahead of the pack in the build-out game. Yankee Group Analyst Chris Lewis said many of the fiber buildout announcements are just that -- announcements. GTS and MCI WorldCom are both well advanced in terms of fiber, and both are starting on data centers to add value-added wholesale and retail services. Two years ago, GTS started winning wholesale carrier customers by selling E1 lines and provisioning them quickly, Caccappolo said. At the end of this year when GTS migrates to a 10 gigabit per wavelength dense wave division multiplexing (DWDM) system, it will start selling 10 gigabit wavelengths to its carrier customers. GTS claims it was the first service provider to sell individual 2.5 gigabit waves to other service providers before there was an established "wavelength" market, he said. "You make money by worrying about your customers and doing things for them that may not be standard but are what they need," said Caccappolo. GTS announced today that it is building four new data centers to provide hosting and colocation services on top of its European network.