Technology innovation in the wireline and wireless industry is experiencing unprecedented growth. In a few years, Gbps connectivity to the last mile eyeball networks (US wireline & wireless) will become the norm. Everyone and everything that participates in the Content Value Chain, from creation to delivery will be impacted. GPON is driving the wireline business to new heights, and the upcoming 5G, which allows mobile operators to combines LTE and unlicensed wireless spectrum into one offering, is a game changer. Gbps connectivity to each user is no longer a dream, but a reality that is five years away. Yes, there are many skeptics, especially those in the carrier business that say this type of service is years and years away. However, one must always consider the X-factor.
The X-factor is the company that completely rewrites the rules of the game. Sometimes they appear out of nowhere, and other times its gradual. Two examples are WhatsApp and AWS. WhatApp is an X-factor company that completely obliterated a billion dollar market segment for carriers, practically overnight. AWS is another X-factor company that rewrote the rules for computing. In the wireless and wireline infrastructure space, the X-factor companies are Google, Facebook, and Amazon. Google is now an MVNO. Facebook and Amazon are right behind Google. Prediction: Amazon and Facebook will launch an MVNO or WiFi service later this year. Control of the last mile eyeball networks means more control of the customer experience, from end to end. At this point, it’s no longer a choice for Amazon and Facebook, its a must, because if Amazon fails to act, they will be at a severe disadvantage compared to their biggest rival, Google.
