“With continued economic uncertainty around the world, mobile network operators are holding back on investments in their network infrastructure,” said Aditya Kaul, Practice Director, Mobile Networks, ABI Research. “Instead of buying new equipment, many operators are choosing to upgrade existing equipment, which is less profitable for the equipment vendors. We expect wireless infrastructure spending to be weak for at least two more quarters, until operators are be able to see a light at the end of the tunnel.”

Netflix stock took a nose dive as subscriber additions missed guidance by a longshot, and the company issued a loss warning to investors. Dish Network celebrated the loss of 10,000 subs; well, not really, but the subscriber loss was much lower than the anticipated 87,000 subscriber exodus. In the meantime, Internet Service Providers (ISPs) and Multi-System Operators (MSOs) in the U.S. face new competitive pressure from the North in the form of Congeco and internally from a little company named Google.

The Service Provider Evolution: Google and Facebook

As the new digital services economy unfolds, and connectivity becomes increasingly pervasive, what does the service provider of the future look like? If owning both the transport and service portfolio are defining traits, then say hello to Google and Facebook, newly minted service providers with a previously unimaginable reach.

For years, Google has been buying up fiber assets and in a location-based decision, spent nearly $2 billion to acquire a New York City building in that sits atop one of the largest fiber hubs in the U.S. This month, Facebook took the first steps toward becoming a service provider by pitching $450 million into a consortium of APAC service providers to build a 10,000-kilometer undersea fiber optic cable with 54.8 terabit-per-second transfer speeds. By managing the transport, Facebook will have greater control over the user experience (the same rationale that drove Google to buy its own undersea direct-connect to Asia two years ago).

Google, the omnipresent web and mobile company that began life as an advanced search-engine, has spent most of its years shape shifting. With each metamorphosis, Google's identity has inched closer to what would traditionally be defined as a Communications Service Provider (CSP). In fact, many have argued that Google is the service provider of the future. Today, with the launch of Google Fiber TV, the line between Google and CSP has been erased.