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Big Tech's most important infrastructure is at the bottom of the sea
- quantified 1y agoWhy do I think that big companies like Meta will pay protection to, let's say, "nation-states that like to cut cable"? Traffic from Meta is not important to nations and economies, so these cables don't rate like the others that have been cut recently. But they are financially hugely valuable to Meta, and a couple billion a year is peanuts.
- inemesitaffia 1y agoThis is the age of CDN's and most traffic is hyper local. Only realtime data (telemetry, love video/calls) can't deal with higher latency
- quantified 1y agoSo why would Meta invest in the cables then?
- inemesitaffia 1y agoTo control their destiny. The truth is most Telcos don't have the leverage to extort the hyperscalers as the value goes more and more to them. In the end the money they are asking for isn't even a lot 20MM from META to DTAG for example. But you don't pay the Danegeld. The Telcos are still getting money for landing and transport. Just not IP transit. Ultimately the Telcos want to share the cost burdens of connectivity. This is what the companies have decided to share.