Tech giants invest heavily in Internet infrastructure

Looking to limit costs, improve performance, and guarantee capacity and performance, Google (GOOG), Facebook (FB) and other tech giants have been investing much time and money in Internet infrastructure.

This includes helping to fund submarine and underground cables, leasing "dark fiber" (unused optical fiber), and building their own networking hardware.

Google now controls over 100,000 miles of cable around the world, well above Sprint's network of under 40,000 miles.

Amazon (AMZN) and Microsoft (MSFT) have also been investing heavily in Internet infrastructure as they look to support their cloud-computing services.

However, the telecom carriers aren't happy, fearing that they'll be reduced to providing "dumb pipes" and being, in the words of Windstream (WIN) CEO Jeff Gardner, "just a construction company."

From other sites
Comments (6)
  • David de LM
    , contributor
    Comments (2) | Send Message
    The carriers are killing themselves by selling "dark fiber", ie access to infrastructure (a pipe) with no upside for the carrier as volume through that pipe goes up. Until and unless the carriers, collectively, can afford to resist the internet companies' demand for dark fiber deals, there is going to be a continued asymmetry between them and the OTT operators who rely on the infrastructure.
    17 Dec 2013, 07:22 AM Reply Like
  • manfredthree
    , contributor
    Comments (3157) | Send Message
    We expect to see CSCO join that club soon in a major way.
    17 Dec 2013, 07:26 AM Reply Like
  • gwynfryn
    , contributor
    Comments (6504) | Send Message
    France Télécom/Orange are already in, along with many other european equivalents, no doubt. Suits me!
    17 Dec 2013, 12:04 PM Reply Like
  • JC_B
    , contributor
    Comments (46) | Send Message
    If you feel you're left out, uh, why not do something about it? Don't want to be "just a construction company"? Do something different. Or stop whining.
    17 Dec 2013, 11:08 AM Reply Like
  • Yesterdays_news
    , contributor
    Comments (2157) | Send Message
    That is the only way companies like Google will keep their current ad monopolies is controlling data flow. If they control the data pipe, they then can control the advertisers on it and would have a "NSA" style probe of all their users no matter what OS and encryption you are using.


    I would never use Google infrastructure for this very reason. No matter how fast the download speeds are. You are basically giving ALL your personal information to them on a silver platter.


    People need to read the "fine print" on these provider contracts.


    I like the companies that are investing in the new Open Source mobile operating systems. Intel looks like a good investment play since they are backing the new Samsung OS.
    Google's Android system is on it's way out since there are tons of never ending lawsuits against it by Apple, and Google still controls it which Samsung and others hate.

    17 Dec 2013, 03:18 PM Reply Like
  • William Ford
    , contributor
    Comments (90) | Send Message
    too bad the infrastructure company's names were not included.
    we all know FB GOOG and the rest!
    17 Dec 2013, 11:02 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs