Netflix is unsustainable says Deutsche Telekom

18 June 2012 |

Video streaming services like Netflix are unsustainable according to Dr Falk Bornstaedt, head of IP transit and peering at Deutsche Telekom ICSS.

Speaking at the Capacity CEE event in Prague, Bornstaedt asserted that Netflix was a “big problem” for network operators because of the bandwidth it requires.

It is now estimated that Netflix uses over 30% of internet bandwidth in the US, with a similar usage percentage thought to be emerging in the UK since the service launched in January.

Netflix plans to expand its video streaming service further in Europe during the Q4 of this year. Bornstaedt believes it is fortunate that the fragmented copyright situation in the region has prevented a faster roll-out from the company. “That gives us a bit of time to survive,” he said.

The introduction of internet termination rates, he suggests, would help carriers regain some of their losses from investing in new infrastructure. A lack of industry support worldwide, he continues, will prevent this from happening anytime soon.