State of the Network 2025: key TeleGeography report and global telecommunications trends

This document exposes how the connectivity ecosystem is changing in the face of the growing demand for bandwidth, the rise of artificial intelligence and telecommunications, and the expansion of new telecommunications technologies.

Understanding these dynamics is strategic for companies like InterNexa, which operate in an increasingly competitive and transforming environment.

Global traffic growth: a non-stop curve

International internet traffic continues its exponential growth. In 2023, capacity reached 1.3 Pbps, an increase of 20% over the previous year. This increase is linked to content consumption, digital development and the rise in connected users, especially in developing regions such as Africa, Latin America and Asia.

This growth also drives the need for optical transport networks capable of handling large volumes of data, as well as promoting the resilience of global networks.

The big traffic generators: content and cloud

The report highlights the role of content and cloud service providers as major traffic generators. Google, Meta, Microsoft, Amazon and Netflix account for up to 65% of international traffic on some routes, completely transforming the architecture of traditionalIP networks.

This requires operators to reinforce direct peering with these players to reduce bottlenecks and ensure an optimal experience.

Data center interconnection: the new traffic core

With the consolidation of the cloud model, data center interconnection has become the main driver of traffic. East-west traffic (between clouds and data centers) already exceeds north-south traffic (client-server), especially due to the rise of generative AI that requires massive data transfer between nodes.

Infrastructure for generative AI

The development and operation of AI models requires infrastructure with low latency, high capacity and strategic locations. This includes the implementation of regional PoPs and edge computing nodes that accelerate processes.

Physical infrastructure: submarine cables 2025

The report foresees the activation of more than 50 new submarine cables between 2024 and 2026, many funded by operator and hyperscaler partnerships. This expansion aims to improve connectivity in Latin America, Africa and other emerging regions, strengthening competition in submarine cables and reducing reliance on traditional routes.

InterNexa is already making progress in its integration to these routes to guarantee direct access and redundancy.

International connectivity pricing

IP transit prices continue to fall, albeit at a slower rate. In 2023, the reduction was between 10% and 20%, mainly in markets such as London and New York. In regions such as Latin America and Africa, although prices are higher, the gap has narrowed due to greater investment in telecommunications and the presence of content providers.

Towards more efficient networks

Margin pressure is forcing data centersto improve energy efficiency and seek operational economies through automation, segmentation and alliances.

Technology and evolution: 100G, 400G and beyond

Although 400 GigE (400G) ports are more expensive than 100 GigE ports , the cost per bit is lower, making them an efficient investment.

The price decline in 400G connections follows the same adoption curve we saw with 10G and 100G, driven by demand from large technology players and regional internet hubs.

What is expected from ISPs and operators?

The report suggests that the next few years will be key to:

• Strengthen access to content generators.

• Investing in resilient links and international capacity

• Implement distributed and scalable infrastructure

• Increase efficiency in the use of networks through intelligence and automation

All of this must be aligned with the need to support the accelerated growth of evolving Internet traffic.

Conclusion

For InterNexa, the outlook of the TeleGeography 2025 report is an opportunity to consolidate our position in the market. The infrastructure for generative AI, cost pressures, and traffic expansion demand constant adaptation.

Investing in international networks, interconnection capabilities, and improving our services is not an option, it is a necessity to remain competitive.