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MWC: Why Today’s Economy Needs a New Internet Fit for the Future

MWC: Why Today’s Economy Needs a New Internet Fit for the Future Image Credit: Your_photo/BigStockPhoto.com

Mobile World Congress is again sounding out the newest technological frontiers. From the question of how we will live and work with artificial intelligence (AI) through to the opportunities of 6G, Barcelona is redefining the rules of the game for the digital society and economy. A game that, in terms of the digital economy, is worth around 23% of the host country's gross domestic product, as a recent study by the Spanish digital association Adigital shows.

Digital and Internet-based applications are the basis of future value creation. There is no doubt about that, anywhere in the world. Another two facts are equally certain: On the one hand, that data-intensive AI applications, collaborative business models, and the immersive Internet will secure the prosperity of tomorrow; and secondly, that today's infrastructure is not sufficient for the applications of the future, because the speed at which data will soon have to be exchanged will make one particular metric the new currency of every digital economy: latency.

Every millisecond counts

Latency is the time that elapses during a data transfer. And wherever milliseconds matter, this makes latency a critical factor. In concrete terms: Those who travel in autonomous vehicles, for example, entrust themselves to onboard computers that have to decide within a fraction of a heartbeat where obstacles, people, or free lanes are located. The same goes when AI is supposed to ensure that people and machines work together safely in factories, or when human senses interact with immersive environments, such as the world of “spatial computing” as coined by Apple at the launch of its new Apple Vision Pro headset. Some industry experts might refer to spatial computing as “mixed reality” or “extended reality” (XR for short), but its function is clear – it provides an immersive video feed of the physical world and combines it with visual access to the Internet. Put simply, this product represents the closest thing yet to a full convergence between the digital and physical world. That’s neat, but its efficacy is completely dependent on the quality of the connection over which it’s operating.

Feeling, seeing, and hearing - our brain needs 20 milliseconds to process haptic impressions. In 13 milliseconds the central nervous system decides what our eyes show us, and in less than 1 millisecond it is clear what our ears are perceiving. When it comes to latency, our perception is incorruptible. So incorruptible that it will be the judge not only of the success or failure of the Apple Vision Pro, but also the Metaverse or any other immersive online technology. Why this is the case? Because we only fully engage with such applications when we experience them in a way that feels natural. In other words, if what we’re seeing isn’t seamlessly synchronized with our physical environment, it’s not simply annoying – we’d want a refund.

Less latency, more prosperity

So, what is needed for the next generation Internet? Whether fiber optic, mobile, or satellite network – if we want to exchange more data packets faster on the current infrastructure, then we need to pick up the pace. It is about wide-scale collaboration that places the focus on customers and applications. And not just between the network and the user, but also between different networks themselves. For example, we can do this by moving large data lines and high-performance computers closer to the places where life and work depend on intelligent applications. The goal: A dense, globally distributed, and interconnected infrastructure. An infrastructure with a future, because it can be networked on a neutral and open basis via interconnection services. This creates a robust mesh network that can provide computing and storage resources with the agility that society and the economy require – from the cloud to the server room in a factory, to the tiny edge unit in the on-board computer of a smart car.

Less latency for more prosperity – a look at the markets in which we are present with our ecosystem shows how these two concepts are connected. In Dubai, for example, latency was reduced from 200 to 3 milliseconds between 2012 and 2022. In the same period, the number of on-site data centers tripled and the number of networks increased eightfold. The same can be seen on the Iberian Peninsula: While there were 20 data centers in the Madrid metropolitan region in 2016, there are already over 30 today; 15 more are planned.

And a recent study, which we conducted together with Digital Realty and the market researchers from IDG and which we will shortly be presenting in Spain, confirms this: Wherever networks interconnect, data centers are established – and this creates jobs, strengthens the economy, and secures prosperity. Every Euro invested by the Spanish data center industry contributes 7 Euro to the gross domestic product, according to the experts at IDG.

Given that digitalization will affect every company, it will only be successful if we as an industry solve challenges collaboratively – whether as a partner, a supplier, or an Internet service provider. Only if we create the technological prerequisites today will we be equipped for the coming years of digital progress. And only then will immersive applications such as the Apply Vision Pro be a sensory and economic success.

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Author

Ivo Ivanov has been Chief Executive Officer at DE-CIX and Chairman of the Executive Board of DE-CIX Group AG since 2022. Previously, Ivanov was Chief Operating Officer at DE-CIX and was also responsible for the international business of the Internet Exchange operator as Chief Executive Officer of DE-CIX International.

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