Home / Blogs

The ISP Industry and the Financial Sector - Amazing Similarities

Don't miss a thing – sign up for CircleID Weekly Wrap newsletter delivered to your inbox once a week.
Daniel Karrenberg

In the last RIPE Labs article on this subject How Does the Internet Industry Compare?, we looked at ways to compare our industry with other industrial sectors, and identified a number of characteristics that an industry must have in order to be comparable to the Internet industry. It seems the financial sector or monetary credit industry shares many of these characteristics and in fact behaves much like the Internet industry.

The three main factors that determine the cumulative distribution of resources in both industries are:

  • centrally administered coordination policies
  • commercial strategies and competition between each industry members determines how fast each of them grows
  • the absolute size of the user base and the varying demands of individual users.

In the illustration below we provide a side-by-side comparison of equivalent portions of the EU monetary financial sector on the left and the universe of RIPE NCC IPv4 address recipients on the right.

On the right, you can see how bank assets are distributed within the 27 European Monetary Union (EMU) countries. On the left, you can see the IPv4 address distribution in those 27 countries at the end of 2008. Each country is made up of two squares:

  • The top area (yellow on the left and green on the right) shows how much of the resources is held by the top 5 organisations in that country (also referred to as CR-5).
  • The square underneath shows the country code, the total number of industry members in that country and the HHI score (Footnote: For more information on the HHI, see related pdf) for the country (space permitting).

The size of the country's area in the overall image represents the share of total Eurozone-area resources held by industry members from that particular country.

The HHI shows that the Internet industry in the majority of the countries has become more diversified over time (For some countries that is different, and that is usually where broadband Internet access service has favoured the owners of last mile facilities). In the banking industry on the other hand, market structures became more consolidated over time.

As mentioned above, there are many features these two industries have in common. For more details, please refer to the background article on RIPE Labs: Industry Comparison 2: The Internet and Financial Industry

By Daniel Karrenberg, Chief Scientist at the RIPE NCC

Related topics: Access Providers, IP Addressing, IPv6, Regional Registries

 
   

Comments

To post comments, please login or create an account.

Related Blogs

Related News

Explore Topics

Dig Deeper

Verisign

Cybersecurity

Sponsored by Verisign
Afilias Mobile & Web Services

Mobile Internet

Sponsored by Afilias Mobile & Web Services
Afilias

DNS Security

Sponsored by Afilias

Promoted Posts

Now Is the Time for .eco

.eco launches globally at 16:00 UTC on April 25, 2017, when domains will be available on a first-come, first-serve basis. .eco is for businesses, non-profits and people committed to positive change for the planet. See list of registrars offering .eco more»

Industry Updates – Sponsored Posts

2016 U.S. Election: An Internet Forecast

Afilias Partners With Internet Society to Sponsor Deploy360 ION Conference Series Through 2016

DotConnectAfrica Attends Transform Africa 2013 Summit in Rwanda

Dyn Research: CDN Adoption Across Our Customer Base

Dyn Adds Chris Griffiths As New VP of Labs

Neustar Expands Professional Services Offerings for Communications Service Providers

IP Geolocation: Four Reasons It Beats the Alternatives

Reducing the Risks of BYOD with Nominum's Security Solution

Nominum Releases New Security Intelligence Application

New Nixu NameSurfer 7.3 Series Powers the Software-Defined Data Centre

Nominum and IBM Partner Around Big Data

New Nixu Solution Slashes Cloud Application Delivery Times from Weeks to Milliseconds

Domain Name Registrations Pass 233 Million in the First Quarter Of 2012

Virgin Media Selects Nominum to Support London Underground WiFi Roll-out

Automate IPAM Set-up with Nixu NEE 1.3 Series

Nominum selected as 2012 AlwaysOn Global 250 Top Private Company

Streamline Application Delivery Processes with Nixu NameSurfer 7.2.2

Nominum Releases New Version of Carrier-Grade DHCP Software for Telecom Providers

How Secure is Your Mobile Network? And Does It Even Matter? (Webinar)

Nominum Survey of World's Leading ISPs Shows Nearly 60% of ISPs Plan to Roll-Out IPv6 by End of 2012