Tuesday, July 01, 2008

U.S. Business on Collision Course With Internet Gridlock

The U.S. Department of Labor reports that for the fifth consecutive year the most common disruption to business was the loss of broadband internet connection, with 39 per cent of businesses reporting some kind of failure. The current perception is there is a significant excess capacity in carrier networks. This has led to a reduction in investment in optical fiber installation. But according to TIA, this is incorrect. Utilizing data on historical bandwidth drivers, past fiber and equipment usage trends, and an understanding of networks, the system is near its capacity limit. Carriers in the United States are rapidly running out of bandwidth and may face capacity shortages as soon as this year. If the bean-counters react in time and significantly increase funding of fiber projects, none of the worst case scenarios is necessary.