Internet Capacity: Politics or a Legitimate Threat?

Could the demand for online bandwidth outpace the Internet’s capacity? At least two industry sources suggest it will – perhaps as soon as this year.

According to a Chicago Tribune story, the hefty bandwidth requirements of online videos and other tools are gradually catching up to the Net’s collective capabilities. A Qwest executive predicts a “fundamental wall” in the coming years as more applications and media converge online (see Greg’s post from today as the latest examples).

The Tribune cites a new Deloitte report that raises a more troubling – and immediate – scenario:

A recent report from Deloitte Consulting raised the possibility that 2007 would see Internet demand exceed capacity. Worldwide, more users every day join the 1 billion people who now use the Internet. Popularity of bandwidth-hungry video makes far greater demands on the network than more basic applications like e-mail, Web browsing or even voice over the Internet.

Not surprisingly, the issue has become highly-politicized, with the telecommunications industry facing opposition from consumer groups as network neutrality is debated in Congress.