14 DAY TRIAL // US-based telecommunications giant AT&T has issued a warning regarding the fact that the Internet's current architecture will reach its maximum capacity until 2010. The study conducted by AT&T relies on the assumption that there will be no other investments in the Internet's infrastructure.
According to Jim Cicconi, vice president of legislative affairs for AT&T, the currently existing Internet servers will not be able to meet the increased demands in storage, especially in businesses related to video- and file-sharing.
"The surge in online content is at the center of the most dramatic changes affecting the internet today. In three years' time, 20 typical households will generate more traffic than the entire internet today," he claimed during the Westminster eForum on Web 2.0.
Cicconi also said that the Internet requires at least $55 billion worth of investment in order to improve its infrastructure in the US alone. Worldwide investments are expected to reach about $130 billion. "We are going to be butting up against the physical capacity of the Internet by 2010," he continued.
High-definition content is the most important factor in the wearing-out process. For instance, recent reports claim that YouTube users upload about eight hours of video content per minute, but the required bandwidth is kept to a minimum thanks to the video file's low bitrate.
"Everything will become HD very soon and HD is seven to 10 times more bandwidth-hungry than typical video today. Video will be 80 percent of all traffic by 2010, up from 30 percent today," Cicconi continued.
AT&T also said that the Internet is the creation of a group of private companies that provide the necessary infrastructure. The company executive explained that the Internet is somewhat similar to the highway networks that are maintained by private investors.