January 10 2008

Internet Bandwidth Constraint

With all the IP based devices and services being rolled out to consumers, when will an average house run out of bandwidth?

Game consoles, IP phones, IPTV, including remote monitoring and surveillance all consume bandwidth while ISPs (like cable companies) try to limit bandwidth by blocking certain types of traffic.

Deloitte & Touche predicts that large network providers will not be considering expanding capacity and internet traffic may actually exceed capacity as soon as this year. Well, the statement that large network providers will not be considering expanding their capacity may not be entirely accurate.

There have been reports that Google is looking to build a global fiber-optic network. I’m not sure how much truth there is to this. Chris Sacca, head of special initiatives explained that Google is buying dark fiber to connect server farms and to “peer” with telecommunication service providers. So, I anticipate some big moves by Google in the VoIP space this year.

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