Internet Usage Is Exploding, But So Is CapacityInternet Usage Is Exploding, But So Is Capacity

The sky isn't falling and the Internet isn't running out of capacity either.

In a report that should placate the Chicken Littles who believe the Internet is heading for a monstrous traffic jam, Internet monitor TeleGeography Research said international Internet traffic grew more than 53%, but Internet capacity grew even faster.

In a report released Wednesday, TeleGeography said Internet traffic grew 53% between mid-2007 and mid-2008, a drop from 61% in the preceding year. Internet capacity, however, grew faster than the total Internet traffic, which resulted in lower utilization levels on many Internet backbones.

"Broadband subscriber growth has been slowing since 2001, but the volume of traffic generated by each user [has] grown," Alan Mauldin, the market research firm's director of research, said in a statement. "Traffic growth is fueled by consumer demand for video, delivered via Web browsers, peer-to-peer services, or streaming protocols."

Traffic in the mature U.S. market rose a modest 47%, but in the new market between the United States and Latin America, traffic growth took off, surging 112% for the period.

TeleGeography also found that utilization on international links rose in the United States and Canada and Latin America because traffic growth there outpaced the deployment of new Internet bandwidth.

The TeleGeography findings could be meaningful input in the ongoing debate involving U.S. service providers and consumers concerning the imposition of downloading restrictions on heavy users. Some service providers maintain they will have to impose limits on some users who use too much Internet capacity.