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AT&T Claims Internet to Reach Capacity in 2010

An anonymous reader writes "CNET News has a piece in which AT&T claims that the Internet's bandwidth will be saturated by video-on-demand and such by 2010. Says the AT&T VP: 'In three years' time, 20 typical households will generate more traffic than the entire Internet today.' Similarly: 'He claimed that the "unprecedented new wave of broadband traffic" would increase 50-fold by 2015 and that AT&T is investing $19 billion to maintain its network and upgrade its backbone network.'"

24 of 239 comments (clear)

  1. That quote... by 26199 · · Score: 5, Insightful

    ...is so obviously wrong that he's either a) been misquoted, b) an idiot or c) misquoting someone else. Given how impressive his title is I'd say that last one is most likely...

    As for the internet "reaching capacity"... that's a pretty meaningless thing to say. At the root of all this we get the actual "story": bandwidth use is likely to increase more quickly over the next few years than ever before.

    Is anyone really surprised? The fast links are starting to be there, so people are starting to figure out ways of using them that appeal to the masses. Exponential growth is not exactly a new concept in the computer industry...

    Still. Not a good time to be an ISP.

    1. Re:That quote... by norkakn · · Score: 1, Insightful

      Infrastructure that they were largely given free of charge.

    2. Re:That quote... by HeLLFiRe1151 · · Score: 5, Insightful

      The title he has is just another name for a lobbyist. Start a myth, get other people to believe such a myth, then get congress to force people to give them more money to pay for the myth. Seems like a standard practice.

      --
      I've got 101 mod points and you can't have them!
    3. Re:That quote... by TapeCutter · · Score: 2, Insightful

      "Infrastructure that they were largely given free of charge."

      Can someone give me any insight as to what insight can be found in the GP's insightfull remark. In other words, I call bullshit.

      --
      And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
    4. Re:That quote... by kesuki · · Score: 4, Insightful

      the telcom industry has been the most radically changed by new technology, in the 1970s people had telephone service, and unless they could afford long distance rates, they called relatives long distances away only for emergencies. Today, for $20 instead of getting 20 hours of long distance phone calls you get unlimited long distance through the US and sometimes Canada, often with only a small surcharge for calling Europe, or even a plan with unlimited calls over seas for a slightly larger monthly fee..

      this is a drastic change, and it was only made possible by fiber optics, instead of laying expensive copper cables, cheap glass and cheap lasers are used instead.

      and no the network wasn't laid for free, rather the googles of the world are paying for it, because the telcom industry discovered a much deeper pocket than consumers ever had, now that so much data can be sent over such a cheap infrastructure.

      the market changed, and thanks to new technology they're rolling in money, even though more and more people are dropping land lines for wireless phones (which have also boosted telcom profits, $50 for the main plan plus $15 per phone... or more, for more minutes a month..)

    5. Re:That quote... by TapeCutter · · Score: 2, Insightful

      Yep, that's how I remeber it. I recall paying $2/min to phone the UK from Australia in 1978 when direct dial long distance was still a novelty. $2/min back then was about 0.5-1hrs worth of wages. Interestingly it was corporate communications that also paid for the initial copper infrastructure, in many places this was simply a wire joining the points along the supply chain.

      --
      And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
  2. I'm still waiting by mea_culpa · · Score: 5, Insightful

    Where is my fiber to the curb? A lot of my tax dollars were freely handed to them to do it. A decade later and what do they have to show? A report the the tubes will be clogged in less than 2 years.
    I want congressional hearings, and heads on platters.

    1. Re:I'm still waiting by colmore · · Score: 4, Insightful

      It took an act of the whitehouse to get telephones and powerlines connected to everyone in the US. If they feel like they can make more money not installing fiber everywhere, then we won't be getting fiber any time soon.

      The funny thing is that after decades of "deregulation" we have less of a market economy than ever before. The largest businesses in the country (and this is especially true in telecom) hold their positions with a massive buttress of government contracts and protectionist legislation. Government regulation doesn't do half the damage to a market that government favor brokering does.

      --
      In Capitalist America, bank robs you!
    2. Re:I'm still waiting by __aamnbm3774 · · Score: 2, Insightful

      No kidding. I get sick to my stomach hearing these stories over and over and over. Why does every single big government project have to be so ridiculously wasteful and completely void of any repercussions?

  3. Three years, eh? by Ralph+Spoilsport · · Score: 5, Insightful
    'In three years' time, 20 typical households will generate more traffic than the entire Internet today.'

    Sh'yeah - right Wally. 20 households eating up hundreds of millions of users worth of bandwidth, many many hundreds of thousands of which are already:
    a: bombing away on bittorrent
    b: watching youtube (reminds me - I need to watch last night's Bill Maher...)
    c: downloading eons of pr0n
    d: spamming the planet with adverts for C4iL1s and v14grA?

    Whatever he's smokin' - I want some. Now. It's been a long and pretty dorky day, I could use some massive hallucinogens.

    Give the horsey some sugar cubes. Aaaaah - look - it's all PAISLEY...

    RS

    --
    Shoes for Industry. Shoes for the Dead.
  4. My! That IS good news! by zmollusc · · Score: 2, Insightful

    I am heartened to hear that there will be enough quality content to saturate that amount of bandwidth.
    Or does he mean that the amount of spam and ad traffic will have grown to swamp teh intarweb?
    Or maybe Flash 74.2 will use 50 gajillion bytes/second to render static images on dilbert.com?

    --
    They whose government reduces their essential liberties for temporary security, receive neither liberty nor security.
  5. The Sky is Orange by EEPROMS · · Score: 4, Insightful

    This is a typical company FUD tactic especially when costs in reality are going down or are static (share holders don't like static income growth). In this case speeds on fibre have increased massively over the last ten years with data speeds going from cutting edge single digit gigabyte speeds to terrabyte speeds within a few years. Some may say equipment and maintenance costs have gone up but that is also FUD because fibre maintenance and distances between amplifiers has increased and over all equipment failure rates have dropped.

    1. Re:The Sky is Orange by thue · · Score: 4, Insightful

      And in any case, they live by selling bandwidth. If the need for bandwidth increases explosively they should be happy as they can sell more.

      But for some reason they insist on casting a bonanza in demand for their primary product as a problem for them.

  6. Corrections by noidentity · · Score: 5, Insightful

    In three years' time, 20 typical households will receive more traffic than the entire Internet today.'[...] [AT&T is investing $19 billion of taxpayer money it was given years back to maintain our network and upgrade our backbone network like they were supposed to do years ago.

    There, fixed that for you

  7. $19 billion out of how much? by RalphBNumbers · · Score: 5, Insightful

    AT&T's annual income was $118 billion in 2007.

    If they're only investing $19 billion over the next 2 years until 2010, that's 8% of their income they spend on maintaining and upgrading their network.
    And they make some pretty huge profits, even after all of their expenses ($11 billion in 2007)

    If they're only spending 8% of their money on network maintenance and upgrades, and raking in huge profits, while their network fails to keep up with demand (which, contrary to alarmist reports is multiplying more slowly than it used to), then they need to spend more than 8%! Doing otherwise, when you run an essential utility, ought to be considered criminal negligence imho.

    --
    "The worst tyrannies were the ones where a governance required its own logic on every embedded node." - Vernor Vinge
  8. Re:life mirrors art by The+End+Of+Days · · Score: 5, Insightful

    Please don't tell me what I want from the Internet, thank you.

  9. Re:three years time? by _KiTA_ · · Score: 2, Insightful

    'In three years' time, 20 typical households will generate more traffic than the entire Internet today.'
    I don't know about the typical household, but personally I don't think I can watch that much porn. You are being cynical, but you're quite right. In 3 years time, Vonage (and Vonage-alikes), Netflix, Amazon Unbox, TIVO, and AppleTV are going to change the average ISP user (currently a grandmother who reads her emails once a day) to something vastly more resource intensive.

    Given that AT&T, Comcast, et all have made a living based on overselling their networks for 20+ years, this is a really BIG problem.
  10. Re:I think we are safe by Anonymous Coward · · Score: 1, Insightful

    Even without throttling, the basic equation is:

    {capacity they have}/{customer they have} = {kbit/s on their ads}.

    They have full control over all 3 numbers. What is their problem exactly?

  11. This industry is pathetic by fuzzyfuzzyfungus · · Score: 4, Insightful

    You know that an industry is in a sad, sad state when it is bitching about an increase in demand for its product. Particularly when that increase in demand is coupled with a decrease in cost to supply.

    If any of those slimy bastards try and insist that the free market is working, point them to this. When you can afford to get upset when your customers want more of your product, the idea that you are vulnerable to "competition" is a bad joke(yes, I know, the economics of overselling are part of this).

    Can you imagine any real industry doing this?
    General Motors: "OMG, the interstate highway system will cause your factories to explode due to excessive demand!"
    Hollywood: "We must not have more than 5 TV channels, or the demand for made-for-TV movies will overwhelm our studio capacity!"
    Pathetic.

  12. Translated by DynaSoar · · Score: 2, Insightful

    Death of the internet. Film at 11.

    We're going to raise prices, so we need to justify it ahead of time. We'll do that by telling you it's for your own benefit. And you'll believe us.

    WAR IS PEACE
    FREEDOM IS SLAVERY
    MORE EXPENSIVE IS CHEAPER. REALLY. HONEST.

    --
    "I may be synthetic, but I'm not stupid." -- Bishop 341-B
  13. US Net Quality Sucks by dotwaffle · · Score: 2, Insightful

    I am usually a UK net consumer. My mother is on ADSL2+ and gets a line speed of about 4.5Mbits, for which she can download from a typical European (read: EU, not UK) site at about 400kB/s. She pays £18/month, but could be paying £14/month if she was on standard ADSL.

    Friends in Loughborough, UK, get 20Mbit Cable. They download at 2Mbit/s from sites all over the UK and the Netherlands, including the occasionally P2P traffic.

    Two weeks ago, I was in San Francisco. Not only does DSL suck over there, cable isn't THAT much better, and the quality of service DROPS during busy periods. Speeds were often far below that of my mother's cheap connection, and I'm not just using public wi-fi, I tried on residential connections too. Mobile net sucked too - I don't think I saw a single 3G signal anywhere.

    I'm currently on a connection at Newark, NJ, and to be quite honest, it sucks here too. Sure, it's public wifi, but speeds of 10kB/s and below are substandard to say the least.

    What I'm getting at is - people complain about UK bandwidth... And they're mostly factually incorrect. I assumed the US were just whining as US (and other) geeks do. Personal experience tells me different... The US telecomms structure sucks - and the net sucks bigger. I can't believe I'm saying this but... Take a hint from the UK, from France, from the Netherlands... From SWEDEN! Fix your internet!

  14. As Mark Twain Said by YetAnotherBob · · Score: 2, Insightful

    As Mark Twain said over 100 years ago, "Figures don't lie, but Liars sure figure."

    One more example of bad statistics used badly.

    --
    Everybody knows 3 people with my name.
  15. The translation is simple by dreamchaser · · Score: 2, Insightful

    "We need more Government subsidies and tax breaks to build out more infrastructure (suckers)."