Video-hungry users could push Net to brink: Nortel

From Reuters:

Soaring demand for games, video and music will stretch the Internet to its limits, Canada’s Nortel Networks Corp. says, and it expects service providers will make big investments in its technology to avoid a crunch.

But the telecom equipment giant, still struggling to turn its fortunes round after the tech bubble burst, is treading carefully as it prepares for what it sees as a looming buildout of capacity by telecommunications companies.

Massive overbuild of Internet bandwidth capacity helped lead to the meltdown six years ago, and the company says it doesn’t want things to go wrong again…

But perhaps ironically, Roese also believes the capacity bubble helped service providers cope with the surge in demand for bandwidth that came with the advent of online video Web sites like YouTube.com.

“The only reason YouTube didn’t destroy the Internet is because there was a bit of a bubble in terms of excess capacity out there,” Roese said. “But, boy, don’t take that for granted.”

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