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News and comments on community broadband networks, the communities deploying them and the technologies that support them. Published by Denise Frey and Al Bonnyman.

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Wednesday, October 29, 2003


"Report: Bandwidth Glut to End in 2005"

"Anybody who's ridden the plummeting spiral of bandwidth prices might be asking: Where does it end? The answer: 2005, when the rate of falling bandwidth pricing stabilizes, bankrupt carrier assets have been weeded out, and carriers actually contemplate increasing capital spending budgets as their revenues start to rebound. This process is already well underway."

"Taken in a historical context, the massive bandwidth glut has something in common with all technology revolutions: The early stages are characterized by oversupplies and bubbles. The second phase, which comes after the initial glut is worked off, is characterized by a new round of innovation and growth. The new report concludes that the second stage of the boom is likely to warm up in 2005 as the bandwidth/capital spending cycle begins its turn. At that point, carriers will have started ramping new services that take advantage of cheap bandwidth."



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