Video killed the telecoms star

Web 2.0, E-commerce

21 November 2007

A flood of video web content will kill broadband speeds and restrict development unless telecoms operators start investing more cash, new research suggests.

The report from Nemertes says that telecoms companies have to invest double what they have planned and without an injection of cash, web traffic will slow to dial-up speeds by 2010.

The authors say that lack of investment will not cause the internet to crash, but it will restrict innovation as new applications won't have the appropriate infrastructure.

"The next Google, YouTube, or Amazon might not arise, not because of a lack of demand, but due to an inability to fulfill that demand," the study has advised.

Researchers modelled user demand by working out how much data users could generate on their internet attached devices. They found: "It equates to each and every user deploying nearly seven hours of high-definition interactive video per day."

Advertisers are taking advantage of increased broadband speeds by replacing their static banner adverts with short videos and animations.

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