Wanted: More Bandwidth

Forbes has a story looking at how the growing amount of Internet traffic (video, gaming, data, etc.) is forcing carriers to expand their networks, and provide some sweet business to equipment suppliers such as Nortel, Cisco and Alcatel. Infonetics projects that major carriers will spend $203.1-billion on capital expenditures this year, up 5% from last year – much of it focused on the “last mile” to serve the needs of residential and business users as opposed to long-haul networks. Infonetics expects sales of metro Ethernet equipment will triple from about $5-billion in 2005 to more than $15-billion in 2009. Nortel CTO John Roese, who’s enjoying his 15 minutes of fame, told Forbes that “It’s surprising to [carriers] that we’re starting to see bandwidth growth in a way that we maybe didn’t predict.”

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