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Voracious Web surfers, e-mailers and downloaders will use up the trans-Atlantic cables that were overbuilt early in this decade within the next five years, forcing carriers to invest in new ones in a market that's become used to adding bandwidth cheaply, according to research company Telegeography.
The telecommunications boom spawned so much new data capacity on fiber-optic cables across the Atlantic that the market has seen a supply glut and low prices for years, Telegeography said in a report released Monday. That has reduced the financial incentive for carriers to invest in new cables, but they may have to do so by 2014, said Telegeography analyst Erik Kreifeldt.
However, demand is likely to rise by 33 percent per year between 2008 and 2015, Telegeography predicts. That will eat away the over-capacity by 2014, the company said. Before that happens, someone will have to lay new cable or risk not being able to accommodate more traffic. |
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