Video-Hungry Users Could Push Net To Brink: Nortel

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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.

Video-Hungry Users Could Push Net To Brink: Nortel [today.reuters.co.uk]

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From the article:
"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."

I have wondered about this, watching what Verizon is doing putting fiber into neighborhoods. It looks nuts for them to spend that kind of money on construction...unless.