Fears over the future of the net as study predicts gridlock

American web analysts Nemertes Research have predicted a bleak future for Internet users as high demand for bandwidth threatens to exceed Internet capacity. 

The report revealed that consumers are increasing their demand for bandwidth  in order to run bandwidth heavy applications such as YouTube. The report suggests that the increase in consumer demand is unsustainable and will result in gridlock.

Over 8.3bn video streams took place in the US in May and 75% of internet users are said to watch 158minutes of online video. This accounts for an enormous amount of streaming which shows no sign of slowing down. The report suggests that billions are needed to be spent upgrading broadband networks and if these upgrades aren't made the Internet would become gridlocked by 2010.

If the predictions come to fruition the effect on business would be massive. Initially consumers wishing to purchase goods online would experience problems confirming online orders and may need to confirm their purchases a number of times.

It would also have a crippling effect on innovative new web applications, "The next Amazon, Google or YouTube might not arise, not from a lack of user demand but because of insufficient infrastructure preventing applications and companies emerging"

Analysts predict that the cost of upgrading the network in the US would be between $42bn and $55bn. The total global cost is set at a predicted $137bn.