Monday, April 21, 2008

AT&T claims Internet to reach maximum capacity by 2010; skeptics see ploy to get federal aid

AT&T warns in rapidly growing bandwidth demand will max out Internet capacity in just two year's time -- by 2010. The story on CNET News drew several skeptical comments from readers who see the warning as paving the way for the big telco to ask the U.S. government to help shoulder the cost of expanding capacity.

One commenter wonders what happpened to billions in tax incentives provided under the federal Telecommunicaitons Act of 1996 that were to ensure all Americans had broadband Internet access by 2006. (Millions still don't in 2008 and continue to use the same dial up access they had when the bill was enacted more than a decade ago.) "They just took the dough and put it against their bottom line, screwing the US taxpayer yet again. NOW THEY WANT MORE?????," he wrote.

Another points out only a small fraction of the capacity of the of fiber optic cable installed during the late 1990s dot com boom is being used. "To start running out of bandwidth, this soon, is hard to believe. More likely these companies are creating FUD as an excuse to raise rates and/or cut back on service," the writer says.

No comments:

Web Analytics