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Telecom Industry Divided on Whether the Internet Will 'Break'

LAS VEGAS, June 18 PRNewswire-FirstCall — NXTcomm08 — Telecommunications professionals are split down the middle on whether increasing bandwidth demands are likely to break the Internet, according to a new survey released today. The survey showed half of respondents saying bandwidth demands will eventually break the Internet, with the other half saying they won't. Of the 51% who see trouble ahead, one out of four think it could happen within two years.

The industry is also increasingly green about energy costs. 69% think energy efficiency is more important than circuit costs when constructing a network.

Straight from the builders themselves

Tellabs and research firm IDC conducted the survey of 372 telecom industry professionals, which tracked respondents' views on Internet use, the challenges providers face, and how those challenges will affect tomorrow's networks. Broadband is integral to the way users work and play and is a vital part of everyday life.

"The findings of this survey make it very plain that bandwidth is not infinite," said Lee Doyle, Group Vice President and General Manager, Network Infrastructure and Security Products and Services, IDC. "Unless there is sufficient investment into new infrastructure, the increased bandwidth demands of new advanced services could well outstrip capacity."

2008 - Keeping the traffic flowing smoothly The survey reveals that telecommunications professionals:

Are concerned the Internet will "break"

— 51% are concerned that increasing bandwidth demands will "break" the Internet ;

Think power efficiency "laps" circuit costs

— 69% say that in a network environment, energy consumption is more important than circuit costs;

Think providers will do what's necessary to clear lanes

— Of the 80% who identified a way to deal with Internet congestion, 32% think providers address spikes in traffic by prioritizing via packet inspection, while 24% believe that spikes are better handled by charging more for excess bandwidth;

See video as a road hog

— 43% believe that up to 30% of overall Internet traffic is video today, and 40% expect that to increase to up to 75% in five years;

Believe Europe drives demand for mobile broadband

— 80% expect that over the next two years, operators will face greater demand for mobile broadband services in Europe than North America;

Predict mobile TV use is in the fast lane

— 50% say that video puts the biggest bandwidth demand on mobile networks today and 81% say that will still be true in five years.

"Internet access has become essential for millions of Americans and the appetite for bandwidth is putting pressure on service provider networks," said Dan Kelly, executive vice president of global products for Tellabs. "Tellabs solutions enable providers to offer multiple levels of broadband offerings, based on the quality of service and the price that is right for their customers."

Tellabs polled industry professionals at NXTcomm08, the premier industry venue co-owned by the Telecommunications Industry Association (TIA) and the United States Telecom Association (US Telecom). Tellabs conducted the survey on June 17.

About Tellabs

Tellabs advances telecommunications networks to meet the evolving needs of users. Solutions from Tellabs enable service providers to deliver high-quality voice, video and data services over wireline and wireless networks around the world. Tellabs (Nasdaq: TLAB) is part of the NASDAQ Global Select Market, Ocean Tomo 300(TM) Patent Index and the S&P 500. http://www.tellabs.com

Tellabs(R) and Tellabs logo(R) are trademarks of Tellabs or its affiliates in the United States and/or other countries. Any other company or product names mentioned herein may be trademarks of their respective companies.

SOURCE Tellabs

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