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Web Traffic Grows 53%, Capacity More

By theWHIR.com , September 05, 2008

By David Hamilton, theWHIR.com

September 5, 2008 -- (WEB HOST INDUSTRY REVIEW) -- Global internet traffic grew by over half in the one-year period ending in mid-2008, with the US and Latin America leading expansion, growing 112 percent year-over-year, while overall capacity continues to keep ahead of demand.

According to a new study by IT research firm TeleGeography (telegeography.com), internet traffic showed a growth of 53 percent, down from 61 percent reported in the preceding one year period ending in mid-2007. TeleGeography also reported that total internet capacity grew faster than internet traffic for the past two years, leading to lower utilisation levels on many internet backbones.

A chart illustrating web traffic growth, taken from the TeleGeography report

Between 2007 and 2008, average traffic utilisation levels decreased two percentage points to 29 percent, and peak utilisation fell one percentage point to 43 percent.

However, while there was an aggregate trend toward lower utilisation of capacity, there were significant regional differences. International links to Europe and Asia utilization rates fell in 2008, but rose in North and South America, where traffic outpaced internet bandwidthdeployment . Also, while general growth in the Americas recorded large gains, traffic on internet backbones between major cities in more mature US markets rose only a modest 47 percent.

Global traffic growth has remained strong despite the declining pace of broadband subscriber growth according to TeleGeography director of research Alan Mauldin. "Broadband subscriber growth has been slowing since 2001, but the volume of traffic generated by each user grown," Mauldin said in a statement. "Traffic growth is fueled by consumer demand for video, delivered via web browsers, peer-to-peer services or streaming protocols."

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