• Study Reveals User Demand for the Internet at Risk to Exceed Network Capacity in 2 - 4 Years
• Global Financial Crisis Could Impact Necessary Investment
• Video Triggering Internet Exaflood

WASHINGTON, D.C. – November 19, 2008 – Internet demand remains at a rate which could outpace capacity within the next two to four years, according to “Internet Interrupted:  Why Architectural Limitations Will Fracture the ‘Net,” a new report today from Nemertes Research.  The research is a follow-up to last year’s study “The Internet Singularity, Delayed:  Why Limits in Internet Capacity Will Stifle Innovation on the Web.”  Similar to findings in 2007, evidence compiled by Nemertes over the past year continues to point to increasing strain on the Internet’s infrastructure and that by 2012, this infrastructure may not be able to accommodate the exaflood, resulting in internet brownouts. 

The Internet exaflood, or exponential explosion of online content, resulting largely from new applications, video and increasingly heavy Web use, is causing slower responses and time outs – and ultimately may trigger an “innovation slowdown,” according to the study.  If left unaddressed, the development of next generation applications, from software to interactive video, will likely be stifled as users find Internet infrastructure incapable of efficiently delivering quality content.

“We still project demand to exceed capacity at the access layer of the Internet by 2012, and the situation is slightly worse than we originally projected in North America,” said Dr. Mike Jude, senior analyst, Nemertes Research.  
 
The financial investment required to bridge the gap between demand and capacity remains in line with Nemertes Research’s estimation in 2007, ranging from $42 billion to $55 billion in the U.S., to be spent primarily on broadband access capabilities. This figure is roughly 60-70 percent above and beyond the $72 billion service providers already plan to invest. Global investment required is estimated at $137 billion.

The study discusses how a recession could affect bandwidth supply and demand, as well as capital investment in network infrastructure saying “it’s clear that a credit crunch puts pressure on telecom companies.”

“The exponential explosion of content will persist during challenging economic times, but a prolonged global recession could starve networks of the necessary capital investment,” said Bruce Mehlman, co-chair of Internet Innovation Alliance.  “It’s more important than ever to develop a National Broadband Strategy that will encourage investment and innovations that accelerate America’s global competitiveness and address major national challenges, such as energy efficiency, health care cost and quality educational opportunity.”

The research will be discussed today at the IIA National Broadband Strategy Symposium at the Press Club in Washington, DC. The event begins at 8:30 a.m. ET.  To watch a live webcast of the Symposium, link to www.visualwebcaster.com/BroadbandSymposium.  A webcast replay will be available after the event.

The Internet Innovation Alliance

www.internetinnovation.org

Larry Irving and Bruce Mehlman founded the Internet Innovation Alliance in 2004.  The Internet Innovation Alliance is a broad-based coalition of business and non-profit organizations that aims to ensure that every American has access to broadband Internet.  IIA believes that U.S. leaders should create a comprehensive National Broadband Strategy to complement market efforts to achieve universal broadband availability and adoption.

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For more information, contact:
Lauren DuBois      
For Internet Innovation Alliance
212.446.1865
ldubois@sloanepr.com

Taking Government Run Programs Online Can Save Billions and Multiply Number Aided Shows New Paper from Harvard Professor Elaine C. Kamarck, PhD

WASHINGTON, D.C. – November 11, 2008 – The Internet will be the catalyst for advancement of programs promoting social justice over the next decade, according to new research from Harvard Professor Elaine C. Kamarck, PhD. The research paper, titled “Transforming the Fight Against Poverty:  The Internet & Anti-Poverty Strategies,” addresses how the Internet has enhanced productivity in government run anti-poverty programs and bridged physical and market isolation gaps prevalent in poor populations.

“We’re well aware that high-speed broadband Internet spurs economic development and improves education, health care and environmental sustainability,” said Bruce Mehlman, Internet Innovation Alliance co-chair. “Dr. Kamarck’s paper further illustrates the critical need for a National Broadband Strategy, which would help provide access to important, life-changing programs for all Americans, especially those living in poverty.”

Dr. Kamarck’s paper examines how various organizations have utilized the Internet to reduce the cost of government overhead and creatively improve the scope of anti-poverty programs. It also brings to life how the Internet has been used as a tool for aiding the disadvantaged – and those who help them – in navigating complicated bureaucracies. Key examples include:

• A new system for verifying wages, benefits and new employment information allowed The Department of Housing and Urban Development (HUD) to reduce improper rental housing assistance payments from $3.22 billion per year in 2000 to less than $1.3 billion in 2005. The savings recognized enabled HUD to provide assistance to more than 250,000 additional households.
• The Pennsylvania Department of Public Welfare developed The Home and Community Services Information System to better track services for people with mental retardation, saving the state more than $54 million and 92,000 hours of work and improving the quality of life for the disabled by reducing the use of unnecessary restraints.
• In 2003, The Digital Community Program launched in economically depressed Greene County, NC, providing all 6th-12th graders with Apple iBooks. The result: test scores increased exponentially, the county saw decreases in drop-out rates and teenage pregnancies and 58 percent more seniors applied for college than before program launch.
• Agronegocios, an online virtual market in El Salvador, enables farmers to post offers and demands themselves, allowing direct access to markets and bypassing intermediaries who charge higher rates. This program has opened up trade to a broader range of geographically diverse consumers.
• One NGO, the Academy for Educational Development, has implemented projects in Uganda and Mozambique where health professionals are given PDAs over which they can transmit and receive data through a wireless network, allowing them to consult with medical journals and colleagues. Four years into the project in Uganda, 175 remote health facilities serving more than 1.5 million people have access to this technology.

“Poverty has gone hand in hand with social isolation,” said Kamarck. “The Internet holds enormous potential to break this trend, overcoming barriers such as distance and access to high-quality health care and education. While the Internet has helped reduce poverty, the transformation has only just begun.”

“This research underscores how critical broadband is to improving life and commerce in America,” said Larry Irving, co-chairman of the Internet Innovation Alliance. “It also makes apparent the steps that need to be taken by government leaders to support Internet technologies, advance social justice programs and address the gaps in the adoption curve that still remain.”

The Internet Innovation Alliance (IIA), a broad-based coalition of business and non-profit organizations, is dedicated to expanding awareness about the need for universal broadband availability and adoption. The coalition recently embarked on a campaign to help decision makers understand this need, assembling a diverse group of top voices on health care, education,  technology and the environment to help move our country closer to realizing the great economic, cultural and social benefits facilitated by the broadband platform.

To read the complete paper, “Transforming the Fight Against Poverty: The Internet & Anti-Poverty Strategies” visit www.internetinnovation.org.

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About The Internet Innovation Alliance
Larry Irving and Bruce Mehlman founded the Internet Innovation Alliance (www.internetinnovation.org) in 2004. The Internet Innovation Alliance is a broad-based coalition of business and non-profit organizations that aims to ensure that every American has access to broadband Internet. IIA believes that U.S. leaders should create a comprehensive National Broadband Strategy to complement market efforts to achieve universal broadband availability and adoption.

For more information contact:
Lauren DuBois
(212) 446-1865
ldubois@sloanepr.com

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