You can draw your own conclusions about whether a higher tempo of optical capacity investments is a "bubble" or simply a prudent response to fast-growing demand, or something more nuanced. Once again, it is likely a bit of both will happen.
Excess capacity will be installed on routes that won't prove to "need" the capacity, while some of the capacity will be built at locations where it really does represent a good business case. But, as always happens, there will be over-investment on some routes.
The Wall Street Journal discussion settles none of the questions, but raises the "right" issues about substantial new demand, the importance of "location" and the "competition" from improved laser technology that could jeopardize the new cables and fibers.
Tuesday, April 3, 2012
Fiber Glut Redux?
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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