"Internet congestion and how to solve it"

Although an increase in the number of Internet users is causing some congestion on both national and local networks, the larger problem is bandwidth consumption per user is growing exponentially. A user who previously focused on email and primarily text-based sites is now pulling down graphics, audio and video on a regular basis. Demands measured in kilobits per second are rapidly growing to megabits per second.

Simply adding more backbone and local pipes won’t solve the problem. The answer lies more in network management and content distribution. For example, routing technology has a significant impact on the efficiency of traffic flow, and pushing content to the edge of networks (closer to the user) has a huge impact on backbone congestion. Given this background, how would you think about the following questions:

· Does the answer lie in network management and content distribution as stated above, or will the addition of more and wider pipes solve the bandwidth dilemma?

· Is content likely to be pushed all the way to the consumer – i.e., client machines – or is it likely to be stored within the local network?

· Will applications as well as content be pushed to the edge of the network?

· Who will be the major players in network management (i.e., which stocks should we buy)?

· Who will be the major players in content distribution (again, which stocks should we buy)?

· Which providers are likely to leverage content distribution technologies more quickly to improve their customers performance – cable MSOs, RBOCs (USWest, SBC, Bell Atlantic, etc.), satellite players, competitive local players (Covad, Northpoint, etc., or other players?

· Will the growth in capacity and efficiency of the Internet represent the demise of traditional broadcast over time? (i.e., will all entertainment and information be IP-based in the future)?