AT&T claims their network will be maxed out in 2 years

Whenever AT&T talks up a network utilization crisis, they’re usually up to no good. Recent comments by AT&T VP for legislative affairs Jim Cicconi point to more trouble ahead for consumers at the hands of the death star. Watch your wallet!

“The surge in online content is at the center of the most dramatic changes affecting the Internet today,” he said. “In three years’ time, 20 typical households will generate more traffic than the entire Internet today.”

Cicconi, who was speaking at the event as part of a wider series of meetings with U.K. government officials, said that at least $55 billion worth of investment was needed in new infrastructure in the next three years in the U.S. alone, with the figure rising to $130 billion to improve the network worldwide. “We are going to be butting up against the physical capacity of the Internet by 2010,” he said.

He claimed that the “unprecedented new wave of broadband traffic” would increase 50-fold by 2015 and that AT&T is investing $19 billion to maintain its network and upgrade its backbone network. (Cnet)

Shed no tears for this company who continues to bilk their customer on every front. In comparison to Verizon, AT&T has been very slow to upgrade their network. In comparison to companies like France’s Orange, AT&T’s per customer investment in a simple broadband pipe is tiny. AT&T has never hesitated to invest heavily in acquiring other companies, in lobbying to maintain their monopoly, investing heavily in dubious ventures like pay TV and spending large to crush potential competitors. Instead of fishing for more government dollars, rate increases, regulations or all of the above, AT&T should invest first in delivering service. If they can’t manage to deliver adequate service with their nearly limitless resources, then they should suffer the consequences of poor management and go out of business. That may have already happened if they had any real competition.