Is fiber optic cable capacity too much ?

An article in the Wall Street Journal (April 3, 2012) suggests that fiber optic capacity expansion is too optimistic, pointing to 3% utilization of cable in big cities and new laser technology that expanded capacity in the past. But capacity is being added to accomodate video traffic and high speed trading demands. Will curbs on trading dampen demand and create a capacity glut ? Will new technogies expand capacity from existing cable and decrease demand for new capacity ? Will railroads with buried pipe reap benefits now ? Or is this a repeat of past fiber optic bubbles, leaving the system with excess capacity and economic turmoil?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Service Operations, Supply Chain Issues and tagged , , , , , , , , , , . Bookmark the permalink.

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