A study released last week by Nemertes Research suggests that Internet capacity will be unable to meet user demand by 2010 in North America and within the next three to five years worldwide. The increase in consumer demand for Internet-connected devices, including set-top boxes, portable electronics, gaming devices and mobile phones is credited for the potential problem.

Additionally, voice and streaming applications, interactive video, peer-to-peer file sharing, music downloads and other desirable network services are consuming more bandwidth each year. According to the company's research, American consumers watched more than 3.5 hours of Internet video per month and viewed more than 8.3 billion video streams.

To prevent a global slowdown of Internet services, an investment of nearly $140 billion in infrastructure improvements is needed. The firm estimates that as much as $55 billion is needed in the US alone, outpacing an already anticipated $72 billion in spending already in the works.