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A flood of new video and other Web content could overwhelm the Internet by 2010 unless backbone providers invest up to US$137 billion in new capacity, more than double what service providers plan to invest, according to the study, by Nemertes Research Group, an independent analysis firm. In North America alone, backbone investments of $42 billion to $55 billion will be needed in the next three to five years to keep up with demand, Nemertes said.

The study is the first to “apply Moore’s Law (or something very like it) to the pace of application innovation on the ‘Net,” the study says. “Our findings indicate that although core fiber and switching/routing resources will scale nicely to support virtually any conceivable user demand, Internet access infrastructure, specifically in North America, will likely cease to be adequate for supporting demand within the next three to five years.”

The study confirms long-time concerns of the Internet Innovation Alliance (IIA), an advocacy group focused on upgrading U.S. broadband networks, said Bruce Mehlman, co-chairman of the group. The group, with members including AT&T, Level 3 Communications, Corning, Americans for Tax Reform and the American Council of the Blind, has been warning people of the coming “exaflood” of video and other Web content that could clog its pipes.

The study gives “good, hard, unique data” on the IIA concerns about network capacity, Mehlman said. The Nemertes study suggests demand for Web applications such as streaming and interactive video, peer-to-peer file transfers and music downloads will accelerate, creating a demand for more capacity. Close to three-quarters of U.S. Internet users watched an average of 158 minutes of video in May and viewed more than 8.3 billion video streams, according to research from comScore, an analysis group.

Internet users will create 161 exabytes of new data this year, and this exaflood is a positive development for Internet users and businesses, IIA says. An exabyte is 1 quintillion bytes or about 1.1 billion gigabytes. One exabyte is the equivalent of about 50,000 years of DVD quality video.