Internet still booming! (hurrah)

Telegeography’s latest data shows that Internet traffic even in the mature US market is still growing at 45% per annum, although capacity is growing marginally faster.

Most interestingly, growth in traffic is now driven by end user applications, reinforcing the primacy of video.

Traffic growth is no longer driven chiefly by gains in broadband penetration, but rather by growing traffic volumes per user. The leading source of traffic is HTTP-based traffic, thanks to web-based video services like YouTube, Hulu and iTunes, rather than peer-to-peer (P2P) services.

More quotes after the jump.

According to new data from TeleGeography’s Global Internet Geography, international Internet traffic grew 53 percent between mid-2007 and mid-2008, down from 61 percent the preceding year. Traffic growth between the U.S. and Latin America was especially fast, growing 112 percent, while backbone traffic on major routes within more mature U.S. market rose 47 percent.

For the second consecutive year, international Internet network capacity grew faster than global Internet traffic growth, leading to lower utilization levels on many Internet backbones. Between 2007 and 2008, average utilization levels decreased from 31 percent to 29 percent, while peak utilization fell from 44 percent to 43 percent. The overall trend toward lower network utilization levels belies significant regional differences. While utilization on international links to Europe and Asia fell in 2008, traffic growth outpaced the deployment of new Internet bandwidth in the U.S. & Canada and Latin America.


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