Broadband and third generation mobile phones will increase traffic through the UK's internet hub by ten times in the next two years, says the London Internet Exchange (Linx) chief executive, John Souter.
Souter said his staff were having to update technology plans every three months, and its latest forcast has traffic growing ten-fold over the next 24 months.
He said: "The rollout of broadband, increasing business use of the internet and the development of new internet-based consumer services such as video on demand, will see more demand for bandwidth at the exchange."
"We see no reason to believe the rate of growth will drop, even given predictions of a slow-down in economic activity. Our peak traffic flows now are three times what they were at this time last year," he added.
The exchange will spend £2m over the next year to improve its infrastructure, and is looking at new technologies such as 10Gb (gigabit) Ethernet and IPv6.
Last month Linx said the peak traffic flow at the exchange had exceeded 11.5Gb per second - the equivalent of 600,000 emails per second.
Meanwhile there are signs that the web-hosting market is stabilising. Michael Hepher, Telecity chief executive, said his company's third quarter result showed a minor improvement, with losses before tax, depreciation and amortisation of £3.4m, down from £3.7m in the last quarter.
"While market conditions remain difficult, we have not seen any further deterioration this quarter. The priority for the company is to continue to sell a wide range of colocation services to European businesses from our existing network of data centres," he said.
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