What is Overcapacity

Fiber optics forms the pivotal telecommunications technology of the contemporary global economy, offering greater speed and security than other modes. This chapter reviews the historical development of this communications technique. It then views its rapid growth within the context of contemporary globalization. Fiber’s role in contemporary urban restructuring is noted. The chapter then turns to the spatial distribution of the world’s fiber lines, noting major transatlantic and transpacific markets and newer systems. The enormous construction boom of the 1990s and early 2000s, however, led to severe overcapacity, with significant economic fallout.